The administration placed an initial price tag on the Iraq war this week. The roughly $75 billion request includes $62 billion earmarked for the Defense Department. This is not much money relative to an $11 trillion economy. But it is…
Author: Ed Lotterman
Minnesota’s economic picture not all that grim
Just as for Mark Twain, reports of the death of the Minnesota economy are greatly exaggerated. Yes, the stock market is down. Yes, state and local governments face a severe budget crunch, as do many nonprofit organizations such as private…
Uncertainty is certain
“What do you think will happen with interest rates?” “They will fluctuate.” “Could you be more specific?” “They will fluctuate up and down!” That little exchange may be familiar to anyone who has listened to Gary Stern, president of the…
What would war with Iraq do to the U.S. economy?
“What would a U.S. economy in wartime be like?” my friend asked. This is an important question right now, so I gave a full and precise answer: “It depends.” How any war affects a nation’s economy depends on how large…
Setting salaries in unsettling times
Here’s some advice to my friends and colleagues who work for Minnesota state and local governments: When it comes to wages, market conditions trump appeals to justice nearly every time. As the state looks to close a huge projected budget…
Acknowledge the tradeoffs, then tackle the negatives
It is human nature that makes us want to see issues in simple terms of right or wrong, good or bad. However, life is complicated and things are seldom that neat. Twenty-five years ago I was writing a long comprehensive…
Party’s principles lost for GOP leaders
Recent proposals from some Minnesota Republicans leave me with the same feeling of disappointment I felt when I met with a friend who had gone to Canada to avoid the Vietnam War. “Suppose I had just gone in the Army…
Strong dollar not always beneficial
Treasury Secretary John Snow’s reaction a few days ago to suggestions that a weaker dollar would help our economy reminded me of something I once read about how people in different cultures react to a diagnosis of cancer. As my…
Intentions and consequences
“We got the business phone put in and I gotta run by Insty-Print to pick up my business cards,” Smitty said. “My wife is working with her uncle at XYZ Insurance to get the workers’ comp policy and our bond.…
Zombie airlines are operating among us!
Zombies. The Un-Dead. Few economists ever mention them, but they exist and they are around us. In fact, many Minnesotans take flights to places like Detroit, Fargo and Tokyo without realizing their life is in the hands of one of…