However, he does have at least one minor slip. In describing what deadweight loss is, he says the following:
If a dollar disappears from my pocket and appears in yours, it's a loss to me, but it's not a deadweight loss to society. If you take my dollar and destroy it lightling your Cohiba, then it's a deadweight loss.This isn't quite right, for the simple reason that dollars only have purely symbolic value. Burning a dollar bill is a genuine loss of $1 to the burner, but can't possibly make society as a whole worse off... you can't eat money. So who benefits? As the wikipedia article on burning money explains, everyone. Burning a banknote has a (very) slightly deflationary effect, so makes all of the money in everyone else's pocket worth slightly more.
I first encountered this idea in Steve Lansburg's excellent Armchair economist, and it seems to be pretty standard fayre in economics literature, so how did Waldfogel miss it? Or did he think that burning money seemed more wasteful than any other genuine example of a deadweight loss, so sacrificed accuracy for impact?