The Suez Canal blockage: a metaphor for our economy

A team of engineers and an unusually high tide freed the Ever Given, the container ship that blocked the Suez Canal for six days, on Monday. Obstructing the canal that facilitates 13% of world’s maritime trade not only educated Americans about the international dimensions of our economy, it also served as a metaphor for the artificial constraints, taxes, and regulations that block so many people from participating in our economy. Continue Reading...

The 3 pillars of Christian economics

Could economics, which academics long ago deemed “the dismal science,” have a specifically Christian application? If so, what are the unique features of a Christian approach to economics? Edd S. Noell of Westmont College and Stephen L. Continue Reading...

Benjamin Franklin’s advice on the Chicago schools strike

Their last remaining dispute in the Chicago schools strike could be resolved if both sides understood a basic economic concept taught by one of the nation’s Founding Fathers. Although the Chicago Public Schools and the Chicago Teachers Union announced a tentative agreement Wednesday evening, the Second City’s 300,000-plus students still began their eleventh day outside the classroom Thursday, because the CTU added a new demand Wednesday night. Continue Reading...

How fiscal policy can lead to ‘crowding out’

Note: This is post #128 in a weekly video series on basic economics. Effective fiscal policy has to be timely, targeted, and temporary. But how the central bank, businesses, and consumers respond to fiscal policy also plays a role in how effective it is, says economist Alex Tabarrok. Continue Reading...

The dangers of fiscal policy

Note: This is post #127 in a weekly video series on basic economics. In the early 2000s, Argentina’s debt reached 150 percent of GDP, leading to what was the largest government default in the history of the world. Continue Reading...

The limits of fiscal policy

Note: This is post #126 in a weekly video series on basic economics. The best case for fiscal policy happens during a recession caused by an aggregate demand shock, says economist Alex Tabarrok. Continue Reading...

Fiscal policy: The best case scenario

Note: This is post #125 in a weekly video series on basic economics. When and why does the government might engage in expansionary fiscal policy? When does the government increase spending, or decrease taxes, to combat a recession? Continue Reading...