Category: Other

Putting a cap on salaries, fees doesn’t work in tight labor market

Some conservatives like to cite the adage that no one’s life or property is safe while the Legislature is in session. I usually dismiss that sentiment as anti-government cant. But then the Minnesota Legislature comes along and makes a fool…

Bonsignore’s exit deal strains economic theory

After Honeywell disclosed the other day that dismissed chief executive Michael Bonsignore would be getting a severance package of nearly $10 million, a friend called me to ask how economists could justify big severance packages for executives who have failed.…

Population changes give birth to widespread economic changes

What sort of world will our children and grandchildren live in? Will it be crowded, nasty and polluted or will they enjoy better conditions that we do? Economists are notoriously bad at forecasting, but some recent news items give interesting…

Limiting ag imports is foolish

Many U.S. farmers face financial difficulty. Look at corn, wheat and soybean prices—they’re below levels of 25 years ago. Some believe that agricultural imports are to blame and are saying so to the congressional committees that are holding hearings before…

Events bring changes that are certain to involve trade-offs

Sometimes, activities that are satisfying can also be dangerous. Take old steam engines, which I love. Judging by the growing popularity of tourist railways, steam parks and steam museums, many other people love them, too. Unfortunately, they are not always…

Bond ratings matter

Bond ratings don’t get much attention, but they should. Why? Because they play a crucial role in the health and well-being of our communities. Three bond-rating agencies this week issued reports on the quality of debt issued by the city…

Health care is too important to be left in the hands of a single official

Some interesting economic issues surround the campaign against Allina and other health maintenance organizations being waged by Minnesota Attorney General Mike Hatch. But it’s not yet clear whether efficiency or fairness will improve as a result. First, some background. Allina…

People respond to incentives–sometimes a little too well

Students of mine frequently ask: “What is the most important idea in economics?” I respond: “Resources are scarce compared to people’s wants, and therefore they have to make choices.” “But what else?” a few persist in asking. I reply: “People…

Did the Canadian dollar fall, or did the U.S. dollar rise?

“Canadians feeling financial pinch, staying away from States” was the headline atop a recent newspaper story. Northern Minnesota retailers were lamenting a drop in business from Canadians because of “the abysmal exchange rate” between Canada and the United States, according…