British Brain Drain

Great Britain is experiencing the world’s most dramatic brain drain, with thousands of highly trained professionals fleeing the country every year. About 10% of the UK’s professionals have left the country for better prospects elsewhere. My own department has built its strength partly on hiring academic stars from Great Britain. This highlights the danger of high tax rates. Penalize excellence, and you will get less … Continue reading British Brain Drain

The Future of Housing Prices

The runup in housing prices of the past decade is historically unprecedented, and the bursting of the housing bubble, if that’s what it is, has so far brought prices down only slightly. See the charts here. (HT: Megan McArdle) Why have prices soared since 1998? The increase seems far out of proportion from the general price level, population growth, increases in regulation, etc. UPDATE: Of … Continue reading The Future of Housing Prices

Elite Populism

Victor Davis Hanson: I was watching on television last week both Barack Obama and his wife Michelle speak about the supposedly depression-like conditions in the US, and a people strapped by students loans, near hungry, and without hope of betterment. Neither said anything of substance, though both were engaging, effective speakers. Still, never has so much talent been invested in saying so little. If you … Continue reading Elite Populism

“Stimulus”

Michelle Malkin decries the “stimulation-palooza” commencing in Washington, while the Wall Street Journal observes with dismay that the Chairman of the Federal reserve, the Bush administration, and Congress all seem to be Keynesians now. The Bush administration is proposing tax rebates of $500-1,000 per taxpayer. By the time people see this money, of course, more than a year will have passed, and economic conditions will … Continue reading “Stimulus”

Real Economic Stimulus: Cutting Taxes

In general, I’ve thought that the recent bearishness sweeping through the stock market is overblown.  The mortgage crisis, the high cost of oil, inflationary pressures, and the rest are worrisome, but none of them seem to portend serious trouble for the overall economy—unless, of course, policy makers react to them by doing stupid things.  That’s a real worry, especially since the White House, Congressional Democrats, … Continue reading Real Economic Stimulus: Cutting Taxes