Posts Tagged ‘incentive’

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    Overhead Problems

    Aug 25, 10 • 241 Views • Businesses, Labor, Thinking Economically6 Comments

    You’ve probably heard the story. Fed up, a flight attendant tells passengers what he really thinks of them, grabs a beer, presses the button for the emergency chute, and leaves the plane. The overhead storage bin might have been the reason. Overhead

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    Public and Private Incentive

    May 18, 10 • 159 Views • Businesses, Demand, Supply, and Markets, Government, InnovationNo Comments

    For centuries, the US Postal Service delivered most of the mail. The job it did was satisfactory but not optimal. Yes, through sleet and snow, etc., we received our letters and packages but employees rarely focused on cutting costs and innovating. Two

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    Yacht Lessons

    Apr 11, 10 • 182 Views • Government, Thinking EconomicallyNo Comments

    When we think about taxes, we should look at yachts. In 1990, because of a new luxury tax, anyone who purchased a yacht paid 10% more. The result? People stopped buying domestically made yachts. Yacht makers went out of business and the government never

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    Appreciating the Market

    Mar 30, 10 • 205 Views • Demand, Supply, and Markets, Economic Thinkers, GovernmentNo Comments

    In a recent WSJ interview, Nobel laureate Gary Becker tells us that, “Markets are tough to appreciate.” The reason, he says, is people feel government can better care for them than a profit seeking individual. Calling markets

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    Unintended Consequences

    Mar 15, 10 • 165 Views • Regulation, Thinking EconomicallyNo Comments

    New rules might not always have the results regulators expect.  Starting on April 29, any airplane that sits on the tarmac for longer than 3 hours will be fined up to $27,500 per passenger.  For a Boeing 737, that could mean $4 million.