For example:

Deregulation in financial market has resulted in lack of transparency, understating risk premium and the spreading of such risks increased moral hazard and undermined the mechanism of supply meeting demand.

The 2008 housing bubble was over supply spurred on by these loose financial regulations with absolutely no regard for demand. The subsequent inability to clear the over supply at lower prices is a counter example of supply side economist’s claimed.

If you get an answer from him, please share it here, as I’d be curious to hear what he has to say about it.

Suppose you have a 3 number series:
10, 100, 800
The difference between the fist 2 numbers is 90 (diff 10, 100)
The difference between the last 2 number is 700 (diff 100, 800)
Clearly there is bigger difference between the last 2 numbers than the first 2 numbers in the series.

Now let’s take the log values of the 3 number series from above:
1, 2, 2.9
Now as you can see the opposite has occurred. The difference between the first 2 numbers is now larger than the last 2 numbers in the series.

By taking the log values, you have shrunk the divergence of the data.
Log scale should be used to show trends for exponential growth or exponential decay.

I’ve plotted the log, because it’s easier to look at trends:

BTW, I liked your Glenn Beck article @ The Donkey Edge. Hadn’t seen that Monty Python film in a long time. Love it!

You’re site is now on my blog roll.

I also read your “War of Words” post and couldn’t agree more. My biz partner and I have been in the entertainment/advertising business for years and have watched in horror as time and again the Democrats have failed to refute Republican lies and memes and have inexplicably chosen instead to adopt conservative frames in the misguided belief that moving further and further to the right will endear themselves to the voters.

Harry S. Truman once said: “Give the people a choice between a Republican and a Democrat who talks like a Republican and they’ll choose the Republican every time.” Sage advice that the current establishment Dems would be wise to heed.

The Left thinks that just because the historic facts show that Republican policies are abysmal failures that that automatically translates into public awareness. Unfortunately, the ones who spout lies over and over again (the GOP) tends to rewrite history in the public consciousness.

When the GOP accuse the Dems of constantly bringing up George W. Bush (which they rarely do considering all the calamity he unleashed on us and the world) it’s because they know that if they can dissuade the Dems from shining a light on how W’s failures translate into today’s spending, then the Dems will lose the war of words. Here’s a post I wrote on this very topic.

By the way, I like your site The Donkey Edge. This is a great post.

I have tried to do the same thing – explode right-wing myths about tax cuts for the wealthy spurring economic growth and the hypocrisy on the right that deficit reduction is priority number one when they were the ones to create it.

http://bit.ly/cYNEky