Showing archive for: “Economics”
When Do Rent Controls Help Renters?
Imagine you’re a renter in a city where housing costs are sky-high. When the city council passes a rent-control law capping rents below the market rate, it feels like a victory. Finally, some relief! Indeed, the first people to benefit are those lucky tenants whose rents are now frozen or reduced. But fast forward a ... When Do Rent Controls Help Renters?
New York’s Failed Economic Case for Price-Gouging Enforcement
A major winter storm across northern New York State in January 1998 snapped power lines and left thousands without electricity, as temperatures plunged. In the small town of Chazy, just south of the Canadian border, a local hardware store stepped up. Chazy Hardware had just one generator on hand, but it managed to locate 54 ... New York’s Failed Economic Case for Price-Gouging Enforcement
Network Effects in FTC v Meta
The Federal Trade Commission’s (FTC) ongoing antitrust case against Meta has brought network effects into the spotlight, as the agency’s complaint and opening statement both lean heavily on networks as a source of competitive harm. But the commission’s arguments fundamentally misunderstand how network effects interact with competition in digital markets. Far from being solely anticompetitive ... Network Effects in FTC v Meta
Trump Tariffs in a Broader Policy Context
The possible ramifications of President Donald Trump’s tariffs are drawing headlines. Tariffs are a linchpin in the expansive Trump “America First Trade Policy” that aims to reshape U.S. trade relations. Even more broadly, other Trump administration initiatives—including tax, energy, and regulatory policies—also will have a major impact on American economic performance. The economic case for implementing those ... Trump Tariffs in a Broader Policy Context
Perspectives on Industrial Policy: An Interview with Reiko Aoki
Recently, we’ve seen renewed global interest in industrial policy. From your perspective, what are some of the key drivers behind this resurgence? And how does it differ from previous industrial-policy approaches, particularly in Japan? Today’s industrial policies are closely tied to security concerns. National security, in particular, has always required some form of government coordination, ... Perspectives on Industrial Policy: An Interview with Reiko Aoki
Stop Saying a Value-Added Tax Is an Export Subsidy
In a recent Financial Times opinion piece, Jason Cummins (who holds a Ph.D. in economics from Columbia University) argued that the Trump administration should impose a 25% tariff on European goods to offset an “unfair advantage” from Europe’s value-added tax (VAT) system. According to Cummins, European exporters like BMW Group enjoy an “implicit subsidy” when they ... Stop Saying a Value-Added Tax Is an Export Subsidy
Competition Confusion in the UK
UK Member of Parliament (former Conservative Party Cabinet Minister) Kit Malthouse published an essay in CapX earlier this month titled “We need a competition revolution.” I, of course, completely agree that competition is vitally important to any economy, and the UK has been struggling with productivity and growth challenges that may be linked to competition ... Competition Confusion in the UK
Prices Are Signals (and Politicians Keep Shooting the Messenger)
Back in November, I outlined eight economic insights that matter for policy. I promised to explain them one by one. It’s taken me months to get to that—not because I forgot, but because this concept is a central part of the book I’m working on. I wanted to make sure I had all the parts lined up, ... Prices Are Signals (and Politicians Keep Shooting the Messenger)
Digital Platforms Aren’t Telecoms and Their Regulations Shouldn’t Rhyme
Modern tech markets share several key economic characteristics with the telecommunications markets of the recent past, a new working paper from Georgetown Law’s Jonathan Nuechterlein and Howard Shelanski argues. And while telecom regulators have over the years sought to address these key issues of network effects, economies of scale, and switching costs through various interventions, ... Digital Platforms Aren’t Telecoms and Their Regulations Shouldn’t Rhyme
Beyond Market Definition: Key Economic Concepts in FTC v Amazon
The Federal Trade Commission’s (FTC) antitrust suit against Amazon, originally filed in October 2023, is scheduled for trial in October 2026. While we’ve previously explored the market-definition questions at the center of this case, several other economic concepts will be equally important in determining whether Amazon has violated antitrust laws. Ahead of a scheduled March ... Beyond Market Definition: Key Economic Concepts in FTC v Amazon
The Only Thing Worse Than Tariffs Is Non-Tariffs
Well, you’ve gotta hand it to President Donald Trump. Trade policy is the topic du jour, with tariffs and tariff threats grabbing most of the headlines. When Trump announced 25% tariffs on steel and aluminum imports, my neighbor rushed out to replace her refrigerator, fearing rising prices. The small slice of the population with a ... The Only Thing Worse Than Tariffs Is Non-Tariffs
Stop Blaming Rising Egg Prices on Market Power
Egg prices are in the news again. Policy responses will likely follow. But not all policy responses make sense. Commissioner Alvaro Bedoya of the Federal Trade Commission (FTC) recently highlighted empty egg shelves and skyrocketing prices, calling for an investigation into potential market manipulation. While his concerns about the egg industry’s supply chain deserve attention, basic ... Stop Blaming Rising Egg Prices on Market Power
