Vance Ginn Economics
  • Home
  • About
  • CV
  • Media
  • Podcast/Speeches
  • Blog/Research
  • Research
  • Teaching
    • ECON 2301-Princ of Macro
    • ECON 2302-Princ of Micro
    • ECON 3352-Energy Eco
  • Home
  • About
  • CV
  • Media
  • Podcast/Speeches
  • Blog/Research
  • Research
  • Teaching
    • ECON 2301-Princ of Macro
    • ECON 2302-Princ of Micro
    • ECON 3352-Energy Eco

Market Failure vs. Government Failure: LPP EP 41

9/14/2018

 
In this episode, I explore the following questions: What are claimed market failures? Do they exist? Can government intervention correct them? Is there such thing as government failure? It's important to ask these questions to determine whether or not market failure or government failure are the bigger problem in society. Much of this has do with the differences between Mainline Economics (my preference) and Mainstream Economics. 

This enters controversial territory in economics and politics by discussing the myths of "market failure." Supposed market failures usually include problems with markets because of asymmetric information (occupational licensing and healthcare), monopolies (utilities and EpiPen), and externalities (pollutants) that can theoretically be corrected by government intervention.  

However, I make the case that these issues in markets are generated by government intervention, not unhampered markets, and the introduction of government intrusion to attempt to correct these potential issues only expand government and make the problem worse.

Moreover, there are no free-market government solutions, which is why toxic pollutants should be dealt with by letting markets sufficiently price them or alternatively, though not recommended, by regulation. Policy solutions such as a carbon tax indirectly price externalities and the price will always be wrong because of the "knowledge problem" taught by economist Friedrich Hayek and the poor modeling that's done by so-called experts (see William Easterly's book The Tyranny of Experts). In general, the institutional structure of an economy should be supported by the government through upholding contracts, protecting people, and providing very few public goods. 

Instead of resorting to government intervention to solve supposed market failures, we should first understand that the government is likely the problem and Let People Prosper by promoting institutions with strong private property rights and fewer barriers to entry and exit markets. 

​#LetPeopleProsper

Limit Government to Support Prosperity Conversation with Chief Economist Jonathan Williams: LPP EP 27

8/9/2018

 
In this episode, I talk with Jonathan Williams, Chief Economist of the American Legislative Exchange Council (see full bio here), about the positive economic effects of the recent Tax Cuts & Jobs Act along with how the Texas Model works well but should be improved. 

Don't miss his latest Rich States, Poor States publication that gives an economic outlook for each state and then ranks them. Here is the recent commentary I co-authored with Jonathon on not believing the hype about a carbon tax.

Check out more of his work and more of the fantastic information at ALEC at the website www.alec.org. 

LPP EP 11: Carbon Tax Makes People Poor

7/2/2018

 
I recently posted a commentary with economist Bob Murphy on the failures of a carbon tax at TribTalk. Today, TribTalk posted not just one commentary by my good friend Josiah but another commentary on the need for a carbon tax.

While they claim a need for a carbon tax and that it is a free market tool, the need is highly questionable and a tax isn't free market. Fortunately, there's no political will to pass a carbon tax in Texas or in D.C., but the discussion will continue.

Instead of government intrusion and possibly making the situation worse, we should do what's been proven to work is let prices reflect whatever values determined in exchange along with technological innovation that has made us more prosperous in terms of wealth and environmental quality. 

Here's my quote in TPPF's The Cannon (read and sign-up for daily newsletter here): "While proponents of a carbon tax continue to push variations of it, there's no hiding how a carbon tax is a tool to control people in their daily lives, especially given U.S. energy-related carbon emissions are already down to 1992 levels."

​Finally, check out my recent paper on the flawed assumptions and high costs of a carbon tax.

Let People Prosper Episode 5: Carbon Tax & Negative Externalities

6/22/2018

 
Congress and state legislatures shouldn't shackle prosperity with a carbon tax because it's based on flawed assumptions and results in costly economic and environmental effects. 

You can read my work on this at TPPF research paper here, TribTalk op-ed with Bob Murphy here, and Real Clear Energy op-ed with Jonathan Williams here. 

Stay tuned for the next episode! 

Carbon Tax: A Free Market Solution to Climate Change?

5/4/2018

 
Find this full post with charts here.

Proponents of a U.S. carbon tax have been coming out of the woodworks for years, but even more recently, shouting about the need to reduce carbon dioxide emissions primarily from the use of fossil fuels to save the environment. But is it worth it? According to a recently published paper by the Texas Public Policy Foundation, the answer is no.

A carbon tax is often called a free-market approach to reducing the negative externalities, or social costs, of CO2 emissions while causing consumers little harm. In reality, a carbon tax would drastically increase the price of every good or service that requires the use of energy…so, all of them.

