News
Washington Times | House votes to restart D.C. school vouchers
The House passed a measure Wednesday to revive a school-voucher program for the District of Columbia despite opposition from the mayor, the District’s congressional delegate, teachers and the White House.
Washington Times | Obama seeks one-third cut in oil imports
Wants more reliance on U.S. oil, natural gas, renewables, nuclear
WSJ | TARP Watchdog Spars Over 'Too Big to Fail'
In his final day on the job, a federal bailout watchdog squabbled publicly with a Treasury official over the legacy of the $700 billion Troubled Asset Relief Program as both individuals testified before lawmakers.
Econ Comments
Barrons | Foreclosures Boost Incomes?
In the weird world of economic data, not paying a mortgage adds to wealth. But in the real world?
The American Spectator | A Big Question for 2012
If you listen to President Obama and his Democrat and liberal/left cronies carefully, a clear, consistent message comes through on what they think promotes economic growth and jobs. They believe that the way to promote economic growth and prosperity is through increased federal spending, deficits, and debt
RCM | Union Members Have a Right to Know
A House subcommittee of the House Committee on Education and the Workforce holds hearings Thursday on labor union transparency and accountability.
Minyanville | Verizon CEO Warns Government Shutdown Will Stunt Economic Recovery
Even a brief closure would put fragile recovery at risk, he says.
Blogs
Cato@Liberty | Lugar Targets Federal Sugar Racket
Sen. Richard Lugar (R-IN) just introduced the “Free Sugar Act of 2011,” which would abolish the federal sugar racket.
The Economist: Daily Charts | Weather warning
America's housing market is in the doldrums
Heritage Foundation | Two Promising Starts towards Ending Fannie Mae and Freddie Mac
After more than a year of delay, the House Financial Services Committee is finally starting work on legislation that will hopefully end Fannie Mae and Freddie Mac, the two housing finance giants that helped to make the housing crisis worse.
Thursday, March 31, 2011
Health Care
News
WSJ | Medicare Proposes Coverage of Prostate-Cancer Drug
The Center for Medicare and Medicaid Services has proposed covering Dendreon Corp.'s prostate cancer drug Provenge, meaning that the federal government will likely continue paying for the treatment.
NationalJournal | New Health Rules Can Save $960 Million, HHS Says
New organizations that will shape U.S. health care will save Medicare between $500 million and $960 million in the first three years, the Health and Human Services Department said on Thursday.
Econ Comments
WSJ | Fiscal Health Hinges on Containing Costs of Care
President Barack Obama is trying to protect the expansion of Medicaid built into his health-care law. Governors from both parties are trying to slow rising costs of Medicaid, which accounts for an average of 22% of state spending. House Republican budget point person Paul Ryan is trying to reduce future federal spending on Medicaid by converting it into block grants to the states.
Cato Institute | Costs of Health Care Reform Becoming More Apparent
It will cost more than advertised. The Congressional Budget Office officially "scored" the health care bill as costing $950 billion. However, those numbers do not reveal the new law's true cost. For example, CBO's estimates do not include roughly $115 billion in implementation costs, such as the cost of hiring new IRS agents to enforce the individual mandate.
Blogs
Heritage Foundation | HHS Official Acknowledges Incentives for Employers to Dump Coverage Under Obamacare
One major concern of Obamacare is its huge incentive for businesses to dump employer-sponsored coverage. Recently, the Obama Administration acknowledged that this is likely, though it did so in an attempt to portray it as a positive outcome of its signature legislation.
Cato@Liberty | ObamaCare Implementation Meets Resistance in More States
Republican governors Rick Scott (FL), Sean Parnell (AK), and Bobby Jindal (LA) have flatly refused to implement ObamaCare. Efforts to create an ObamaCare health insurance "Exchange" are meeting resistance in other states too.
WSJ | Medicare Proposes Coverage of Prostate-Cancer Drug
The Center for Medicare and Medicaid Services has proposed covering Dendreon Corp.'s prostate cancer drug Provenge, meaning that the federal government will likely continue paying for the treatment.
NationalJournal | New Health Rules Can Save $960 Million, HHS Says
New organizations that will shape U.S. health care will save Medicare between $500 million and $960 million in the first three years, the Health and Human Services Department said on Thursday.
Econ Comments
WSJ | Fiscal Health Hinges on Containing Costs of Care
President Barack Obama is trying to protect the expansion of Medicaid built into his health-care law. Governors from both parties are trying to slow rising costs of Medicaid, which accounts for an average of 22% of state spending. House Republican budget point person Paul Ryan is trying to reduce future federal spending on Medicaid by converting it into block grants to the states.
Cato Institute | Costs of Health Care Reform Becoming More Apparent
It will cost more than advertised. The Congressional Budget Office officially "scored" the health care bill as costing $950 billion. However, those numbers do not reveal the new law's true cost. For example, CBO's estimates do not include roughly $115 billion in implementation costs, such as the cost of hiring new IRS agents to enforce the individual mandate.
Blogs
Heritage Foundation | HHS Official Acknowledges Incentives for Employers to Dump Coverage Under Obamacare
One major concern of Obamacare is its huge incentive for businesses to dump employer-sponsored coverage. Recently, the Obama Administration acknowledged that this is likely, though it did so in an attempt to portray it as a positive outcome of its signature legislation.
Cato@Liberty | ObamaCare Implementation Meets Resistance in More States
Republican governors Rick Scott (FL), Sean Parnell (AK), and Bobby Jindal (LA) have flatly refused to implement ObamaCare. Efforts to create an ObamaCare health insurance "Exchange" are meeting resistance in other states too.
Taxes
News
Telegraph | £300 a year: the cost to each taxpayer of funding EU
British taxpayers contributed an average of more than £300 each to the European Union last year, almost twice as much as in 2009, official figures disclosed yesterday.
Econ Comments
Mercatus Center | Taxpayers Could Be on the Hook for a Private Pension Bailout
The PBGC is financed with employer premiums, but according to its latest annual report its pension insurance programs protecting more than 44 million workers are currently facing a $23 billion deficit.
Reports
Tax Foundation | Tax Freedom Day to Arrive April 12 in 2011; Historically Massive Deficits Increase Burden of Government Spending
Americans Will Work 3 Days More for Government in 2011 than in 2010.
Telegraph | £300 a year: the cost to each taxpayer of funding EU
British taxpayers contributed an average of more than £300 each to the European Union last year, almost twice as much as in 2009, official figures disclosed yesterday.
Econ Comments
Mercatus Center | Taxpayers Could Be on the Hook for a Private Pension Bailout
The PBGC is financed with employer premiums, but according to its latest annual report its pension insurance programs protecting more than 44 million workers are currently facing a $23 billion deficit.
Reports
Tax Foundation | Tax Freedom Day to Arrive April 12 in 2011; Historically Massive Deficits Increase Burden of Government Spending
Americans Will Work 3 Days More for Government in 2011 than in 2010.
Monetary
News
USA Today | Wal-Mart CEO Bill Simon expects inflation
U.S. consumers face "serious" inflation in the months ahead for clothing, food and other products, the head of Wal-Mart's U.S. operations warned Wednesday.
Bloomberg | Fed Releases Discount-Window Loan Records Under Order
The Federal Reserve released thousands of pages of secret loan documents under court order, almost three years after Bloomberg LP first requested details of the central bank’s unprecedented support to banks during the financial crisis.
