BOHANON & STYRING: At least they can’t fudge the revenue forecast
One piece of legislation must pass before we can wave the General Assembly bye-bye: the budget.
Economic Analysis
Articles
BOHANON & STYRING: Beware politicians’ boasts about jobless rates
The widely publicized unemployment rate is one of those chameleon numbers, where apparent good is sometimes bad, and vice versa. All is not always what it seems when you peek behind the wizard’s curtain.
BOHANON & STYRING: Office bracketologists are probably safe. Still …
If you indulge in other forms of gambling from time to time, “bracketology” is the smartest bet you’ll ever make. And, you might become a criminal.
BOHANON & STYRING: Eleven’s political power play gets yellow card
What criteria is the public official supposed to use when she is forcing taxpayers to support a private venture? The government’s ability to support private enterprise is limited.
BOHANON & STYRING: Wage law distorts competitive markets
House Enrolled Act 1019, a bill to repeal the wage, is what gives. Few Statehouse junkies thought it would be an issue this time around. But the bill has passed the House and stands a chance of becoming law.
BOHANON & STYRING: Communities lose more than they gain from TIFs
Tax increment financing is sold by supporters as the closest thing to a free lunch mankind ever invented. We differ.
BOHANON & STYRING: Economic laws will push gas prices back up
Demand for petroleum products has stagnated because the global economy slowed. Supply, primarily driven by U.S. shale oil, has soared.
HICKS: New report starkly contrasts jobs polarization
Despite claims that the job market is unambiguously happy, there is real evidence of deepening problems.
HICKS: Today’s mobile workforce flocks to ‘great places’
Richard Florida’s writings popularized the notion of a “creative class” of workers, arguing that the workers held the key to a region’s prosperity and that the policies that attracted them would offer economic salvation.
HICKS: Piecemeal dismantling of liquor laws a bad idea
The regulation of alcoholic beverages in Indiana contains a vast web of laws that apply differently to different types of businesses. Over the past 80 years, firms across Indiana have in good faith made investment and location decisions based upon these laws.
HICKS: Bill for Rockport gasification plant is job killer
Rockport was not a privately feasible operation in 2005, so the state offered a number of energy purchase agreements to support its construction. Suffice it to say that what was a marginally bad idea in 2005 is a profoundly bad idea in 2015.
HICKS: Minimum wage arguments make little sense
It is important to understand what is going on with the minimum wage, especially since a group of Hoosier lawmakers is proposing a 39-percent increase this year. I think both sides are talking past each other.
Hicks: Wages won’t make a comeback for a long time
Wage stagnation has been a central element since the Great Recession.
HICKS: Cheap petrol might lead to full-blown recovery
Because of the gasoline-price drop, businesses might be more profitable and might be able to use the extra revenue to hire more workers or make other investments. If they pass their profits on to owners, this will mean more money for retirees and other stockholders.
HICKS: Hoosier employers experienced a fantastic year
Last December, I forecasted the state to see 57,000 new jobs through 2014, with a drop of the unemployment rate to the low- to mid-sixes. This would’ve been good news, but the reality was better.
HICKS: Need to work on Christmas? You’re valuable
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.
HICKS: Politics is driving the minimum wage push
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.
Hicks: Falling oil prices teach many economic lessons
The sharp drop in crude oil prices has caught many economists by surprise, me included.
Hicks: Worries abound during forecasting season
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.
Hicks: Economist’s ‘truthiness’ unmasks Obamacare
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.