Economists are not the only people who abuse the assumption of “all other things being equal.” Just read the letters to the editor. This week, a reader proclaimed her intent to move to Wyoming because of its low taxes, state…
Tax rate lower than many think
$450,000 – Amount a married couple taking the minimum federal personal exemptions would have to earn in adjusted gross income to pay an average tax rate of 28 percent. $200,000 – Amount a single person would have to earn in…
GM, Ford ills boost theory of “creative destruction”
Economists’ ideas are judged by history as well as by their peers. The recent news about the downgrading of General Motors and Ford bonds to “junk” bolstered the reputation of one great 20th century economist but hurt that of another.…
Airbus-Boeing “duopoly” challenges airlines
Two can be an awkward number, as many a prom-goer can attest. That also is true in markets with only two producers. Managers of such firms face difficult choices, and so do their customers. When they make any major decision,…