News
CNN Money | Gas prices surge 17 cents in a week
Gas prices have increased 17 cents a gallon in the past week. And analysts expect prices to continue higher, following a sharp rise in the price of crude oil.
Fox Business | Pending Home Sales Fall Faster than Expected
Contracts for pending sales of previously owned U.S. homes fell faster than expected in January to the slowest pace in three months, data from a real estate trade group showed Monday.
MSNBC | Largest rise in U.S. incomes in one and a half years
Boost came from a tax cut; consumer spending rose less than expected in January
CNN Money | Rich Americans flock to fast food
When it comes to cutting back, the rich are learning a little secret the rest of us have always known: fast-food is cheap and good (if not good for you).
WSJ | OECD Sees Real Demand Driving Commodity Prices
A report being prepared for the world's Group of 20 leading economies indicates the main factor behind rising prices for wheat, sugar, cotton, metals, oil and other commodities isn't speculators, as some have suggested, but that the global demand to consume these goods is growing faster than the supply.
CNN Money | Americans earning and saving more
Americans earned more than expected in January, thanks to tax changes that boosted income, but consumers chose to add more to their savings at the start of year.
Fox News | Survey: Economy will grow moderately through 2012
Economists are forecasting faster growth than they were in November, according to a quarterly survey from the National Association for Business Economics.
Econ Comments
Time | How Germany Became the China of Europe
Germany's revival has reversed its role in Europe.
WSJ | Exporting Wall Street
An unfriendly U.S. regulatory climate put the NYSE at a disadvantage.
AEI | The Capital-Inflow "Problem" Revisited
Sudden stops and reversals in capital flows are the stuff of policymakers' nightmares. This column builds on the last 20 years of research and argues that the capital-inflow dilemma is not an external problem-it is an eternal one.
Real Clear Markets | Largest rise in U.S. incomes in one and a half years
I was recently invited down to Washington DC to represent the venture capital industry at a Small Business Administration Office of Advocacy gripe session. At issue were the unintended consequences of an obscure corner of the Sarbanes Oxley Act known as 409(A). Bureaucratic weirdness and utter futility are the best words that come to mind.
WSJ | Unions vs. the Right to Work
Collective bargaining on a broad scale is more similar to an antitrust violation than to a civil liberty.
Blogs
WSJ: Real Time Economics | Number of the Week: Gasoline Prices Bite
Could rising oil prices derail the U.S. recovery? We’re more resilient to high energy prices than we used to be, but it’s certainly a danger.
Freedom Works | When Pretending Fails to Hide Bankruptcy
We the People, the hoi polloi, are the only safeguard in our present system of government from being overwhelmed by the greed and avarice of the political plunderers.
WSJ: Real Time Economics | Warren Buffett’s 2010 Report: The New Beige Book Guide to the U.S. Economy
The 27-page shareholder letter Berkshire Hathaway chief executive Warren Buffett just released reads like a motivational speech or a pep talk trying to win over an audience that is increasingly pessimistic about America’s future: “In 2011, we will set a new record for capital spending – $8 billion – and spend all of the $2 billion increase in the United States,” he writes. “Now, as in 1776, 1861, 1932 and 1941, America’s best days lie ahead.”
CSM: Economist Mom | What the president’s economic report leaves out
The report by the president's Council of Economic Advisers makes no mention of 'tax reform' or 'entitlements.'
Reason Foundation: Out of Control Policy Blog | Steps Forward on GSE Reform
Since Fannie Mae and Freddie Mac were put into conservatorship in September 2008 there has been very little movement to fix them or reform the housing finance system.
CSM: The Daily Reckoning | Oil prices will affect the whole US economy
Oil prices are rising, so will stocks begin to fall?
Reports
RCM: Wells Fargo | Economics Group
Weekly Economic & Financial Commentary
Monday, February 28, 2011
Health Care
News
CNNMoney | Military health costs up 300%
The Defense Department expects to spend $52.5 billion on health care in 2012, a 300% increase since 2001, the report says. By 2015, health care will account for 10% of the Pentagon budget.
WSJ | Defining 'Essential' Care
Regulators Move to Specify Coverage Under Health Law; Insurers Seek Flexibility
POLITICO | GOP governmors want Medicaid block grants
Block grants would give states fixed, upfront funding for a predetermined period of time, a marked departure from the traditional Medicaid financin, in which the federal govenrment generally matches state spending on a per-claim basis.
Econ Comments
WSJ | Regulating 'Mental Activity'
The Commerce Clause as thought monitor.
NRO | Obamacare and the CLASS Fraud
The alleged deficit-defeater turns out to be a budget-buster.
WSJ | The FDA and Slower Cures
The bureaucratic assault on cancer treatments.
Reports
Heritage Foundation | How States Can Survive the Medicaid Crisis
Along with the exploding costs of public-sector benefit packages, managing Medicaid is the greatest challenge confronting the nation’s governors and state legislative bodies.
CNNMoney | Military health costs up 300%
The Defense Department expects to spend $52.5 billion on health care in 2012, a 300% increase since 2001, the report says. By 2015, health care will account for 10% of the Pentagon budget.
WSJ | Defining 'Essential' Care
Regulators Move to Specify Coverage Under Health Law; Insurers Seek Flexibility
POLITICO | GOP governmors want Medicaid block grants
Block grants would give states fixed, upfront funding for a predetermined period of time, a marked departure from the traditional Medicaid financin, in which the federal govenrment generally matches state spending on a per-claim basis.
Econ Comments
WSJ | Regulating 'Mental Activity'
The Commerce Clause as thought monitor.
NRO | Obamacare and the CLASS Fraud
The alleged deficit-defeater turns out to be a budget-buster.
WSJ | The FDA and Slower Cures
The bureaucratic assault on cancer treatments.
Reports
Heritage Foundation | How States Can Survive the Medicaid Crisis
Along with the exploding costs of public-sector benefit packages, managing Medicaid is the greatest challenge confronting the nation’s governors and state legislative bodies.
Taxes
Blogs
EconLog | Distribution of Tax Burden by Quintile
...it's still the case that the higher your income, the higher a percent of your income you pay in taxes.
Cato@Liberty | The Value-Added Tax Must Be Stopped – Unless We Want America to Become Greece
Sooner or later, there will be a giant battle in Washington over the value-added tax.
EconLog | Distribution of Tax Burden by Quintile
...it's still the case that the higher your income, the higher a percent of your income you pay in taxes.
Cato@Liberty | The Value-Added Tax Must Be Stopped – Unless We Want America to Become Greece
Sooner or later, there will be a giant battle in Washington over the value-added tax.
Monetary
News
Bloomberg | Fed's Dudley Says Growth Not Reason to `Reverse' Stimulus
Federal Reserve Bank of New York President William Dudley said the “considerably brighter” economic outlook isn’t yet reason for the central bank to withdraw its record monetary stimulus.
Econ Comments
Minyanville | GDP Downward Revision Suggests We're Headed Into Stagflation
The advance report last month from the Bureua of Economic Analysis said GDP was up 3.2%. The new numbers show it was only up 2.8%.
Bloomberg | Five Questions for Bernanke on Capitol Hill: Caroline Baum
To expect our elected representatives to have a good grasp on quantitative easing when Fed chief Ben Bernanke says the term is a misnomer is too much to ask.
Blogs
CSM: Stefan Karlsson's Blog | Swedish boom isn't due to monetary policy
If the monetary policy were the reason for the boom, there would be more growth in manufacturing.
