When you hear that some company or industry is abusing the public with high prices or unconscionable profits, ask yourself the following: Is this a contestable market? If the answer is yes, the assertions probably are not true. New York…
GDP data easily misunderstood
For many years, the United States has imported more physical goods than it exports. When the government reports how much our economy is producing, imports often are blamed for reducing output. This is usually wrong, but understanding why requires some…
Human quirks throw wrenches into theories
Economists are finally acknowledging that humans are not fully rational. Squirrels in our back yard are grinding that home to me, but somehow I don’t appreciate the lesson. For more than two centuries, economists began their theorizing by asking: What…
Be careful what you wish for
There’s a clamor in Congress to try to force China to revalue its currency. Advocates say that would make a more-even playing field for U.S. produced goods. But they should be careful what they wish for. Consider these examples: Some…