Which is more important in determining a person’s financial success, individual initiative or the economic environment? It’s an old debate, but the performance of our cherry trees this year provides a good illustration. We have two trees, both of the…
Drug-plan confusion wastes resources
Economists have been slow to recognize the importance of information to efficient resource use. Reliable information is valuable. It generally takes resources to assemble. Inaccurate information is costly because it fosters bad decisions that waste resources. A recent government Medicare…
Demand for product has domino effect
The effects of booming U.S. demand for ethanol and Asian imports work their way backward through the economy. Economists call this phenomenon “derived demand,” and a textbook example is the humble hamburger. Increased consumer willingness to buy burgers elevates demand…
Taxi limits hurt poor
Restrictions on the number of taxicabs in a city hurt society as a whole and are particularly harmful to the poor. They benefit a small number of already well-off people. That many cities still have such restrictions is testimony to…