Recent data from the U.S. Bureau of Economic Analysis show that corporate profits account for a larger share of total gross domestic product (or national income) than at any time in decades. Meanwhile, wages and salaries make up the smallest…
Let’s put “fixed lump” to rest
The “fixed lump of labor” fallacy never dies. This is the mistaken thinking that there are only a fixed number of jobs in an economy regardless of other economic conditions. Alternately, it is the assumption that the number of workers…
Voters need to keep eye on farm bill
A new farm bill is due in 2007, and the nation needs a good debate to decide what exactly we want to accomplish with federal agriculture programs. Unfortunately, agriculture is not a political issue right now. We probably will get…
Don’t blame interest rates for housing slowdown
No question, the housing sector is slowing down. But is it the result of the Federal Reserve’s tightening of the money supply? And if so, is that bad or good? Nationwide, July’s sales of new homes were down more than…