People’s responses to the stock market collapse — and their decisions about whether to save or spend — are much affected by their perceptions of their own wealth. Like most people, I have seen the value of some of my…
Stimulus needed, however it’s spent
The current debate about the Obama administration’s $850 billion fiscal stimulus plan propagates such misconceptions that I feel compelled to put aside my general skepticism about how well such Keynesian policies work in the real world and explain—and even defend—this…
Murky property rights led to Newport levee mess
Oh, what a tangled web we weave when first we fail to clearly define property rights. That doesn’t rhyme, but it expresses how University of Chicago economist and 1991 Nobel laureate Ronald Coase, known for his work on property rights,…
China, U.S. need to change bad habits
For the United States to prosper over the long run, we need to reduce the share of total output that households consume. We need to increase the proportion of income that households and governments save. We need to increase investment…