If a thesis is repeated hundreds of times, many people believe it; if it is repeated millions of times, hardly anyone doubts it. The United States in particular is repeatedly cited as an example of how the “gap between rich and poor” is constantly widening. But two experts from the Office of Tax Analysis at...
To start off “Ask an Economist” for the year, I have a question from Stan K. about the national debt. I’m happy to report that after asking for questions in early January, I have received the most ever. I look forward to working through all I can. Here is Stan’s question: Peter, I often bemoan...
In a household of four guys, fridge space is what you might call prime real estate. I know this because I happen to live in one such household. For months, we tried sharing the one fridge in the house. It was not pleasant. We had to have regular negotiations about how to allocate the limited...
More than 60 students, educators and policymakers from across Michigan braved winter weather last week to celebrate National School Choice Week at the state Capitol. This annual event to raise awareness about the many education options in the Great Lakes State was sponsored by the Mackinac Center, Parent Advocates for Choice in Education, the Great...
After a scare with January’s Consumer Price Index (CPI) release, economists and market watchers are breathing a sigh of relief following the latest Personal Consumption Expenditures Price Index (PCEPI) data. Both headline and core inflation (excluding food and energy prices) inflation were 0.2 percent in December. Year-over-year, the figures were 2.6 percent and 2.9 percent,...
Change can be a challenge for industry giants, and new ideas are sometimes hard to come by for established and incumbent firms. Competitive inertia and NIH syndrome (a marketing acronym for Not Invented Here) can creep in since focus is placed on maintaining sales and status rather than taking chances. Classic examples include Kodak’s initial...
The Biden administration took a major action in 2022 to show it meant business in a war that had quietly raged for years. The action was not related to the war in Afghanistan, which had just ended, or the conflict in Ukraine, which was about to begin. The administration’s action related to a battle of...
It is well that war is so terrible; otherwise, we should grow too fond of it.” – Robert E. Lee “Wars and rumors of wars,” to borrow a well-known Biblical phrase from Matthew 24, seem all too commonplace these days. Is that because more wars are going on now than in the past, or because...
In late December, after US Treasury Secretary Janet Yellen borrowed $90 billion in just one day, the federal government’s public debt eclipsed $34 trillion for the first time in history. The steady accumulation of public debt has become a mainstay in modern America, seemingly as inevitable as death and taxes. But something strange happened when...
I recently took a car trip of about 150 miles. I’m still recovering from it, as I drove by myself and practically every mile was bumper to bumper (I exaggerate, but only slightly). So, I sat, stewed, and twiddled my thumbs. (I did so to baroque music, so it wasn’t a total waste, but still…)...
Sometimes a company can seem so large that its position in the market appears unassailable. However, history teaches us that even a seeming behemoth can quickly be brought down by new competition. The sudden decline of the smartphone giant Blackberry illustrates how big does not mean invincible and reveals how allowing companies to compete and...
In 2023, FEE supported a series of articles by me titled Ask an Economist. Over the course of the year, I answered 16 questions. In this article, I wanted to highlight a few of the questions and answers I received throughout the year. After that, I want to talk about the future of the Ask...
The comedian Chris Rock has always examined the African-American experience in his work. He sets up one famous joke by explaining how Martin Luther King, Jr was against violence. He then remarks that if one finds oneself lost and happens on a street named after King, one should run away quickly because there will be...
Unlike startups that are expected to take risks, get messy, and challenge the status quo, larger established firms inherit what could be considered golden handcuffs, given that success can make change a challenge. Indeed, care must be taken not to rock the boat for stockholders or tarnish the brand equity that has been established among...