Does “doing the right thing” in corporate affairs result in lower profits? Do people who buy stock only in firms that follow certain ethical practices pay a penalty in terms of lower returns? The question resonates today amid allegations of…
Author: Ed Lotterman
Nuclear waste issue lives on
News of President Bush’s corporate governance speech and Jesse Ventura’s blood clot drove Tuesday’s Senate vote on nuclear waste storage to the fringes of public discussion. But in the long run, how we manage nuclear materials will be one of…
Law of supply and demand also applies to job markets
I know the Bible asserts that truth comes “out of the mouths of babes.” Even so, I was pleasantly surprised to find that microeconomic theory is being taught in the popular “Lemony Snicket” children’s books, which chronicle “a series of…
Surviving roar of the crowd
“Even when reason goes out the door, on the whole, we prosper.” Charles Mackay’s 1841 classic, “Extraordinary Popular Delusions and the Madness of Crowds,” has to be one of the best book titles ever penned. It is particularly fascinating on…
Insurance firms struggle to avoid moral hazard
(This column is part two in a two-part series. Part one, “Average drug prices need a real fix,”discusses the inflation of average wholesale prices of drugs and the resulting windfall some doctors experience.) Avoiding the creation of moral hazard —…
“Average” drug prices need real fix
Attorney General Mike Hatch is doing good work in his actions against drug makers that allegedly inflate listed “average wholesale prices.” Such alleged artificial price setting — the basis for patient co-pays and Medicare and Medicaid reimbursements — constitutes simple…
Service snafu creates Marxian moment
It was clear last Sunday that I was experiencing some sort of Marxian existential moment. But it was not clear whether the Marx in question was Karl or Groucho. I was trying to buy that quintessential fast food meal —…
The jig is up: Americans learn cars cost less in Canada
“I’m furious about the women’s liberationists. They keep getting up on soapboxes and proclaiming that women are brighter than men. That’s true, but it should be kept quiet or it ruins the whole racket.” —Anita Loos Executives at Daimler-Chrysler should…
Risk vs. recklessness: Who should bear costs?
With floodwaters swamping Rouseau and a wildfire converging on Denver, it is hard for an economist to avoid thinking about how our government and our society respond to natural disasters. Specifically, do the government programs that absorb risk and offer…
So who’s counting? What median income really means
“We’re rich! We’re rich!” I proclaimed to the household Wednesday morning while reading headlines noting that median household incomes in Minnesota rose 17 percent in the 1990s, and that the St. Paul-Minneapolis metro area now ranks fourth in the nation…