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February 10, 2005



There are many critiques that one could level at the author (who is...?) of the letter to Feldstein.

For one, the author seems to be some sort of loon trapped in the days of 'closed economy macro' era 1980, rather than the 'open economy' macro that everyone of note has been involved in since the 90s.

That is, he takes no note of the US economy in its proper international context. In his world, all production, consumption, saving, and investment takes place inside US borders.

But the firms listed on the stock exchange have large and growing fractions of their production and income in foreign countries. These countries often have much less capital per worker than the US, thus the return on capital is much larger there. This fact also splits the perfect correlation between labor income and capital income that is in the author's analysis.


CNN on Wilson:



New Editor on Italian journo (not buon journo, bad journo!)


Noam Scheiber on bankrup

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