Stumpy Nubs
Published 17 Sep 2018SUBSCRIBE (FREE) TO STUMPY NUBS WOODWORKING JOURNAL► http://www.stumpynubs.com
HELP KEEP OUR VIDEOS FREE! Please support those who support us by visiting their websites and having a quick look around-
Fisch Tools: https://affinitytool.com/brands/fisch
Clear Vue Cyclones (Use coupon codeNUBS5):
iGaging Digital Tools: http://www.chipsfly.com/category/L.html
Charles Moore published the third volume of his Thatcher biography last year (I’ve read the first two volumes, but not the final one). In Quillette, Johan Wennström reviews the book:
This November will mark 30 years since former British Prime Minister Margaret Thatcher left office. After she had narrowly failed to secure an outright win in a 1990 leadership contest triggered by a challenge from Michael Heseltine, her former defense secretary, the majority of Thatcher’s Conservative cabinet colleagues withdrew their support and forced her departure following what she described as “eleven-and-a-half wonderful years.”
For Thatcher, the “coup,” as she referred to the events of 1990, had been unexpected. But as journalist Charles Moore explains in the third and final volume of his authorized Thatcher biography, Herself Alone (2019), the writing had been on the wall for some time. Thatcher’s style, which some considered abrasive, had turned senior figures against her. And many younger party members believed that if the party were to win a fourth consecutive election victory, in 1991 or 1992, it should be under a new standard-bearer (who turned out to be John Major).
An important underlying factor was the long-standing policy conflict regarding the European Community (or the EC as the European Union was then known), which pitted Thatcher against many in her own government, as well as against continental European leaders and George H. W. Bush’s White House. She was perceived as a “Cold Warrior” who was overly cautious in regard to the future of Europe, especially the project of European political and economic integration.
To some modern observers, that criticism of Thatcher remains apt. In a recently published book on international relations authored by former Swedish Prime Minister Carl Bildt, The Age of Disorder (Den nya oredans tid, 2019), Thatcher’s reluctance to endorse a speedy German reunification is attributed to her obsolete anxieties regarding “the dangers of a strong Germany.”
Moore’s latest volume, which focuses extensively on Thatcher’s views about Europe, shows her in a more nuanced light. In some ways, in fact, she was actually ahead of her time. And some of the current problems facing Europe, and the West more generally, might have been mitigated had her opinions been given a more generous audience.
Unfortunately, I don’t have the money for new hardcover books these days so I’ll have to wait until this volume gets a paperback edition or [shudder] get a library card and wait for it to show up at the local library.
History Buffs
Published 15 Aug 2015Apparently, Orlando Bloom was suffering from a nasty cold when shooting a big chunk of this movie. I think it shows … Anyway, it’s time for a brand new episode of History Buffs! Enjoy guys and thank you so much for all your support!
A final line of argument is that these public assistance programs have become de facto subsidies for low-wage employers. For a program to be a subsidy for an employer, it needs to lower wages. Is this plausible for the public assistance programs considered? I think it is for the EITC [Earned Income Tax Credit], but not for other programs. Depending on where one is on the EITC schedule, that policy can increase work incentives. And there is a lot of empirical evidence showing EITC encourages labor force participation. An unintended consequence of that labor supply response, however, is that employers capture some of the tax subsidies. This can happen in a simple supply and demand framework, where an increased labor supply to the market drive wages down. This can also happen in a bargaining context where the size of the bilateral surplus expands from lower taxes, and employers capture some of this increased surplus. Work by UC Berkeley’s Jesse Rothstein suggests that for every $1 of transfer to workers using the EITC, post-tax income rises only by $0.73 because of employer capture.
But what about other programs like food stamps or housing assistance? These means tested public assistance programs are not tied to work, and we should not expect them to lower wages. Let’s take food stamps, which are available to eligible families whether or not a family member works or not. Indeed, when people are not working, they are more likely to be eligible for food stamps since their family incomes will be lower. Therefore, SNAP [Supplemental Nutrition Assistance Program] is likely to raise, and not lower a worker’s reservation wages — the fallback position if she loses her job. This will tend to contract labor supply (or improve a worker’s bargaining position), putting an upward pressure on the wage. Whether or not wages are increased is an empirical matter: there is evidence that the initial roll-out of the food stamps program across counties in the 1970s lowered work hours, consistent with an increase in the reservation wage. The key point is that it is difficult to imagine how food stamps would lower wages. And if they don’t lower wages, they can’t be thought of as subsidies to low wage employers. The same logic applies to other means tested programs like energy or housing assistance. Moreover, these conclusions hold in a wide array of models of the labor market, including ones that emphasize bargaining or efficiency wage concerns.
Arindrajit Dube, “Public Assistance, Private Subsidies and Low Wage Jobs”, Arindrajit Dube, 2015-04-19.
Powered by WordPress