CNN: Money | Inflation pressures grow on Main Street
Still reeling from the recession, most mom-and-pop shops have held off on raising prices for fear of losing more customers. But business is finally starting to pick up, and after years of being squeezed by cost increases, a growing number of small businesses are hiking their prices.
Fox Business | Secrets Revealed: Fed Unveils Bank Loans Made During the Crisis
A massive cache of documents released by the Federal Reserve Thursday to FOX Business Network reveals that European banks were just as desperate for cash as their counterparts in the U.S. as the credit crisis exploded in late 2008.
Econ Comments
AEI | Portugal Will Follow Greece and Ireland to Failure
One has to wonder how much deeper the economic recessions in Greece, Ireland, and Portugal will have to become for the IMF and the EU to recognize that the countries in the periphery suffer from solvency rather than liquidity problems, that are not amenable to correction by fiscal retrenchment alone in a fixed exchange rate system.
CNN: Money | Geithner softens stance on yuan slightly
Treasury Secretary Tim Geithner once again criticized China for keeping its currency artificially low. But he also extended an olive branch that could allow China's yuan to become even more influential in global trade.
Blogs
WSJ: Real Time Economics | Which Fed Official Moves Markets Most?
Federal Reserve Chairman Ben Bernanke was once again the biggest market-mover in 2010, and the quarterly press conferences he begins next month are set to solidify his dominance, Macroeconomic Advisers said in their annual ranking.
WSJ: Real Time Economics | Fed’s Hoenig: Policy Providing Tinder for Asset Bubbles
“If current policy remains in place, we almost certainly will stimulate the growth of asset values and inflation,” Federal Reserve Bank of Kansas City President Thomas Hoenig said.
Reports
Wells Fargo Securities | Does China Have an Inflation Problem?
Inflation has risen this year in China. Not only have food prices shot up sharply, but non-food price inflation has also increased this year. Chinese authorities have tightened macroeconomic policies, and some analysts worry that overly aggressive tightening could lead to a sharp slowdown in the Chinese economy that could have global ramifications. Should we be worried about the inflation outlook in China?
USA Today | Wal-Mart CEO Bill Simon expects inflation
U.S. consumers face "serious" inflation in the months ahead for clothing, food and other products, the head of Wal-Mart's U.S. operations warned Wednesday.
Bloomberg | Fed Releases Discount-Window Loan Records Under Order
The Federal Reserve released thousands of pages of secret loan documents under court order, almost three years after Bloomberg LP first requested details of the central bank’s unprecedented support to banks during the financial crisis.
CNN: Money | Inflation pressures grow on Main Street
Still reeling from the recession, most mom-and-pop shops have held off on raising prices for fear of losing more customers. But business is finally starting to pick up, and after years of being squeezed by cost increases, a growing number of small businesses are hiking their prices.
Fox Business | Secrets Revealed: Fed Unveils Bank Loans Made During the Crisis
A massive cache of documents released by the Federal Reserve Thursday to FOX Business Network reveals that European banks were just as desperate for cash as their counterparts in the U.S. as the credit crisis exploded in late 2008.
Econ Comments
AEI | Portugal Will Follow Greece and Ireland to Failure
One has to wonder how much deeper the economic recessions in Greece, Ireland, and Portugal will have to become for the IMF and the EU to recognize that the countries in the periphery suffer from solvency rather than liquidity problems, that are not amenable to correction by fiscal retrenchment alone in a fixed exchange rate system.
CNN: Money | Geithner softens stance on yuan slightly
Treasury Secretary Tim Geithner once again criticized China for keeping its currency artificially low. But he also extended an olive branch that could allow China's yuan to become even more influential in global trade.
Blogs
WSJ: Real Time Economics | Which Fed Official Moves Markets Most?
Federal Reserve Chairman Ben Bernanke was once again the biggest market-mover in 2010, and the quarterly press conferences he begins next month are set to solidify his dominance, Macroeconomic Advisers said in their annual ranking.
WSJ: Real Time Economics | Fed’s Hoenig: Policy Providing Tinder for Asset Bubbles
“If current policy remains in place, we almost certainly will stimulate the growth of asset values and inflation,” Federal Reserve Bank of Kansas City President Thomas Hoenig said.
Reports
Wells Fargo Securities | Does China Have an Inflation Problem?
Inflation has risen this year in China. Not only have food prices shot up sharply, but non-food price inflation has also increased this year. Chinese authorities have tightened macroeconomic policies, and some analysts worry that overly aggressive tightening could lead to a sharp slowdown in the Chinese economy that could have global ramifications. Should we be worried about the inflation outlook in China?
Budget
News
MSNBC | NY legislature passes $132 billion budget, no new taxes
The New York state legislature on Thursday passed a $132.5 billion spending plan, closing a $10 billion deficit with no new taxes or debt and instead relying on harsh cuts to education and healthcare.
The Hill | In Republicans' 2012 budget plan, Social Security gets a pass
House Budget Committee Chairman Paul Ryan (R-Wis.) will largely give Social Security a pass in his highly anticipated budget while proposing a significant overhaul of Medicare and Medicaid, according to sources briefed on the plan.
WSJ | Portugal Fails to Meet Deficit Goal
Portugal's official statistics agency said the deficit stood at 8.6% of gross domestic product in 2010, up from a target of 7.3%.
Politico | Budget deal close with $33B in cuts
Budget talks came to life Wednesday but not without tension between the White House and Senate Democrats, worried that the administration was too quick to agree to $33 billion in spending cuts.
Econ Comments
WSJ | Public Unions: Is California Next?
California—a state that spent the 20th century exploding with creativity, growth and wealth—now staggers beneath a $26 billion deficit.
PIMCO | Skunked
Medicare, Medicaid and Social Security now account for 44% of total federal spending and are steadily rising.
Blogs
Fortune: Street Sweep | Gross calls U.S. budget a Greek tragedy
Bond manager Bill Gross says he is "confident" the United States will effectively default on its debt unless Congress takes an ax to retirement and healthcare spending.
MSNBC | NY legislature passes $132 billion budget, no new taxes
The New York state legislature on Thursday passed a $132.5 billion spending plan, closing a $10 billion deficit with no new taxes or debt and instead relying on harsh cuts to education and healthcare.
The Hill | In Republicans' 2012 budget plan, Social Security gets a pass
House Budget Committee Chairman Paul Ryan (R-Wis.) will largely give Social Security a pass in his highly anticipated budget while proposing a significant overhaul of Medicare and Medicaid, according to sources briefed on the plan.
WSJ | Portugal Fails to Meet Deficit Goal
Portugal's official statistics agency said the deficit stood at 8.6% of gross domestic product in 2010, up from a target of 7.3%.
Politico | Budget deal close with $33B in cuts
Budget talks came to life Wednesday but not without tension between the White House and Senate Democrats, worried that the administration was too quick to agree to $33 billion in spending cuts.
Econ Comments
WSJ | Public Unions: Is California Next?
California—a state that spent the 20th century exploding with creativity, growth and wealth—now staggers beneath a $26 billion deficit.
PIMCO | Skunked
Medicare, Medicaid and Social Security now account for 44% of total federal spending and are steadily rising.
Blogs
Fortune: Street Sweep | Gross calls U.S. budget a Greek tragedy
Bond manager Bill Gross says he is "confident" the United States will effectively default on its debt unless Congress takes an ax to retirement and healthcare spending.
