Economist as Movie Reviewer

Phill Swagel reviews Too Big to Fail and Inside Job.

Some Advice for the GOP

In the current debate over fiscal policy and the debt ceiling, Republicans have drawn a line in the sand: No tax increases.  But I fear they have lost sight of a key issue: As I discussed in this column, the distinction between spending and taxation is often murky and sometimes meaningless.

My advice: Amend your line in the sand to NO INCREASES IN TAX RATES.  Be willing to give up on tax expenditures if we simultaneously make current tax rates permanent--or, better yet, if we lower rates, as the Bowles-Simpson commission suggested.

Addendum: A phase-out of deductions for high-income taxpayers would count as an increase in tax rates, as the Wall Street Journal notes today on its editorial page.

M&J Trimming Blogger's Challenge

I had the pleasure of participating in M&J Trimming's Blogger's Challenge this year - which I was thrilled about, because M&J Trimming is the most spectacular trim spot in NYC.  I loved going to that store, and Jared dreaded it, because I always wanted to look for "just a few more minutes" (a.k.a. hours on end).

Each blogger received a mystery box (pictured above) and we had free reign to use it however we liked.  I have to admit, some of the materials had me totally stumped ... but I pulled it together in the end.  Head over to the M&J Blog to check out all the blogger's projects (complete with instructions!).

Here's a peak at one of my projects...

Also, leave a comment (with email contact) on the M&J Challenge 2 post for a chance to win the same box of supplies.

The Rate of Return on Human Capital

David Leonhardt reports:

The Hamilton Project, a research group in Washington, has just finished a comparison of college with other investments. It found that college tuition in recent decades has delivered an inflation-adjusted annual return of more than 15 percent. For stocks, the historical return is 7 percent. For real estate, it’s less than 1 percent.

rhythm instruments

You'll find me over at Skip to my Lou's Craft Camp today, where I'm sharing how to make a couple sets of rhythm instruments.  I hope you'll stop by!

How To Waste $600 Million

From NPR:

On today's Planet Money, we visit an underground vault that's full of money nobody wants.

The money — bags and bags of dollar coins — is the result of a 2005 law that requires the U.S. Mint to print a series of coins bearing the likeness of each U.S. president.

The problem is, people don't really like dollar coins. And there aren't enough people who are fired up about, say, Rutherford B. Hayes, to make much of a difference.

So more than 1 billion dollar coins are now sitting, unwanted, in Federal Reserve vaults around the country. By the time the program wraps up in 2016, the Fed will be sitting on 2 billion unwanted coins, according to the Fed's own estimates.

The total cost to manufacture those unwanted coins: $600 million.

Crazy Public Policy: A Case Study

Everything you need to know about ethanol.