Why Are We Bashing Buffett?
What is altruism? Warren Buffett recently proposed a surtax on the very wealthiest Americans, including himself to help reduce the federal deficit. (This is a mild version of Obama’s perfectly reasonable proposal to tax family incomes above $250,000, i.e., fewer than 2% of families.) Buffett is being altruistic—the tax will reduce his net income. I always thought altruism was desirable, yet I’ve seen Buffett lampooned in the press.
I suppose one can argue that he’s really doing this to preserve the value of Berkshire Hathaway stock. (The same argument might apply when I donate blood—perhaps I do it because it makes me feel good, not to help others.) But: it’s a pretty sorry state of the world when someone offers to reduce his circumstances in order to help his country and is mocked.
Hurricane Shopping in NYC: And Then There Were But Keychain Flashlights Left
A weird week in New York City is only getting weirder. On Tuesday, for the first time since 1884, earthquake tremors were felt in the Big Apple; which, not surprisingly, came with no warning from earthquake prognosticators. Now, NYC is bracing for its first hurricane since 1985. (Any readers game for trying to calculate the odds of NYC getting hit by an earthquake and a hurricane in the same week, I’d love to see your estimates.) As I write, I’m watching out my window as people in the building across the street tape their windows. Which reminds me, I need duct tape!
Now that the MTA has announced that all NYC public transportation will be shut down beginning on noon Saturday, people are out in force doing some last minute hurricane shopping. So we decided to venture out and do a little reporting on what’s left, and what’s not. Read More »
Freakonomics Radio Hits No. 1 on iTunes
This week, Freakonomics Radio hit No. 1 on iTunes as the top downloaded podcast. We’re thrilled, and of course, humbled. So, as always, thanks for listening everybody!
Bernanke Speaks. But What Did He Say?
So Ben Bernanke finally spoke today. And as I predicted yesterday, all the early headlines are expressing disappointment that Ben didn’t announce QE3. But this disappointment is misplaced. New policy announcements are for the Federal Open Market Committee, not the Chairman. The most he could do is give an indication of where he thinks things will go.
And he thinks they should ease policy. Soon.
Here’s the case he made:
1. Unemployment is too high. This is the usual argument for easing monetary policy.
2. Inflation is below target. The usual constraint preventing this doesn’t bind.
3. The possibility that high long-term unemployment may persist “adds urgency to the need to achieve a cyclical recovery in employment.” There’s a special reason to be more aggressive. Read More »
and 
. If you haven’t seen it yet, the movie features Steven Levitt and Stephen Dubner, and was made by a dream team of documentary directors. Paste Magazine named it one of the 