BOHANON & STYRING: Temptation to cheat dooms price-fixing schemes
The Saudis et al. tried to reinvigorate the OPEC cartel, which has been nearly destroyed by new U.S. hydraulic fracturing technology. It didn’t work.
Economic Analysis
Articles
BOHANON & STYRING: Venezuela offers lessons in dangers of inflation
inflation is a sustained and persistent increase in the general level of prices. In the United States, we don’t have much inflation right now, but, historically, governments have conjured up inflation as a way to raise revenue and repudiate debts.
BOHANON & STYRING: Obama budget takes on sports-venue subsidies
Obama’s 2017 budget has one provision that makes us want to send him a belated Valentine! He asks Congress to eliminate a federal tax exemption for interest payments on local bonds issued to build professional sports venues.
BOHANON & STYRING: Look past class warfare to the real numbers
It’s an election year, so politicians talk a lot about taxes. Most candidates tell the middle class and poor they pay way too much in federal income taxes.
BOHANON & STYRING: Fed’s easing policies are coming home to roost
Nowhere is it written that it’s the Fed’s job to provide cheap money for the federal government to spend, but that’s precisely the hole the Fed has dug for itself.
BOHANON & STYRING: Market ultimately keeps gas prices in check
As long as a price-fixing scheme cannot be enforced by law or mafia contract, we consumers have little to fear.
BOHANON & STYRING: Ethanol has lost its glow, but subsidies live on
Ethanol, the wonder fuel, has turned out to be a wonder flop. But corn ethanol has powerful interests protecting the subsidy, such as corn farmers and ethanol companies. Those who bear the costs of the ethanol subsidy are the widely dispersed and disorganized members of the general public.
IMF downgrades outlook for world economy again
Citing weakness in the developing world, the International Monetary Fund said Tuesday that the world economy will grow 3.4 percent, down from an October forecast of 3.6 percent.
BOHANON & STYRING: Quest for growth faces demographic headwinds
A low birth rate coupled with extended life spans for old folks is a recipe for an economic squeeze.
BOHANON & STYRING: Economics matter in immigration choices
Immigration stories have cultural, social and political elements to be sure, but economics almost always plays a central role.
BOHANON & STYRING: Federal Reserve gives banks unintended windfall
Opaqueness has advantages. Explained in everyday English, one consequence of recent Fed policy would be embarrassing. “We are giving banks $12.25 billion a year in free profits for doing absolutely nothing.
BOHANON & STYRING: Fed’s baby step on rates has minimal impact
The point of the rate hike was not to slow down business lending; rather, it was to signal that the Federal Funds Rate will not be zero forever.
BOHANON & STYRING: Not all consequences of policies are intended
Any self-respecting intermediate microeconomics student should know that, if the cost of burning Christmas lights goes down, folks will indulge in consuming more Christmas lighting.
BOHANON & STYRING: Federal tax system earns F on every front
If we’re going to tax income, is there a better alternative? Indiana’s adjusted gross income tax wouldn’t be a bad choice.
BOHANON & STYRING: Messed-up U.S. tax policies fuel gamesmanship
One of the nastier quirks of U.S. corporate taxation lies in where income is taxed. Just about everyone else follows a simple rule: You pay taxes to the country where the income is earned. But that’s not good enough for Uncle Sam.
BOHANON & STYRING: Soaking rich doesn’t necessarily fill tax coffers
Tax rates affect the tax base in two ways: Higher rates decrease incentives to generate income and also divert income and investment to less productive tax shelters. With higher rates, the tax base is smaller than it would otherwise be.
BOHANON & STYRING: Terrorist uprising can’t be good for economy
The average U.S. real GDP growth rate from 1987-2000 was 3.65 percent. From 2001-2014, it was 1.64 percent. What event divides these two equal time periods? The 9/11 terrorist attacks.
BOHANON & STYRING: Shed the thought that Social Security is a right
Want to get a group of retirees riled up? Tell them their Social Security benefits are welfare benefits.
BOHANON & STYRING: Rising entitlements tab requires drastic action
Public finance economists go crazy thinking about federal entitlements. Medicare, Medicaid and Social Security account for most of the entitlement spending, although Obamacare looms as a future contender.
BOHANON & STYRING: U.S. no longer well-served by ban on oil exports
Let domestic oil producers sell at the best price they can.