Sometimes a bad idea, eloquently expressed, has enormous influence. Garrett Hardin’s famous essay, “The Tragedy of the Commons,” demonstrates that truth. Hardin, a biologist and population ecologist who taught at University of California-Santa Barbara, died last month. Soon after publication…
Author: Ed Lotterman
Unlikely answer for GOP
Remember the Hessians, the mercenaries from Germany that King George III hired to help put down the rebellion in the 13 colonies? The king did not want to cause domestic political problems by sending English boys off to die in…
Economics tries to explain levels of wealth
Two things occurred this past week that reminded me how little economists are able to explain economic growth. The Bolivian government headed by Gonzalo Sanchez de Lozada bowed to popular pressure, including street violence that killed some 20 people, and…
Beefy, bulky price sweeps
What do fat steers and cargo freighters have in common right now? I’ll bet that one of my smarter microeconomics students would come up with the right answer. Both cattle and ships have very inelastic supply. Producers cannot increase the…
Talk about trade talks obscures important issues
It is important that the world not let recriminations over the failed Cancun trade talks obscure a more important issue. Expanded trade reform would have benefited rich and poor countries alike. In the long run, however, such reform is less…
Nobel choices leaner and lean to U.S.
Nobel choices leaner and lean to U.S. I would love to be a mouse under the conference table during meetings of the committee that selects the Nobel laureate in economics. So would a lot of other economists. Our curiosity is…
Turnover of goods is sometimes good enough
Things that last a long time can cause quirky economic incentives. I junked my 1979 Ford LTD this spring, and I just replaced the upstairs toilet with a new 1.6 gallon per flush model. All three of my small LP…
Poverty indexing is confusing–and stuck
The Census Bureau touched off a round of punditry last week when it released the 2002 poverty statistics. Americans officially defined as poor increased by 1.7 million, to a total of 34.6 million. As a proportion of households, the poor…
The deficit: “Fiscal discipline” isn’t going to cut it
Our country would have a stronger economy in the long run if senior elected officials such as Vice President Dick Cheney were more forthright about real budget issues. Unfortunately, the vice president continues to make statements that are at best…
Currency support comes with twist
Deciding to artificially support a currency is like jumping on the back of a tiger. Unless you are sure you know how to get off, prudence lies in never getting on. The International Monetary Fund and finance ministers’ meetings in…