Sunday, June 1, 2008

Growth, Inflation, Politics, and Mistakes

Mankiw on the corporate income tax:

The ultimate payers of the corporate tax are those individuals who have some stake in the company on which the tax is levied. If you own corporate equities, if you work for a corporation or if you buy goods and services from a corporation, you pay part of the corporate income tax. The corporate tax leads to lower returns on capital, lower wages or higher prices—and, most likely, a combination of all three.

Krugman on embedded versus non-embedded inflation:

Imagine that there are two entrepreneurs, Harry and Louise, both of whom change prices only at fairly long intervals—say, once a year. Other things equal, Harry want his average price over the next year to be about the same as Louise's; Louise wants her average price to be about the same as Harry's. But their price setting takes place on different dates. (This is a metaphor for the real economy, in which people setting prices have to think about the prices of many competitors and suppliers that will prevail until they revise the price again.) In this situation, inflation can feed on itself: Harry raises his price above Louise's, because he expects her to raise her price in the future, and she does the same thing when it's her turn.

Love on the 2008 US Presidential election:

Clinton, citing Puerto Rican victory, soldiers on ... PR cannot vote in general ... Obama 48 delegates shy of lock

Biz Stone on why the above is so damn slow:

We currently use one database for writes with multiple [sources say two] slaves for read queries. As many know, replication of MySQL is no easy task, so we've brought in MySQL experts to help us with that immediately. We've also ordered new machines and failover infrastructure to handle emergencies.