What “Buy Local” Campaigns Get Wrong

The economic thinking behind "buy local" campaigns is typically terrible. One such example is the claim that a dollar "circulates more" when you spend it locally. The rate of circulation of a dollar doesn't create any wealth. Try it out: circulate a dollar among a group of friends and feel your standard of living stay … Continue reading What “Buy Local” Campaigns Get Wrong

This Week in the Broken Window Fallacy

From Todd Crowell in New Geography: Hay fever is thought to have a measurable impact on Japan’s economy, both in a negative and a positive way. The Dai-Ichi Life Insurance Research Institute estimates that the economy lost about $3 billion due to absenteeism in the memorable hay fever year of 2005. On the other hand, … Continue reading This Week in the Broken Window Fallacy

I’m spending too much time around economists

Well, actually I think the time is well-spent.  But it is funny how often economic thinking and concepts directly intrude on my thoughts the older I get and the more time I spend with economists in person and in print.  Two cases in point, both related to the concept of opportunity cost: 1.   I was stuck at … Continue reading I’m spending too much time around economists