Employment
News
CNN Money | Jobless claims edge lower
The number of Americans filing first-time claims for unemployment benefits declined last week, according to a government report, raising optimism that the job market recovery is gaining steam.
Fox | How states fared on unemployment applications
Fewer people applied for unemployment benefits last week, evidence that layoffs are declining and companies may be hiring more workers. The number of people seeking benefits dropped by 6,000 to 388,000 in the week ended March 26.
Econ Comments
Bloomberg | Why Unemployment Rose So Much, Dropped So Fast: Alan Krueger
Few things are more puzzling and disconcerting for an economist, and much of the American public, right now than the unemployment rate.
CNN Money | Jobless claims edge lower
The number of Americans filing first-time claims for unemployment benefits declined last week, according to a government report, raising optimism that the job market recovery is gaining steam.
Fox | How states fared on unemployment applications
Fewer people applied for unemployment benefits last week, evidence that layoffs are declining and companies may be hiring more workers. The number of people seeking benefits dropped by 6,000 to 388,000 in the week ended March 26.
Econ Comments
Bloomberg | Why Unemployment Rose So Much, Dropped So Fast: Alan Krueger
Few things are more puzzling and disconcerting for an economist, and much of the American public, right now than the unemployment rate.
Wednesday, March 30, 2011
General Economics
News
CNN Money | House votes to kill Obama mortgage plan
The House passed a bill Tuesday to kill a signature Obama administration program that helps homeowners stay in their homes but has faced criticism as ineffective.
WSJ | Regulators Unveil Mortgage-Lending Rules
Federal regulators proposed far-reaching changes to lending rules that eventually could raise the cost of borrowing for most homeowners, kicking off what is likely to be a furious effort by the housing and banking industries to soften the proposal.
MSNBC | Type the Title You Want People to See
Falling home sales, prices create fresh headwinds for recovery
WSJ | Korean Economic Growth Hits 8-Year Peak
South Korea's economic growth in the final quarter of last year slowed slightly from the prior three months but accelerated from the year-earlier period, bringing the full-year growth rate to the highest in eight years, which will likely add to rising inflation pressures.
Fox Business | Obama to Lay Out Plan to Curb U.S. Oil Imports
President Barack Obama will set an ambitious goal on Wednesday to cut oil imports by a third over 10 years, focusing on energy security amid high gasoline prices that could stall the U.S. economic recovery.
CQ | GOP Unveils Bills to Wind Down Fannie, Freddie
House Republicans unveiled a series of bills Tuesday to hasten the federal government’s departure from the mortgage market, a move that acknowledges a single major piece of housing legislation would be unlikely to advance.
WSJ | Housing Market Shivers
January's 3.1% Price Drop Stirs Fears of 'Double Dip'; Only Two Big Cities Gain.
Econ Comments
Financial Times | Dodd-Frank Fails to Meet Test of Our Times
The financial system on which Dodd-Frank is being imposed is far more complex than the lawmakers, and even most regulators, apparently contemplate. We will almost certainly end up with a number of regulatory inconsistencies whose consequences cannot be readily anticipated.
Investors | Community Reinvestment Act: Separating Fact From Fiction
Acorn clones using the Community Reinvestment Act to shake down banks aren't happy with our campaign to expose the truth about the CRA's central role in the financial crisis.
WSJ | 'Skin in the Game'
But not for Fannie, Freddie and the FHA
Washington Times | LUGAR: Sweet deal for Big Sugar
Government interference costs billions in higher prices and lost jobs
Blogs
AEI: The American | Why Ezra Klein’s ‘Easy Solution’ to Social Security Is No Such Thing
So this “easy solution” to Social Security relies on ignoring everything we’ve learned about the trust fund over the past three decades and imposing marginal tax rates that most countries in the world long ago abandoned. The worrying thing, and the thing that prevents a truly bipartisan solution to Social Security, is that to too many people on the Left these issues just don’t occur to them.
The Atlantic | The Rich Really Are Different: Their Incomes Fluctuate More
This is one of the reasons that we can't fix all our budget problems with higher taxes on the rich--if we do that, revenues are going to collapse dangerously every time there's a recession.
AEI: The American | Income Mobility in the Dynamic U.S. Economy
The dynamism of the U.S. economy is frequently underappreciated. Several recent studies provide new evidence that American households experience considerable mobility over time in income, earnings, and wealth.
Political Calculations | How Much Do Public School Teachers Really Make Compared to Private School Teachers??
Mark Perry put up the public vs private school teacher income data for 2007-08 in a table format. We took that data and put it into graphical form, then added the median income data for full-time, year-round workers from the U.S. Census just to compare.
NRO: The Corner | Pension-Crisis Deniers Never Sleep
The question of whether states will be allowed to change the benefits for current retirees will depend on the courts, but the reality is that when there is no more money, there is no more money.
NRO: The Corner | Oil, Oil, and Not a Drop . . .
Gasoline at the pump has risen 67 percent since inauguration day 2009, although it has just been announced that the United States has the largest reserves of recoverable fossil fuels in the world (gas, oil, coal, etc.).
Washington Times: Water Cooler | Cash for Clunkers 2: The Return of Government Motors
Ready for another cash for clunkers program? It looks like General Motors is attempting to replace it's own consumer incentives with tax payer money.
Reports
RCM: Wells Fargo | Consumer Confidence Slips in March
Consumer confidence dropped to a three-month low as consumer expectations dropped 16 points, likely reflecting consumer concerns about higher gasoline prices.
CNN Money | House votes to kill Obama mortgage plan
The House passed a bill Tuesday to kill a signature Obama administration program that helps homeowners stay in their homes but has faced criticism as ineffective.
WSJ | Regulators Unveil Mortgage-Lending Rules
Federal regulators proposed far-reaching changes to lending rules that eventually could raise the cost of borrowing for most homeowners, kicking off what is likely to be a furious effort by the housing and banking industries to soften the proposal.
MSNBC | Type the Title You Want People to See
Falling home sales, prices create fresh headwinds for recovery
WSJ | Korean Economic Growth Hits 8-Year Peak
South Korea's economic growth in the final quarter of last year slowed slightly from the prior three months but accelerated from the year-earlier period, bringing the full-year growth rate to the highest in eight years, which will likely add to rising inflation pressures.
Fox Business | Obama to Lay Out Plan to Curb U.S. Oil Imports
President Barack Obama will set an ambitious goal on Wednesday to cut oil imports by a third over 10 years, focusing on energy security amid high gasoline prices that could stall the U.S. economic recovery.
CQ | GOP Unveils Bills to Wind Down Fannie, Freddie
House Republicans unveiled a series of bills Tuesday to hasten the federal government’s departure from the mortgage market, a move that acknowledges a single major piece of housing legislation would be unlikely to advance.
WSJ | Housing Market Shivers
January's 3.1% Price Drop Stirs Fears of 'Double Dip'; Only Two Big Cities Gain.
Econ Comments
Financial Times | Dodd-Frank Fails to Meet Test of Our Times
The financial system on which Dodd-Frank is being imposed is far more complex than the lawmakers, and even most regulators, apparently contemplate. We will almost certainly end up with a number of regulatory inconsistencies whose consequences cannot be readily anticipated.
Investors | Community Reinvestment Act: Separating Fact From Fiction
Acorn clones using the Community Reinvestment Act to shake down banks aren't happy with our campaign to expose the truth about the CRA's central role in the financial crisis.
