Interessant3 #127
🎓 Graduate Tax, ⚡️ Nordic Electricity Prices, 📚 Thomas Sowell | Three Interesting Things for W/C 2025-02-09
🎓 The Graduate Tax Debate: Who Really Pays?
An evidence review by Ron Diris and Erwin Ooghe of Maastrich University examines how higher education should be funded, weighing tax-financed subsidies against alternatives like income-contingent loans (ICLs) and graduate taxes (GRTs). While tax-funded systems without tuition fees keep education accessible, they tend to be regressive, as lower-income taxpayers subsidise wealthier graduates. The authors argue that GRTs and ICLs strike a better balance between equity and efficiency, ensuring graduates contribute in proportion to their future earnings while reducing financial risk. The study also questions whether higher education produces enough external benefits to justify large public subsidies.
The UK’s income-contingent student loan system, which functions similarly to a graduate tax, demonstrates the benefits of aligning contributions with earnings. According to UK Parliamentary data, 2022/23 saw record levels of higher education participation, with over 2.9 million students enrolled. The system’s flexibility has driven a steady increase in university entry rates, particularly among the disadvantaged, whose participation doubled since 2005.
📖 UK data
⚡️ Nordic Electricity Prices: The Cheapest in Europe
Eurostat data shows that non-household electricity prices in the Nordics are among the lowest in Europe, even before adjusting for purchasing power parity (PPP). The region benefits from a mix of low (often no) taxation, efficient market operations via Nord Pool, and a strong reliance on nuclear and renewable energy. Nordic heavy industry has a triple advantage of highly skilled labour, access to capital, and cheap energy.
📚 The Nonconformist: Thomas Sowell’s Intellectual Journey
wrote a very interesting piece on the economist Thomas Sowell. Harvard psychologist describes Sowell as “the most underrated writer in history,”, combining profound insights with plainspoken clarity. Once a Marxist, Sowell shifted to free-market Liberalism after witnessing egregious government inefficiencies firsthand. His works, including Basic Economics and Knowledge and Decisions, challenge mainstream narratives on race, inequality, and positive discrimination, focusing on cultural and historical factors over simplistic explanations.Sowell’s enduring impact lies in his advocacy for decentralised decision-making and policies judged by their results, not intentions. His story, from severe poverty in North Carolina to academic prominence, is a testament to his belief in self-reliance and personal responsibility. Highly recommended reading.
Join us next week for three more intriguing topics that challenge the norm and expand your horizons! ✌️
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