General Economic News
Where's the stimulus?
A bill to jump start the economy. That was the main idea behind the American Recovery and Reinvestment Act, better known as the "stimulus bill," which became law two years ago today.
Officials Question Debit Card Fee Limits
Top U.S. regulators said Thursday that small banks could be hurt by new limits on debit-card fees, comments that could fuel efforts to delay or change a provision in the Dodd-Frank financial-overhaul law.
China is richer, but most Chinese are still poor
Now that China has surpassed Japan to become the world's second-largest economy, economists predict it's on track to replace the US as the world's biggest by 2025. But what does the higher rank really mean for the average Chinese citizen?
Dupes of False Innovation
Is there real innovation in banking and finance, or just endless, cyclical repetition of credit enthusiasms and mistakes?
Athens in Mad Town
A seminal showdown between public unions and taxpayers.
The Blinders of Behavioral Economics
To put things in the words of the ancient philosophical question: If you know the better, will you do the worse?
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Health Care News
Senators Introduce Bill to Expand Medicare Mental Health Coverage
Under current Medicare regulations, beneficiaries are offered up to 190 days of inpatient psychiatric treatment in a hospital through the lifetime of the policy. Under Kerry and Snowe's bill the limitation will be eliminated and Medicare mental health coverage would be equal to that offered in private insurance.
S&P: Health Care Costs Increase
Health care costs rose 6.06 percent with commercial insurance costs rising by 7.75 percent and Medicare costs rising by 3.27 percent, according to the report. But both costs are down from the May index, with the Medicare index showing annual growth cut in half from May’s rates.
Justice Dept. Asks Judge to Clarify Health Care Ruling After Alaska Governor Refuses to Enact Law
Alaska Gov. Sean Parnell said Thursday he will not implement President Obama's health care overhaul because a federal judge in Florida ruled it unconstitutional, prompting the Justice Department to take the case back to the judge.
Can Health-Care Waivers Be Justified?
The power to waive or dispense with the law is dangerous, it cannot be delegated, and it is not cured by transparency.
To Speed Drug Development, Government Must Get Out of the Way
The Obama administration proposes in its latest budget to create a new billion-dollar federal agency to help develop new medicines. The reason? The government is concerned that private companies aren't doing enough to get new drugs to market.
Bad Medicine: One-Year Review Of Obamacare
It has been a year since President Obama’s health care reform bill was signed into law. The Patient Protection and Affordable Care Act represents the most significant transformation of the American health care system since Medicare and Medicaid. It will fundamentally change nearly every aspect of health care, from insurance to the final delivery of care.
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Tax News
Time to Write Off the Mortgage Interest Deduction
Congress should take the bold step President Obama didn't on housing subsidies.
Time to Get Rid of the Corporate Income Tax?
Yes, America's corporate tax rate is very high, but that is just one of the layers of taxation imposed by the internal revenue code. Both the capital gains tax and the tax on dividends result in corporate income being taxed at least two times.
Where will Obama find new tax revenues?
Most corporations and individuals won't get hit with a tax increase, but money to reduce the deficit has to come from somewhere.
E-Commerce Surge May Hit Tax Revenue
The Commerce Department reported Thursday that e-commerce retail sales totaled $44 billion in the fourth quarter last year, up from $38 billion a year earlier.
Paying use tax for items you buy out of state? Pennsylvania is cracking down on businesses
This is part of the agency’s efforts to find every scrap of tax revenue as the state scrambles to address a budget deficit of more than $4 billion.
Connecticut governor proposes sweeping tax hikes
In his fiscal 2012 budget released Wednesday, Gov. Dannel P. Malloy proposed increasing state income and sales tax by $1.5 billion.
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Monetary News
Bernanke worries about cash bubble
Federal Reserve Chairman Ben Bernanke said Friday that unbalanced flows of money between nations is again posing a risk to the global economy and financial stability.
Bernanke: Don’t blame easy money for capital swings
Fed chief defending monetary policies in advanced economies against criticism.