CSM: Mises Economics Blog | Prices are rising with the money supply
As prices start to rise, don't forget about all the money that the Fed created out of thin air.
Bloomberg | Fed's Dudley Says Growth Not Reason to `Reverse' Stimulus
Federal Reserve Bank of New York President William Dudley said the “considerably brighter” economic outlook isn’t yet reason for the central bank to withdraw its record monetary stimulus.
Econ Comments
Minyanville | GDP Downward Revision Suggests We're Headed Into Stagflation
The advance report last month from the Bureua of Economic Analysis said GDP was up 3.2%. The new numbers show it was only up 2.8%.
Bloomberg | Five Questions for Bernanke on Capitol Hill: Caroline Baum
To expect our elected representatives to have a good grasp on quantitative easing when Fed chief Ben Bernanke says the term is a misnomer is too much to ask.
Blogs
CSM: Stefan Karlsson's Blog | Swedish boom isn't due to monetary policy
If the monetary policy were the reason for the boom, there would be more growth in manufacturing.
CSM: Mises Economics Blog | Prices are rising with the money supply
As prices start to rise, don't forget about all the money that the Fed created out of thin air.
Employment
News
WSJ | Help Wanted: Fargo Strains to Fill Jobs
As the U.S. struggles with 9% unemployment, many companies in North Dakota are struggling to find workers and recast a reputation that some local officials blame on cold weather and a bad image stemming from "Fargo," an Oscar winner with the tagline: "A lot can happen in the middle of nowhere."
Econ Comments
National Review: Kevin Williamson | Upending Our Caste System
It is unions’ political power, not their economic power alone, that must be curtailed.
WSJ | Help Wanted: Fargo Strains to Fill Jobs
As the U.S. struggles with 9% unemployment, many companies in North Dakota are struggling to find workers and recast a reputation that some local officials blame on cold weather and a bad image stemming from "Fargo," an Oscar winner with the tagline: "A lot can happen in the middle of nowhere."
Econ Comments
National Review: Kevin Williamson | Upending Our Caste System
It is unions’ political power, not their economic power alone, that must be curtailed.
Budget
News
CNN Money | Economists' biggest worry: Federal budget deficit
Government deficits are the biggest long-term worry of top U.S. economists, according to a survey released Monday.
National Journal | Lee: No Debt Ceiling Hike Without a Balanced Budget
His bill would cap spending at 18 percent of GDP.
CNN Money | How spending cuts hurt the economy -- dueling estimates
The big spending cuts proposed by House Republicans could weigh on economic growth and jobs, but forecasts vary widely.
CNN | State budget deficits
Thousands of protesters in Madison, Wisconsin, have demonstrated against the governor's proposed budget that includes a provision to limit collective bargaining for public employees.
Econ Comments
WSJ | Governors Scramble to Rein In Medicaid
More than half the states want permission to remove hundreds of thousands of people from the Medicaid insurance program, a move that would represent a rare cut to a national social program.
Fiscal Times | State Debt Crisis: Preview of Federal Pain to Come
Beyond the grim implications for cash-strapped states, this scenario offers a preview of the pain that might befall the federal government if investors in U.S.
Washington Times | Social Security reform looms with or without Obama
...there was a conspicuous omission from his 2012 budget blueprint that many say would go a long way toward easing the nation’s financial woes: Social Security reform.
CNN Money | Spending cuts aren't enough. It's time to fix the budget
You can't fix a massive multi-trillion dollar problem by focusing on one-eighth of the budget. You just can't.
WSJ | Deal on Spending Cuts Would Defer Tougher Decisions
House Republicans plan to begin debate Tuesday on a bill that would keep the government open for two additional weeks while cutting $4 billion in spending. Senate Democrats are signaling they will accept the GOP proposal, or something similar, by week's end.
Washington Times | DECKER: Michigan’s reform storm
Businessman-governor tries to right-size state government.
Fiscal Times | The Budget Battle Could Spook Global Investors
Interest payments could total 25 percent of revenues by 2021.
Blogs
FreedomWorks | Federal, state and local debt hits post-WWII levels
Beware, the Social Security unfunded-liability is approximately $4 trillion depending on how far out it is calculated.
Jacob T. Levy | Hey, look at that
"While spending on earmarks is a tiny portion of the budget, critics like Mr. Flake and Mr. Boehner said they played an insidious role in pushing up federal spending through what is known in legislative terms as logrolling."
Reports
Mercatus Center | The 1 Percent Solution
This working paper lays out a general framework for how the nation can address its long-term fiscal challenges, without tax increases, to avert the coming fiscal crisis and balance the budget within the next decade.
CNN Money | Economists' biggest worry: Federal budget deficit
Government deficits are the biggest long-term worry of top U.S. economists, according to a survey released Monday.
National Journal | Lee: No Debt Ceiling Hike Without a Balanced Budget
His bill would cap spending at 18 percent of GDP.
CNN Money | How spending cuts hurt the economy -- dueling estimates
The big spending cuts proposed by House Republicans could weigh on economic growth and jobs, but forecasts vary widely.
CNN | State budget deficits
Thousands of protesters in Madison, Wisconsin, have demonstrated against the governor's proposed budget that includes a provision to limit collective bargaining for public employees.
Econ Comments
WSJ | Governors Scramble to Rein In Medicaid
More than half the states want permission to remove hundreds of thousands of people from the Medicaid insurance program, a move that would represent a rare cut to a national social program.
Fiscal Times | State Debt Crisis: Preview of Federal Pain to Come
Beyond the grim implications for cash-strapped states, this scenario offers a preview of the pain that might befall the federal government if investors in U.S.
Washington Times | Social Security reform looms with or without Obama
...there was a conspicuous omission from his 2012 budget blueprint that many say would go a long way toward easing the nation’s financial woes: Social Security reform.
CNN Money | Spending cuts aren't enough. It's time to fix the budget
You can't fix a massive multi-trillion dollar problem by focusing on one-eighth of the budget. You just can't.
WSJ | Deal on Spending Cuts Would Defer Tougher Decisions
House Republicans plan to begin debate Tuesday on a bill that would keep the government open for two additional weeks while cutting $4 billion in spending. Senate Democrats are signaling they will accept the GOP proposal, or something similar, by week's end.
Washington Times | DECKER: Michigan’s reform storm
Businessman-governor tries to right-size state government.
Fiscal Times | The Budget Battle Could Spook Global Investors
Interest payments could total 25 percent of revenues by 2021.
Blogs
FreedomWorks | Federal, state and local debt hits post-WWII levels
Beware, the Social Security unfunded-liability is approximately $4 trillion depending on how far out it is calculated.
Jacob T. Levy | Hey, look at that
"While spending on earmarks is a tiny portion of the budget, critics like Mr. Flake and Mr. Boehner said they played an insidious role in pushing up federal spending through what is known in legislative terms as logrolling."
Reports
Mercatus Center | The 1 Percent Solution
This working paper lays out a general framework for how the nation can address its long-term fiscal challenges, without tax increases, to avert the coming fiscal crisis and balance the budget within the next decade.
Friday, February 25, 2011
General Economics
News
CNN Money | Gas prices: 'Most expensive February ever'
Gas prices jumped 6 cents overnight, as the recent spike in oil prices begins to hit filling stations across America.
