It’s hard to go to the doctor without seeing myriad examples of economics in daily life and some of the quirky incentives in modern U.S. health care. Last Saturday morning, my gastric feeding tube pulled out and I went to…
Category: Other
‘Fiscal cliff’ rhetoric overstates taxes’ role in economic growth
Decades from now, when historians look back at the “fiscal cliff” crisis of 2012, they are likely to find it the greatest ado about nothing since the turmoil in Andrew Jackson’s administration because Mrs. John C. Calhoun snubbed the wife…
Long-term fiscal solution? That’s unlikely
There is much irony in the whole “fiscal cliff” debate in that the greatest danger to the economy lies in reducing the budget deficit too soon and too fast. That is what Ben Bernanke had in mind when he coined…
The working basics of the ‘fiscal cliff’
The issues and events that brought us to the current street farce involving President Barack Obama and the U.S. House date well before Federal Reserve Chairman Ben Bernanke coined the phrase “fiscal cliff” in February. So one might assume the…
Factory fires force us to question life’s value — in dollar terms
The recent tragic fire that killed 112 workers in a clothing factory in Bangladesh raises an interesting question in benefit-cost analysis: What is the economically optimal number of workers to die in industrial accidents such as factory fires or coal…
Watch out for misleading data in public policy debates
At a time when we need clarity in public policy debates, it is disheartening to hear misleading arguments that obscure rather than illuminate choices we face. Sometimes misinformation stems from ignorance and occasionally from self-serving malice. But often, well-meaning people…
The law of diminishing returns applies to political spending, too
GOP strategist and fundraiser Karl Rove, U.S. Chamber of Commerce head Tom Donahue and Federal Reserve Chairman Ben Bernanke are all in the same economic boat. Whether they realize it or not, they are limited by the fundamental economic phenomena…
Thanks, gratitude and cooperation all stem from attitude
The word “thanksgiving” does not appear in Adam Smith’s book, “The Theory of Moral Sentiments,” but he does discuss “gratitude” and its relationship to other human sentiments at length. So it is clear that he appreciated the key role of…
Floating exchange rates still the best choice
Economists long have argued about whether it’s better to have fixed or floating exchange rates. When the world no longer was on the gold standard with its inherently fixed exchange values, but still on the post-World War II Bretton Woods…
Barbados illustrates successful economic transition
Small countries and large countries face essentially the same economic challenges. What varies is their scale and proportion. Obviously, the economy of our country, with a population of 314 million living spread over 3.8 million square miles is larger and…