WSJ | 'Skin in the Game'
But not for Fannie, Freddie and the FHA
Washington Times | LUGAR: Sweet deal for Big Sugar
Government interference costs billions in higher prices and lost jobs
Blogs
AEI: The American | Why Ezra Klein’s ‘Easy Solution’ to Social Security Is No Such Thing
So this “easy solution” to Social Security relies on ignoring everything we’ve learned about the trust fund over the past three decades and imposing marginal tax rates that most countries in the world long ago abandoned. The worrying thing, and the thing that prevents a truly bipartisan solution to Social Security, is that to too many people on the Left these issues just don’t occur to them.
The Atlantic | The Rich Really Are Different: Their Incomes Fluctuate More
This is one of the reasons that we can't fix all our budget problems with higher taxes on the rich--if we do that, revenues are going to collapse dangerously every time there's a recession.
AEI: The American | Income Mobility in the Dynamic U.S. Economy
The dynamism of the U.S. economy is frequently underappreciated. Several recent studies provide new evidence that American households experience considerable mobility over time in income, earnings, and wealth.
Political Calculations | How Much Do Public School Teachers Really Make Compared to Private School Teachers??
Mark Perry put up the public vs private school teacher income data for 2007-08 in a table format. We took that data and put it into graphical form, then added the median income data for full-time, year-round workers from the U.S. Census just to compare.
NRO: The Corner | Pension-Crisis Deniers Never Sleep
The question of whether states will be allowed to change the benefits for current retirees will depend on the courts, but the reality is that when there is no more money, there is no more money.
NRO: The Corner | Oil, Oil, and Not a Drop . . .
Gasoline at the pump has risen 67 percent since inauguration day 2009, although it has just been announced that the United States has the largest reserves of recoverable fossil fuels in the world (gas, oil, coal, etc.).
Washington Times: Water Cooler | Cash for Clunkers 2: The Return of Government Motors
Ready for another cash for clunkers program? It looks like General Motors is attempting to replace it's own consumer incentives with tax payer money.
Reports
RCM: Wells Fargo | Consumer Confidence Slips in March
Consumer confidence dropped to a three-month low as consumer expectations dropped 16 points, likely reflecting consumer concerns about higher gasoline prices.
Health Care
News
Boston Herald | Fraud contaminating free health-care pool
Inspector general uncovers millions paid for fake claims.
NationalJournal | For Senators, a Focus on HHS Budget, Reform
President Obama put the fiscal 2012 HHS budget at $79.9 billion, including money needed to implement the year-old health care law. The budget also allocates $32 billion for the National Institutes of Health, $740 million more than in 2010.
Econ Comments
WSJ | Medical Progress, Please
Your next melanoma, courtesy of the FDA.
Boston Herald | Fraud contaminating free health-care pool
Inspector general uncovers millions paid for fake claims.
NationalJournal | For Senators, a Focus on HHS Budget, Reform
President Obama put the fiscal 2012 HHS budget at $79.9 billion, including money needed to implement the year-old health care law. The budget also allocates $32 billion for the National Institutes of Health, $740 million more than in 2010.
Econ Comments
WSJ | Medical Progress, Please
Your next melanoma, courtesy of the FDA.
Taxes
News
National Journal | Corporate Split: Tax Holiday or Real Reform?
Even as many multinational corporations, particularly in the tech sector, clamor for a temporary tax holiday on their international earnings, a few major companies are sending the opposite message: focus on comprehensive reform of the corporate tax code...
WSJ | Tax Revenue Snaps Back
States Book More Inflows but Face Tab for Higher Spending, End of Federal Funds.
Blogs
Café Hayek | On State- and Local-Government Revenues
...converting all dollars into 2010 dollars, we find that the $378,312,000,000 raked in by state and local governments in the final quarter of 2010 is 88.2 percent more real revenue than these governments raked in during the first quarter of 1988…
Atlantic: McArdle | Did GE Really Pay No U.S. Taxes in 2010?
GE Capital lost billions in the financial crisis, which I assumed gave them a nice, fat, NOL carryforward to lessen their tax burden in future years.
Heritage Foundation | Does Obama’s Tax Plan Help Those Who Help Those in Need?
Unfortunately, this isn’t the case for President Obama’s proposed 2012 federal budget.
National Journal | Corporate Split: Tax Holiday or Real Reform?
Even as many multinational corporations, particularly in the tech sector, clamor for a temporary tax holiday on their international earnings, a few major companies are sending the opposite message: focus on comprehensive reform of the corporate tax code...
WSJ | Tax Revenue Snaps Back
States Book More Inflows but Face Tab for Higher Spending, End of Federal Funds.
Blogs
Café Hayek | On State- and Local-Government Revenues
...converting all dollars into 2010 dollars, we find that the $378,312,000,000 raked in by state and local governments in the final quarter of 2010 is 88.2 percent more real revenue than these governments raked in during the first quarter of 1988…
Atlantic: McArdle | Did GE Really Pay No U.S. Taxes in 2010?
GE Capital lost billions in the financial crisis, which I assumed gave them a nice, fat, NOL carryforward to lessen their tax burden in future years.
Heritage Foundation | Does Obama’s Tax Plan Help Those Who Help Those in Need?
Unfortunately, this isn’t the case for President Obama’s proposed 2012 federal budget.
Monetary
News
CNN: Money | Utah: Forget dollars. How about gold?
Gather 'round, gold standard enthusiasts. There is a new law in the state of Utah that might be of interest.
Bloomberg | History Backs Bernanke Betting Volatility Variable Won’t Hurt
Federal Reserve Chairman Ben S. Bernanke is betting that surging prices for food and fuel won’t wind up breaking the cost of living for Americans. The historical record shows the odds are in his favor.
Econ Comments
Minyanville | Inflation: Are World Governments Doing "Too Much, Too Little, Too Late" to Keep Investors Happy?
Inflation's threat to world markets is just one of 21 worries facing investors this week.
CNN: Money | Utah: Forget dollars. How about gold?
Gather 'round, gold standard enthusiasts. There is a new law in the state of Utah that might be of interest.
Bloomberg | History Backs Bernanke Betting Volatility Variable Won’t Hurt
Federal Reserve Chairman Ben S. Bernanke is betting that surging prices for food and fuel won’t wind up breaking the cost of living for Americans. The historical record shows the odds are in his favor.
Econ Comments
Minyanville | Inflation: Are World Governments Doing "Too Much, Too Little, Too Late" to Keep Investors Happy?
Inflation's threat to world markets is just one of 21 worries facing investors this week.
Budget
News
CNN Money | Balanced budget amendment: 'Irresponsible'
More than a dozen leading Republican senators are co-sponsoring a bill that would require a balanced budget; cap spending below the historical average; and require a supermajority of lawmakers to approve tax hikes or most increases to the debt ceiling.
WSJ | Portugal Hints at Deficit Revision
Portugal's statistics agency said it plans to make "accounting changes" in a report to be submitted to the European Union's statistics agency by week's end, a revision that could indicate a wider 2010 budget deficit and which would further undermine the credibility of the country's embattled government.
Politico | Eric Cantor and John Boehner diverge on budget
...Cantor distanced himself Tuesday from spending compromises discussed with the White House and took a harder line on whether Republicans should keep the government open absent a budget deal next week.