Fox News | Freddie Mac posts $1.7B loss for Q4
Government-controlled mortgage buyer Freddie Mac managed a narrower loss of $1.7 billion for the October-December quarter of last year. But it has asked for an additional $500 million in federal aid — up from the $100 million it sought in the previous quarter.
CNN Money | Economy faces new threats
Just when the U.S. economy seemed to be getting its footing, a number of new obstacles risk tripping it up.
Fox News | Gov. Scott Rejects Revised Florida High-Speed Rail Plan
Despite assurances from the federal government that Florida would not be at financial or legal peril, Gov. Rick Scott on Thursday rejected a revised $2.4 billion offer to build a high-speed rail system between Tampa and Orlando.
CNN Money | GDP report: Economic growth revised sharply lower
Budget cuts by state and local governments hurt the economy more than originally thought, according to a government release Friday.
The Economist | Taiwan's commonsense consensus
Economic integration with China is not doing what China hoped and the opposition feared
Econ Comments
WSJ | The Truth About U.S. Manufacturing
The average American factory worker today is responsible for more than $180,000 of annual output, triple the $60,000 in 1972.
Reason Foundation | 4th Quarter Shows Strong Demand Growth
Revised GDP numbers for the fourth quarter of 2010 were released by the Bureau of Economic Analysis today, showing the economy grew at an annual rate of 2.8 percent, slightly lower than the previous estimate of 3.2 percent. That's not great news, but buried in the data are continued signs that demand is strengthening.
Blogs
AEI: The American | More Equity, Less Government: Rethinking Bank Regulation
What would Milton Friedman and Adam Smith have thought of the Dodd-Frank Act?
CSM: Stefan Karlsson's Blog | Why the uprising in Libya will affect the world economy
Libya is a big oil exporter, and if exports are cut off, the price of oil will increase.
The Economist: Free Exchange | A disappointing day
The Ameriacn and British GDP data came out.
Café Hayek | Don’t follow the money
One of the arguments of the buy local movement is that buying local “keeps the money in the community.” This seems like a good idea but it’s a red herring that misleads.
The Economist: Daily Chart | Relying on Libya
Which countries depend most on Libyan oil?
Reports
Heritage Foundation | Housing Finance Reform: No Need for a New Fannie Mae and Freddie Mac
Given the task of producing a plan to develop a new housing finance system in light of the 2008 crisis and the failure of both Fannie Mae and Freddie Mac—a task that everyone agrees will be extremely complex—the Obama Administration decided to punt. Rather than one detailed plan, it produced brief summaries of three very different ones, leaving the nation to wonder what the Administration really wants.
CNN Money | Gas prices: 'Most expensive February ever'
Gas prices jumped 6 cents overnight, as the recent spike in oil prices begins to hit filling stations across America.
Fox News | Freddie Mac posts $1.7B loss for Q4
Government-controlled mortgage buyer Freddie Mac managed a narrower loss of $1.7 billion for the October-December quarter of last year. But it has asked for an additional $500 million in federal aid — up from the $100 million it sought in the previous quarter.
CNN Money | Economy faces new threats
Just when the U.S. economy seemed to be getting its footing, a number of new obstacles risk tripping it up.
Fox News | Gov. Scott Rejects Revised Florida High-Speed Rail Plan
Despite assurances from the federal government that Florida would not be at financial or legal peril, Gov. Rick Scott on Thursday rejected a revised $2.4 billion offer to build a high-speed rail system between Tampa and Orlando.
CNN Money | GDP report: Economic growth revised sharply lower
Budget cuts by state and local governments hurt the economy more than originally thought, according to a government release Friday.
The Economist | Taiwan's commonsense consensus
Economic integration with China is not doing what China hoped and the opposition feared
Econ Comments
WSJ | The Truth About U.S. Manufacturing
The average American factory worker today is responsible for more than $180,000 of annual output, triple the $60,000 in 1972.
Reason Foundation | 4th Quarter Shows Strong Demand Growth
Revised GDP numbers for the fourth quarter of 2010 were released by the Bureau of Economic Analysis today, showing the economy grew at an annual rate of 2.8 percent, slightly lower than the previous estimate of 3.2 percent. That's not great news, but buried in the data are continued signs that demand is strengthening.
Blogs
AEI: The American | More Equity, Less Government: Rethinking Bank Regulation
What would Milton Friedman and Adam Smith have thought of the Dodd-Frank Act?
CSM: Stefan Karlsson's Blog | Why the uprising in Libya will affect the world economy
Libya is a big oil exporter, and if exports are cut off, the price of oil will increase.
The Economist: Free Exchange | A disappointing day
The Ameriacn and British GDP data came out.
Café Hayek | Don’t follow the money
One of the arguments of the buy local movement is that buying local “keeps the money in the community.” This seems like a good idea but it’s a red herring that misleads.
The Economist: Daily Chart | Relying on Libya
Which countries depend most on Libyan oil?
Reports
Heritage Foundation | Housing Finance Reform: No Need for a New Fannie Mae and Freddie Mac
Given the task of producing a plan to develop a new housing finance system in light of the 2008 crisis and the failure of both Fannie Mae and Freddie Mac—a task that everyone agrees will be extremely complex—the Obama Administration decided to punt. Rather than one detailed plan, it produced brief summaries of three very different ones, leaving the nation to wonder what the Administration really wants.
Health Care
Econ Comments
WSJ | Another ObamaCare Concession
And now a reprieve for a private insurance option Democrats despise.
WSJ | Another ObamaCare Concession
And now a reprieve for a private insurance option Democrats despise.
Tax
News
WSJ | Lien on Me: IRS Eases Debt Rules
In a rare show of leniency, the Internal Revenue Service on Thursday announced new rules designed to make it easier for people struggling with tax debts to climb out of the hole.
Bloomberg | Geithner Seeks to Broaden U.S. Corporate Tax Overhaul Debate
[The recommendation] ...would affect income earned by the nation’s largest law firms, investment partnerships and so-called S corporations. It would more than double, to about $3 trillion, the amount of business income potentially affected by tax-law changes.
Econ Comments
Barron's | Close the Online-Sales-Tax Loophole
Amazon seems to have the capability to collect tax in every state.
WSJ | The State Business Tax Revolt
Governors get a jump on corporate tax reform.
Blogs
Consumer Reports: Money Blog | Taxpayer Advocate: IRS's new tax lien policy doesn't go far enough
The IRS hasn't gone far enough to change its tax-lien policy, National Taxpayer Advocate Nina Olson said today.
Reports
Cato Institute | New Estimates of Effective Corporate Tax Rates on Business Investment
We find that the U.S. effective corporate tax rate on new investment was 34.6 percent in 2010, which was the highest rate in the OECD and the fifth-highest rate among 83 countries.
WSJ | Lien on Me: IRS Eases Debt Rules
In a rare show of leniency, the Internal Revenue Service on Thursday announced new rules designed to make it easier for people struggling with tax debts to climb out of the hole.
Bloomberg | Geithner Seeks to Broaden U.S. Corporate Tax Overhaul Debate
[The recommendation] ...would affect income earned by the nation’s largest law firms, investment partnerships and so-called S corporations. It would more than double, to about $3 trillion, the amount of business income potentially affected by tax-law changes.
Econ Comments
Barron's | Close the Online-Sales-Tax Loophole
Amazon seems to have the capability to collect tax in every state.
WSJ | The State Business Tax Revolt
Governors get a jump on corporate tax reform.
