One of the great virtues of economics is how it illuminates the unseen and the hidden. Frederic Bastiat, in his classic essay, What Is Seen and What Is Not Seen, analyzed the economic consequences of a simple act of vandalism, the broken window. We see the broken window. We see…
Read MoreFrom National Public Radio’s Morning Edition The truth is, there’s no such thing as a safe drug. Every drug has side effects. It’s only a matter of degree. And there’s usually a tradeoff between safety and effectiveness. Powerful drugs are more likely to have side effects. Everyone who undergoes chemotherapy…
Read MoreFrom Ideas on Liberty, Vol. 50, No. 12, at FEE.org At current tax rates, barring a recession, the federal government will run large and growing surpluses during the next decade and beyond. Yet, regardless of the identity of the new President or the character of the new Congress, we are…
Read MoreA friend of mine asked me the other day about Nickel and Dimed, Barbara Ehrenreich’s experience as a low wage worker trying to make ends meet. She has a tough time. It’s not easy living on the minimum wage. It’s particularly hard to support a family of four on $10,000…
Read MoreCalifornia has recently decided to make sure farmworkers are treated more humanely. Here’s the headline and the opening from the AP story: California Bans Hand-Pulling of Weeds SACRAMENTO, Calif. – California became the first state Thursday to ban weeding by hand on most farms, saying the work is too backbreaking…
Read More(Full Article in USA Today) When it comes to money, even a lot of money. Let’s say it is $422 billion. Would you say it was a lot? It is all a matter of perspective. If this money is in your bank account, it is such a large amount that you…
Read MoreThe Presidential campaign season is about to go into full swing. The conventions are coming, to be followed by a barrage of advertising and then almost certainly, we will have debates. Much of the focus will be on Iraq and American foreign policy, but inevitably, the economy and its performance…
Read MoreNote: Newsweek Japan asked me and others to comment on ten questions related to the global economy. Here’s the question they asked on outsourcing and job security, along with my answer. I have a second answer to another question here. Q8: Why are firms in many countries still restructuring and…
Read MoreFrom the Hoover Digest, Spring 2004 People are worried that Indians are going to take away all of America’s good jobs. The “outsourcing” of call-center and software coding jobs to India has been a tough pill to swallow for an educated workforce. The alarmists, from presidential candidates to think tank…
Read More(From Newsweek Japan) Note: Newsweek Japan asked me (and others) to answer a series of questions on economics. Here is one on general economic policy. My essay on outsourcing is here. Q10: In this age of uncertainty, what is the most credible and appropriate economic theory for governments to follow…
Read MoreFrom Business Week Online Outsourcing is all over the news. U.S. businesses are hiring foreigners, often in India, to do things that Americans once did. The tasks range from manning call centers to writing software code. We often hear that this economic phenomenon is bad for America, that the benefits…
Read More(From Business Week Online) After a good year for the stock market, a lot of investors are feeling it’s safe to get back in the water. And despite the recent scandals, a lot of money will be going into mutual funds as the economy and market continue to recover. But…
Read More(From Tech Central Station) Time Magazine has chosen the iTunes Music Store as the Invention of the Year. Invention of the Year? When you think of an invention, you think of the light bulb, the cotton gin, the airplane, the television, the transistor, the cell phone. But an online Music…
Read More(From Business Week) Sometimes I suspect Bill Gates doesn’t sleep so well at night. Not out of any guilt over his billions or the alleged mediocrity of his product. No, I wonder whether he might actually worry about the competition. Not Apple (though that iPod MP3 player is a killer…
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