Econ Comments
Washington Times | RIEDL: Farm subsidies ripe for reform
Defenders assert that the $25 billion annual cost of farm subsidies (a bit less than 1 percent of federal spending) is too small to bother reforming. Yet one-third of the federal budget — $1 trillion total — consists of programs that each cost $25 billion or less.
WSJ | Why I Won't Vote to Raise the Debt Limit
Everyone in Washington knows how to cut spending. The time to start is now.
Washington Times | KUHNER: Shut the government down
GOP’s timid strategy of incremental cuts betrays conservative values.
Blogs
Cato@Liberty | A New Low for GOP’s ‘YouCut’
This week the House Republican leadership finally put the Pentagon on the YouCut chopping block. However, the possible cuts suggested by the GOP are pathetic
Bankrupting America | NEW VIDEO: Who’s more responsible: Charlie Sheen or Washington?
At first thought, Charlie Sheen hardly seems like a model for fiscal responsibility. But, somehow, Washington has managed to be far worse.
Cato@Liberty | Budget Battle Update: It’s About Preparing for the Inevitable Fight, not Forcing a Shutdown
...if a shutdown battle is inevitable, advocates of smaller government should decide whether it's better to have that fight sooner rather than later.
NRO: The Corner | What $20 Billion Offer?
...senior Republican aides tell NRO that they still haven’t seen this alleged offer from the White House. Even assuming the offer is legitimate, some are skeptical of what it might contain in terms of cuts.
CNN Money | Balanced budget amendment: 'Irresponsible'
More than a dozen leading Republican senators are co-sponsoring a bill that would require a balanced budget; cap spending below the historical average; and require a supermajority of lawmakers to approve tax hikes or most increases to the debt ceiling.
WSJ | Portugal Hints at Deficit Revision
Portugal's statistics agency said it plans to make "accounting changes" in a report to be submitted to the European Union's statistics agency by week's end, a revision that could indicate a wider 2010 budget deficit and which would further undermine the credibility of the country's embattled government.
Politico | Eric Cantor and John Boehner diverge on budget
...Cantor distanced himself Tuesday from spending compromises discussed with the White House and took a harder line on whether Republicans should keep the government open absent a budget deal next week.
Econ Comments
Washington Times | RIEDL: Farm subsidies ripe for reform
Defenders assert that the $25 billion annual cost of farm subsidies (a bit less than 1 percent of federal spending) is too small to bother reforming. Yet one-third of the federal budget — $1 trillion total — consists of programs that each cost $25 billion or less.
WSJ | Why I Won't Vote to Raise the Debt Limit
Everyone in Washington knows how to cut spending. The time to start is now.
Washington Times | KUHNER: Shut the government down
GOP’s timid strategy of incremental cuts betrays conservative values.
Blogs
Cato@Liberty | A New Low for GOP’s ‘YouCut’
This week the House Republican leadership finally put the Pentagon on the YouCut chopping block. However, the possible cuts suggested by the GOP are pathetic
Bankrupting America | NEW VIDEO: Who’s more responsible: Charlie Sheen or Washington?
At first thought, Charlie Sheen hardly seems like a model for fiscal responsibility. But, somehow, Washington has managed to be far worse.
Cato@Liberty | Budget Battle Update: It’s About Preparing for the Inevitable Fight, not Forcing a Shutdown
...if a shutdown battle is inevitable, advocates of smaller government should decide whether it's better to have that fight sooner rather than later.
NRO: The Corner | What $20 Billion Offer?
...senior Republican aides tell NRO that they still haven’t seen this alleged offer from the White House. Even assuming the offer is legitimate, some are skeptical of what it might contain in terms of cuts.
Employment
News
CNN Money | Jobs picture shows some positive signs
In a sign of continued improvement in the job market, private sector employers added over 200,000 positions in March and the number of planned job cuts fell, according to two reports released Wednesday.
CNN Money | Obama patent czar: 'Millions of jobs lying in wait'
Overhauling the United States' outdated and flawed patent system has been talked about for decades, but reform could finally be around the corner -- for real, this time.
Fortune | A tough job market for teens, thanks to Grandpa
New research reveals just how tough the job market is on America's youngest workers, and they may have their grandparents to blame.
Econ Comments
Politico | Pass patent reform to create jobs
Earlier this month, the Senate took an important step toward modernizing our patent system. It voted overwhelmingly to support much-needed reforms that can help spur economic growth. It’s now the House’s turn
CNN Money | Jobs picture shows some positive signs
In a sign of continued improvement in the job market, private sector employers added over 200,000 positions in March and the number of planned job cuts fell, according to two reports released Wednesday.
CNN Money | Obama patent czar: 'Millions of jobs lying in wait'
Overhauling the United States' outdated and flawed patent system has been talked about for decades, but reform could finally be around the corner -- for real, this time.
Fortune | A tough job market for teens, thanks to Grandpa
New research reveals just how tough the job market is on America's youngest workers, and they may have their grandparents to blame.
Econ Comments
Politico | Pass patent reform to create jobs
Earlier this month, the Senate took an important step toward modernizing our patent system. It voted overwhelmingly to support much-needed reforms that can help spur economic growth. It’s now the House’s turn
Tuesday, March 29, 2011
General Economics
News
NY Times | Food inflation kept hidden in tinier bags
'It's sneaky, because they figure people won't know'
CNN Money | Home prices near a double dip
January home prices fell for the sixth month in a row, edging closer to a double dip.
NY Times | More Fees, More Carry-Ons
The price of checking a suitcase on an airplane — $15 to $40 a bag — has added up to more than $6 billion in revenue for airlines in the United States in the last four years, according to Transportation Department statistics. The fees have also led to an increased number of bags being carried onto airplanes.
Fox Business | Consumer Confidence Slides
U.S. consumer confidence fell in March after hitting a three-year high in the prior month as expectations about jobs and income growth worsened, according to a private sector report released on Tuesday.
Econ Comments
Financial Post | William Watson: Inheritance reduces inequality
Inheritances are bigger as a percentage of net worth at the bottom end of the income scale
Ludwig von Mises Institute | World War II Did Not End the Great Depression
The current economic climate has a lot of people talking about the Great Depression. In particular, it has been said by people of divergent political views (George Will and Paul Krugman, for example) that World War II ended the decade-long economic nightmare. Examining this claim is worthwhile because it has implications for whether government intervention generally — and in connection with war specifically — are good for the economy.
Washington Times | ARMEY: State-union battles revive school-choice hope
Worried about their cushy benefits, teachers unions choose to resist
Fortune | Why house prices will keep falling
Unless Ben Bernanke sets off a big inflation wave, house prices are doomed to keep falling for years.
Fox Business | Home Price Double-Dip Is Here
No good news to report in the January Case-Shiller Home Price Index.
Minyanville | Consumer Spending and the Debt Problem
If all we have to do is spend, spend, spend to recover, then we should stop saving, pile up more debt, and spend. But it doesn't work that way.
Blogs
WSJ: Real Time Economics | Top 10 Dying Industries
The U.S. economy is recovering from a severe recession, but some industries are unlikely to ever fully bounce back.
WSJ: Real Time Economics | Rising U.S. Savings Are Part of Global Rebalancing
Saving has become a status symbol in the New Frugality. The fallout of the financial crisis — from mortgage defaults to tattered 401(k) portfolios — taught U.S. households the need to get their balance sheets in better order.
Daily Capitalist | Consumer Spending and the Debt Problem
It seems like we’re having great news today about consumer spending, at least if you read the articles coming from the Journal and Bloomberg. They don’t let you forget that consumer spending is 70% of the economy.
