Healthcare is one of our most pressing political issues, but I think the current debate is missing the mark. The problem is not a lack of insurance coverage, the problem is runaway costs. If healthcare costs can be restrained, coverage will follow. I believe there are only two options for controlling healthcare costs. The first
The national debt and persistent budget deficits are a serious concern. At $19.8 trillion, or $165,500 per taxpayer, the U.S. national debt is at 105 percent of gross domestic product (GDP), a peacetime record. So long as the national debt grows faster than the economy, as it did in 2016, the debt-to-GDP ratio will only
It has been nearly ten years since the housing crisis led to the worst recession since the Great Depression. Thus, it may be a good time for some reflections. The first reflection is that government subsidies to promote home ownership are counterproductive. These subsidies did increase the home ownership rate from 64% to 69% between
General Motors recently announced that it would invest $1 billion across several U.S. plants, creating or retailing 1,500 jobs. Ford also announced it would cancel a planned $1.6 billion plant in Mexico and would instead invest $700 million to expand production in Michigan, adding 700 jobs. Chrysler recently announced it would invest $1 billion in
On Friday, January 20, Donald Trump was sworn in as the 45th President of the United States. The federal government’s current fiscal condition will limit Trump’s ability to substantially change economic policy; Social Security and Medicare comprise 50 percent of the federal budget. National defense and interest on the national debt comprise another 25 percent.
This winter, Americans will file their Income Tax returns and eagerly await their refunds. According to the IRS, the average tax refund is $3,120. Rather than do something “fun” with that money, Americans should use their refunds to save or pay down debt. The annual personal savings rate in the U.S. is only 6%, which
According to the Gallup organization, the average American planned to spend $830 on Christmas gifts last year, meaning that total nationwide spending on Christmas gifts was just over $200 billion. Economist Joel Waldfogel of the University of Minnesota has estimated that 10-30 percent of this was wasted as “deadweight loss.” Deadweight loss is an economic
When you sit down for Thanksgiving dinner this month, one thing to give thanks for is how unbelievably inexpensive everyday goods are today. A 20lb turkey today costs about $20, according to the USDA, and a gallon of milk costs $3.14. People paid $0.49/lb for turkey and $1.00/gallon for milk in 1950. Adjusted for inflation,
Over the last 50 years, General Motors lost more than half of its market share. The rank-and-file workers aren’t to blame for this. Instead, they were let down by their leadership. The average price of a new car in 1980 was the equivalent of 37 percent of a worker’s average yearly income. For such a
In 2014, the Obama Administration announced plans to reinstate diplomatic relations with Cuba. President Obama then visited to Cuba in March 2016, which was the first visit of an American president to the island nation since Calvin Coolidge did so in 1928. The normalization of diplomatic relations and presidential visit come at a time when
The performance of Michigan’s economy, and in turn, Flint’s economy, remains largely tied to the performance of the national economy. Despite the decline of manufacturing employment that has occurred over the past 40 years, durable goods manufacturing (defined as the production of long-lasting goods such as appliances, automobiles and furniture) is disproportionately important to Michigan’s
