(This column is part two in a two-part series. Part one, “Argentines aren’t learning right lessons from debacle,” discusses the historical events that led up to the current situation.) News media are focusing their stories on Argentina almost exclusively on…
Author: Ed Lotterman
Survivor funds are tough call
The question of when governments should give money to disaster victims, and how much, is a complicated one. The only clear conclusion one can make is that the September 11 Victims Compensation Fund set up by Congress is a bad…
Argentines aren’t learning right lessons from debacle
It is hard to think of a modern nation that has suffered as great an economic disaster without losing a major war as Argentina. While Argentine households’ standards of living remain well above those in most developing countries, they have…
No room for rent seeking
With the new year, legislatures will soon convene across the country. That means we’ll soon see and read about a phenomenon that economists call “rent seeking.” “Rent seeking” occurs when a group with special interests seeks legislation to give it…
Nonpartisan group could monitor state coffers
(This column is part two in a two-part series. Part one, “Finding a fair tax system,” discusses the history and inadequacies of the current taxation system.) The fiscal problems that many state and local governments are facing are largely due…
Finding a fair tax system
The recession-induced budget shortfalls pummeling various governments illustrate the difficulties in crafting a tax system that is both effective and fair. By trying to make state and local taxes fairer, revenues have become more volatile. And the way taxing and…
Instead of 401(k) limits, overall review is needed
In any well-publicized business failure there always is a group of “widows and orphans”—the people who feel victimized by the firm that went broke and whose plight is given great attention in the media. The widows and orphans in the…
Melding steel giants isn’t bad
A move toward more monopoly in the steel industry might help northern Minnesota and Michigan’s Upper Peninsula. If that sounds like heresy coming from an economist, let me explain. The steel industry, and regional iron mines, would benefit financially from…
Enron episode teaches investors to act like parents
It looks as though Enron will set a record as the biggest bankruptcy in U.S. history. Regardless of the final details, it is pretty clear that anyone who had stock in the company can write off most of their investment.…
Fed faces a battle in shifting policy
The Fed’s decision to send interest rates lower by one-quarter percentage point was no surprise Tuesday, although it likely capped an extraordinary year for the central bank. Next year may bring an improving economy, but policymaking by the Federal Reserve…