Chinese Real Estate Weakness

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In China, signs are spreading that a property collapse has begun. Years of over-building appear to have caught up with the market’s ability to absorb new supplies. Confidence in the market may be deteriorating, especially as the People’s Bank attempts to rein in excessive monetary expansion. Sounds eerily familiar… A collapse of the Chinese economy would have worldwide repercussions. 

Information Is Not Free And Seldom “Perfect”

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Economists invoke “perfect information” as a condition underlying ideal market outcomes. That assumption is usually unrealistic, but imperfect information no more justifies government intervention than any other resource scarcity. The same can be said of most information asymmetries, though it may depend upon the reasons. The post at the link below is described as “wonky” by its author, Don Boudreaux. So here is: A Note on Economic Theorizing and “Imperfect” Information

Second Amendment as Ordinary Constitutional Law

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That little dog is sure to increase the popularity of this post! Here’s the abstract and free download link to a Glenn Reynolds article in the Tennessee Law Review. He provides an interesting history of judicial interpretation of the second amendment and its now widespread interpretation as conferring an individual right of self-defense. One nice passage: “This indicates that individual citizens’ lives and autonomy are themselves, in some important aspects, beyond the power of the state to sacrifice. Does that have implications for other, unenumerated rights? It just might.” He also covers the racial underpinnings of some historical gun control initiatives. 

Pro-Business or Pro-Market?

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There is a big difference. The GOP can’t have it both ways anymore. The Grand Old Party would be ever so much grander if they’d shutter the rents dispensary (well, and a few other roles they favor for big government). Dolling out favors to politically-connected business elites really douses my libertarian lamp. That includes bailouts and escapades into regulation that only business behemoths can withstand.

Demanding Cultural Change By Fiat

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Megan McArdle says Government Can’t Fix Real Gender Pay Gap, and she’s right. As usual, her discussion is thoughtful. She acknowledges that “almost all of the gap (in average wages by gender) is driven by choice of occupation, and working hours, with an emphasis on working hours.” Of those decisions and any remainder, she thinks, “you can make a strong case that at least some of these decisions are driven by residual cultural sexism… But I also have to ask: What specific thing are we supposed to enact to fix this?”

There are no good choices, and neither the Paycheck Fairness Act nor Obama’s executive order on equal pay by federal contractors will accomplish much besides grandstanding and encouraging frivolous lawsuits. McArdle concludes: “To the extent that it’s needed, the remaining work to be done on the pay gap has to be done in places where the government, or indeed any explicit policy, has difficulty going: inside families, or the subconscious recesses of our minds.”

Global Yarning

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Two interesting opinions on aspects of the climate change debate on wsj.com today. The first covers the unmistakable change toward more guarded assertions on the science of climate change in the IPCC’s latest report: Second Climate Thoughts. Less alarmism is good, even if the responsible parts of the discussion were buried in the document after a lengthy summary containing juicy alarmist headlines. At least some honest inquiry has begun to influence the IPCC.

The second wsj piece discusses the bias against traditional energy sources holding sway at U.S. colleges and universities. It laments the failure of those institutions to direct students toward fields having anything to do with fossil fuels, despite the lucrative nature of careers in that area: How Climate Change Conquered the American Campus.