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Monthly Archives: February 2010

One of my students raised an interesting point when we discussed international trade and comparative advantage.  It seemed that all he had heard was that the U.S. no longer made much  anymore.  Now his point was more that we consume beyond what we produce, borrowing too much to pay for the trade deficit.  Still, many have the […]

What got my attention this week was something I heard this past Sunday on Fareed Zakaria’s Global Public Square (GPS) program on CNN.  Zakaria states point blank, that the Bush tax cuts are the single largest part of the deficit. Notice that Mr. Zakaria thinks he has Greenspan and Paulson in a “gotcha moment,” claiming […]

Firms are very clever in their ability to extract willingness to pay information from customers. For example, brokerage firms likely use price discrimination to maximize the number of orders on which they receive commission. They do so by allowing clients to place “limit orders.” A limit order asks the broker to buy so many shares […]

Once again, the idea of introducing a Value-Added Tax (VAT, better termed the “Stealth Tax”) to curb our mushrooming deficits is being discussed. This time, in a Feb. 4, 2010 article in Time magazine, Columbia University economist Jeffrey Sachs suggests the use of a new tax in America, the VAT, stating “Both sides could agree, […]

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