Justin -- the efficiency argument doesn't change if Kim K loves pumpkin pie rather than hates it. She still has the most money and can outbid everyone for the last piece. But at least it's going to someone who appreciates it and won't just feed it to the dog under the table (woof!). But if we think about next year's Thanksgiving dinner, doesn't allowing Kim to pay more for the last piece of pie incent mom to purchase more pie for next year? Maybe she can sell another piece to Uncle Jeff Bezos (although that would reduce the amount his wife could donate to UM)? The point is that the more efficient outcome might seem less "fair" today, but it provides the signal to supply more in the future so everyone is full. Efficiency versus equity is a long running debate.
It's the pumpkin pie spices that make pumpkin pie so tasty. Cinnamon, ginger, nutmeg, cloves, allspice. Plain pumpkin is bland. Just like the marinara sauce and the mozzarella and parmesan cheeses make eggplant taste good, spices make pumpkin pie taste good.
Something that Justin should be continually reminding his readers of, even when it comes to diesel, is that oil generally speaking is a global product. And the price is set globally not locally. That is why American Oil executives are collecting huge bonuses this year for the windfall profits that they have made from selling oil in the United States just like coals in Newcastle. But unlike the lesson of the aphorism, they are cashing in despite the fact that the United States is awash in Oil.
And back to Trump‘s motivation for buying Russian diesel. It is all about the Kompromat. Whenever Trump says “Russia, Russia, Russia, it’s a hoax”, you can automatically draw the conclusion that it is not a hoax. Trust me, it was Putin who called Trump over diesel, and to pass on the message that he would like Trump to do something about the pesky Zelenskyy, not Trump who called Putin.
Exactly. I'm not going to tell you where I catch all the ten inch blue gills one could want or what fly catches the trout. It's a law of angling that an angler must discover that knowledge for themselves. It helps to preserve the stock. Conservation.
Real gas prices were higher in 2008 thanks to Bush’s Iraq war. Speculators dominated the futures market and realized they could make even bigger profits by having the tankers carrying their oil do giant donuts in the ocean and drive up the spot price. There is no guarantee that Exxon or whomever gets the diesel doesn’t sell it to the highest bidder OUTSIDE the US.
I have an question that is not related to diesel, but has me and others perplexed. It is about trade deficits. Trump being the simple minded person he is, looks strictly at the difference in dollar values for goods only and not services. He does not consider factors like relative population size, the marginal utility value of the items being traded etc.
My question: is there an economic set of formulas that takes these factors into account that gives a more realistic value to trade between countries?
Yes, I am Canadian. Canadians imports from the USA are typically finished good and services (ignoring car parts) and do not undergo value added conversions that creat new jobs in Canada.
Contrast that to American imports from Canada that are more heavily weighted towards raw materials that are inputs to American industry which in turn employ many people to convert these imports to useful goods. Without these imports many Americans would be out of work.
Is there a proven way to take these factors into account as well?
I watch and learn all the time because Professor Wolfers has a way explaining things that make sense to my retired Engineering mind. Thank You.
Justin -- the efficiency argument doesn't change if Kim K loves pumpkin pie rather than hates it. She still has the most money and can outbid everyone for the last piece. But at least it's going to someone who appreciates it and won't just feed it to the dog under the table (woof!). But if we think about next year's Thanksgiving dinner, doesn't allowing Kim to pay more for the last piece of pie incent mom to purchase more pie for next year? Maybe she can sell another piece to Uncle Jeff Bezos (although that would reduce the amount his wife could donate to UM)? The point is that the more efficient outcome might seem less "fair" today, but it provides the signal to supply more in the future so everyone is full. Efficiency versus equity is a long running debate.
It's the pumpkin pie spices that make pumpkin pie so tasty. Cinnamon, ginger, nutmeg, cloves, allspice. Plain pumpkin is bland. Just like the marinara sauce and the mozzarella and parmesan cheeses make eggplant taste good, spices make pumpkin pie taste good.
Because it tastes good. De gustibus non est disputandum!
Something that Justin should be continually reminding his readers of, even when it comes to diesel, is that oil generally speaking is a global product. And the price is set globally not locally. That is why American Oil executives are collecting huge bonuses this year for the windfall profits that they have made from selling oil in the United States just like coals in Newcastle. But unlike the lesson of the aphorism, they are cashing in despite the fact that the United States is awash in Oil.
And back to Trump‘s motivation for buying Russian diesel. It is all about the Kompromat. Whenever Trump says “Russia, Russia, Russia, it’s a hoax”, you can automatically draw the conclusion that it is not a hoax. Trust me, it was Putin who called Trump over diesel, and to pass on the message that he would like Trump to do something about the pesky Zelenskyy, not Trump who called Putin.
Why should I give you a theory of why I like pumpkin pie? It might convince you to like it, and then you might outbid against me.
Touche!
Exactly. I'm not going to tell you where I catch all the ten inch blue gills one could want or what fly catches the trout. It's a law of angling that an angler must discover that knowledge for themselves. It helps to preserve the stock. Conservation.
Real gas prices were higher in 2008 thanks to Bush’s Iraq war. Speculators dominated the futures market and realized they could make even bigger profits by having the tankers carrying their oil do giant donuts in the ocean and drive up the spot price. There is no guarantee that Exxon or whomever gets the diesel doesn’t sell it to the highest bidder OUTSIDE the US.
I have an question that is not related to diesel, but has me and others perplexed. It is about trade deficits. Trump being the simple minded person he is, looks strictly at the difference in dollar values for goods only and not services. He does not consider factors like relative population size, the marginal utility value of the items being traded etc.
My question: is there an economic set of formulas that takes these factors into account that gives a more realistic value to trade between countries?
Yes, I am Canadian. Canadians imports from the USA are typically finished good and services (ignoring car parts) and do not undergo value added conversions that creat new jobs in Canada.
Contrast that to American imports from Canada that are more heavily weighted towards raw materials that are inputs to American industry which in turn employ many people to convert these imports to useful goods. Without these imports many Americans would be out of work.
Is there a proven way to take these factors into account as well?
I watch and learn all the time because Professor Wolfers has a way explaining things that make sense to my retired Engineering mind. Thank You.
Pumpkin pie is just a carrier for whipped cream
Correction: 'outbid me'.