Center for Business and Economic Research - Ball State University


CBER Data Center
Projects and PublicationsEconomic IndicatorsWeekly CommentaryCommunity Asset InventoryManufacturing Scorecard

About

Commentaries are published weekly and distributed through the Indianapolis Business Journal and many other print and online publications. Disclaimer

RSS Feed

Disclaimer

The views expressed in these commentaries do not reflect those of Ball State University or the Center for Business and Economic Research.

Recent

Two Key Economic Lessons in One BillHoosiers face trade-offs and opportunity costs in the wake of SEA1.

Time to Fix Economic Development PolicyAllocating tax dollars to land development won’t cause economic growth.

The Unanticipated Effects of SB1Businesses, governments and households may all feel the effects.

The Stupidest of PoliciesThis whipsawing of tariff rates has unnerved financial markets, which on Wednesday, were toying with a liquidity crisis.

View archives

Top Tags

jobs and employment 261
economics 201
state and local government 188
education 186
economic development 171
indiana 171
budget and spending 145
taxes 144
law and public policy 142
workforce and human capital 139
Browse all tags
Reporter / Admin Login

April 8, 2005

Random Views from an Economist's Perspective

In case you’ve ever wondered what it is like to look at life through the eyes of an economist, here is a small taste.

Has anyone else noticed that public schools these days are in the transportation business, the sports entertainment business, the restaurant business, the health care business, not to mention the day care business?  Its no wonder their jobs are so difficult.

To those who decry the risk of diverting social security revenues towards personal accounts in private sector investments, I would say, compared to what?  To letting surplus funds needed to meet future obligations accumulate in government coffers?  I’ll take my chances with the market.

When you boil it all down, the two forces that stand out in propelling the American economy ahead over the last ten years have been above average levels of foreign investment and productivity growth.  But do any of us really understand why?  Or how much longer they will last?

I’ve always struggled with the idea that zoning ordinances and land use restrictions promote economic growth. 

I understand that we need them, just like we need traffic cops at road intersections to help things run smoothly.  But how do the cops create traffic?

The United States has the best educated workforce in the world.  But when it comes to our youngest adults, Japan and Canada have already surpassed us, and developing countries like Korea and Thailand are closing fast.  What will become of our economic status when we are no longer the smartest?

And speaking of young people, can GM and Ford really be surprised at their slipping market shares today, when they so readily conceded the youth-dominated small car market to the imports twenty five years ago?  Guess who’s grown up now and still buying foreign-brand cars?

There are 92 counties in Indiana, large and small.  Some of them are economic haves, but most are have-not’s.  Some have significant population growth, high levels of educational attainment, rising living standards and well developed service economies.  But most do not.

Can you remember the last time a bill that passed Congress by a near-unanimous vote ended up being a good law?  The Patriot Act is up on the repair hoist right now, and that’s exactly where Sarbanes-Oxley ought to be.

Is there anyone outside of the Federal Communications Commission that thinks that Americans will be ready to pull the plug on analog TV broadcasts and switch over to exclusively HDTV next year?  This is a country where some households pay their cable TV bills before they have heat, and where HDTV sets still cost three or four times as much as ordinary televisions.  Maybe regulators should stick to regulating and stay out of the cheerleading business.

I’ll tell you why the Bush administration is cracking the whip on Social Security insolvency when the program that needs fixing the most desperately is Medicare.  It’s because people are beginning to grasp the nature of the problem.  When it comes to financing health care, we’re not even close.  The solutions generating applause today will only make the problem worse.

Does anyone remember what we used to do all day before they put these keyboards and computer screens in front of us?  Maybe that’s what I should be doing right now.

Link to this commentary: https://commentaries.cberdata.org/274/random-views-from-an-economist-s-perspective

Tags: economics, auto industry


About the Author

Pat Barkey none@example.com

Patrick Barkey is director of the University of Montana Bureau of Business and Economic Research. He served previously as Director of the Bureau of Business Research (now the Center for Business and Economic Research) at Ball State University, overseeing and participating in a wide variety of projects in labor market research and state and regional economic policy issues. Note: The views expressed here are solely those of the author, and do not represent those of funders, associations, any entity of Ball State University, or its governing body.

© Center for Business and Economic Research, Ball State University

About Ball State CBER Data Center

Ball State CBER Data Center is one-stop shop for economic data including demographics, education, health, and social capital. Our easy-to-use, visual web tools offer data collection and analysis for grant writers, economic developers, policy makers, and the general public.

Ball State CBER Data Center (cberdata.org) is a product of the Center for Business and Economic Research at Ball State University. CBER's mission is to conduct relevant and timely public policy research on a wide range of economic issues affecting the state and nation. Learn more.

Terms of Service

Center for Business and Economic Research

Ball State University • Whitinger Business Building, room 149
2000 W. University Ave.
Muncie, IN 47306-0360
Phone:
765-285-5926
Email:
cber@bsu.edu
Website:
www.bsu.edu/cber
Facebook:
www.facebook.com/BallStateCBER
Twitter:
www.twitter.com/BallStateCBER
Close