Roseau is getting a raw deal from the state of Minnesota. But since the term “raw deal” is not in the dictionary of standard economist’s jargon, let me phrase it another way: Minnesota’s failure to provide substantial state aid to…
Author: Ed Lotterman
Be content with average market performance
In this time of slumping equity markets, many Americans need to learn some simple lessons about investing. Perhaps the most important lesson is not to get trapped by unrealistic expectations. And it is unrealistic for any individual to expect equity…
Don’t make too much out of numbers
The economy grew at a 1.1 percent annual rate during the three months that ended in June. This was less than the 2.4 percent predicted by some private forecasters. For the three months ended in March, the economy grew at…
Understanding price shifts
“We just paid our home insurance, and it rose by 44.5 percent. How can the officially published inflation rate be low when one sees instances of immense price increases?” That query, in an e-mail from a reader, raises some useful…
O’Neill doesn’t deserve bad rap
Treasury Secretary Paul O’Neill, singled out for criticism from a variety of critics, is getting a bum rap. I’m not a big fan of the Bush administration’s economic policies, but O’Neill deserves credit for doing a workman job, if not…
Changing laws on drug imports may result in surprises
Minnesota’s congressional delegation is showing unusual solidarity in efforts to remove restrictions on imports of prescription drugs from Canada or other countries. Democratic Sen. Paul Wellstone and Republican Rep. Gil Gutknecht don’t see eye-to-eye on many issues, but they have…
California law fogs the issue
Without California’s new law to limit carbon dioxide and other greenhouse gas emissions from automobiles, the state will suffer “changes in sea levels, increased water supply problems and wildfires” as a result of global warming. At least that is what…
History may take different view of market downturn
“Until some of these guys go to jail, we are not going to see a correction in the market.” When I read that phrase in a letter to the editor a few weeks ago, my mind boggled. The market was…
Declines, rebounds happen
If you’re an investor who was stunned by Friday’s 4.6 percent drop in the Dow Jones industrial average, economic history can put the fall in perspective. And it even can supply a good news-bad news joke. The perspective is that…
Bush’s inaction hurts in long run
President Bush and his beleaguered SEC chief, Harvey Pitt, have gotten “behind the market” on the issue of how corporations account for stock options given to CEOs and other employees as part of their compensation packages. Being “behind the market”…