Blogs
Consumer Reports: Money Blog | Taxpayer Advocate: IRS's new tax lien policy doesn't go far enough
The IRS hasn't gone far enough to change its tax-lien policy, National Taxpayer Advocate Nina Olson said today.
Reports
Cato Institute | New Estimates of Effective Corporate Tax Rates on Business Investment
We find that the U.S. effective corporate tax rate on new investment was 34.6 percent in 2010, which was the highest rate in the OECD and the fifth-highest rate among 83 countries.
Monetary
News
The Economist | Back from the dead
The world has forgotten about Japan’s banks. Both Western and Chinese bankers should refresh their memory.
Econ Comments
Ludwig von Mises Institute | Inflation Is Here, and It Is Going to Get Worse
As compared to September last year, the growth momentum of price indexes shows visible strengthening. Year on year, the rate of growth of the consumer price index (CPI) rose to 1.6 percent in January from 1.5 percent in the month before and 1.1 percent in September last year.
Blogs
Mises Economics Blog | Inflation: It’s Getting Crazy
Why is it that by the time price inflation comes around, everyone seems to forget about the money question? It doesn’t matter that the monetarists once seem to dominate the day with the quantity theory or that the Austrians have been talking about this issue for 100 years.
CSM: Mises Economics Blog | Turnaround for US banking?
The US banking industry earned more in 2010 than it has since 2007. But will these changes stick?
ThinkMarkets | Let Them Eat Chips
Unfortunately for defenders of Fed policy, today’s paper is filled with stories of rising inflation.
Daily Capitalist | The Fed Will Never Go Broke
The Fed must be worrying about the possibility that it could go broke, otherwise it wouldn’t have sneaked through an accounting trick that makes it impossible for them to become insolvent.
The Economist | Back from the dead
The world has forgotten about Japan’s banks. Both Western and Chinese bankers should refresh their memory.
Econ Comments
Ludwig von Mises Institute | Inflation Is Here, and It Is Going to Get Worse
As compared to September last year, the growth momentum of price indexes shows visible strengthening. Year on year, the rate of growth of the consumer price index (CPI) rose to 1.6 percent in January from 1.5 percent in the month before and 1.1 percent in September last year.
Blogs
Mises Economics Blog | Inflation: It’s Getting Crazy
Why is it that by the time price inflation comes around, everyone seems to forget about the money question? It doesn’t matter that the monetarists once seem to dominate the day with the quantity theory or that the Austrians have been talking about this issue for 100 years.
CSM: Mises Economics Blog | Turnaround for US banking?
The US banking industry earned more in 2010 than it has since 2007. But will these changes stick?
ThinkMarkets | Let Them Eat Chips
Unfortunately for defenders of Fed policy, today’s paper is filled with stories of rising inflation.
Daily Capitalist | The Fed Will Never Go Broke
The Fed must be worrying about the possibility that it could go broke, otherwise it wouldn’t have sneaked through an accounting trick that makes it impossible for them to become insolvent.
Budget
News
The Economist | Tick, Tock
Time is running out to avert a government shutdown.
WSJ | Shutdown Preparations Begin
A 1981 White House memo outlined activities that would likely be exempted in a government shutdown, including medical care, air-traffic control, border protection and activities key to the safe use of food and drugs. Also exempted would be the essential elements of the banking system and tax collection activities.
National Journal | Senate Dems Put 7-Month CR on The Table
Democratic aides said the bill would cut $8.5 billion by eliminating previously approved earmarks. The bill would also accelerate about $24.7 billion in program eliminations or reductions sought by President Obama in his fiscal 2012 budget proposal.
Econ Comments
WSJ | Budget Battles Roil Straitened States
The states' fiscal woes have sent chills through the municipal bond market and are prompting the biggest clash between government and their union-represented workers in at least 30 years.
Blogs
CSM: The New Economy | Too much US debt? Blame the 'shopping' spree.
Crafting a federal budget is like a teenage shopping spree for boomers, seniors.
NRO: The Corner | The Impact of Not Reforming Entitlements Today
The simple translation of that is that if we wait, the future will be very painful, and we will be poorer.
Heritage Foundation | How Deep Are the Government Spending Cuts?
By contrast, the House-passed bill not only rejected the President’s proposed $39 billion hike but actually $61 billion cut off the 2010 level.
Fox News | Congressional Budget Chief Warns of Burgeoning U.S Debt
In 1970, net interest made up only three-tenths of one percent of the annual budget deficit. By 2007, that figure rose to 1.2 percent. And Elmendorf predicts it will erupt to 3.2 percent by 2021.
The Economist | Tick, Tock
Time is running out to avert a government shutdown.
WSJ | Shutdown Preparations Begin
A 1981 White House memo outlined activities that would likely be exempted in a government shutdown, including medical care, air-traffic control, border protection and activities key to the safe use of food and drugs. Also exempted would be the essential elements of the banking system and tax collection activities.
National Journal | Senate Dems Put 7-Month CR on The Table
Democratic aides said the bill would cut $8.5 billion by eliminating previously approved earmarks. The bill would also accelerate about $24.7 billion in program eliminations or reductions sought by President Obama in his fiscal 2012 budget proposal.
Econ Comments
WSJ | Budget Battles Roil Straitened States
The states' fiscal woes have sent chills through the municipal bond market and are prompting the biggest clash between government and their union-represented workers in at least 30 years.
Blogs
CSM: The New Economy | Too much US debt? Blame the 'shopping' spree.
Crafting a federal budget is like a teenage shopping spree for boomers, seniors.
NRO: The Corner | The Impact of Not Reforming Entitlements Today
The simple translation of that is that if we wait, the future will be very painful, and we will be poorer.
Heritage Foundation | How Deep Are the Government Spending Cuts?
By contrast, the House-passed bill not only rejected the President’s proposed $39 billion hike but actually $61 billion cut off the 2010 level.
Fox News | Congressional Budget Chief Warns of Burgeoning U.S Debt
In 1970, net interest made up only three-tenths of one percent of the annual budget deficit. By 2007, that figure rose to 1.2 percent. And Elmendorf predicts it will erupt to 3.2 percent by 2021.
Employment
News
CNN Money | Obama to business leaders: Let's brainstorm jobs
President Obama called a new team of business and labor leaders to the White House Thursday to brainstorm about how to create jobs and boost the economic recovery.
CNN | Public union battles spread across U.S.
The fight over public union benefits and collective bargaining is spreading across the United States. Here is a state-by-state breakdown:
Econ Comments
AEI | Build Roads, Save Money with Private Investors
The fact is, the tools to boost our economy and revitalize our infrastructure are already within reach--without adding to the deficit.
Blogs
AEI: The American | The Real Problem with Government Employee Unions
Although collective bargaining by government employee unions may offend one’s sense of justice, what’s truly unacceptable is government labor’s stranglehold over the local, state, and federal governments with which they bargain.
AEI: The Enterprise Blog | Despite Recent ‘Mancovery,’ It’s Still a ‘Mancession’
By any standard measure of labor market conditions, it is women who have fared much better during the “mancession.”
CNN Money | Obama to business leaders: Let's brainstorm jobs
President Obama called a new team of business and labor leaders to the White House Thursday to brainstorm about how to create jobs and boost the economic recovery.
CNN | Public union battles spread across U.S.