A free market is, by definition, a marketplace where consumers and suppliers mutually benefit through voluntarily exchange for goods or services. The proposed carbon tax is most definitely not a free market tax because a tax of any kind interferes in the market.

The Australian carbon tax, one of the most commonly cited examples of a “success,” caused the largest-ever quarterly increase in consumer energy prices. The initial cost was $23 per ton of CO2 equivalent emitted into the air and was increased to $24.15 per ton a year later. The program was so unpopular that the program was formerly ended in July 2014, just two years after it was implemented.

Estimates for the U.S. of a tax of $49 per ton of CO2 emissions indicate there could be an increase of $21 per barrel of oil and could increase the price of natural gas by $2.60/mcf, nearly doubling the current price. There’s no doubt about it: price increases that massive will cause consumer electricity prices and gasoline prices to spike, harming Americans, especially those least able to afford it, in the process.

Additionally, there’s little conclusive evidence to prove that carbon dioxide emissions cause environmental harm. Dr. John Christy, a leading atmospheric scientist, says that our current environmental models are too inaccurate to provide any reliable data. For example, Figure 1 shows 102 environmental model runs in 32 groups of global temperatures compared to the actual observed data.

All one has to do is take a cursory glance at this comparison to call the scientific community’s “consensus” into question, with the facts showing the estimated average increases were more than 2.5 higher than actual temperatures. In contrast, there is significant empirical data showing carbon dioxide emissions are associated with improved quality of life.

Figure 2 shows the massive increase in GDP per capita, population, and life expectancy that is associated with increased CO2 emissions.

Other research finds that there is a 95 percent correlation between increasing use of fossil fuels and rising economic growth over time. There is also an 83 percent correlation between rising CO2 emission levels and average life expectancy at birth.

In summary, the proposed “free-market” carbon tax is, by definition, not a free market solution. The tax would unduly burden American consumers with increased electricity and gas prices.

One of the most prominent examples of an implemented carbon tax was so unpopular that it was scrapped after just two years.

​Finally, perhaps most importantly, there is little to no evidence that there is a need to reduce carbon emissions in this country. For all of these reasons, and many more, the proposed carbon tax should be whole-heartedly rejected.

Research: Does a Carbon Tax Support Prosperity? Answer: NO

4/30/2018

 
Picture
Today The Texas Public Policy Foundation released the paper Does a Carbon Tax Support Prosperity? which examines the economics, assumptions, and results of a carbon tax. 
 
“Market decisions of millions of people generally provide better, more efficient outcomes than decisions by a select few in government,” said the paper's co-author Dr. Vance Ginn, senior economist and director of the Center for Economic Prosperity. “Calls for a carbon tax are based on flawed assumptions and climate models that have been highly inaccurate. Congress and state legislatures should not hinder our economic and environmental prosperity with a carbon tax.”
 
“We need to stop apologizing, take pride in our accomplishments, and lead,” said Megan Ingram, policy analyst for the Armstrong Center for Energy and the Environment. “History proves that removing government barriers to entrepreneurship allows more innovation to improve our well-being and clean the environment. We should not block prosperity by imposing a carbon tax."

www.texaspolicy.com/content/detail/does-a-carbon-tax-support-prosperity

​
Don't miss my discussion with @JackiDailyShow on why the #carbontax is bad policy because it's based on flawed assumptions and would result in costly economic effects, especially on the poor. http://www.stitcher.com/s?eid=54369618  #txlege @TPPF #energy

    Vance Ginn, Ph.D.
    Chief Economist
    ​TPPF
    ​#LetPeopleProsper

    Vance Ginn, Ph.D., is founder and president of Ginn Economic Consulting, LLC. He is chief economist at Pelican Institute for Public Policy and senior fellow at Young Americans for Liberty and other institutions. He previously served as the associate director for economic policy of the White House’s Office of Management and Budget, 2019-20.

    Follow him on Twitter: @vanceginn

    View my profile on LinkedIn

    Archives

    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    January 2015
    November 2013
    September 2013
    May 2013
    February 2013
    August 2012
    July 2012
    January 2012
    May 2011
    April 2011

    Categories

    All
    Biden
    Book Reviews
    Budgets
    Capitalism
    Carbon Tax
    Congress
    COVID
    Debt
    Economic Freedom
    Economic Prosperity
    Economy
    Education
    Energy Markets
    Fed
    Free Trade
    Ginn Economic Brief
    Healthcare
    Immigration
    Inflation
    Interview
    Jobs Report
    Let People Prosper
    Licensing
    Louisiana
    Margin Tax
    Medicaid
    Minimum Wage
    Occupational Licensing
    Opportunity Project
    Pensions
    Podcast
    Poverty
    Property Taxes
    RAB
    Regulation
    Rules
    School Choice
    Socialism
    Spending Limits
    Taxes
    Tax Foundation
    Testimony
    Texas
    Transparency
    Video
    White House

    RSS Feed

Proudly powered by Weebly