BOHANON & CUROTT: Households holding on to more of their money is a good thing
The Federal Reserve Bank of St. Louis’ has reported the U.S. household savings rate at 26% for the second quarter of 2020, nearly three times the post-WWII average of 9%.
Economic Analysis
Articles
BOHANON & CUROTT: Stimulus packages hurt economy in the long run
Few fallacies are repeated more often than the myth that massive government stimulus packages are necessary to sustain the economy during a recession.
BOHANON & CUROTT: Here’s one model for in-person instruction at universities
Our classes will combine in-classroom student interaction with major online components.
BOHANON & CUROTT: Let’s stand up to Chinese excesses by welcoming Hong Kong residents
The Hong Kong freedom movement deserves our support and sympathy.
BOHANON & CUROTT: Tossing around statistics can quickly lead to trouble
We did NOT suffer a shrinkage in GDP of 32.9% between the first and second quarters of 2020—more like a 9.5% shrinkage.
BOHANON & CUROTT: Extend unemployment benefit, but find the sweet spot
Eliminating federal assistance leaves the involuntarily unemployed reliant on state programs, which provide an average of only $350 a week. Who wants to see millions of Americans stuck in such dire financial straits?
BOHANON & CUROTT: Masks teach economic lesson of external benefits
Debating mask wearing as a matter of individual liberty largely misses the boat.
BOHANON & CUROTT: Tensions with China threaten Hong Kong’s economic firepower
On July 1, Beijing unilaterally imposed new rules that allow it to quash dissent in Hong Kong as the government does elsewhere in China.
BOHANON & CUROTT: Fed’s heavy-handed tactics are threatening the economy
The Fed has overstepped its bounds and embarked upon a form of market socialism that is detrimental to the long-run health of the economy
BOHANON & CUROTT: The young like their virus odds; old should steer clear of them
One overwhelming statistical fact is that deaths attributable to the COVID-19 virus are age-related.
BOHANON & CUROTT: There’s no economic incentive for police to change
It is time to end qualified immunity, the judicial policy that shields police officers from the legal consequences of violating the constitutional rights of citizens.
BOHANON & CUROTT: Pay attention to what’s happening at the margins
Marginal analysis is a cornerstone of economic reasoning. It’s the simple notion that the incremental value of a variable is what matters, not its total or average value.
BOHANON & CUROTT: Here’s why May’s jobless data was skewed—but still positive
How should BLS count the servers or hair stylists who did not work because of COVID-19 workplace closures? Technically, they ought to be counted as laid-off and unemployed. But apparently this isn’t happening.
African Americans point to racial biases in economics
The field of economics is facing an upheaval, with African American scholars decrying bias in the profession and presenting evidence that leading journals have failed to publish sufficient research that documents racial inequalities.
BOHANON & CUROTT: Universities, businesses need protection from frivolous claims
Now the economy is opening back up and many universities are planning to resume in-person learning in the fall. But the fear of lawsuits could easily derail these plans.
BOHANON & CUROTT: Federal borrowing makes sense, but let’s do it right
We propose $1 trillion of new debt be specifically issued as Corona Bonds. The bonds should be long term and be backed by a small surtax on current federal income taxes earmarked for their repayment.
BOHANON & CUROTT: Entrepreneurs are best equipped to pull us out of this mess
Epic levels of unemployment and declines in GDP take time to repair, even if we get good news such as better remedies or an effective vaccine. There are at least two reasons why.
BOHANON & CUROTT: Price swings caused by virus spur debate over what’s ‘just’
Discussions of what constitutes a just price go all the way back to the ancient Greeks.
BOHANON & CUROTT: Ultimately, consumers are key to reopening economy
The economic notion of compensating-wage distinctions goes back to Adam Smith, who stated the “wages of labour vary with the ease or hardship, the cleanliness or dirtiness … of the employment.”
BOHANON & CUROTT: In the real world, you actually can put a value on human life
The cold, hard fact is that putting a value on human life is unavoidable.