In this second of a two-part series of columns on income mobility, George Washington law professor and economist Neil Buchanan explains why we should focus on reducing economic inequality today. Buchanan warns that our focus should not be on the increased rate at which economic inequality is growing, but on its very existence. He argues that even if inequality were gradually abating on its own, as some have postulated, inactively waiting for it to do so would continue to allow millions of people to suffer the pain of poverty until that distant and hypothetical time arrives.
George Washington University law professor and economist Neil Buchanan critiques the argument that income mobility adequately addresses the issue of economic inequality. Buchanan contends that supporters of the mobility argument rely on a theory of mobility that disregards the reality of the permanent effects that poverty has on people. In a companion column next week, Buchanan will discuss where the arguments that Professor Piketty offered in his book Capital in the Twenty-First Century fit into the arguments over inequality, mobility, and redistribution.
Neil Buchanan, a law professor and economist at George Washington University Law School, critiques the so-called IRS scandal of 2013 and one conservative law professor’s persistent attempts to paint it as something it is not. Buchanan explains why the story never amounted to a scandal at all and posits that a recent op-ed by that professor arguing otherwise undermines the reputation of that that professor’s blog as a nonpartisan source of tax-related news.
Justia columnist, George Washington law professor, and economist Neil Buchanan comments on the responses by many conservatives to Thomas Piketty’s Book Capital in the Twenty-First Century. Buchanan argues that the negative reception by conservatives reveals more about them than about Piketty or his allies.
Justia columnist, George Washington law professor, and economist Neil Buchanan sharply critiques the notion of “Tax Freedom Day” and the underlying idea that paying taxes constitutes forced servitude to the government. Buchanan describes the origins of that line of thinking and explains why, if taken to its logical conclusion, it makes no sense.
Justia columnist, George Washington law professor, and economist Neil Buchanan explains why, now that the ACA’s enrollment target has been met—which means that the health care law will not collapse from lack of adequate participation—it is time for America to move on to a single-payer healthcare system in the near future.
Justia columnist and U. Washington law professor Anita Ramasastry describes two new “cryptocurrency” competitors, PotCoin and DopeCoin. Ramasastry explains how these new ventures purport to operate and predicts whether there will be a sustained demand for such services. Finally, she considers some of the legal issues these new models present.
Justia columnist, George Washington law professor, and economist Neil Buchanan debunks the common claim that we spend too much money on seniors and too little on children. Conservatives and “centrist” Democrats claim that, because of this supposed disparity, Social Security and Medicare are too generous and must be cut. In fact, Buchanan explains, our country puts a lot more of its resources into children than we generally understand, but most of it is hidden from view.
Justia columnist and U. Washington law professor Anita Ramasastry comments on recent headlines that caused a panic in the Bitcoin and cryptocurrency world: The largest Bitcoin exchange, Mt. Gox, was reporting a loss of nearly 750,000 Bitcoins currency units. (Prominent Bitcoin blogger Ryan Selkis made a post to his blog in which he described an unverified report of the loss.) This figure would be worth above $400 million at current prices. As of now, Mt. Gox, which is incorporated in Japan, has filed for insolvency protection there. Ramasastry comments on key events, and possible future reforms that could be put in place so that this situation does not recur.
Justia columnist, George Washington law professor, and economist Neil Buchanan points out important advantages of the Affordable Care Act (ACA). For instance, the ACA's decoupling of work and health insurance frees workers who had stayed in their positions simply because they needed the health insurance, rather than changing jobs and/or enjoying some leisure or time with family and friends. Buchanan suggests that freedom-loving conservatives ought to applaud that new freedom which the ACA creates. In addition, on a more theoretical level, Buchanan explains how, in his view, the imbroglio over the CBO’s report exposed the arbitrariness of conservative economics.
