Estimating values of “goods” that are never sold is difficult. Take, for example, the new U.S. Forest Service re-estimate of the recreational value of national forests, which dropped to $11 billion from $111 billion, a huge revision. Critics in conservation…
Safety is a legitimate issue
The mechanics strike at Northwest Airlines raises important economic questions: What role should government play in airplane safety? How can we maintain safety as airlines perform less maintenance themselves and contract more out, even to shops in other countries? Regardless…
Gasoline demand won’t fall overnight
When gasoline prices increase so much, why don’t the amounts purchased fall accordingly? Economists hear that question a lot. After all, we teach students that demand is an inverse relationship between price and quantity. At low prices, people typically buy…
A strike is a rarity these days
Threats of strikes at two major Minnesota employers raise issues about the role of labor unions and work stoppages in an economy. Qwest settled with its union on a new three-year contract, but the outcome of Northwest Airlines’ dispute with…