When I learned of The St. Paul Cos.’ decision to move its reinsurance operations and 600 jobs to Bermuda, it reminded me of a question asked by a friend during a tour of the Duluth harbor. He noticed a ship…
Author: Ed Lotterman
Truthful disclosure critical to U.S. market economy
AOL Time Warner reports a net loss of $54.2 billion in the first quarter. This staggering number comes just a day after a news report that among the bankruptcies involving the 50 largest companies during the past five years, auditors…
Bad rules breed corruption
Minneapolis, dot grrreat zesspool tovard vitch all the filth of Minnesota efentually flows. I was around 10 years old when George, a recent immigrant and an elder in our Dutch Reformed church, delivered that assessment of Minnesota’s largest city. I…
Oil exports don’t guarantee high standard of living
Recent political events in Venezuela might seem to resemble the script of the film comedy “Moon over Parador,” but the reality is tragic. Behind the 50 or more lives lost in recent civic violence looms a larger tragedy of millions…
Oligopolists lose at “follow the leader”
It’s April and spring, and it seems that crocuses and examples of oligopolistic behavior are busting out all over. Last week’s example was Iraq announcing a 30-day suspension of oil sales. This week’s example was Continental Airlines announcing a fare…
University athletics does follow economic incentives
What are the economic lessons involved in the University of Minnesota’s varsity sports restructuring? If you want to talk about a question that opens a can of worms, this is one. But economics is the study of how people make…
One oligopolist can only do so much
Contrary to what many people think, it’s not always easy being a monopolist. It’s even harder being an oligopolist. That’s the lesson Iraq is going to learn from Saddam Hussein’s announcement earlier this week that his country will halt crude…
California ban on pulling weeds tugs at larger issues
California may ban pulling weeds by hand. Don’t worry. People pulling crabgrass out of their rose bushes aren’t going to be handcuffed and strip-searched. But the proposed law would ban hand weeding of most vegetable crops by hired farm workers.…
Bad economic policy is in the wind
A recent article in this newspaper reported on progress in producing electricity from wind. Some 2 percent of Minnesota’s electricity comes from wind, and the cost of producing it has been brought down so that it now costs only 65…
Similar industries–different views of imports
A major paper manufacturer said last week that it would close a long-established mill in north central Minnesota. Coming after the controversy about President Bush’s imposition of new tariffs on many steel imports, the announced closing of a paper mill…