Wages are set by something like auction markets. In these markets, the willingness to pay a certain wage is balanced by workers’ inclination to sell their services. Rare skills in high demand get paid more than common skills.
Wages are largely determined by labor markets. So, if the minimum wage is set above the market wage, some workers will lose jobs while some will be better paid. There is no disagreement by anyone with a modest understanding of the matter, but low-paid jobs are not the issue.
The sharp drop in crude oil prices has caught many economists by surprise, me included.
If everything goes as forecasted, 2015 will be the best year of economic performance since 2007. This is a low bar if ever there were one.
Jonathan Gruber’s micro-simulation economic model is highly sought after because it replicates the version used by the U.S. Congressional Budget Office. Thus, it can be used to outwit that organization’s candid assessment of the effects of a policy proposal.
If excessive government spending and artificially inflated wages offered actual help for America’s dwindling middle class, then east-central Indiana would’ve seen unbridled prosperity over the past half century instead of decline.
After Tuesday's midterm elections, exit polling showed how little falling unemployment has resonated. Most voters said they cast their ballots out of fear for the economy.
Given my strong support for early childhood education programs, you might suppose I think Gov. Pence mistaken in his decision to forgo some $85 million in federal support for early childhood education. I do not. Accepting this money would have been easy, popular and wrong.
Economists from Indiana University Kelley School of Business say they are cautiously optimistic that 2015 will be the strongest year the economy has seen yet in its long, slow recovery from the Great Recession.
The meme of the 2016 election is becoming clear. For the Democrats, the leftward pull of Elizabeth Warren will exert great influence. For the GOP, the coming two years offer a chance to lay out a pragmatic opposition to the last decade in economic, social and foreign policy.
The U.S. government’s response to the Ebola virus is a case study on some of the central problems of our times.
In recent years, average wages have stagnated. Wages for some workers declined while wages for others rose. Understanding why is important for any policy discussion.
Today’s financial markets offer few good choices for retirement investments, and that is both a symptom and cause of a problem. Stock markets in the United States are hovering at near-record levels. But there is real reason to worry.
Because TIF districts never go away, redevelopment commissions will have many opportunities over the coming centuries to think of multiple uses for their money. To no surprise, this raises many legitimate policy questions.
The cost of luring a firm to town has skyrocketed, while the benefits have plummeted. The United States has created more than 90 million net new jobs over the past 45 years, but fewer “attractable” jobs are available today than in 1969.
Small-government sentiment runs strong in Indiana, and we can be pleased with the resulting low taxes, thoughtful regulatory environment and greater personal freedom. Still, I think much of the small-government movement in Indiana targets the wrong problems.
When the economy is getting much better or much worse, the trend is obvious even if there are occasional mixed signals. When the economy changes little, almost every piece of new data can be confusing.
That academia is a creature of the left is hardly in question. Voting patterns and political contributions of professors are widely studied, and astonishingly leftist. Diversity efforts seek to build a cadre of people who look different but think exactly alike. Still, I wonder how much it really matters.
Among the most misunderstood concepts in public policy is the burden of taxes. One unfortunate result is a good bit of bitterness and calumny over who pays their fair share.
About half of all young people try college, but only half of that group finish a degree. The difference between these groups is almost wholly due to old-fashioned hard work and perseverance.