China Raises Bank Reserves to Fight Inflation
The fifth such increase since October will force the country's biggest lenders to lock up a record amount of their deposits at the central bank, removing cash from the economy that otherwise would be pressuring prices higher.
Inflation rate: why prices are rising on everything from cornflakes to socks
The Consumer Price Index, a measure of the inflation rate, rose 0.4 percent in December and January. This is the first time the CPI has increased this much for two straight months since 2008.
ECB Said to Expand Purchases of Portuguese Government Bonds; Yields Slip
The European Central Bank expanded purchases of Portuguese government bonds, according to two people with knowledge of the transactions.
Split in Economy Keeps Lid on Prices
The pace of consumer price increases in the U.S. is quickening after being dormant for months. But a tug of war between the prices of goods and the prices of services, playing out beneath the surface, could keep inflation from becoming the worry it is in China, Europe and many emerging markets.
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Employment News
How states fared on unemployment applications
More people applied for unemployment benefits last week after applications had dropped to the lowest level in nearly three years in the previous week. That improvement had reflected the fact government offices had been closed the previous week in many states because of severe winter weather, preventing people from applying for benefits.
Jobless claims tick back above 400,000
The number of Americans filing first-time claims for unemployment benefits edged up last week, the government said Thursday.
Democrats turn 'Where are the jobs?' chant on GOP
Republicans won sweeping victories last November by taunting Democrats with "Where are the jobs?" Democrats are now throwing those taunts back, saying it's Republicans who will knock thousands of Americans out of work with their demands for deep cuts in federal spending.
Female veterans struggle in jobs market
The unemployment rate for female veterans of the long-running wars in Iraq and Afghanistan rose to 13.5% in January, above the 8.4% that was the seasonally unadjusted average for non-veteran adult women. And while the overall unemployment rate declined last year, unemployment among female veterans of the latest wars was more than 3 percentage points higher in December 2010 than in December 2009.
How best to boost the 'working poor'?
Nearly 1 in 3 working families now qualify as 'working poor.' More affordable college – and a more progressive tax system – would help.
US economy's hidden asset: older workers
Far from being a drag on the economy, so-called gray labor will be key to America's competitiveness in coming years. Mature workers can bring major productivity gains to US businesses – if we can make changes to better tap their talent.
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Budget News
Raise the debt limit -- or cut $738 billion
The country would need to cut spending or raise taxes by as much as $738 billion over just 6 months, according to a report from the Congressional Research Service. That's how much it would otherwise need to borrow to pay all its bills for the rest of the year.
A leadership deficit amid a budget crisis
Waiting on a crisis could lead to a downgrade of the nation's credit rating, a sudden spike in interest rates, a loss of confidence in the dollar or any combination of events that could send our economy into a tailspin.
Federal Government Could Reduce Debt by $1.5 Trillion with a Sale of Unneeded Assets
A large-scale sale of this magnitude would be a significant first step toward paying down the federal government’s unsustainable debt. It would be relatively painless, not requiring any tax increases or spending decreases.
Budget Process: a study of swollen spending
Our nation is at a critical crossroads: the federal government’s spending, deficits, and debt are at dangerous levels – and absent real reform – the already dire fiscal situation is projected to get far worse.
Some Dietary Suggestions For Our Regulators
It’s estimated that regulatory compliance costs $1.75 trillion annually thanks to a Federal Registry that has ballooned to 82,000 pages. Economically significant regulations, those costing an estimated $100 million or more in compliance, have grown faster still. Clinton’s term averaged 47 economically significant regulations annually. Bush: 48. Obama, reveres regulation: 66.
Wasteful Spending Does Not Stop at Earmarks and Overpayments
Federal entities estimate improper payments totaled $125.4 billion in fiscal year 2010, about 5.5 percent of the $2.3 trillion in reported outlays for the related programs. This $125 billion in overt waste, however, pales in comparison to the pervasive waste that exists in current spending patterns.
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