Justia columnist and U.Washington law professor Anita Ramasastry comments on the question whether Bitcoin—a so-called virtual peer-to-peer currency—should be regulated by the U.S. and/or States within it. (Along with the Treasury Department, California and New York are also contemplating possible legal or regulatory measures regarding Bitcoin.) Ramasastry looks at recent attempts to extend legal recognition to Bitcoin, and explains why she believes this is a good thing. She adds that while it may be good to clarify that legitimate businesses and consumers may use Bitcoin, it may be too early now to determine what, if any, further measures are needed to provide consumers with needed safety with respect to their Bitcoins.
Justia columnist, George Washington law professor, and economist Neil Buchanan thoroughly debunks the oft-cited Republican claim that Obamacare will “kill” millions of jobs. Moreover, Buchanan points to some of the important pluses of Obamacare, such as the end of “job lock,” which occurs when a worker is stuck in a job he or she wants to leave, but cannot do so due to the fear of losing his or her health insurance.
Justia columnist, George Washington law professor, and economist Neil Buchanan comments on the latest iteration of the ongoing debt ceiling melodrama. However, Buchanan points out that we need not endure all these iterations, given the basic point that the debt ceiling is flatly unconstitutional. Buchanan contends that President Obama should long ago have simply said that the debt ceiling cannot supersede the spending and taxing laws that Congress has passed. Here, Buchanan and fellow Justia columnist Michael Dorf, a Cornell law professor, offer a new analysis, contending that Congress has already guaranteed that the President will violate the debt ceiling, even if he tries not to do so.
Justia columnist, George Washington law professor, and economist Neil Buchanan comments on the subject of income inequality in America, now a key topic once again. Buchanan criticizes President Obama's belated embrace of equality, and the actions of those whom Buchanan describes as the self-styled pragmatists and centrists who dragged Democrats to the right.
Justia columnist, George Washington law professor, and economist Neil Buchanan argues that, in the inevitable 2014 debt-ceiling fight, unless President Obama changes his approach, the Fed will be forced to spend enormous political capital defending the financial system. The damage that would then ensue, Buchanan notes, could take decades to fix, if it could be fixed at all.
Justia columnist, George Washington law professor, and economist Neil Buchanan describes a way in which America can avoid another debt-ceiling crisis in 2014. Indeed, Buchanan points out that there is now a clear political path by which the Democrats could neutralize that threat. Moreover, the Constitution, he points out, is on the Democrats’ side, and their recent experience with the fight over the Senate’s filibuster rules should give the Democrats the confidence they need to move forward.
Justia columnist, George Washington law professor, and economist Neil Buchanan comments on a remedy for future debt-ceiling crises: The President, Buchanan argues, can—and should—now forestall any future hostage-taking by making it clear that, rather than failing to pay our bills in full when due, he would be willing to order that we borrow enough money to prevent our defaulting on our obligations. Moreover, Buchanan notes that the President can make the case that doing so honors the notion of individual choice, as he explains.
Justia columnist, George Washington law professor, and economist Neil Buchanan clarifies how many people’s—including many journalists’—failure to truly understand the context of the impending debt ceiling disaster causes them to misunderstand both the President’s choice between defaulting and not defaulting, and his possible strategies if he chooses to avoid default. Buchanan also explains how the Federal Reserve could play the ultimate savior’s role in the crisis. He also offers a driving metaphor to explain the situation that President Obama faces, and why he may legitimately need to break the rules to solve it.
Justia columnist, George Washington law professor, and economist Neil Buchanan expresses very strong disagreement with the economic policies of Germany’s Chancellor Angela Merkel, who recently claimed electoral victory. Buchanan contends that Merkel’s policies are bad for Europe, the United States, and the world, and carefully details the reasons behind his conclusions. Though Merkel is little known by Americans, as Buchanan notes, she will surely exert influence on the U.S., so, Buchanan warns, Americans ought to take more notice of her policies and influence.
Justia columnist, George Washington law professor, and economist Neil Buchanan sharply questions the competence and knowledge of mainstream media figures who cover economic issues. He illustrates his point with examples in which media figures’ uninformed opinions clash with the much better informed stances of economists regarding, for example, key issues such as budgeting, entitlements, deficits, health-care inflation, and the debt ceiling.