Economic Debates

Most economic decisions can be debated. We have to decide whether we want higher or lower taxes, where to cut government spending, whether the deficit matters, if a business should have more regulation, if marginal analysis should affect environmental regulation. Learning about economics involves defending policy alternatives.

  • Vacuum cleaner.

    Home Economics

    May 29, 12 • 344 Views • No Comments

    What if we think of a household as a production unit that does child care, gardening, cooking and cleaning? And, if the work in the home is “outsourced” when people hire a nanny, a housekeeper, a gardener or do take-out for dinner, then the GDP reflects......  [read more]

  • Industries afflicted with Baumol's Disease have slower productivity growth.

    How Sick is Medicare?

    May 28, 12 • 393 Views • 1 Comment

    Perhaps it all began when President Lyndon Johnson called Wilbur Mills, chairman of the House Ways and Means Committee. “Wilbur, I’ve just been looking through the polls here, and I’ve only got a few weaknesses, and the worst of them is that I’m not......  [read more]

  • Our Transportation Infrastructure is Crumbling

    Cars and the Middle Class in Developing Nations

    May 26, 12 • 448 Views • No Comments

    What does it mean to be middle class? For a developing nation like China, income might be the key. If someone earns between $10 and $50 a day, then that person is middle class. Or perhaps you just need to be able to buy a tall macchiato at a Starbucks or a......  [read more]

  • euro zone map

    Exit Plans

    May 24, 12 • 382 Views • No Comments

    A British charitable trust has offered a hefty reward for the best eurozone break-up plan. Their goal? Improve and influence policy though a 250,000 pound ($393,430) incentive prize. As I read through the finalists’ plans, the unfathomable complexity of......  [read more]

  • Tax Revenue

    Just Taxes

    May 20, 12 • 401 Views • No Comments

    What happens when a philosopher who believes in less government gets benefits from government? Here is the story: In a building that Love Story author Erich Segal owned, Harvard professor Robert Nozick (1938-2002), a libertarian philosopher, was a tenant.......  [read more]