tag:blogger.com,1999:blog-4900303239154048192.post3220047176832770114..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: Greg Mankiw on the Losses From Trade Protection: Is Government Spending Worthless?Unknownnoreply@blogger.comBlogger6125tag:blogger.com,1999:blog-4900303239154048192.post-81495420313486493862008-01-04T00:33:00.000-05:002008-01-04T00:33:00.000-05:00proving once again that to an economist the value ...proving once again that to an economist the value of a dollar in the hands of a poor man is the same as the value of a dollar in the hands of a rich man. there are no second or third order effects. and of course french cuisine is no different from mcdonalds. and rice farmers in japan are less valuable to the japanese than rice farmers in california.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-16510373505821701982008-01-03T11:00:00.000-05:002008-01-03T11:00:00.000-05:00Maybe this is a wording issue then with the word s...Maybe this is a wording issue then with the word sum messing things up. I would word it as follows: loss in overall welfare = loss in consumer surplus MINUS the sum of the gain in producer surplus and increase in tariff revenue. I guess this is why we draw graphs on the chalk boards in the class room and hope our students are following what we draw.ProGrowthLiberalhttps://www.blogger.com/profile/17138489390594441753noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-31912603648068980302008-01-03T10:18:00.000-05:002008-01-03T10:18:00.000-05:00yns beat me to the punch, but yes, this is the sta...yns beat me to the punch, but yes, this is the standard analysis. The standard analysis may be problematic, but Mankiw has not mis-stated it.kevin quinnhttps://www.blogger.com/profile/04880872194080353414noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-54676017856560227792008-01-03T10:09:00.000-05:002008-01-03T10:09:00.000-05:00I don't see the slip up. He says "the tariff ... r...I don't see the slip up. He says "the tariff ... raises some revenue for the government, these gains..." indicating the tariff revenue is counted as a gain to government, hence counted in total welfare. Of course this gain is more than offset by the losses to consumers. But it's pretty clear that the gains include an increase in producer surplus and higher tariff revenue.YouNotSneaky!https://www.blogger.com/profile/06378267534638281151noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-16299895275224047392008-01-02T22:42:00.000-05:002008-01-02T22:42:00.000-05:00do i have to read the rest?the formula seems fatuo...do i have to read the rest?<BR/><BR/>the formula seems fatuous on its face.<BR/><BR/>american industrial wealth was built on the tariff<BR/><BR/>and one would have to argue for a long time to convince me that a dollar less per consumer for some non essential, probably sub standard "good" made up for a million dollars in the hands of some "infant industry" even if there are more than a million consumers.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-31780341942933490492008-01-02T16:45:00.000-05:002008-01-02T16:45:00.000-05:00Dr. Mankiw asks: >What happens to total welfare in...Dr. Mankiw asks: >What happens to total welfare in China, as measured by the sum of consumer surplus, producer surplus, and tax revenue?<<BR/><BR/>what happened to total welfare in China when the country was opened to free trade of opium?<BR/><BR/>Jim DevineEconoclasthttps://www.blogger.com/profile/08991106027036537594noreply@blogger.com