Will Prices Increase Once Businesses Reopen?

It is hard to say with any certainty, though my best guess would be no in the short run and probably in the long-run. In the short-run, say, five to 18 months, the aggregated price level will likely experience very little inflation. The long run, however, might be a different story, especially with healthcare. Price … Continue reading Will Prices Increase Once Businesses Reopen?

Master Chefs Grow Slower Than New Cooks

Inspired by a podcast at MacroMusings, let’s talk about growth.  Alex Tabarrok and Tyler Cowen, co-authors of a couple of excellent textbooks on the principles of economics, discuss what they mean by “cutting edge” growth and “catching up” growth.  The reason for this distinction arises because of the claim that particular institutions promote economic growth. … Continue reading Master Chefs Grow Slower Than New Cooks

I Charged Too Little to Mow the Lawn

After the financial crisis of 2008 and 2009, my friend and I decided to start a landscaping business. Neither of us had gone to landscaping school nor did we have a particular affinity for lawn-mowers. (At least, not yet.) But hey, we thought, we live in Florida, grass grows like crazy most of the year, … Continue reading I Charged Too Little to Mow the Lawn