Economics Times Three, Other Events

[tcpip]

Spoke at the Kew branch of the Labor Party on Tuesday night on the Henry Review (summary version); apparently it was well-received, as the following day received an email from the branch executive suggesting that the presentation become an FEA forum/dinner. Also recommended was a evening with Steve Hurd, the Labor candidate for Kooyong who has personal reasons for advocating disability rights. As part of a panel on disabilities I suggested Donna Williams, whom I recently had the great pleasure of being the AV Tech for her presentation between Melbourne and Singapore (presentation and photo).

On more economic issues, I have also been recently debating the so-called "Robin Hood" tax and the destructive effects this well-intentioned plan has. People don't seem to understand that nearly all taxes, surcharges etc are passed on to the consumer, the exceptions being those goods in absolute supply (and the degree of the capacity to pass on these costs and the severity of the deadweight loss depends on relative elasticity from completely elastic to completely inelastic). For a third economics issue (yes, I know, I'm a bundle of fun at dinner parties) I have raised the issue of aggregate long-run productions functions. This is one of a few questions that have come to mind as I'm preparing for my exams in Economic Decision Making and Business Law next week.

Other events: Ran a short Philosophy Forum session last Sunday on continental philosophy (German idealism, phenomeonology, existentialism, hermeneutics etc). Brittania worked out really well on Sunday. Would like to adapt it to Pendragon. Played another session of Dragon Age on Thursday. Isocracy IGM on Saturday. Giving the service at the Unitarians on Sunday for the Australian Esperanto Society; providing an address at the same two weeks later on The Evolution of the Human Spirit.

Comments

[pmax3.livejournal.com]

I haven't heard about the Robin Hood tax, will look it up. Only heard about the movie, which they say is good :D

I have been enlisted to give a talk on philosophy too. But my official brief is to bamboozle the audience ;D

[tcpip.livejournal.com]

I can just see someone thinking it's a special tax on seeing the movie :)

Basically the Robin Hood tax is a transaction tax with the tax revenue extracted from supplier and consumer. This means the price of a good or service goes up. When that occurs demand is reduced, and supply follows &etc.

In this specific instance it applies to financial transactions on a very low rate; making up the difference in volume. Applied through electronic transactions it has a very low administrative overhead. The advocates of the tax suggest that the money can be shared between developmental aid and local projects (which is, I must say, something entirely independent of the tax itself).

The use of the revenue and the administrative overhead are very good there is no doubt about that. Certainly better than other transaction taxes (e.g., sales tax). However there seems to be significant "deadweight loss" caused the loss in trades. As financial services are highly elastic in demand, this means the industry is significantly affected with greater than proportionate levels of unemployment resulting. That social costs is greater, by my estimates, than the benefits gained.

[pmax3.livejournal.com]

Thanks for the info. Seems a little bit comparable to sales tax, but on high volume electronic financial transactions at a much lower rate than sales tax. Your point seems very valid. Very small changes in percentage margins have very large impact on profits in such transactions, so it probably hasn't been well thought out.

And sorry for replying late, was travelling :P

[tcpip.livejournal.com]

Indeed you have! I am interested in reading more about the Naxalites - quite clearly you're located very much in their midst. I am trying to determine whether (a) whether they are completely fanatical or are prone to compromise and (b) do they have any real degree of support, especially in the countryside where they derive their strength.

With regards to the transaction tax, alas, many people are swayed by the good intentions without understanding the effects or concepts such as elasticity. I suppose I don't expect them to either, at least not initially. People see a problem and think of a solution - it is another step to think of reactions to that solution.

Cute icon picture, btw!