There is more uncertainty about the course of the global economy over the next year or so than at any previous time in the lives of many of us. At the same time, in this Internet age, we are bombarded…
Author: Ed Lotterman
Wise choices can keep U.S. out of another Depression
Thousands of members of the Greatest Generation die every week. With them die memories not only of World War II, but also of the Great Depression. Yet that worldwide experience hides in the closet of our collective memory and comes…
Bailout must weigh benefits to society, airlines
As the economy adjusts to new realities after the attacks of September 11, Congress and President Bush must decide whether to extend financial aid to the airline industry, and if so, how much and in what form. Calls for aid…
Extreme times call for measured response Fed’s role: ensure calm, prevent panic
Last Tuesday, just a few hours after the terrorist attacks, the Federal Reserve issued a terse press release: “The Federal Reserve System is open and operating. The discount window is available to meet liquidity needs.” On Thursday, the Fed announces…
Economy will survive the shock of the attack
Exogenous shock—the term that economists use for events from outside the economy that affect economic activity—has a grim redundancy when applied to Tuesday’s attacks. The term literally means “a blow from outside the system.” Like a fuel-laden jetliner crashing into…
This might be a recession, but there’s no need to panic
“Construction spending falls in July.” “Auto sales downshift in August.” “Jobless rate hits 4.9 percent; payrolls plunge.” Recent headlines contain ample evidence that the U.S. economy continues to slow. This is not good news. However, it may be better for…
Strikes are up but still relatively rare
If you listen to some people’s perceptions of organized labor lately, you’d think strikes were everywhere. Yes, Minnesota’s two largest state employees unions say they’ll strike over unresolved issues of pay and health insurance. And yes, there was a high-profile…
Rhetoric over federal budget muddies Social Security issue
Political pandering and editorial ineptitude are creating confusion about an important institution – Social Security – at a time when clarity and insight are needed. I refer to the irrational conflation of two different issues: Social Security and the size…
Sub-prime lending bears watching
When Alan Greenspan has a nightmare there’s a good chance “sub-prime lending” is at the center of the dark plot that’s unfolded in his subconscious. Sub-prime lending refers to risky loans made to individuals. They include home equity loans that…
Rankings provide information, but not all information is equal
Will Caitlin get a better college education at Oberlin or Concordia? Should Johnny try for an Ivy League school or take the badminton scholarship from Podunk State? Is the business climate better in North Dakota or South Dakota? Are conditions…