In Point of Fact

from NewsLink, Vol. 5, No. 4 Summer 2001

Oops, California gets a lesson in market economics.

After months of grave warnings about power shortages and forced blackouts, an unusually cool July and effective conservation efforts have put California in a stunningly unexpected position: It has so much electricity on its hands that it is selling its surplus into a glutted market.
James Sterngold, New York Times, July 19, 2001.

Booming charitable donations.

As Baby Boomers grow older — the most senior of them just hit the big Double Nickel, 55 — they seem increasingly eager to give more of their assets to charity. So, too, do their parents, now in their 70s, 80s or even older. They all realize that donating part of their wealth to charity probably won't bribe St. Peter and buy their way into heaven, but what the heck, it sure can't hurt. For whatever reason, Americans of just about all ages are donating growing amounts of cash, appreciated stock and other material assets to various charities, churches, colleges and other good works. Charitable giving climbed to $203 billion in 2000 from $191 billion in 1999 and $124 billion in 1992. There is no evidence yet that the economic slump has nicked the philanthropic surge.
Marshall Loeb, CBS Marketwatch.com, June 21, 2001.

Particulates nix romance.

Candles are now being blamed for global pollution problems. Burning candles can lead to high levels of pollutants, called particulates, released into the atmosphere. Research by the U.S. EPA shows the pollution from a burning candle can exceed standards the agency sets for outdoor air quality.
Ananova.com, June 14, 2001.

Basic economics, Greenspan signals the role of prices.

Federal Reserve Bank Chairman Alan Greenspan used his energy speech before the Economic Club of Chicago to emphasize the importance of increasing production of all kinds of energy sources from oil and coal to nuclear power and renewable energy sources. He also warned against imposing price caps on energy costs, saying interference with market forces would send the wrong pricing signals. “We must remember that the same price signals that are so critical for the allocative process in the short run also signal profit opportunities for long-term supply expansion,” Greenspan said. Associated Press, USA Today , June 28, 2001.

Set apart: Ireland and the Netherlands show the way.

During the past two decades, Ireland and the Netherlands have achieved dramatic labor market improvements after undertaking wide-ranging reforms. ... The evidence suggests that wage moderation could indeed help lower unemployment rates elsewhere in Europe. Such a strategy is most likely if it has the backing of the government, trade unions, and employers and if limits on wage growth are accompanied by tax cuts or other measures that soften the negative effects on worker earnings.
Cedric Tille and Kei-Mu-Yi, Federal Reserve Bank of New York, May 2001.

Check this out.

Checks continue to dominate the market for non-cash retail payments in the United States. Each year, U.S. residents write between 65 and 70 billion checks, an average of one check per business day per resident. ... By switching from checks to other forms of payment, Americans could save up to $100 billion per year.
Federal Reserve Bank of Atlanta, Financial Update, April-June 2001.

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