Congress often gets a collective bum rap when its individual members do precisely what most of their constituents want them to do. But a House committee’s bull-headed insistence on censoring results of important medical research makes one think of commentator…
Category: Other
Magnetation threat illustrates problems of state by state regulation
To paraphrase an adage, “Oh what a tangled web we create when first we decide to regulate.” One example of this is the current kerfuffle about Magnetation Inc.’s threat to locate a proposed iron ore processing plant in Superior, Wis.,…
Want a strong defense? Are you willing to pay for it?
Life is all about tradeoffs. That is the core of economics and it applies to military spending as much as anywhere else. Politicians are all for strong defense, but not all of them are willing to take a stand on…
Life under the gold standard wasn’t golden for all
Ron Paul’s chances of making it to the White House may be small, but his campaign is a wonderful gift to econ profs, since his ideas are particularly popular among young people. Those who like his ideas generally are willing…
Fact-checkers need checking, too
“Fact-checking” political candidates is all the rage, but sometimes the checkers themselves need to be scrutinized, especially when the facts relate to the economy. There is no substitute for an informed and skeptical electorate. But many people apparently don’t retain…
The distance between China and the Iron Range just got shorter
The next time I am in Silver Bay or Two Harbors, I might see people checking prices from the new iron ore exchange announced by China earlier this week. When commodities trade globally, events in one corner of the world…
Shipwreck revives old questions about safety at sea
The wreck of the Costa Concordia off the Italian coast illustrates key questions in the never-ending debate about whether government regulation of private economic activity is necessary and about its costs and benefits. Tragic as this incident is – a…
Search for safe investments drives economic distortions
Nearly a century ago, Thomas Marshall, Woodrow Wilson’s vice president, remarked, “What this country needs is a really good 5-cent cigar.” Today what our country and the rest of the world need is a good risk-free store of value. The…
When weak companies fail, are takeovers to blame?
Predators and scavengers play vital roles in healthy ecosystems by culling weak individuals. But the process can be pretty repulsive to watch at times. Similarly, private equity firms and corporate raiders can play vital roles in market economies by reorganizing…
Are gaps between the rich and poor necessary for growth?
At a time when there’s much talk about the 99 percent versus the 1 percent, it’s worth noting that many economists believe income inequality is not only a good thing but also necessary for strong and sustained economic growth. Before…