Lars Doucet examines whether landlords can pass Land Value Tax on to tenants, concluding that empirical evidence supports they cannot. Longer summary

This article, written by Lars Doucet, is the second part of a series examining the empirical basis for Georgism. It focuses on the question of whether landlords can pass Land Value Tax (LVT) on to tenants. The article presents both theoretical arguments and empirical evidence, primarily from a 2017 Danish study, to support the claim that LVT cannot be passed on to tenants. It also reviews and critiques opposing viewpoints, ultimately concluding that the evidence strongly supports the full capitalization of LVT into land prices, meaning landlords bear the cost of the tax. Shorter summary

The post argues that automation and AI are unlikely to cause a sustained economic crisis, as new jobs will be created to replace those automated, though the benefits may primarily go to capital owners. Longer summary

This post discusses the potential economic impact of automation and AI, addressing concerns about job displacement and economic crisis. The authors argue that while automation will continue to change the job market, it is unlikely to lead to a sustained economic crisis in the foreseeable future. They examine historical trends in employment, current technological capabilities, and economic theories to support their argument. The post concludes that new jobs will continue to be created as old ones are automated, maintaining overall employment levels, though the benefits of automation may flow primarily to capital owners. Shorter summary

Scott Alexander follows up on his critique of a book about the Baumol effect, presenting data that challenges the book's claims about rising wages driving cost increases in education and healthcare. Longer summary

Scott Alexander follows up on his review of Tabarrok and Helland's book about the Baumol effect and rising costs in education and healthcare. He expresses disappointment with Tabarrok's response to his critique and further explores the issues. Scott presents data showing that wages in high-productivity sectors and for doctors and teachers have not risen as much as claimed, which challenges the book's central thesis. He also clarifies his understanding of how the Baumol effect can make things less affordable for individuals even if not for society as a whole. The post analyzes various data sources and graphs to support these points, maintaining a critical stance towards the original book's arguments. Shorter summary

Scott Alexander reviews a book attributing rising service costs to the Baumol effect, finding it convincing but raising some concerns about conflicting data and affordability issues. Longer summary

Scott Alexander reviews the book 'Why Are The Prices So D*mn High?' by economists Alex Tabarrok and Eric Helland, which attributes rising costs in services like healthcare and education to the Baumol effect. The authors argue that as productivity increases in some sectors, wages rise across all sectors, making labor-intensive services relatively more expensive. Scott finds their case convincing but raises some concerns, including data on stagnant real wages, conflicting information on professional salaries, and the apparent decrease in affordability of services like education, which the Baumol effect shouldn't cause. He seeks further clarification on these points to fully accept the Baumol effect as the primary explanation for cost disease. Shorter summary

Scott Alexander reviews 'Zero To One' by Peter Thiel, discussing its advice on creating monopolies, believing in secrets, and embracing definite optimism for successful startups. Longer summary

Scott Alexander reviews Peter Thiel's book 'Zero To One', which offers advice for entrepreneurs aiming to create revolutionary startups. The book emphasizes the importance of creating monopolies, believing in secrets, and embracing definite optimism. Thiel argues that successful startups should aim to escape competition by achieving monopoly-like status through proprietary technology, network effects, economies of scale, or branding. He also stresses the value of believing in undiscovered secrets and making long-term plans, contrasting this with the modern skepticism about individual reasoning and planning. The review explores Thiel's concept of definite vs indefinite optimism and the implications for society and progress. Scott reflects on the book's contrarian stance and its emphasis on the importance of being genuinely weird in a world where everyone is trying to be unconventional. Shorter summary

Scott Alexander reviews 'Inadequate Equilibria' by Eliezer Yudkowsky, a book exploring systemic failures, decision-making, and the limits of social consensus. Longer summary

Scott Alexander reviews Eliezer Yudkowsky's book 'Inadequate Equilibria', which explores why bad situations persist despite pressure to improve them, when to trust social consensus vs. personal reasoning, and the pitfalls of overusing the Outside View in decision-making. The book offers a framework for analyzing systemic failures and inefficiencies, but Scott finds its treatment of the Outside View somewhat disappointing. He recommends reading the book despite its flaws, citing its thought-provoking nature and useful conceptual toolbox. Shorter summary

Scott Alexander defends an economic principle often mocked in jokes, explaining its validity when applied to long-standing, seemingly obvious financial opportunities. Longer summary

Scott Alexander critiques a common joke about economists dismissing free money on the ground. He argues that the underlying economic principle, when phrased more realistically, is actually correct and useful. The post explains that while it's possible to find money just dropped, it's highly unlikely for a bill to remain unclaimed in a busy area for an extended period. This principle warns against seemingly easy, no-risk money-making opportunities that have been available for a while, suggesting they may be more complicated or risky than they appear. Shorter summary

Scott Alexander examines the hot dog and bun quantity mismatch as evidence that markets may not always efficiently respond to consumer preferences. Longer summary

Scott Alexander discusses the economic puzzle of why hot dogs are sold in packs of ten while buns are sold in packs of eight. He argues that this inefficient mismatch shouldn't persist in a free market, as companies should quickly capitalize on consumer demand for matching quantities. The post uses this seemingly trivial example to question broader economic theories about market efficiency and company responsiveness to consumer preferences, suggesting that industries might fail to respond to incentives for extended periods due to factors like tradition. Shorter summary