After technological innovation multiplies, might the pace of discovery slow down? Think of the history of antibiotics. Starting with the Sulfa drugs that were first discovered during the 1930s, the new antibiotic timeline is congested until 1962. Yes, recently, new antibiotics classes were introduced.…
Behavioral Economics
The intersection of psychology and economics, behavioral economics looks at human tendencies that involve biology and culture when predicting and explaining economic decision-making.
The Monetary Policy Mistakes of a Babysitting Co-op
There once was a French economist whose name was Say. Proclaiming that “Supply Creates Its Own Demand,” Jean-Baptiste Say (1767-1832) entered economic history with Say’s Law. All he meant was that workers are also consumers. The money you receive for producing a good or a service…
Energy Efficiency Surprises
Our Wednesday Environmental Issue: Trying to optimize energy efficiency, we might have unexpected results. First, where we live… Referring to an environmentally friendly community where he once lived, New Yorker writer David Owen described his 750 square foot dwelling. 77% of the households in his community did…
The Rotten Kid Theorem and Other Gary Becker Ideas
Gary Becker image courtesy of University of Chicago. All too often, if you say you are looking at the economics of the family, people assume you are talking about money. Nobel Laureate Gary Becker, who died this week (1930-2014), changed…
Surprising Hand-To-Mouth Households
Close to one third of all households (38 million) in the US live hand-to-mouth. Like me, perhaps you have always assumed that a hand-to-mouth (HtM) household is low income. Spending all disposable income each week, the hand-to-mouth household is unable…
How To Divide the Rent, a Cake and a Country
Assume for a moment that you have just rented a 4th floor walk-up apartment for $3000 with 2 friends. One bedroom is mid-sized and near a fire escape, the second is rather large and has a view of a magnificent…
Your “ROI” From Braces
Dear Alexa, At work, I have become ashamed of my less-than-perfect smile since I am surrounded by colleagues who had the luxury of wearing braces in their youth. Should I get braces to perfect my smile, even though I am…
When Did We Get “Tough Love” From the Federal Reserve?
Demonstrating Russia’s current plight, this graph so perfectly illustrates stagflation: When GDP sinks and inflation increases, the stagflation that results is tough to cure. If monetary authorities target inflation with tight monetary policy, then interest rates go up and further…
The Reason For An Income Tax Default (Form)
In Denmark, the government automatically prepares people’s taxes. Because they already have the data they need, the tax authority calculates everyone’s income taxes and sends them notice of how much they owe or will receive as a refund. With 80%…
Which Countries Want You to Have a Baby?
It is a recipe for demographic disaster when you have too many old people and not enough babies. The problem is the size of the working age population. When countries like the US are affluent enough to provide support to…