The fight over public union benefits and collective bargaining is spreading across the United States. Here is a state-by-state breakdown:
Econ Comments
AEI | Build Roads, Save Money with Private Investors
The fact is, the tools to boost our economy and revitalize our infrastructure are already within reach--without adding to the deficit.
Blogs
AEI: The American | The Real Problem with Government Employee Unions
Although collective bargaining by government employee unions may offend one’s sense of justice, what’s truly unacceptable is government labor’s stranglehold over the local, state, and federal governments with which they bargain.
AEI: The Enterprise Blog | Despite Recent ‘Mancovery,’ It’s Still a ‘Mancession’
By any standard measure of labor market conditions, it is women who have fared much better during the “mancession.”
Thursday, February 24, 2011
General Economics
News
CNN Money | General Motors: First profit since 2004
General Motors on Thursday reported its first annual profit since 2004, capping an impressive turnaround by the once-troubled automaker.
WSJ | U.S. Pushes Mortgage Deal
Obama Proposal Seeks Multibillion-Dollar Settlement of Loan-Servicing Cases
CNN Money | Sales of new homes fall a shocking 11.2%
The new year has brought little cheer to new-home builders: Their sales fell a shocking 11.2% between December and January and 18.6% from 12 months earlier.
CNN Money | Social Security is safe in a federal shutdown
What happens to Social Security if the government shuts down?
Fox News | Durable goods orders excluding airplanes drop
Orders for long-lasting manufactured goods outside of transportation fell in January by the largest amount in two years.
CNN Money | Foreclosures make up 26% of home sales
Home prices are down but sales are up, somewhat contradictory trends.
The Economist | Oil pressure rising
Oil markets don’t like surprises.
WSJ | Irish Remedy for Hard Times: Leaving
The people of Ireland go to the polls Friday to deliver what's expected to be a knock-out blow to the governing party. But many are choosing to vote in a traditional Irish fashion: with their feet. Tens of thousands are joining in a new wave of emigration, turning their backs on a country mired in economic malaise.
Econ Comments Cato Institute | The Myth of Corporate Cash Hoarding
American nonfinancial corporations were "sitting on" $1.93 trillion in liquid assets at the end of last year's third quarter, according to the Federal Reserve Board. This has become one of the most frequently echoed statistics, viewed as indisputable evidence that U.S. business leaders are unduly timid or evil.
WSJ | Why Regulators Should Let Banks Foreclose
Data show that brief additional time-outs don't allow borrowers to become current.
Real Clear Markets | With Unions, Follow the Money
Missing in action, walking off the job. That's the new style for Democratic state legislators, first in Wisconsin, then in Indiana. They have fled to Illinois, rather than provide the quorum necessary for votes on legislation sponsored by Republican majorities to curtail public-employee benefits and union activity.
WSJ | The Public Worker Gravy Train
Many government employees are paid up to 30% more than those in the private sector.
Blogs
Heritage Foundation | 10 Things You Need to Know About High Gas Prices and Obama’s Oil Policy
This week the media’s attention is finally focused on oil prices. After two years of continually rising consumer gas prices in America, the oil futures market has captivated the Mideast storyline. And attention is much needed.
Cato@Liberty | Despite Huawei’s Experience, America Is Open to Chinese Investment
Despite the sour grapes expressed by Huawei and its patron, the Chinese Ministry of Commerce, the United States is open and ready to welcome Chinese investment
The Economist: Democracy in America | Barriers to trade back in the day
This isn't to say that it's a good idea to ratchet up levels of protectionism when, as now, overall barriers to trade are low and declining. But when everyone's doing it, it's probably true that the people who do it more effectively are benefiting from it.
Time: Curious Capitalist | Will $100 Oil Kill the Recovery?
Oil climb has traders and others saying oh-no.
Carpe Diem | As a Share of Income, Americans Have the Most Affordable Food in World & It's Never Been Better
As much as Americans might complain about rising food prices in the U.S. (even though annual CPI food inflation hasn't been above 2% for almost two years), we've got the most affordable food on the planet as a share of income
CNN Money | General Motors: First profit since 2004
General Motors on Thursday reported its first annual profit since 2004, capping an impressive turnaround by the once-troubled automaker.
WSJ | U.S. Pushes Mortgage Deal
Obama Proposal Seeks Multibillion-Dollar Settlement of Loan-Servicing Cases
CNN Money | Sales of new homes fall a shocking 11.2%
The new year has brought little cheer to new-home builders: Their sales fell a shocking 11.2% between December and January and 18.6% from 12 months earlier.
CNN Money | Social Security is safe in a federal shutdown
What happens to Social Security if the government shuts down?
Fox News | Durable goods orders excluding airplanes drop
Orders for long-lasting manufactured goods outside of transportation fell in January by the largest amount in two years.
CNN Money | Foreclosures make up 26% of home sales
Home prices are down but sales are up, somewhat contradictory trends.
The Economist | Oil pressure rising
Oil markets don’t like surprises.
WSJ | Irish Remedy for Hard Times: Leaving
The people of Ireland go to the polls Friday to deliver what's expected to be a knock-out blow to the governing party. But many are choosing to vote in a traditional Irish fashion: with their feet. Tens of thousands are joining in a new wave of emigration, turning their backs on a country mired in economic malaise.
Econ Comments Cato Institute | The Myth of Corporate Cash Hoarding
American nonfinancial corporations were "sitting on" $1.93 trillion in liquid assets at the end of last year's third quarter, according to the Federal Reserve Board. This has become one of the most frequently echoed statistics, viewed as indisputable evidence that U.S. business leaders are unduly timid or evil.
WSJ | Why Regulators Should Let Banks Foreclose
Data show that brief additional time-outs don't allow borrowers to become current.
Real Clear Markets | With Unions, Follow the Money
Missing in action, walking off the job. That's the new style for Democratic state legislators, first in Wisconsin, then in Indiana. They have fled to Illinois, rather than provide the quorum necessary for votes on legislation sponsored by Republican majorities to curtail public-employee benefits and union activity.
WSJ | The Public Worker Gravy Train
Many government employees are paid up to 30% more than those in the private sector.
Blogs
Heritage Foundation | 10 Things You Need to Know About High Gas Prices and Obama’s Oil Policy
This week the media’s attention is finally focused on oil prices. After two years of continually rising consumer gas prices in America, the oil futures market has captivated the Mideast storyline. And attention is much needed.
Cato@Liberty | Despite Huawei’s Experience, America Is Open to Chinese Investment
Despite the sour grapes expressed by Huawei and its patron, the Chinese Ministry of Commerce, the United States is open and ready to welcome Chinese investment
The Economist: Democracy in America | Barriers to trade back in the day
This isn't to say that it's a good idea to ratchet up levels of protectionism when, as now, overall barriers to trade are low and declining. But when everyone's doing it, it's probably true that the people who do it more effectively are benefiting from it.
Time: Curious Capitalist | Will $100 Oil Kill the Recovery?
Oil climb has traders and others saying oh-no.
Carpe Diem | As a Share of Income, Americans Have the Most Affordable Food in World & It's Never Been Better
As much as Americans might complain about rising food prices in the U.S. (even though annual CPI food inflation hasn't been above 2% for almost two years), we've got the most affordable food on the planet as a share of income
Health
Blogs
Heritage Foundation | New CBO Report Proves We Cannot Afford Obamacare
Obamacare includes tremendous new levels of federal spending at a time when lawmakers are seeking ways to reduce the unaffordable size of government. It pays for new spending by increasing taxes on the American people, burdening individuals and businesses and putting further strain on the economy. And, as we explain further in recent research, a realistic scoring of Obamacare shows that it is certain to increase deficits.
