Ken Rogoff May Be Right to Fear
Econ 115 Lecture Notes: September 1, 2009: Slow Growth and Poverty in the North Atlantic, 1800-1870

People Who Are Not Economists II

Joining Allan Meltzer in the set of people who say they are but are not--who don't think or reason or use evidence like economists--is Richard Vedder.

David Leonhardt:

Myth-Busting: The Value of College: Over at The Choice blog, Rebecca R. Ruiz describes a recent National Public radio segment called “Is a College Education Worth the Debt?” In the segment, Richard Vedder, a professor of economics at Ohio University, argued that the country suffers from an oversupply of college graduates. “We are starting to graduate, I don’t want to say too many students, but it’s becoming more and more difficult for new college graduates to get jobs, independent of the recession,” Mr. Vedder said.

You hear this line of argument fairly often. But it flies in the face of an overwhelming amount of evidence... the gap between the pay of college graduates and everyone else has reached an all-time high.... That’s evidence of an undersupply of college graduates.... If more people were graduating from college, as the economists Claudia Goldin and Lawrence Katz explained in an important recent book, income inequality would not be nearly as high as it is...

Supply and demand! Provide a stable environment within which private businesses can make decisions! Compensate for externalities!

It really isn't hard to be an economist. Not hard at all...