How could debt problems in Greece – a country of 11 million – trigger a financial crisis not only across Europe but for the world as a whole? Although the current crisis is more pronounced than earlier ones in its international ramifications, we’ve learned that all financial crises follow familiar patterns. The role of credit in economies is key. And credit, which stems from the Latin word credere, meaning...
One of the benefits of our move to a new site is that you can search for any word you want in a column. Looking for the column on the vise I pulled out of a dumpster? Type “dumpster” or “vise” into the Search field and hit Enter…like magic you’re transported back to December 2002…and I still have that vise! The comments feature of this new site also makes...
This week’s kerfuffle over “Obama’s tax on Christmas trees” is the most imbecilic one I have encountered in 30 years as an economist. Fortunately, informed commentators eventually introduced some sanity, but not before the Obama administration caved into pressure and suspended the program. Many in the general public probably were left with the notion that the administration did actually make an independent decision to create a new excise tax...
Large national banks reportedly are losing many customers to smaller community banks and credit unions. This is a general, if delayed, response to public disgust at the actions and privileged treatment of the big banks over the past four years. It also reflects specific anger over increases in fees for household and small-business customers typified by Bank of America’s aborted attempt to impose a $5 monthly fee on debit...
North Dakota’s beef about Minnesota’s restrictions on electricity generated from coal together with California’s new greenhouse gas cap-and-trade system illustrate a knotty economic question. How does a society decide issues in which some, but not all, people feel morally bound to take actions that may have immediate economic costs in return for uncertain benefits? North Dakota has sued the State of Minnesota challenging our 2007 Next Generation Energy Act...