NRO: Critical Condition | The Latest Obamacare Court Ruling: Congress Can Regulate ‘Mental Activity’
On Tuesday, Judge Gladys Kessler of the U.S. District Court for the District of Columbia handed down her decision in the fifth Obamacare court challenge, Mead v. Holder. Kessler upheld the individual mandate, along with the rest of the law, leading PPACA advocates to crow that three judges have upheld the mandate, versus two who have overturned it.
Heritage Foundation | New CBO Report Proves We Cannot Afford Obamacare
Obamacare includes tremendous new levels of federal spending at a time when lawmakers are seeking ways to reduce the unaffordable size of government. It pays for new spending by increasing taxes on the American people, burdening individuals and businesses and putting further strain on the economy. And, as we explain further in recent research, a realistic scoring of Obamacare shows that it is certain to increase deficits.
NRO: Critical Condition | The Latest Obamacare Court Ruling: Congress Can Regulate ‘Mental Activity’
On Tuesday, Judge Gladys Kessler of the U.S. District Court for the District of Columbia handed down her decision in the fifth Obamacare court challenge, Mead v. Holder. Kessler upheld the individual mandate, along with the rest of the law, leading PPACA advocates to crow that three judges have upheld the mandate, versus two who have overturned it.
Taxes
News
NY Times | In City Often? Tax Man Asks Some for Tally
...this year, the state tax department...[is] asking state residents who own second, or perhaps third and fourth, homes to specify how many days they spent in New York City. A number nearing 183 will be a red flag.
Econ Comments
Cato Institute | Will a VAT Turn America into a Greek-style Welfare State?
...because the VAT is hidden from consumers, politicians find they are an easy source of new revenue — which is one reason why the average VAT rate in Europe is now more than 20 percent!
Financial Post | Terence Corcoran: America’s corporate tax nightmare
High U.S. tax rates are distorting investment decisions.
Barron's | Getting a Tax Break
A large number of online brokers still don't give investors much choice on the accounting treatment of their stock sales.
Blogs
NRO: Exchequer | Tax Cuts and Wisconsin’s Deficit
How exactly do $137 million in tax cuts cause a $3.6 billion deficit in two years? I am dying to know.
Greg Mankiw | Tax Fact of the Day
"The U.S. effective corporate tax rate on new investment was 34.6 percent in 2010, which was the highest rate in the OECD and the fifth-highest rate among 83 countries…"
NY Times | In City Often? Tax Man Asks Some for Tally
...this year, the state tax department...[is] asking state residents who own second, or perhaps third and fourth, homes to specify how many days they spent in New York City. A number nearing 183 will be a red flag.
Econ Comments
Cato Institute | Will a VAT Turn America into a Greek-style Welfare State?
...because the VAT is hidden from consumers, politicians find they are an easy source of new revenue — which is one reason why the average VAT rate in Europe is now more than 20 percent!
Financial Post | Terence Corcoran: America’s corporate tax nightmare
High U.S. tax rates are distorting investment decisions.
Barron's | Getting a Tax Break
A large number of online brokers still don't give investors much choice on the accounting treatment of their stock sales.
Blogs
NRO: Exchequer | Tax Cuts and Wisconsin’s Deficit
How exactly do $137 million in tax cuts cause a $3.6 billion deficit in two years? I am dying to know.
Greg Mankiw | Tax Fact of the Day
"The U.S. effective corporate tax rate on new investment was 34.6 percent in 2010, which was the highest rate in the OECD and the fifth-highest rate among 83 countries…"
Monetary
News
Bloomberg | Euro Gets Cold Shoulder at Ballot Box of Anger: Jens Bastian
The first of seven regional elections in Germany this year left no doubt about where German voters stand on a much larger issue: the euro crisis.
Econ Comments
AEI | No Time for US Schadenfreude over Europe
After many years of being at the receiving end of European lectures as to the superiority of Europe's economic and social model, it is all too tempting for Americans to derive satisfaction from Europe's present sovereign debt crisis.
Minyanville | Why Monetary Policy Doesn't Cause Higher Agricultural Commodity Prices
Though excess monetary creation creates an inflationary environment, we can't blame it for floods, droughts that have wreaked havoc on wheat, cotton and sugar markets.
POLITICO | Fed fix needed on debit swipe fees
Sometimes a free market does not – or cannot – correct a divergence from the competitive norm. When these persist over time or worsen, it is among the few scenarios where there is reason for government to examine, and possibly correct, the cause. This is why the Federal Reserve’s proposed rule to limit debit-card “swipe fees,” a measure called for in the Dodd-Frank financial reform legislation, is justifiable public policy — and overdue.
Minyanville Why the Fed Is Likely to Start Tightening in the Third Quarter
A sustained improvement in consumer sentiment in the next few months will have some hawks raising their heads in the FOMC as headline inflation is also turning for the worse.
Pittsburgh Tribune Review | Inflation's worst consequence
The biggest problem with inflation is that it interferes with the system of communication that markets use to inform workers, investors, entrepreneurs, businesses and consumers about how they can best achieve their economic goals given the underlying economic realities. That system is prices.
Blogs
The Economist: Economics by Invitation | Is the modern central bank in need of reform?
How should monetary policymaking change? Should central banks have a larger or smaller regulatory role? Is independence all it's cracked up to be? Or are modern central banks the best we can hope for?
WSJ: Real Time Economics | Fed’s Plosser: Would Consider Early QE2 End If Economy Accelerates More
One of the Federal Reserve‘s leading hawks warned Wednesday of the risks of maintaining easy monetary policy in the face of rising commodity prices and said if the recovery continues to pick up speed, he’d support curtailing the bond-buying program widely known as QE2.
WSJ: Real Time Economics | Fed’s Hoenig: Easy Money And Too-Big-To-Fail Must End
Federal Reserve Bank of Kansas City President Thomas Hoenig on Wednesday said the U.S. central bank was risking a new financial crisis with its easy-money policies and urged regulators to break up the biggest banks.
Bloomberg | Euro Gets Cold Shoulder at Ballot Box of Anger: Jens Bastian
The first of seven regional elections in Germany this year left no doubt about where German voters stand on a much larger issue: the euro crisis.
Econ Comments
AEI | No Time for US Schadenfreude over Europe
After many years of being at the receiving end of European lectures as to the superiority of Europe's economic and social model, it is all too tempting for Americans to derive satisfaction from Europe's present sovereign debt crisis.
Minyanville | Why Monetary Policy Doesn't Cause Higher Agricultural Commodity Prices
Though excess monetary creation creates an inflationary environment, we can't blame it for floods, droughts that have wreaked havoc on wheat, cotton and sugar markets.
POLITICO | Fed fix needed on debit swipe fees
Sometimes a free market does not – or cannot – correct a divergence from the competitive norm. When these persist over time or worsen, it is among the few scenarios where there is reason for government to examine, and possibly correct, the cause. This is why the Federal Reserve’s proposed rule to limit debit-card “swipe fees,” a measure called for in the Dodd-Frank financial reform legislation, is justifiable public policy — and overdue.