Marginal Revolution | How much productivity growth was there during 2007-2009?
Michael Mandel has a long and excellent blog post on this question. He claims that the supposed productivity gains were concentrated in a small number of sectors (one of which, by the way, was financial services ha-ha) and that they are mostly illusory when cross-checked with other sources of data.
Reports
Mercatus Center | Arnold King: Testimony Before the Senate Banking Committee
The time has come to say no to the mortgage lobby. Send them home empty-handed. Let ordinary Americans win one for a change.
RCM: Wells Fargo | Consumer Spending Picked Up in February…So Did Prices
Personal income increased 0.3 percent in February after a 1.2 percent jump the prior month. Spending picked
up 0.7 percent as a spike in energy prices competes for a larger share of spending.
NY Times | Food inflation kept hidden in tinier bags
'It's sneaky, because they figure people won't know'
CNN Money | Home prices near a double dip
January home prices fell for the sixth month in a row, edging closer to a double dip.
NY Times | More Fees, More Carry-Ons
The price of checking a suitcase on an airplane — $15 to $40 a bag — has added up to more than $6 billion in revenue for airlines in the United States in the last four years, according to Transportation Department statistics. The fees have also led to an increased number of bags being carried onto airplanes.
Fox Business | Consumer Confidence Slides
U.S. consumer confidence fell in March after hitting a three-year high in the prior month as expectations about jobs and income growth worsened, according to a private sector report released on Tuesday.
Econ Comments
Financial Post | William Watson: Inheritance reduces inequality
Inheritances are bigger as a percentage of net worth at the bottom end of the income scale
Ludwig von Mises Institute | World War II Did Not End the Great Depression
The current economic climate has a lot of people talking about the Great Depression. In particular, it has been said by people of divergent political views (George Will and Paul Krugman, for example) that World War II ended the decade-long economic nightmare. Examining this claim is worthwhile because it has implications for whether government intervention generally — and in connection with war specifically — are good for the economy.
Washington Times | ARMEY: State-union battles revive school-choice hope
Worried about their cushy benefits, teachers unions choose to resist
Fortune | Why house prices will keep falling
Unless Ben Bernanke sets off a big inflation wave, house prices are doomed to keep falling for years.
Fox Business | Home Price Double-Dip Is Here
No good news to report in the January Case-Shiller Home Price Index.
Minyanville | Consumer Spending and the Debt Problem
If all we have to do is spend, spend, spend to recover, then we should stop saving, pile up more debt, and spend. But it doesn't work that way.
Blogs
WSJ: Real Time Economics | Top 10 Dying Industries
The U.S. economy is recovering from a severe recession, but some industries are unlikely to ever fully bounce back.
WSJ: Real Time Economics | Rising U.S. Savings Are Part of Global Rebalancing
Saving has become a status symbol in the New Frugality. The fallout of the financial crisis — from mortgage defaults to tattered 401(k) portfolios — taught U.S. households the need to get their balance sheets in better order.
Daily Capitalist | Consumer Spending and the Debt Problem
It seems like we’re having great news today about consumer spending, at least if you read the articles coming from the Journal and Bloomberg. They don’t let you forget that consumer spending is 70% of the economy.
Marginal Revolution | How much productivity growth was there during 2007-2009?
Michael Mandel has a long and excellent blog post on this question. He claims that the supposed productivity gains were concentrated in a small number of sectors (one of which, by the way, was financial services ha-ha) and that they are mostly illusory when cross-checked with other sources of data.
Reports
Mercatus Center | Arnold King: Testimony Before the Senate Banking Committee
The time has come to say no to the mortgage lobby. Send them home empty-handed. Let ordinary Americans win one for a change.
RCM: Wells Fargo | Consumer Spending Picked Up in February…So Did Prices
Personal income increased 0.3 percent in February after a 1.2 percent jump the prior month. Spending picked
up 0.7 percent as a spike in energy prices competes for a larger share of spending.
Health Care
News
Weekly Standard | Cash for Doctors Revisited
An idea whose time has come?
Politico | Health law cost still a wild card
Anyone who claims to know how much the health care law will costs is missing one big piece of information: the exact cost of the benefits.
MSNBC | Medicare rise could mean no Social Security COLA
When Medicare premiums rise more than Social Security payments, millions of people living on fixed incomes don't get raises.
Econ Comments
WSJ | NUGENT: Obamacare is crony-care
Vocal reform supporters are now demanding waivers.
Weekly Standard | Cash for Doctors Revisited
An idea whose time has come?
Politico | Health law cost still a wild card
Anyone who claims to know how much the health care law will costs is missing one big piece of information: the exact cost of the benefits.
MSNBC | Medicare rise could mean no Social Security COLA
When Medicare premiums rise more than Social Security payments, millions of people living on fixed incomes don't get raises.
Econ Comments
WSJ | NUGENT: Obamacare is crony-care
Vocal reform supporters are now demanding waivers.
Taxes
News
Fiscal Times | So Far, Most of Tax Cut Is Going Down the Gas Tank
Gas prices have drained more than half the extra cash Americans are getting this year from a cut in Social Security taxes.
CNN Money | IRS cracks down on millionaires
Especially if you make more than $10 million. Audits of these folks surged 73% last year, hitting more than 18% of taxpayers in the highest income bracket, according to recently released statistics from the IRS.
Econ Comments
Washington Times | RAHN: Lessons from the states
Prosperity reigns where taxes are low and right to work prevails.
NRO | GE Avoids Taxes?
Shocker: Corporations try to avoid taxes.
WSJ | The Price of Taxing the Rich
The top 1% of earners fill the coffers of states like California and New York during a boom—and leave them starved for revenue in a bust.
Blogs
The Economist: Buttonwood's notebook | The rich will pay
For those who doubt that there is a trade-off between tax rates and tax take, note that the Swedish system has high marginal tax rates but in terms of tax take, is less progressive than Britain.
Reports
Census | Quarterly Summary of State and Local Government Tax Revenue
Total tax revenue increases for fifth straight quarter.
Fiscal Times | So Far, Most of Tax Cut Is Going Down the Gas Tank
Gas prices have drained more than half the extra cash Americans are getting this year from a cut in Social Security taxes.
CNN Money | IRS cracks down on millionaires
Especially if you make more than $10 million. Audits of these folks surged 73% last year, hitting more than 18% of taxpayers in the highest income bracket, according to recently released statistics from the IRS.
Econ Comments
Washington Times | RAHN: Lessons from the states
Prosperity reigns where taxes are low and right to work prevails.
NRO | GE Avoids Taxes?
Shocker: Corporations try to avoid taxes.
WSJ | The Price of Taxing the Rich
The top 1% of earners fill the coffers of states like California and New York during a boom—and leave them starved for revenue in a bust.
Blogs
The Economist: Buttonwood's notebook | The rich will pay
For those who doubt that there is a trade-off between tax rates and tax take, note that the Swedish system has high marginal tax rates but in terms of tax take, is less progressive than Britain.
Reports
Census | Quarterly Summary of State and Local Government Tax Revenue
Total tax revenue increases for fifth straight quarter.
Monetary
News
Bloomberg | Fed’s Bullard Says QE Cuts Could Be About $100 Billion
We are still feeding the fire at this moment, so I think we have to start thinking about turning this around in the near future. If the economy is as strong as I think and hope it will be in 2011, I think it will be time for us to start to reverse our ultra-aggressive and ultra-easy monetary policy.
