Friday, August 7, 2009

Taxes and unemployment, the recession, health care, income, and advertising.

Krugman reports that there is no correlation between taxes and the unemployment rate. Looks like, if anything, there might be a negative correlation.

Though the specifics vary slightly, things are looking a little better now for Krugman and Hamilton.

Health care is a pretty tough issue, politically.

Political Calculations has data on how your income will increase each year.

Karl Smith continues discussion on the advertising industry. I think he's wrong when he says that people aren't easily swayed--though, they may not be so easily swayed as advertisers may think. I think people can be swayed to at least try a new cereal, even if it costs 20 cents more. They may not be swayed in buying a car. When you're talking about relatively cheap, quickly consumed goods, advertising can be powerful. Advertising may actually convince us to try a new restaurant, or a new brand of deodorant.

2 comments:

Bank Rates said...

Yeah I agree that there is no relation between unemployment and taxes. Although we can say that unemployment is mainly due to the present global recession. According to experts the situation will further deteriorate if the global recession continues for the next year.

Jdvn1 said...

Unemployment may deteriorate if the recession continues, but the likely scenario I've seen from most experts have things getting steadily better, and unemployment peaking early next year. In the Krugman link, for example, he puts the recession ending this past July or August.