It is far too early to render any sort of considered verdict on the economic events of 2010. Judgments about what was economic progress and what was loss, which decisions were prudent and which were foolish will depend on how…
Category: Other
Culture plays unappreciated role in economies
Economists prefer to ignore the influence of culture on the economic performance of nations. It is hard to model mathematically. But most people who study economic history know just how important culture is, even if unquantifiable. And so, while reading…
Fed may be trying to tamp down long-term ra
The Federal Reserve has been buying some $600 billion in government bonds and paying for them with newly created money. Whether it should continue to do so is a key economic issue of the past two months. Opinions are sharply…
The economy will beat the blizzard
Last weekend’s winter storm made national news, especially after the Metrodome roof collapsed under 17 inches of snow, causing the Minnesota Vikings’ ‘home’ game to be moved to Detroit. But how much did the storm affect the economy? What economists…
Red State rhetoric on deficit misses reason
Sen. Max Baucus, D-Mont., knows how to look out for his constituents’ interests, at least their short-term ones, but his explanation of his dissent from the Simpson-Bowles deficit reduction commission exposes one of the great ironies of U.S. fiscal policy.…
Dissecting the new tax deal
There are two ways of looking at the tax-and-unemployment-benefits-extension deal struck between President Barack Obama and congressional Republicans. If you are an optimist, it is the ‘least bad’ deal that could be struck in the current political climate and is…
Misunderstanding of GDP widespread
Most people who follow national news have a general idea of what is meant by gross domestic product, but they don’t understand all the details. That is as true for many reporters as for the general public. This results in…
Underfunded pensions offer all sorts of lessons
Friends tell me that my pride in St. Paul borders on chauvinism, so I usually am pleased when the city is ranked along with Boston, New York, Philadelphia or Chicago. But when a reader sent a scholarly paper by two…
As consumers shop, troubling economic trends still persist
The Friday after Thanksgiving has become a bellwether day for U.S. retailers and retail-sector analysts, who look at this single day’s sales figures for early indications of how the holiday shopping season will pan out. This year, expectations are positive,…
Debating the cost of airport friskings
Although public concerns about intrusive screening of air passengers didn’t result in mass protests, as some feared, the matter is hardly settled. As a public policy issue, such questions are fundamentally economic in nature because they involve decisions about how…