The Keynesian Dead End →

For going on three years, the developed world's economic policy has been dominated by the revival of the old idea that vast amounts of public spending could prevent deflation, cure a recession, and ignite a new era of government-led prosperity. It hasn't turned out that way.

With the economy in recession in 2008 and 2009, we argued that some stimulus was justified and an increase in the deficit was understandable and inevitable. However, we also argued that permanent tax cuts aimed at marginal individual and corporate tax rates would have done far more to revive animal spirits, and in our view would have led to a far more robust recovery.

A better economic policy will have to await a new Congress, which we hope at a minimum can prevent punishing tax increases. But for now the good news is that voters and markets are telling politicians to stop doing what hasn't worked.

Wall Street isn't very happy...

Two "F words" →

I think Satan wants us to think our past is fixable. God wants us to know our past is forgivable.

This fits very well with the message at church this morning on forgiveness. Is our inability to forgive God, ourselves, and others caused by doubt, guilt, grudges, regret or fear?

Government Spending →

There is a very strong correlation, then, between a state voting for Republicans and receiving more in federal spending than its residents pay to the federal government in taxes. In essence, those in blue states are subsidizing those in red states. Both red and blue states appear to be acting politically in opposition to their economic interests. Blue states are voting for candidates who are likely to continue the policies of red state subsidization while red states are voting for candidates who profess a desire to reduce federal spending (and presumably red state subsidization).

Two things. First, Congress appropriates money. The executive branch doesn't. Second, Texas is not subsidized by the federal government. Woot.

Interesting numbers, flawed conclusions.

Source: Ezra Klein

Biggest Wall Street Revamp Since 1930s Approved →

Very thorough description of all aspects of the bill being sent back to the two chambers after reconciliation. While it is the biggest financial reform since the Great Depression, it might also be the largest increase in the federal government's size and power since the New Deal.

Google Wins Summary Judgement Against Viacom →

Huge blow for Viacom. Huge victory for "safe harbor".

Growing Old Friends →

Everyone applauds the hyper-connectedness we're experiencing today. The truth is we can't really leverage it in a very meaningful way. There are a chosen few that get proper attention, the rest just end up in a sort of long tail of human connections. They're relegated to an almost trivial status – only acknowledged as a scored point on your "friends" or "followers" tally.

This is why I don't have a Facebook. Yes, it's a great communication tool, but I want to be worried about the people around me, not the ones I haven't seen in years. But, after reconnecting with so many great friends at a wedding last week, I'm hopeful that the most important relationships still happen.

Email: The Variable Reinforcement Machine →

Oh, it's so true. I have my unread counts on my OS X Dashboard, and I click my mouse middle button to bring it up almost every time I stop typing.