As inequality in the US grows, the rest of the world progesses

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Published in The News Tribune, March 27, 2013

Two months ago, economists from around the world converged in San Diego for their annual convention. Dozens presented papers on the hot topic of growing income inequality in the United States.

These papers led to lively and at times heated debates, some of which have subsequently spilled over onto blogs as well as the nation’s opinion pages.

The tendency to focus on the U.S. and our troubling upward trend in inequality is a natural one. But it also misses astonishing progress on the inequality front. Continue reading →

That rising tide seems to be missing a lot of boats

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Published in The News Tribune, March 14, 2013.

Another encouraging sign of slow economic recovery came last week from the Bureau of Labor Statistics (BLS). It reported that nationwide, February experienced a net increase of 236,000 new jobs.

A year ago, unemploy-ment sat at 8.3 percent; today it is 7.7 percent. A painfully slow improvement, for sure, but at least the labor market is headed in the right direction.

Or is it? Continue reading →

We can save much grief by getting ahead of social problems

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Published in The News Tribune, February 27, 2013.

Each year as a nation, we spend more than $150 billion on research to find health-improving products. Such research has led to spectacular advancements in the health of those born prematurely or afflicted with heart disease, diabetes or cancer.

Yet when it comes to promoting a healthy population, we shouldn’t be so quick to congratulate ourselves. Continue reading →

State’s future tuition program caught in conundrum

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Published in The News Tribune, February 13, 2013

Only make promises you can keep.

That’s good, solid advice.  In light of what we now know about Washington’s embattled Guaranteed Education Tuition (GET) program, we might modify that to something along the lines of “Only make promises you won’t regret keeping.”

The good thing about GET is that it reduces the financial uncertainty associated with college by allowing anyone to pay for tuition at a set price today, and receive the value of tuition — whatever that might be — tomorrow.  In this way GET has helped many Washingtonians plan for the expense of college. Continue reading →

Congress needs to engage in some real tax reform

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Published in The News Tribune, January 3, 2013

This week we avoided that plunge over the fiscal cliff.  Not only did Democrats and Republicans reach a consensus that taxes must increase, but in a final dramatic hour they even agreed on the specifics.

But it’s not yet time to breathe easy as the parachute we’re on is only half opened.  The tax code changes Congress agreed to are meager and a far cry from the true tax reform we need.

Recall that our “fiscal cliff” dilemma was created to give Congress a hard deadline for getting our fiscal house in order.  But ironically, the deadline caused both Democrats and Republicans to focus exclusively on the deadline itself and its repercussions, rather than on our fiscal house. Continue reading →

Untreated mental illness raises the risk factors for violence

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Published in The News Tribune, December 19, 2012

The news from Newtown, Connecticut has many of us revisiting recent horrors where unstable citizens in our own communities committed the unspeakable crime of killing off-duty police officers, a sleeping father, a park ranger, and far too many others.  Yet even these senseless crimes pale in comparison with the terrifying violence visited last week on children at Sandy Hook Elementary School.

New York Times columnist Nicholas Kristof passionately, predictably — and correctly – has called for stricter control and regulation of our nation’s guns.  Continue reading →

Leaders need to take a long-term look at budget crisis

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Published in The News Tribune, December 5, 2012

As just about everyone knows, Republicans and Democrats are squaring off to decide whether to take the nation on a plunge over a so-called fiscal cliff, or come to a screeching halt at the rim by agreeing to sizable spending cuts and tax increases.  If reached, such an agreement could allow us gently to glide down our huge mountain of national debt in a more painless fashion than would the alternative.

While the latter hurl-ourselves-over-the-edge option would quite dramatically reduce our budget deficits — at least temporarily — the consequent “splat” at the bottom (sharp declines in spending) would likely set off a recession. Continue reading →

It’s unfair to group the ‘welfare state’ into single lump

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Published in The News Tribune, November 22, 2012

Often, holiday meals like those at my house consist of a range of separate contributions which collectively add up to the Thanksgiving Dinner.  As we sit down to partake of the varied assortment of dishes, no one would think of criticizing the turkey because the mushroom soup dish contained more fried onion rings than green beans, or because someone insisted on adding a bag of marshmellows to the sweet potatoes.

The fact that different dishes are on the same table doesn’t somehow turn them into one “Dish” called “Thanksgiving Dinner” that deserves a singular judgment.   Instead, we pass judgment on the successful (and quietly perhaps, the less successful) features of each individual dish.  Continue reading →

Misguided drug policies can create tragic, unintended consequences

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Published in The News Tribune, November 8, 2012

As part of an introductory course in economics, I used to teach my students about the unintended consequences that usually accompany well-intentioned attempts to make particular transactions illegal.  I would draw on current drug policy to link theory with reality.

One thing that I learned from these conversations was that many students felt that discussing the pros and cons of drug legalization was immoral.  This sort of belief is one of the challenges we’ve faced in confronting failures in our drug policies.

Tuesday’s passage of initiatives in Washington (I-502) and Colorado to legalize recreational marijuana usage offer promising signs that change is now in the air.  Continue reading →

Rising inequality partly to blame for stagnant economy

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Published in The News Tribune, October 25, 2012

Are we better off today than we were four years ago?   For too many people, the answer is no.

As disappointing as this fact is, it’s mostly due to the cycles that modern economies are prone to.  Four years ago we had just passed a cycle’s crest; today we’re slowly climbing out of its trough.  To compare these two periods is to contrast two points in the economy’s short term ups and downs.

This detail of course doesn’t make it any easier for those suffering through this cycle.  It’s just that such a perspective doesn’t reveal much about the true direction in which our economy is headed.   Continue reading →