Could advances in electronics reduce honesty among politicians? That’s a long shot, and I’m unqualified to give a definitive answer. But consider this: Political dishonesty was rampant last week. President George W. Bush sent a budget to Congress in which…
Category: Other
Free trade trade-offs always pay off
Is it bad for the economy if the state of Minnesota and others pay outside vendors for services provided by workers overseas? Should the state act to ensure that goods or services it purchases come only from the U.S. —…
Adding up the stadium debate
Is there any economic justification for government stadium funding? Local economists hear that question a lot lately. For most of us, the answer remains an emphatic no. That may not mean much, however, to the Minnesota Legislature or to local…
The politics of debt and diplomacy
Few things are more dangerous than a badly applied analogy. That was evident in surrealistic speeches two weeks ago at the Summit of the Americas in Monterrey, Mexico. Curiously, however, ideological enemies can apply the same bad policies. President Bush…
“Normal” price notions are rarely rational
People play little games with themselves. One I play involves changing prices to 1967 dollars when contemplating a purchase. This is dangerous for my finances. For example, I see a socket set on sale for $9.99. I already own many…
The work behind jobless figures
Tuesday’s announcement of the latest employment statistics for Minnesota offers an example of the classic question: Is the glass half full or half empty? The unemployment rate for December ticked up one-tenth of a percentage point, from 4.6 percent of…
How can we use more oil, have more oil?
Shell Petroleum recently made news by cutting its estimate of its proved oil reserves. This won’t affect the overall economy, but it does highlight an oft-misunderstood statistic — “proved oil reserves.” In 1980, the world’s proved reserves were 650 billion…
Immigration arguments need work
President Bush touched off a debate on immigration with his recent proposal for changes in U.S. treatment of illegal immigrants. Just as it was 100 years ago, immigration remains a core policy issue with myriad economic implications. More than a…
Dollar declines and other weighty issues
Beware when headlines proclaim a new record for some economic indicator. A quick example explains why. My weight hit a record in November 1968. An Army physical put it at 179 pounds. The previous March it was only 144 pounds.…
Mad cows and irrational humans
Human beings are irrational in how they handle risk. Irrational reactions or poor information about risky choices result in our society being less well off than if we managed risk better. The way we seem to be reacting to news…