NYT | Food Inflation Kept Hidden in Tinier Bags
As an expected increase in the cost of raw materials looms for late summer, consumers are beginning to encounter shrinking food packages.
Bloomberg | Dying Banks Kept Alive Show Secrets Fed's Data Will Reveal for First Time
U.S. regulators closed Chicago- based Park National Bank in October 2009 when it owed $345 million to one of the lowest-cost lenders in town: the Federal Reserve’s discount window. Park National had been a constant customer at the window for more than 18 months before it failed, records show.
WSJ | Australian Dollar Thriving On Chaos
Less than three months ago, investors were wrestling with the implications of Australia's own economic shock in the form of the devastating Queensland floods. And, this month, the disaster in Japan was followed by a rush among Japanese individual investors out of the Australian dollar and back into the yen.
Bloomberg | European Bank Funding Threatened as Basel III Rules Clash With Solvency II
European banks are being forced to sell more long-term bonds as regulators seek to prevent another financial crisis. European insurers say their own regulator will stop them from buying such debt.
WSJ | Inflation Picks Up Across OECD
The pickup in inflation rates to their highest levels since the intensification of the financial crisis in the wake of Lehman Brothers' collapse is likely to lead to a round of interest-rate rises at a time when growth remains fragile in many parts of the developed world.
Fox News | Auditor: Financial overhaul law cost $1B per year
Government Accountability Office figures, obtained Monday by The Associated Press, show that it will cost 11 agencies an estimated $974 million to hire employees and for other costs carrying out the new statute.
Econ Comments
Minyanville | Gold's Average Price Is Second-Most Overvalued Since 1791
The inflation-adjusted price of gold is a valuation technique that remains one of the more brilliant carnival-barker efforts in the annals of Wall Street. Here's why.
Reports
Daily Capitalist | The End of Sound Money and the Triumph of Crony Capitalism
“In the present era of massive quantitative easing, newly issued Treasury securities amount to non-interest-bearing currency without the circulation privilege.”
Bloomberg | Fed’s Bullard Says QE Cuts Could Be About $100 Billion
We are still feeding the fire at this moment, so I think we have to start thinking about turning this around in the near future. If the economy is as strong as I think and hope it will be in 2011, I think it will be time for us to start to reverse our ultra-aggressive and ultra-easy monetary policy.
NYT | Food Inflation Kept Hidden in Tinier Bags
As an expected increase in the cost of raw materials looms for late summer, consumers are beginning to encounter shrinking food packages.
Bloomberg | Dying Banks Kept Alive Show Secrets Fed's Data Will Reveal for First Time
U.S. regulators closed Chicago- based Park National Bank in October 2009 when it owed $345 million to one of the lowest-cost lenders in town: the Federal Reserve’s discount window. Park National had been a constant customer at the window for more than 18 months before it failed, records show.
WSJ | Australian Dollar Thriving On Chaos
Less than three months ago, investors were wrestling with the implications of Australia's own economic shock in the form of the devastating Queensland floods. And, this month, the disaster in Japan was followed by a rush among Japanese individual investors out of the Australian dollar and back into the yen.
Bloomberg | European Bank Funding Threatened as Basel III Rules Clash With Solvency II
European banks are being forced to sell more long-term bonds as regulators seek to prevent another financial crisis. European insurers say their own regulator will stop them from buying such debt.
WSJ | Inflation Picks Up Across OECD
The pickup in inflation rates to their highest levels since the intensification of the financial crisis in the wake of Lehman Brothers' collapse is likely to lead to a round of interest-rate rises at a time when growth remains fragile in many parts of the developed world.
Fox News | Auditor: Financial overhaul law cost $1B per year
Government Accountability Office figures, obtained Monday by The Associated Press, show that it will cost 11 agencies an estimated $974 million to hire employees and for other costs carrying out the new statute.
Econ Comments
Minyanville | Gold's Average Price Is Second-Most Overvalued Since 1791
The inflation-adjusted price of gold is a valuation technique that remains one of the more brilliant carnival-barker efforts in the annals of Wall Street. Here's why.
Reports
Daily Capitalist | The End of Sound Money and the Triumph of Crony Capitalism
“In the present era of massive quantitative easing, newly issued Treasury securities amount to non-interest-bearing currency without the circulation privilege.”
Budget
News
Politico | Conservatives plan rogue budget to challenge Republicans
Their tool: an ambitious fiscal 2012 alternative budget that will challenge the official GOP leadership’s spending plan and once again reveal divides within the Republican Party over how deep to cut the government.
National Journal | Bachus, Walz Do Their Part for Debt Reduction
Two congressmen donated portions of salary to pay down the deficit.
WSJ | Central Bank Warns Portugal on Deficit
The Bank of Portugal on Tuesday cut its economic growth forecasts for this year and next and said substantial measures will be needed to meet the government's deficit-reduction goals.
Econ Comments
Washington Times | COLE: Postal Service delivers bill of goods to taxpayers
In 2010, the USPS, currently $12 billion in debt, lost $8.5 billion. It’s likely to lose another $7 billion this year.
RCM | Let's Make a Balanced Budget the Law
In a day when runaway spending is running away faster than ever, we need a mechanism to rein it in.
American | Municipal Debt Crises: Some Historical Perspective
Lessons from the Big Apple merit keeping in mind today.
RCM | What Parkinson's Law Says About Federal Spending
Parkinson revealed as false the widely held view embraced by politicians and taxpayers that the need for more civil servants will reveal itself through a growing volume of work completed. The truth is something quite different.
Blogs
Bankrupting America | Did you get your Money’s Worth from Congress so far this year?
Outside of the short-term continuing resolutions each chamber has passed (which cut approximately $2 billion in spending each week) and considering the long-term CR is still in limbo (as passed by the House, it would cut about $60 billion from Fiscal Year 2010 levels), here’s what each chamber has achieved this year...
WSJ | GAO: Implementing Dodd-Frank Could Cost $2.9 Billion
Implementing last year’s financial overhaul law could cost the federal government as much as $2.9 billion over five years, according to a summary of a coming Government Accountability Office report obtained by the Journal.
Weekly Standard | Boldness on Entitlement Reform Will Benefit Republicans
While grandfathering in current beneficiaries, Republicans should propose entitlement reforms that are clear, relatively easy to explain, and more or less immediate.
Politico | Conservatives plan rogue budget to challenge Republicans
Their tool: an ambitious fiscal 2012 alternative budget that will challenge the official GOP leadership’s spending plan and once again reveal divides within the Republican Party over how deep to cut the government.
National Journal | Bachus, Walz Do Their Part for Debt Reduction
Two congressmen donated portions of salary to pay down the deficit.
WSJ | Central Bank Warns Portugal on Deficit
The Bank of Portugal on Tuesday cut its economic growth forecasts for this year and next and said substantial measures will be needed to meet the government's deficit-reduction goals.
Econ Comments
Washington Times | COLE: Postal Service delivers bill of goods to taxpayers
In 2010, the USPS, currently $12 billion in debt, lost $8.5 billion. It’s likely to lose another $7 billion this year.
RCM | Let's Make a Balanced Budget the Law
In a day when runaway spending is running away faster than ever, we need a mechanism to rein it in.
American | Municipal Debt Crises: Some Historical Perspective
Lessons from the Big Apple merit keeping in mind today.
