As a physician, I’ve witnessed firsthand the growing gap between patients and the care they need – fueled by a physician workforce stretched thin. Rising costs, declining reimbursement rates, physician burnout and the increasing cost of liability insurance all make it harder to recruit and retain doctors in Alabama. But a new law, passed by […]

Payday lending is often portrayed as a manipulative industry only concerned with preying on naïve consumers. Thus, it is no surprise that Alabama policymakers are calling for restrictions against the industry. Without an understanding of economics and finance, however, well-intended regulators could harm the very payday loan customers they are hoping to help. It is […]

Corruption at the highest level of all three branches of Alabama’s government is not just making national news, it’s making international news. Unfortunately, the latest episodes of corruption are just additional examples of the deep-seated problem of corruption in Alabama. One can only imagine what this corruption is costing the state in terms of economic […]

An overwhelming majority of economists believe that, without pension reform, states will be forced to resort to austerity budgets, federal bailouts, and/or default. This is especially a concern for Alabama, given that we are already finding it difficult to balance our budget. Many states, including Alabama, have established committees to analyze the health of their […]

By Dr. Daniel J. Smith and Dr. Stephen C. Miller According to the Public Affairs Research Council of Alabama (PARCA), Alabama has the lowest taxes per capita in the nation. However, this doesn’t justify tax hikes as many people believe. In fact, it actually highlights the pressing need for tax cuts to make Alabama more […]

Watching state and national politics, I often wonder how a country founded on the principles of limited government, individual responsibility, and a healthy dose of skepticism – and fear – of the tendencies of government to grow in power and influence, accumulated a national debt of $210 trillion, a Code of Federal Regulations that now […]

If you have been through the frustration of untangling cords, replacing bulbs, and teetering on a ladder – maybe the eggnog ought to wait until after the job is done next time! – to put up exterior Christmas lights, new laser light products that obviate the need for putting up traditional Christmas lights probably fill […]

By Dr. Daniel J. Smith and Sean P. Alvarez Vying for the democratic nomination for the Whitehouse, both Bernie Sanders and Hillary Clinton have proposed higher education reforms to decrease or even eliminate tuition for college students. While academics (and aspiring academics) like ourselves can reasonably expect to benefit from reforms to boost college enrollment, these […]

In the face of ongoing budget concerns, the state of Alabama released a list of 31 driver’s license offices it plans to close in an effort to cut government spending. Of those 31 cities losing a driver’s license office, 21 of them — 68% — currently have an ABC liquor store, operated by the state. How is it […]

Say I approach the administrators at Troy University and tell them that I strongly believe my expertise in economics is worth far more to the university than it pays me, and threaten to leave unless my salary is increased by $1 million per year — a bargain in my mind. Even if you’re a fan […]

The special session called by Governor Bentley to address the short-term budget gap looks like it will end in a deadlock, ensuring another special legislative session. While many state leaders insist that there is nothing left to cut in the Alabama budget, the growth in the size of state government—especially in areas that do not […]

I’ve been reluctant to do this but I’m going to call for an increase in state taxes to boost economic activity. Let’s call it the Daniel Smith Benefit Tax. My proposal is for a one-time, low, $1 tax on every Alabamian with the $4.849 million in proceeds going to me so I can properly inject […]

In what has become a Groundhog Day scenario, federal legislators will likely grant approval to raise the federal debt limit — again. This will be the 79th time that Congress will raise the debt limit. With an $18.2 trillion national debt, amounting to nearly $57,000 per citizen, every American should find this fiscal irresponsibility disconcerting. […]

“Bootleggers and Baptists.” It’s a catch phrase from a bygone era reminding us that government regulations on the economy make strange bedfellows. It originated with an economist who noted that both Baptists and bootleggers supported restricting the sale of alcohol — the former on moral grounds, the latter because their business benefited from the shuttering […]

Alabama’s economic incentive programs are slated for reform this legislative session. Such programs cost Alabama taxpayers millions each year so it is certainly important to evaluate whether this money is well spent. That’s the easy part. The hard part is facing reality and taking the uncomfortable steps toward real reform. To realize change, state policy […]

State leaders believe plugging a long-term budget gap of $700 million can be as easy as hiking tax rates. Even halfway through the semester, my principles of microeconomics students can spot the error in this short-term thinking. While raising tax rates may pull-in more revenue for the government in the short-term, a large body of […]