Author Archives: Vijay Mathur

Federal income tax disfavors labor and skill accumulation

Our federal income tax system favors capital gains and dividends over wage and salary income that includes earnings from labor and human capital (human asset consisting of skills, talents and creativity). Currently the maximum tax rate on long-term capital gains … Read More

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Asymmetric information and mortgage crisis

In any market transaction both buyers and sellers must have the same accurate information for efficient market outcomes. Many politicians, especially right wing conservative Republicans and Tea Party types, emphasize the roll of “free” markets (unencumbered by too many regulations) … Read More

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College student loan and debt crisis

The politics has become very divisive and the Congress is so paralyzed that the nation is moving from crisis to crisis.   After the mortgage crisis we entered the debt crisis and now we are entering the student loan crisis.  The … Read More

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Cyclical vs. structural policies to revive the economy

On May 7, 2012, in “The Opinion Pages” of The New York Times (www.nytimes.com ), David Brooks, a New York Times columnist, argues in his piece “The Structural Revolution”, that the US economy cannot be put on the path of … Read More

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A closer look at the unemployment picture

Politicians, media pundits, many economists and other observers of the current state of the economy are so obsessed with the aggregate unemployment rate that any discussion on the economy loses sight of the real issues behind the high current unemployment … Read More

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Pricing public higher education

It is always difficult to decide an appropriate tuition (price) level at public universities and colleges, partly due to public funding of higher education. The decision is fraught with political implications. Most taxpayers are of the view that tuitions at … Read More

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Economics of Tort Law and the Ragsdale decision

On February 28, the Utah Supreme Court ruled on a case, filed on behalf of the children (aged 4 and 19 months) of murdered Kristy Ragsdale (mother).  The plaintiffs’ attorney argued that prescription medications, provided to David Ragsdale (father) by … Read More

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Federal lands belong to all Americans, and not just to Utahns

Rep. Stephen G. Handy of Utah, in his opinion piece in the Standard Examiner, March 2, 2012, defended Utah Legislature’s attempt to usurp federal lands in Utah.  This week Utah House passed some bills that demand federal government to pass … Read More

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Support for education in Utah

It seems that education support among Utah politicians goes through a cycle. This education support cycle is like a business cycle, though shorter, that reaches a peak of political pronouncement of support when the legislative session begins, and a trough … Read More

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Creative destruction and Bain Capital

One of the great supporters of capitalism was a 20th century economist, Joseph Schumpeter.  His ideas on capitalism were presented first in his book, The Theory of Economic Development, in German in 1911, and further expanded his views on capitalism … Read More

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