Minyanville Why the Fed Is Likely to Start Tightening in the Third Quarter
A sustained improvement in consumer sentiment in the next few months will have some hawks raising their heads in the FOMC as headline inflation is also turning for the worse.
Pittsburgh Tribune Review | Inflation's worst consequence
The biggest problem with inflation is that it interferes with the system of communication that markets use to inform workers, investors, entrepreneurs, businesses and consumers about how they can best achieve their economic goals given the underlying economic realities. That system is prices.
Blogs
The Economist: Economics by Invitation | Is the modern central bank in need of reform?
How should monetary policymaking change? Should central banks have a larger or smaller regulatory role? Is independence all it's cracked up to be? Or are modern central banks the best we can hope for?
WSJ: Real Time Economics | Fed’s Plosser: Would Consider Early QE2 End If Economy Accelerates More
One of the Federal Reserve‘s leading hawks warned Wednesday of the risks of maintaining easy monetary policy in the face of rising commodity prices and said if the recovery continues to pick up speed, he’d support curtailing the bond-buying program widely known as QE2.
WSJ: Real Time Economics | Fed’s Hoenig: Easy Money And Too-Big-To-Fail Must End
Federal Reserve Bank of Kansas City President Thomas Hoenig on Wednesday said the U.S. central bank was risking a new financial crisis with its easy-money policies and urged regulators to break up the biggest banks.
Budget
News
Bloomberg | U.S. Government Shutdown Looms as Lawmakers Deadlock Over Budget Proposal
A U.S. government shutdown looms after lawmakers deadlocked yesterday over a Republican proposal to cut $4 billion as part of a budget measure needed to keep federal agencies running.
Washington Times | Obama sits out budget brawl
...the Obama White House has been largely absent from the political debate, issuing a veto threat to try on the Republicans’ spending-cuts bill but declining to offer publicly a counteroffer…
Econ Comments
NRO | After Obama, the Deluge
A less eloquent president will have to balance budgets.
Minyanville | Obama's Budget Proposal Resurrects Idea of Taxing Carried Interest
Specifically, the budget calls for taxing "carried [profits] interests as ordinary income" in order to increase Treasury receipts by $14.8 billion over 10 years.
NRO | Budget 101
Paul Ryan conducts “listening sessions” for new GOP members
Blogs
NRO: The Corner | Social Security and the General Treasury: Who’s Raiding Whom?
...it should collect taxes that will be earmarked to pay for benefits and only benefits. Social Security shouldn’t have to turn over its cash to Treasury, and it shouldn’t be allowed to receive money from the general revenue.
Reports
Bankrupting America | State budget battles: isolated event or coming epidemic?
We compiled a brief fiscal and economic overview for each state — from its annual spending and revenue, to its unfunded pension liabilities.
Bloomberg | U.S. Government Shutdown Looms as Lawmakers Deadlock Over Budget Proposal
A U.S. government shutdown looms after lawmakers deadlocked yesterday over a Republican proposal to cut $4 billion as part of a budget measure needed to keep federal agencies running.
Washington Times | Obama sits out budget brawl
...the Obama White House has been largely absent from the political debate, issuing a veto threat to try on the Republicans’ spending-cuts bill but declining to offer publicly a counteroffer…
Econ Comments
NRO | After Obama, the Deluge
A less eloquent president will have to balance budgets.
Minyanville | Obama's Budget Proposal Resurrects Idea of Taxing Carried Interest
Specifically, the budget calls for taxing "carried [profits] interests as ordinary income" in order to increase Treasury receipts by $14.8 billion over 10 years.
NRO | Budget 101
Paul Ryan conducts “listening sessions” for new GOP members
Blogs
NRO: The Corner | Social Security and the General Treasury: Who’s Raiding Whom?
...it should collect taxes that will be earmarked to pay for benefits and only benefits. Social Security shouldn’t have to turn over its cash to Treasury, and it shouldn’t be allowed to receive money from the general revenue.
Reports
Bankrupting America | State budget battles: isolated event or coming epidemic?
We compiled a brief fiscal and economic overview for each state — from its annual spending and revenue, to its unfunded pension liabilities.
Employment
News
MSNBC | Jobless claims drop more than expected
Third drop in the past four weeks for critical job market indicator
CNN Money | Jobless claims fall to 391,000
In another sign that the job market is slowly recovering, the number of Americans filing first-time claims for unemployment benefits fell last week.
Blogs
CSM: Stefan Karlsson | Private vs. public sector: Who makes more?
If unionized government workers really are underpaid, is there still a point to having unions?
NYT: Economix | Higher-Paying Jobs Lost, but Lower-Paying Jobs Gained
While the country’s recessionary job losses skewed to middle- and higher-paying jobs, its job gains since then have skewed to lower-paying jobs.
National Review: The Corner | Government vs. Private Employee Compensations
Are public workers “overpaid, underpaid or just right?”
MSNBC | Jobless claims drop more than expected
Third drop in the past four weeks for critical job market indicator
CNN Money | Jobless claims fall to 391,000
In another sign that the job market is slowly recovering, the number of Americans filing first-time claims for unemployment benefits fell last week.
Blogs
CSM: Stefan Karlsson | Private vs. public sector: Who makes more?
If unionized government workers really are underpaid, is there still a point to having unions?
NYT: Economix | Higher-Paying Jobs Lost, but Lower-Paying Jobs Gained
While the country’s recessionary job losses skewed to middle- and higher-paying jobs, its job gains since then have skewed to lower-paying jobs.
National Review: The Corner | Government vs. Private Employee Compensations
Are public workers “overpaid, underpaid or just right?”
Wednesday, February 23, 2011
General Economics
News
MSNBC | 'I won't pay' movement spreads across Greece
In light of austerity measures, citizens ignore tolls, transit ticket costs, even bills for healthcare
CNN Money | Home sales inching up
Sales of existing homes recorded modest gains in January, the third straight month of month-over-month increases.
Econ Comments
WSJ | The Myth of Corporate Cash Hoarding
Companies hire more workers when there's income to pay them. They don't liquidate financial assets.
Cato Institute | Fannie, Freddie Lose Relevance
On Feb. 11, the day that Hosni Mubarak resigned as president of Egypt, the Obama administration released its report to Congress on reforming America's housing finance market.
Real Clear Markets | Collective Bargaining Doesn't Work In the Public Sector
Although Walker is being demonized as a union buster, in truth he's only asking for the same powers to manage his budget and workforce that President Obama already enjoys.
Minyanville | What the Decline in Durable Goods Orders Says About Manufacturing Sector Health
December's report noted that aside from aircraft orders, durable goods orders were up 0.5%. But a few months of aircraft weakness doesn't explain the nine-month trend.
AEI | Public Unions Force Taxpayers to Fund Democrats
Wisconsin, which led the nation on civil service a century ago and on welfare reform in the 1990s, may be showing the nation the way ahead once again.
WSJ | Waiting for Hurricane Charlie (Crist)
All Americans will pay if Florida doesn't reform its insurance market.
Real Clear Markets | Controls On Bank Capital Are - Yet Again - Exposed As Worthless
In short, the only regulation so far not mentioned by the political and economic establishment is the only one that would actually work for banks, and all other economic entities: Let them fail.
Blogs
Café Hayek | The power of the rich
I think fixing the relationship between the financial sector and the power of government, particularly the Fed, is the single biggest problem we face as a democracy and as an economy. The exploitive nature of this relationship, what is often called crony capitalism, has led to terrible misallocations of capital and to resentment from the body politic about the fairness of the political process.
