There is much public confusion about U.S. foreign aid, with many surveys showing the public believes it makes up a large proportion of federal outlays, often estimating it in the range of 30 percent when, in fact, it hovers around…
Author: Ed Lotterman
If we heed pope on consumerism, will economy tank? Not necessarily
It is highly ironic that Pope Francis’ “Apostolic Exhortation” on “the proclamation of the Gospel” came out in the same week that U.S. retailers kicked off their holiday campaign of consumption by starting even earlier than in previous years. Francis…
Don’t think that Black Friday shopping helps the economy
The role of shopping in the economy is easily misunderstood. That was clear in the patter of a TV reporter in a story about the pre-Black Friday sales that started on Thanksgiving Day. She asserted that such sales were good…
Fed firings raise questions about district bank’s role
A recent kerfluffle at the Minneapolis Fed is setting a new standard for the phrase “tempest in a teapot.” Two high-ranking and brilliant economists have been eased out, prompting much buzz in the economics blogosphere and commentary in such publications…
On giving thanks and the pursuit of happiness
At Thanksgiving dinner, nearly everyone says something about all the things they have to be thankful for. On the whole, they are sincere. Yet a profound collective discontent exists in society right now, not only in our country but also…
Pension economics get tied up in politics
Are public employees overcompensated? Are elected officials less than honest with citizens about the obligations these employees incur on state and local treasuries? Perhaps the answer to both questions is yes. There is no question that a lot of state…
For homeowners disturbed by trains, economists offer little sympathy
Blaring train horns and diesel smoke can be a real nuisance, particularly when calm prevailed before, so people living in suburbs near rail lines with rapidly increasing traffic are understandably put out. But they won’t get much sympathy from economists.…
Monetary policy isn’t necessarily liberal
Changes in the money supply, and hence in interest rates, affect economic activity in multiple and often subtle ways. So beware of pundits who make simplistic, sweeping assertions about monetary policy, particularly if their forte is politics or philosophy —…
Economic tides don’t flow equally
The metaphor that “a rising tide lifts all boats” was popularized by then-President John F. Kennedy, who borrowed the phrase to defend a controversial public works project. There is some truth in it. When an economy is growing strongly, the…
A perfect voting system? Not yet
We had our first experiment with ranked-choice voting in municipal elections this past week, and it seems the system passed its first test. At least there were no glitches or off-the-wall, unforeseen outcomes. Many people don’t vote in off-year elections,…