People are concerned that the U.S. economy, visibly slowing before September 11, will fall deeper into recession because of the economic shocks from that day’s events. Such fears are justified but probably overblown. The greater danger is that business will…
Author: Ed Lotterman
Cipro popularity becomes disadvantage for Bayer
“I’m just trusting in God and Cipro,” a Washington, D.C., postal worker said recently about the anthrax scare and the antibiotic most frequently named in connection with it. His sentiments demonstrate the power that brand identification can have. The more…
Minnesota can weather the storm
Local labor markets have provided lots of news recently, and not much is good: Unemployment is up, new and continuing claims for unemployment are up and announced layoffs seem common. Earlier this week struggling ADC Telecommunications, a high flier just…
Good judgment can reduce damage to our way of life
Forces opposed to the United States managed to strike in St. Paul last week. No one was hurt, and economic damage was minimal. But the incident offers a lesson: Our nation’s economy may be hurt by attacks from enemies and…
Economies must let companies fail
Three business stories caught my eye this past week. Bethlehem Steel Corporation, long the nation’s second-largest steel maker, filed for Chapter 11 bankruptcy. So did Polaroid Corporation, a much younger, more technologically advanced firm based in Cambridge, Mass. But St.…
In public sphere, setting wages is a tricky business
Few administrative tasks are more difficult than setting efficient and equitable compensation levels for public employees. The Minnesota public employees strike bears this out. Minnesota’s two largest state employees’ unions went on strike largely because offered increases in pay for…
Let’s know pros, cons of stimulus package
The idea of fiscal stimulus for the U.S. economy is all the rage, but what’s been missing is a thorough discussion of all possible results. Minnesotans testifying at a congressional hearing held in the Twin Cities earlier this week certainly…
Stockwalk situation shows how quickly failure can spread
The collapse last week of Stockwalk, a Minneapolis securities firm, shows in microcosm just how contagious failures can be. Stockwalk was a relatively small Golden Valley, Minnesota-based stock brokerage that grew rapidly in recent years. It had specialized in underwriting…
Avoiding rate traps
The Federal Reserve’s Open Market Committee had another meeting Tuesday. Scanning four newspapers Wednesday, I found almost identical stories on the event. The central bank lowered its target for the federal funds rate by half a percentage point to 2.5…
Right now, theories are solid, but limited in capabilities
In light of recent unprecedented events, it seems like economists can’t tell us anything about what will happen next. What do economists do when their theories suddenly see useless? Do they have to come up with a whole set of…