RCM | What Parkinson's Law Says About Federal Spending
Parkinson revealed as false the widely held view embraced by politicians and taxpayers that the need for more civil servants will reveal itself through a growing volume of work completed. The truth is something quite different.
Blogs
Bankrupting America | Did you get your Money’s Worth from Congress so far this year?
Outside of the short-term continuing resolutions each chamber has passed (which cut approximately $2 billion in spending each week) and considering the long-term CR is still in limbo (as passed by the House, it would cut about $60 billion from Fiscal Year 2010 levels), here’s what each chamber has achieved this year...
WSJ | GAO: Implementing Dodd-Frank Could Cost $2.9 Billion
Implementing last year’s financial overhaul law could cost the federal government as much as $2.9 billion over five years, according to a summary of a coming Government Accountability Office report obtained by the Journal.
Weekly Standard | Boldness on Entitlement Reform Will Benefit Republicans
While grandfathering in current beneficiaries, Republicans should propose entitlement reforms that are clear, relatively easy to explain, and more or less immediate.
Employment
Blogs
The Economist: Free Exchange | Jobs don't pay what they used to
If you could get rid of the minimum wage and instead adopt a policy in which the government simply subsidises the incomes of sub-minimum wage workers up to the minimum wage level, you'd unambiguously increase employment without forcing anyone to take home less pay.
Political Caluclations | Jobs Above and Below the Minimum Wage Line
Today's experiment shows how the number of jobs paying wages or salaries above and below the federal minimum wage has changed in each year since 2006.
The Economist: Free Exchange | Jobs don't pay what they used to
If you could get rid of the minimum wage and instead adopt a policy in which the government simply subsidises the incomes of sub-minimum wage workers up to the minimum wage level, you'd unambiguously increase employment without forcing anyone to take home less pay.
Political Caluclations | Jobs Above and Below the Minimum Wage Line
Today's experiment shows how the number of jobs paying wages or salaries above and below the federal minimum wage has changed in each year since 2006.
Monday, March 28, 2011
General Economics
News
CNN Money | 13% of all U.S. homes are vacant
High residential vacancies are killing many housing markets, as foreclosed homes sit on the market and depress sale prices and property values.
USA Today | Gas prices push consumer spending up in February
Consumer spending rose in February at the fastest pace in four months, but a big part of the increase went to higher gasoline prices.
Washington Times | D.C. taxis to charge extra $1 to offset gas prices
Type the sentence(s) summarizing the link here.
Fox Business | Pending Home Sales Unexpectedly Rise in February
Pending sales of previously owned U.S. homes unexpectedly rose in February, a trade group said on Monday, pointing to a modest pick-up in home sales.
WSJ | Mortgage Servicers Resist But Cut Debts
U.S. banks are resisting efforts by state attorneys general to force them to cut the amounts owed by some borrowers facing foreclosure. Yet mortgage companies already have reduced home-loan balances for more than 100,000 borrowers.
Fox | Consumer spending rises 0.7 percent in February
Consumers spending rise in February at the fastest pace in four months, but a big part of the increase went to cover higher prices for gas.
Econ Comments
NRO | Home Is Where the Growth Is
Why Texas and the Rocky Mountain states are outpacing the others.
Washington Times | CRANE: Winning whose future?
Founders made clear our goals must be individual, not collective
Fortune | Real estate: It's time to buy again
Forget stocks. Don't bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing.
Blogs
Cato@Liberty | The Economy Tanked but, Hey, Wealth Inequality Declined
The average net worth of U.S. households fell by nearly 20 percent between 2007 and 2009.
Calculated Risk | Unofficial Problem Bank list increases to 985 Institutions
Here is the unofficial problem bank list for Mar 25, 2011.
EconLog | The Economy in Transition
If consumption patterns across individuals and groups are diverging as much as I think they are, then there really is no "average American household" to speak of, and the very process of aggregation is seriously misleading.
Calculated Risk | LPS: Overall mortgage delinquencies declined slightly in February
LPS Applied Analytics recently released their February Mortgage Performance data.
Reports
RCM: Wells Fargo | Economics Groups
Weekly Economics & Financial Commentary
CNN Money | 13% of all U.S. homes are vacant
High residential vacancies are killing many housing markets, as foreclosed homes sit on the market and depress sale prices and property values.
USA Today | Gas prices push consumer spending up in February
Consumer spending rose in February at the fastest pace in four months, but a big part of the increase went to higher gasoline prices.
Washington Times | D.C. taxis to charge extra $1 to offset gas prices
Type the sentence(s) summarizing the link here.
Fox Business | Pending Home Sales Unexpectedly Rise in February
Pending sales of previously owned U.S. homes unexpectedly rose in February, a trade group said on Monday, pointing to a modest pick-up in home sales.
WSJ | Mortgage Servicers Resist But Cut Debts
U.S. banks are resisting efforts by state attorneys general to force them to cut the amounts owed by some borrowers facing foreclosure. Yet mortgage companies already have reduced home-loan balances for more than 100,000 borrowers.
Fox | Consumer spending rises 0.7 percent in February
Consumers spending rise in February at the fastest pace in four months, but a big part of the increase went to cover higher prices for gas.
Econ Comments
NRO | Home Is Where the Growth Is
Why Texas and the Rocky Mountain states are outpacing the others.
Washington Times | CRANE: Winning whose future?
Founders made clear our goals must be individual, not collective
Fortune | Real estate: It's time to buy again
Forget stocks. Don't bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing.
Blogs
Cato@Liberty | The Economy Tanked but, Hey, Wealth Inequality Declined
The average net worth of U.S. households fell by nearly 20 percent between 2007 and 2009.
Calculated Risk | Unofficial Problem Bank list increases to 985 Institutions
Here is the unofficial problem bank list for Mar 25, 2011.
EconLog | The Economy in Transition
If consumption patterns across individuals and groups are diverging as much as I think they are, then there really is no "average American household" to speak of, and the very process of aggregation is seriously misleading.
Calculated Risk | LPS: Overall mortgage delinquencies declined slightly in February
LPS Applied Analytics recently released their February Mortgage Performance data.
Reports
RCM: Wells Fargo | Economics Groups
Weekly Economics & Financial Commentary
Health Care
News
Fiscal Times | Medicare Rise Could Mean no Social Security COLA
Millions of retired and disabled people in the United States had better brace for another year with no increase in Social Security payments.
CNN: Money | Shrinking Medicaid funds pummel states
Strapped states are scrambling to address Medicaid's ballooning costs before the federal government cuts back a critical source of funding this week.
NationalJournal | New Health Regs in Doubt Before They Are Even Out
This could be the week the federal government releases delayed regulations for a major piece of the health care law, which aims to bring down health costs by grouping together doctors, nurses, nursing homes and other providers and holding them accountable for the health of their patients.
Econ Comments
Cato Institute | Should Governments Subsidize Health Insurance?
Most people believe that government should subsidize health insurance. Liberals endorse this view with gusto, arguing for universal provision as in Canada or Western Europe.
WSJ | Rhode Island's Medicaid Lesson
A case study in how waivers for state innovation can work.
Blogs
Heritage Foundation | Accepting Federal Exchange Funding for Obamacare: A Dangerous Proposition for the States
Right now, states across the country are trying to figure out what to do in response to Obamacare and its health insurance exchange architecture.
Fiscal Times | