Quotes of the day

In the long run, we are all better off because our dead ancestors stuck with capitalism.--William Easterly

Your driver informs you that the taxicab business isn’t just for riders; its for drivers, too. Drivers need incomes, and his income of late has been too low to enable him to pay his bills. “So,” your driver announces, “by first going out to Montauk before heading to Times Square, I’ll make a lot more money off of you than I would if I drove you directly to Times Square. You’ll get there, but just not as quickly or as inexpensively as you would if I drove you there directly. Relax and enjoy the view.” ... You’d report any such cab driver as described here to the authorities and call it a crime. But when Congress does the same thing, the producer-favoritism is typically discussed respectfully as “trade policy.--Don Boudreaux

Why am I defensive about Walmart? Let me tell you about the long-gone downtowns, my friends. Before I do, I know you have some wonderful, cheerful, perhaps tearful, stories about the downtowns of your youth. Me too. I don’t want to hear them. Let me tell you, the late downtowns in East Texas burgs were usually small stores run by locals. They generally priced things three times more than they were worth. Maybe they had to, but I don’t care. I don’t want to pay $30 for a hammer and a fistful of nails. If I wanted a banana, I had to go to another store. If I wanted to pick up a pair of shoes, another store. The parking was minimal, and the choices were few. If you worked, by the time you got off work, many of the stores were closed. Saturday, they might be open, but Sunday they were closed again. So for the working individual, the mother or father who had a kid wake up in the night with aching gums from teething, and you wanted something to make it all better, you had to wait until the next day. If you noted it was 7 p.m. and you were expecting dinner guests at 8 p.m., but forgot to buy hamburger for the meat loaf, you were, once again, screwed. If you’re poor and barely making it, or even if your income is middle-of-the-road, it’s good to get what you need at slashed prices, anytime of the day, seven days a week, in a big, ugly, over-lit store that closes only on Christmas and half a day on Christmas Eve. If you forgot to get a gift card and a six pack of tall boys, you have to think, “To hell with downtown.” What we got now in our downtown are specialty stores that provide things we can’t get at Walmart, like maybe a stuffed deer head for that special place over the mantle. The stuff we really need, hell, it’s at Walmart. Here’s something else. With Walmart in town, lots of people can be put to work, far more than downtown ever employed. Someone has to run a 24-hour store, check people out, sack groceries, push carts, place stock, work at the McDonald’s sequestered in the back. The workers have all skin colors, not something I saw a lot of downtown, except for immigrants unloading trucks.--Joe Lansdale

I have been waiting for Paul Krugman to tell me how we are going to handle the debt, once we get this recession out of the way. No, really. There’s no economist whose judgment I trust more. (About economics, that is.) I’ve been all for the stimulus and the jobs bill and even, I guess, the sundry bailouts. But don’t we at some point have to start paying the money back? And how are we going to do that? Krugman’s failure (unless I’ve missed it) to give us an answer to that question is one of the things that makes me worry. A final word to Matt Yglesias, who thinks my problem is “thinking too moralistically about the economy,” because I express doubt that we can escape without pain from the dilemma we find ourselves in. Obviously (or perhaps not) this is a prediction and not a hope. I am not in favor of pain. I just don’t see any way to avoid it. Yglesias apparently believes that we can escape our fiscal dilemma without pain. I would like to know how. And if there is such a way, why have we denied ourselves for so long? Why do we ever bother to show fiscal restraint? Why have taxes at all? Why deny ourselves anything money can buy? If $15 trillion in debt can be a freebie, why not $30 trillion or $60 trillion?--Michael Kinsley

After nearly a month-long scapegoating campaign in which Greek PM G-Pap said he would spit in the faces and skullf#@* all those who dared to buy Greek CDS (because as we have all been lied to by everyone who doesn't know the first thing about CDS, it is CDS buying not bond selling that drives spreads), with the stupidity reaching as far and wide as the Spanish and German secret services, which said they would spy on CDS traders in London and New York, Greek daily Kathimerini has just uncovered that the biggest speculator, holding 15%, or $1.2 billion of the total $8 billion in Greek notional CDS, has been a firm that operates about 2 blocks away from the parliament building in Athens - the state-owned Hellenic Post Bank (TT)!--aka Tyler Durden

This paper examines the effect of alcohol consumption on student achievement by exploiting the discontinuity in drinking at age 21 at a college in which the minimum legal drinking age is strictly enforced. We find that drinking causes significant reductions in academic performance, particularly for the highest-performing students.--Scott E. Carrell (UC-Davis and NBER), Mark Hoekstra (University of Pittsburgh) and James E. West (US Air Force Academy)