This week’s decision by Congress that the Federal Reserve may regulate the “swipe fees” merchants must pay banks on sales paid via debit cards provides a mother lode of examples for microeconomics teachers like me. On the surface, the fight…
Too-rosy claims can undermine even the best ideas
Even the best ideas can be undercut by overselling. A classic case: President Barack Obama’s pledge that if his stimulus bill were passed, unemployment would not exceed 8 percent. Now the same mistake is being made with excessively optimistic claims…
Shutdown’s impact depends on extent of ‘public goods’
As Minnesota toys with a “shutdown” of state government due to the budget impasse, many people wonder what effect a layoff of thousands of state employees will have on the state’s economy. Nationally, many states and local governments are reducing…
Porn industry’s threat to move provides lesson in global economics
Many outcomes of globalization are positive, giving people more goods and services from the same resources than if economies were isolated. Some outcomes are tragic, however. And then there is the occasional farce. That was evident in a recent wire…