Atlantic: McArdle | The Best Things in Workplaces Aren't Free
The people making this argument seem oblivious to the fact that all these things cost employers money. I think they understand that pensions and health care are expensive, but they seem to view the last four as freebies. Yet they obviously have monetary value to employees (who tout their willingness to give up pay in order to secure these things). They also have monetary value to employers.
Independent Institute | What’s Holding Back the Recovery?
What’s holding back the recovery? My answer: the failure of private investment to recover fully.
CSM: Growthology | Is American education getting worse?
Inequalities within the US education system are more important than differences with other countries.
MSNBC | 'I won't pay' movement spreads across Greece
In light of austerity measures, citizens ignore tolls, transit ticket costs, even bills for healthcare
CNN Money | Home sales inching up
Sales of existing homes recorded modest gains in January, the third straight month of month-over-month increases.
Econ Comments
WSJ | The Myth of Corporate Cash Hoarding
Companies hire more workers when there's income to pay them. They don't liquidate financial assets.
Cato Institute | Fannie, Freddie Lose Relevance
On Feb. 11, the day that Hosni Mubarak resigned as president of Egypt, the Obama administration released its report to Congress on reforming America's housing finance market.
Real Clear Markets | Collective Bargaining Doesn't Work In the Public Sector
Although Walker is being demonized as a union buster, in truth he's only asking for the same powers to manage his budget and workforce that President Obama already enjoys.
Minyanville | What the Decline in Durable Goods Orders Says About Manufacturing Sector Health
December's report noted that aside from aircraft orders, durable goods orders were up 0.5%. But a few months of aircraft weakness doesn't explain the nine-month trend.
AEI | Public Unions Force Taxpayers to Fund Democrats
Wisconsin, which led the nation on civil service a century ago and on welfare reform in the 1990s, may be showing the nation the way ahead once again.
WSJ | Waiting for Hurricane Charlie (Crist)
All Americans will pay if Florida doesn't reform its insurance market.
Real Clear Markets | Controls On Bank Capital Are - Yet Again - Exposed As Worthless
In short, the only regulation so far not mentioned by the political and economic establishment is the only one that would actually work for banks, and all other economic entities: Let them fail.
Blogs
Café Hayek | The power of the rich
I think fixing the relationship between the financial sector and the power of government, particularly the Fed, is the single biggest problem we face as a democracy and as an economy. The exploitive nature of this relationship, what is often called crony capitalism, has led to terrible misallocations of capital and to resentment from the body politic about the fairness of the political process.
Atlantic: McArdle | The Best Things in Workplaces Aren't Free
The people making this argument seem oblivious to the fact that all these things cost employers money. I think they understand that pensions and health care are expensive, but they seem to view the last four as freebies. Yet they obviously have monetary value to employees (who tout their willingness to give up pay in order to secure these things). They also have monetary value to employers.
Independent Institute | What’s Holding Back the Recovery?
What’s holding back the recovery? My answer: the failure of private investment to recover fully.
CSM: Growthology | Is American education getting worse?
Inequalities within the US education system are more important than differences with other countries.
Health
News
National Journal | Conservative Group Proposes Curbing Medicaid by Using Private Insurance
“This report marks the first time that anyone has laid out a full alternative to Medicaid that is not a single-payer model,” TPPF Executive Director Arlene Wohlgemuth said. “A system where government makes all the decisions and holds all the authority is not the Texas way of doing things.”
Econ Comments
Washington Times | EDITORIAL: Obamacare’s race against the cures
Misguided health care policy has serious side effects. As regulators refuse to approve new medical devices and medicines, venture capital for health care has dried up, and hospitals are running out of some important drugs. It has caused what one analyst has called a serious medicine crash.
WSJ | ObamaCare Is Already Damaging Health Care
Many of its changes don't kick in until 2014. But the law is forcing dramatic consolidation and reducing choice in the industry.
Blogs
Heritage Foundation | Another Hearing Highlights Obamacare’s Problems
Sebelius opined that the new health care law will increase patient access to physicians and hospitals, provide more choices for Medicare beneficiaries, create jobs, and allow those who are happy with their current plans to keep them. However, reality paints a different picture.
Atlantic: McArdle | Unions and Medicaid
If we neither cut reimbursements, nor services, then the fight is between unions and taxpayers, most of whom are not corporations, or even particularly rich
National Journal | Conservative Group Proposes Curbing Medicaid by Using Private Insurance
“This report marks the first time that anyone has laid out a full alternative to Medicaid that is not a single-payer model,” TPPF Executive Director Arlene Wohlgemuth said. “A system where government makes all the decisions and holds all the authority is not the Texas way of doing things.”
Econ Comments
Washington Times | EDITORIAL: Obamacare’s race against the cures
Misguided health care policy has serious side effects. As regulators refuse to approve new medical devices and medicines, venture capital for health care has dried up, and hospitals are running out of some important drugs. It has caused what one analyst has called a serious medicine crash.
WSJ | ObamaCare Is Already Damaging Health Care
Many of its changes don't kick in until 2014. But the law is forcing dramatic consolidation and reducing choice in the industry.
Blogs
Heritage Foundation | Another Hearing Highlights Obamacare’s Problems
Sebelius opined that the new health care law will increase patient access to physicians and hospitals, provide more choices for Medicare beneficiaries, create jobs, and allow those who are happy with their current plans to keep them. However, reality paints a different picture.
Atlantic: McArdle | Unions and Medicaid
If we neither cut reimbursements, nor services, then the fight is between unions and taxpayers, most of whom are not corporations, or even particularly rich
Employment
Econ Comments
CNN | Who cares about the young and jobless?
To judge from our politics, you'd almost think we had put the recession behind us.
Blogs
Heritage Foundation | Judge to Obama Administration: Get Moving on Drilling Permits
The Obama Administration hasn’t had their boot on the neck of just BP but also the entire Gulf economy. Federal Judge Martin Feldman is now doing the same to the Obama Administration.
Café Hayek | The alternative to unions
Stop whining about inequality, per se. If it bothers you, get to work, get a skill, start a business and tell your representatives to stop bailing out losers in the financial sector.
Heritage Foundation | Federal Workforce Continues to Grow Under Obama Budget
Since the beginning of the last recession (December 2007) the private sector workforce has shrunk by 6.6% while shedding more than 7.5 million jobs. Over that same time period, the federal government workforce (excluding Census and Postal workers) has grown by 11.7% while adding 230,000 jobs.
CNN | Who cares about the young and jobless?
To judge from our politics, you'd almost think we had put the recession behind us.
Blogs
Heritage Foundation | Judge to Obama Administration: Get Moving on Drilling Permits
The Obama Administration hasn’t had their boot on the neck of just BP but also the entire Gulf economy. Federal Judge Martin Feldman is now doing the same to the Obama Administration.
Café Hayek | The alternative to unions
Stop whining about inequality, per se. If it bothers you, get to work, get a skill, start a business and tell your representatives to stop bailing out losers in the financial sector.
Heritage Foundation | Federal Workforce Continues to Grow Under Obama Budget
Since the beginning of the last recession (December 2007) the private sector workforce has shrunk by 6.6% while shedding more than 7.5 million jobs. Over that same time period, the federal government workforce (excluding Census and Postal workers) has grown by 11.7% while adding 230,000 jobs.
Subscribe to:
Posts (Atom)