People talk a great deal about free trade. But for better or for worse the real world that we live in is more a mercantilist world than it is a free markets and free trade world. And in this mercantilist world there is a fundamental divergence between the goal of...
(3) Comments | Posted March 26, 2012 | 11:01 AM
In a recent article we wrote: "America today is very different from the country that fought the Revolutionary War and framed the Constitution. Then, it was a nation of farmers; today, it's a nation of corporations."
Though we are today a nation of corporations, there is remarkably...
(26) Comments | Posted October 31, 2011 | 4:21 PM
I must admit that there is something about Occupy Wall Street that makes me think of the American Revolution. Not the fully developed American Revolution complete with an army, George Washington, and Valley Forge; I'm thinking of the earlier days, when there were only sporadic protests and occasional clashes.
...(16) Comments | Posted July 21, 2011 | 10:30 AM
We are missing the lesson of the current British outrage over Murdoch just as we missed the lesson of the financial crisis in America.
Was the real crime in England that employees of the News of the World illegally hacked the cell phone of a missing girl? Was the...
(90) Comments | Posted December 6, 2010 | 12:43 PM
A recent op-ed in the Wall Street Journal declared: "The fact is that for every job outsourced to Bangalore, nearly two jobs are created in Buffalo and other American cities." This article, and others like it, asserts that while outsourcing may send some jobs overseas it simultaneously creates...
(17) Comments | Posted September 14, 2010 | 9:07 AM
Our massive trade deficit is destroying significant segments of American industry and eliminating badly needed jobs. This is happening because we are slow to recognize an unpleasant reality: We do not live in a world of textbook free trade. We live in a world...
(42) Comments | Posted September 13, 2010 | 8:06 AM
Our nation's continuing massive trade deficits are destroying important sectors of American industry and eliminating desperately needed jobs; yet balancing trade is not even on our government's agenda. This is happening because we are not facing reality, the reality that we are not living in a free trade world but...
(156) Comments | Posted March 1, 2010 | 10:53 AM
In the United States, innovation has become almost synonymous with economic competitiveness. Even more remarkable, we often hear that our economic salvation can only be through innovation. We hear that because of low Asian wages we must innovate because we cannot really compete in anything else. Inventive Americans will do...
(19) Comments | Posted January 25, 2010 | 10:08 AM
Here in the United States, we talk endlessly about the importance of free trade and of government not interfering with the market. But while we are talking, other nations are busy subsidizing and building up key sectors of their economies, and in this process destroying key sectors in our own...
(504) Comments | Posted July 8, 2009 | 12:30 PM
The concept of comparative advantage is used with great effect by economists as a sheep/goat separator. Those who understand it are the sheep, almost exclusively economists. The sheep sometimes use comparative advantage to justify things that seem to the goats, the non-understanders, to be counter to common sense. But the...
(1) Comments | Posted May 6, 2009 | 3:32 PM
The first part of this series asserted that what is good for the modern American corporation is diverging from what is good for our country. This second part describes ways to deal with that problem.
Right now all we want from our companies is to get people back...
(30) Comments | Posted March 16, 2009 | 3:30 PM
While each economic crisis tends to drive the preceding one out of our minds, it is worthwhile to review the recent sequence of events and ask where did all this come from? First we had globalization and offshoring destroying productive industries and, with them, productive and well-paying manufacturing jobs. Then...
(0) Comments | Posted January 12, 2009 | 1:47 PM
As told to Ralph Gomory
When the Administration finally made up its mind to go ahead and install an Auto Czar, almost no one thought of me. When my name finally emerged from the selection process, it was a choice that gave new meaning to the term dark horse. Even...
(15) Comments | Posted December 16, 2008 | 6:02 PM
Many Americans are struggling to understand how our government makes decisions on corporate bailouts. When Wall Street companies spent years investing in mortgages that turned out, essentially, to be garbage, the government rushed to bail them out. But when the auto companies neared a similar fate, the government was prepared...

(44) Comments | Posted May 22, 2012 | 5:29 PM