Comments on: Conditions Under Which I Would Permit More Confiscation of My Income http://theunbrokenwindow.com/2009/09/12/conditions-under-which-i-would-permit-more-confiscation-of-my-income/ The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design. - F.A. Hayek Thu, 24 May 2012 03:09:54 +0000 hourly 1 http://wordpress.org/?v=3.0.3 By: I Love You, Wait, I Hate You, Wait … Oh, Forget It | The Unbroken Window http://theunbrokenwindow.com/2009/09/12/conditions-under-which-i-would-permit-more-confiscation-of-my-income/comment-page-1/#comment-9331 I Love You, Wait, I Hate You, Wait … Oh, Forget It | The Unbroken Window Fri, 18 Sep 2009 09:57:38 +0000 http://theunbrokenwindow.com/?p=1306#comment-9331 [...] other day I wrote a post discussing some problems with the government and popular stance on monopoly and anti-trust. Reflecting on it in the car this morning, it occurs to me how absolutely inconsistent these views [...] [...] other day I wrote a post discussing some problems with the government and popular stance on monopoly and anti-trust. Reflecting on it in the car this morning, it occurs to me how absolutely inconsistent these views [...]

]]> By: harry http://theunbrokenwindow.com/2009/09/12/conditions-under-which-i-would-permit-more-confiscation-of-my-income/comment-page-1/#comment-9178 harry Sun, 13 Sep 2009 04:22:34 +0000 http://theunbrokenwindow.com/?p=1306#comment-9178 Correction: I meant $.19 per gallon. Does missing a few decimal points to the left qualify me for a Czar job? Correction: I meant $.19 per gallon. Does missing a few decimal points to the left qualify me for a Czar job?

]]> By: harry http://theunbrokenwindow.com/2009/09/12/conditions-under-which-i-would-permit-more-confiscation-of-my-income/comment-page-1/#comment-9177 harry Sun, 13 Sep 2009 04:20:06 +0000 http://theunbrokenwindow.com/?p=1306#comment-9177 Back in Economics 101, it seemed to me that nearly all of what we were taught was about the gap between "perfect" competition and both monopolistic competition and oligopolistic competition. The professor would draw the graph showing a big gap showing how we were all cheated by the monopolists. In retrospect, Samuelson and the economics department were speaking to a future generation of regulators and antitrust lawyers, who were going to learn how to quantify that gap, I assume in Econ 433. Meantime, on the parkway south of town, we had a gas war going on, with regular fetching $19 per gallon. (OK, that was dollars back then, but even assuming the government has debased the currency by a factor of 10, that would still be $1.90 for regular.) I remember raising my hand and asking if ologopolists had such power, how come you could buy a gallon of gas for six cents less than eight chocolate donuts at the thrift store, which was the only other item I could think of. I do not remember the answer to the question, but I am sure it was not answered for me. Back then, I knew hardly anything, and was not about to challenge the premises of the college's economics department, let alone my professor. Perhaps it would be time for departments of economics to devote less time on the evils of trusts and Standard Oil, and more on the economics of rent-seeking from the state, and the relative benefits between freedom and state control of our lives. Back in Economics 101, it seemed to me that nearly all of what we were taught was about the gap between “perfect” competition and both monopolistic competition and oligopolistic competition. The professor would draw the graph showing a big gap showing how we were all cheated by the monopolists.

In retrospect, Samuelson and the economics department were speaking to a future generation of regulators and antitrust lawyers, who were going to learn how to quantify that gap, I assume in Econ 433.

Meantime, on the parkway south of town, we had a gas war going on, with regular fetching $19 per gallon. (OK, that was dollars back then, but even assuming the government has debased the currency by a factor of 10, that would still be $1.90 for regular.)

I remember raising my hand and asking if ologopolists had such power, how come you could buy a gallon of gas for six cents less than eight chocolate donuts at the thrift store, which was the only other item I could think of.

I do not remember the answer to the question, but I am sure it was not answered for me. Back then, I knew hardly anything, and was not about to challenge the premises of the college’s economics department, let alone my professor.

Perhaps it would be time for departments of economics to devote less time on the evils of trusts and Standard Oil, and more on the economics of rent-seeking from the state, and the relative benefits between freedom and state control of our lives.

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