Many people do not understand bonds. This isn’t a disaster for society, but some households’ finances can suffer if they invest in something they do not fully understand. Furthermore, misunderstandings about the role that bonds and bond markets play in…
Shielding drugs, rock ‘n’ roll
Two unrelated public controversies — drug costs and music copying — highlight an important economic lesson. Society benefits when governments grant property rights in intellectual property through patents and copyrights. But the benefits can be costly. Patents and copyrights help…
Like farmers, small businesses need assistance
The changes last week at Minnesota Technology Inc. highlight an interesting paradox in public policy. Historically, we have devoted substantial resources to technical and management assistance for farmers. But similar help for small businesses continues to get short shrift. Are…
Plumbing depths of user optimality
Examples of economic concepts are all around you, if you just know how to recognize them. Just yesterday I experienced a great example of “Pareto optimality” while installing new copper water pipes in the bathroom of my century-old house. “Pareto…