When people receive some benefit over many years, they begin to regard it as an unquestionable right. Economists call these “acquired rights.” Such rights are not strictly defined in law, and thus generate conflict if changed. The arguments center on…
Month: October 2006
It’s time for truth in property taxation
The tax on real estate that is used to pay for schools and other local government is a bad one for several reasons, but one flaw becomes particularly evident in an election year because the tax practically invites public misunderstanding…
UnitedHealth board typical in its inaction
Where were the directors? While the focus is on William McGuire, who stepped down last week as chairman and chief executive of UnitedHealth Group, not enough attention is being paid to that company’s board of directors. What were they doing…
Corruption affects economy in big, little ways
Does political corruption affect the economy? That is a particularly relevant question given recent news. The answer is that corruption matters economically, but the effects vary depending on the circumstances. Consider the following recent cases: Last week: Rep. Bob Ney,…
Lumber-aid ideas revive new debate
Minnesota’s forest products industries are in a slump. Companies that produce lumber, oriented-strand board and other building materials are particularly hard hit by the sharp decline in new-home construction nationwide. Many have cut back production, and some are closing, at…
Nobel laureate revitalized Keynesian theory
The committee members who choose Nobel laureates worry that history will judge their insights. Sometimes, they hedge their bets by honoring leaders from opposing sects within the discipline. That happened this year in awarding the economics prize to Edmund Phelps,…
Government’s net worth hard to figure
We tabulate our national debt to the penny but we never add up the nation’s assets. That understandably causes confusion. Take this reader, who recently asked, “I hear the United States called the world’s richest nation. How can that be…
Fed policy sent stocks, real estate soaring
Tuesday’s news of the Dow hitting a record high and the Census Bureau announcing that real median home values increased 32 percent in five years made me exclaim, “Boy, old Irv was a pretty smart guy.” Irving Fisher is the…
Voters just don’t care about the budget
The leaves are turning color, farmers are harvesting, mornings are crisp and we are starting yet another federal fiscal year without a budget. This is such a regular occurrence, the public is more likely to comment on a particularly cool…