Economy

Meaningless talk and inaction in a crisis: Why Rhode Island’s crisis will get worse before it gets better & what to do about it

By Donald B. Hawthorne | May 14, 2008 |

The state of Rhode Island is in a deep financial crisis. Resolving its large budget deficits will require real and significant structural changes to the status quo. The status quo was best summed up in a passing comment by Representative Gorham last night on the Matt Allen show: Gorham talked about how the state budget…

Free Trade Is a Two-Way Street

By Justin Katz | April 21, 2008 |

Trade isn’t a topic on which I can express all of the relevant arguments, but this suggestion from University of Maryland School of Business Professor Peter Morici sounds reasonable to me: China is the biggest problem. It subsidizes foreign purchases of its currency, the yuan, more than $460 billion a year, making Chinese products artificially…

Class Warfare Is a Highway, and I Wanna Ride It

By Justin Katz | April 21, 2008 |

Things aren’t equal on the highway. Some folks happen to pull into pockets of traffic that engulf them for an entire commute, while some ease into the lull just five minutes earlier. Some folks have faster cars; some folks have bigger, more-imposing cars. Some have drivers; some have GPS; some have government plates. Some are…

The Carpenter You’d Rather Be

By Justin Katz | April 16, 2008 |

PROEM: We’d like to encourage this sort of conversation, so commenters will have a very short leash for ad hominem with this post. Matt Jerzyk’s response to my post about the rich giving their money to we in the working class strikes me as so tangential as to raise a wholly separate topic, and as…

Taking from the Rich

By Justin Katz | April 15, 2008 |

Over on Kmareka, David Jaffe suggests that, thanks to those awful ultra-rich, working-class Americans have every reason to be bitter. Joins in commenter Miami Mama: If those ultra-rich would spend just a fraction of their wealth to help the poor and middle-class instead of selfishly splurging on themselves, it would be a much better world.…

We are the Free Market Change We are Waiting For

By Marc Comtois | April 14, 2008 |

The April 7, 2008 edition of National Review (dead-tree: subscriber only) contains a piece by Stephen Spruiell, “The Buckeye Stops Here,” that focuses on the Ohio economy. Here’s an illuminating excerpt:

The Problem with Giving All the Power to the Nice Guys

By Justin Katz | April 13, 2008 |

What a jumble has politico-economic thought become in America! It’s as if so much access to information (and ability to propagate it) has served mainly to allow us all to slip into ruts of prepared thoughtlines. Consider this interesting comment from Evan, at RIFuture (emphasis added): What most “free market” bozos ignore is that most…

The Sense of a Gap

By Justin Katz | April 10, 2008 |

So flawed is the construction of the ballyhooed income gap finding that one hardly knows where to begin. How about with a statement of principle on page 17 of the source report (PDF)? The United States was built on the ideal that hard work should pay off, that individuals who contribute to the nation’s economic…

Solving RI’s Crisis in 10 Not-So-Easy Steps

By Justin Katz | April 1, 2008 |

Anybody who missed it on Sunday should take a moment to read URI Business Administration Professor Edward Mazze’s “10 steps to right R.I.’s dire financial state“: Any optimism for job creation next month has disappeared as the state, region and national economy slide downward. For years, we have been dealing with a partial truth that…

Ideomythology and Stagnation

By Justin Katz | March 11, 2008 |

It’s a favorite argument of some of the antagonists ’round here to insist that household incomes have remained stagnant. The unions only look like they’re raking it in, you see, because they’re advancing at the rate that should be universal. Now, we can (and often do) argue that the benchmark relies on impossible mandates, but…