Most people don’t understand the difference between an estate tax and an inheritance tax. The distinction may not seem important but misunderstandings cloud public debate about such “death taxes” in general. Most people believe that such taxes affect far more…
Category: Other
Thievery rises along with metal prices
Thieves are breaking into vacant houses in North Minneapolis and St. Paul to steal copper plumbing and wiring. Similarly, electric lines are disappearing in the Dominican Republic and other developing countries. High metals prices are affecting economies around the world,…
Food stamp stunt obscures broader issues
Hunger is a real problem in our country, but the gimmickry of the “food-stamp challenge” recently undertaken by members of Congress adds little to discussions on how best to help the hungry or poor. Nor does any other argument that…
Decentralized Fed is best
The Federal Reserve is consolidating check-processing operations into a few sites. This is good management, but begs the broader question of whether we really need 12 separate Federal Reserve districts. Check volumes are dropping precipitously as more and more people…
Monopoly status isn’t everything
When you hear that some company or industry is abusing the public with high prices or unconscionable profits, ask yourself the following: Is this a contestable market? If the answer is yes, the assertions probably are not true. New York…
GDP data easily misunderstood
For many years, the United States has imported more physical goods than it exports. When the government reports how much our economy is producing, imports often are blamed for reducing output. This is usually wrong, but understanding why requires some…
Human quirks throw wrenches into theories
Economists are finally acknowledging that humans are not fully rational. Squirrels in our back yard are grinding that home to me, but somehow I don’t appreciate the lesson. For more than two centuries, economists began their theorizing by asking: What…
Be careful what you wish for
There’s a clamor in Congress to try to force China to revalue its currency. Advocates say that would make a more-even playing field for U.S. produced goods. But they should be careful what they wish for. Consider these examples: Some…
Ignore inane trade-balance rhetoric
The trade balance between any two single countries is essentially meaningless. Don’t let presidential candidates tell you otherwise. For example, Hillary Clinton and other Democratic presidential candidates have criticized a pending trade pact between the United States and Korea for…
Farm subsidy database is only part of the story
The question of who gains from a particular subsidy is not as simple as one might think. The database of federal farm payments provided this week by the Environmental Working Group provides useful insights into who gets farm-program money. But…