Forecasts of economic apocalypse usually are — like antemortem reports of Mark Twain’s death – greatly exaggerated. Think back a couple of months to when reports of the declining value of the U.S. dollar were making headlines. Many journalists instinctively…
Category: Other
Preferential rates do have economic basis
Large government entities such as Hennepin County and Minnesota State Colleges and Universities get better rates on HMO coverage for their employees than do smaller, private sector businesses, according to recent news reports. Moreover, HMOs continued to charge preferential rates…
Government actions take from poor, give to rich
Government actions frequently affect income distribution, whether intentionally or not. Take two examples: the Medicare drug benefit currently in process in Congress and the recent tax bill that further reduces the “marriage penalty.” Both shift income from younger, poorer age…
Heck yes, pricing hits buyers
Whenever governments act to raise or lower prices for a product, their action affects both buyers and sellers. This is true whether it involves the U.S. or Minnesota trying to raise corn prices or the Brazilian government trying to lower…
Paid use of car-pool lane economically sound
It’s a dastardly French plot to disrupt morale in the U.S. I did not really hear anyone use that particular argument against allowing commuters to buy access to high occupancy vehicle lanes, often called the car-pool lanes, such as those…
Rate cut ignores money supply
As expected, the Fed’s Open Market Committee voted Wednesday to lower its target for the Fed funds rate. When the quarter-point cut is implemented, very short-term rates will be at their lowest levels in nearly half a century. It is…
External pressure holds grip on fiscal honesty
Editor’s note: This is the second of two columns on the importance of good information in economics. The first column is Markets and citizens need reliable information. Good information is crucial to sound decision-making. Market economies and democratic political systems…
It’s the economy
Economists have long noted that changes in fiscal and monetary policy generally influence the real economy only after substantial time lags. Therefore, with 17 months to the 2004 election and seven to the Iowa caucuses, whatever President Bush can do…
Markets and citizens need reliable information
Editor’s note: This is the first of two columns on the importance of good information in economics. The second column is External pressure holds grip on fiscal honesty. There was a lot of irony in the news this week. Deceptive…
Politics fuels proposal for ethanol reserves
Sen. Norm Coleman’s proposal this week to establish a strategic renewable fuels reserve is unfortunate, and clearly puts special interests ahead of the public good. To put it simply, the United States doesn’t need a strategic reserve of ethanol or…