Another reason to be wary of industrial policy

"The very fact, however, that a country’s comparative advantages are constantly changing is, if anything, yet another reason to be wary about experts who think they can second-guess the workings of markets via some combination of industrial policy and tariffs. Such reservations are neither an instance of “market fundamentalism” nor a reflection of excessive abstraction. Rather they flow from the deep realism about the human condition that is central to critiques of economic nationalism. For one thing, it is simply beyond the ability of any one ostensibly apolitical technocrat, team of experts, or government department to absorb all the information that they would need to design the optimal industrial policy for a sector of the economy—let alone an entire national economy such as Japan attempted between 1949 and 2001" (https://www.lawliberty.org/liberty-forum/why-the-case-for-economic-nationalism-fails).

Emission standards drive up the price of rhodium

Tighter emission standards have increased the demand for rhodium, a metal that removes pollutants from gasoline exhaust fumes (WSJ, Jan. 2020). The price of rhodium, as predicted by supply and demand analysis, increased.

Venezuela's Economy Improves as It Begins to Rely More on the Market System

Two money quotes (WSJ, Jan 2020):

1. "The country’s authoritarian president, Nicolás Maduro, who received political training in Cuba and publicly exalts the glories of socialism, has begun allowing companies to operate with a freer hand, according to business owners and economists." 
2. "Venezuela remains an economic basket case. Its economy contracted by 60% during Mr. Maduro’s tenure and is widely predicted to shrink another 10% this year. But business people say they are experiencing the first signs of an economic rebound."

What is the most useful idea in economics?

Five economists answer the question, “What is the most useful idea in economics?”

1. Opportunity cost
2. Decisions are best made incrementally
3. Comparative advantage
4. Causal inference
5. Lump of labor fallacy

I would consider a few other answers.

1. Incentives 
2. Unintended consequences
3. Institutions matter
4. Failures occur in both markets and governments

I think the best answer is "Economic Reasoning". Economic reasoning subsumes many of the other answers.

Why Implementing Good Public Policy is Difficult

The post describes how good public policy proposals often morph into bad public policy.

Cocoa Cartel

The nations of the governments of Ghana and Ivory Coast formed a cocoa cartel that will charge an extra $400 per metric ton of the crop to give a better deal to farmers (WSJ, Jan. 2020).

Michael Munger asks, "What's Love Got to do with It?"

Everybody loves Mikey

When is something scarce?

Producers in some oil fields are burning natural gas or having to pay "buyers" to take it off their hands (WSJ, Jan. 2020). These actions show that something can be scarce in one location or time and not scarce elsewhere. Here are some questions.

1. Would natural gas be scarce in the Waha hub if pipelines to the area for natural gas had excess capacity?
2. Is transportation of natural gas from the Waha hub scarce?
3. Is natural gas scarce in RVA? What tells you whether the answer is "yes" or "no".
4. Why might bitcoin miners locate in the Waha hub?

Does Occupational Licensing Improve Quality?

This article says, "No" (NBER. 2020). But, licensing does increase price.

What is the implied price elasticity of demand?

When the city reduced price from $1.25 to $0, ridership on buses increased by 24%.

Mattel Reduces Product Differentiation of Its Products

Mattel is reducing costs by reducing the number of colors it uses in its products (WSJ, Jan. 2020). What is the downside, if any?