Since September 11, U.S. media have focused their attention strongly on terrorism, Osama bin Laden, anthrax, Afghanistan and Israeli-Palestinian conflict. But other international news, especially economic, has largely dropped off the screen. This is unfortunate. Ongoing economic crises in Japan…
Author: Ed Lotterman
Deficits can teach lessons
Earlier this week Minnesota officials said that the state faces a budget deficit of about $2 billion through the middle of 2003. Minnesota is not alone—some 46 states reportedly face budget shortfalls. A few, such as Arizona, already have their…
Long-run projections are often misleading, even silly
“Based on current demographic trends and labor force participation rates, the workplace is expected to face a shortage of 26.9 million employees by 2031.” That prediction comes from a study released in late August by the Employment Policy Institute, a…
Danger: data drama
On Monday, the National Bureau of Economic Research announced that the United States has been in a recession that began last March. This was generally known, but the economists’ declaration made it quasi-official. And on Tuesday, the Conference Board said…
How theory applies to Selig
Many Minnesotans are upset at the possibility that Major League Baseball may eliminate two teams, one, of course, being the Twins. It’s a big story here, prompting news organizations to watch every move and listen to every utterance of the…
Uncertainty is casting pall on businesses, consumers
“All we have to be uncertain about is uncertainty itself.” That is how a latter-day Franklin Roosevelt might describe the economic situation in the United States today. Unlike 1933, when FDR was inaugurated, unemployment is not at record levels, nor…
Family spending is likely to change
As the U.S. economy wallows in a slowdown, soon to be officially designated a recession, it would help to refresh our memories about what it’s like during those periods. After all, the economy hasn’t been in this condition for 10…
Other nations notice U.S. shift on drug patent rights
Tommy Thompson, Health and Human Services secretary, spun a tangled trade policy recently when he threatened to break Bayer’s patent on Cipro, the antibiotic that treats anthrax exposure. Thompson did not threaten Bayer because the firm refused or was unable…
Business cycle is natural
“You cannot move something very far by pushing on a string,” I’ve heard myself saying again and again in the classroom trying to explain the Federal Reserve’s attempts to support the lagging economy. The Fed’s decision on Tuesday to increase…
In name of war, Congress touts questionable plans
“The hogs were really feeding.” That’s how Reagan Administration Budget Director David Stockman described congressional pandering to special interests when he drafted the Great Communicator’s tax cut bill nearly 20 years ago. Stockman, a true believer in supply-side economics, wanted…