The ongoing brouhaha over proposed health care changes shows how costly the term “entitlement” can be. There are two relevant meanings of the word. One is an exact legal definition relating government funding to benefit eligibility. The other, more ambiguous,…
Federal Reserve profits on bailout funds no mystery
The recent news that the Federal Reserve made some $14 billion on sundry lending and securities purchases over the past two years is raising comments. It should not. The Fed usually makes money by managing our nation’s money supply. So…
Even when cash isn’t involved, “opportunity cost” crucial
The mess in which our nation finds itself in Afghanistan illustrates a fundamental economic concept, that of ‘opportunity cost.’ This idea, often expressed as “there’s no such thing as a free lunch,” reflects the fact that in a world of…
Economics can put consumers in a real pickle
Economics is a study of human behavior, specifically of how humans make decisions about using the scarce resources at their disposal so as to best meet their needs and wants. They inevitably make such decisions multiple times each day. My…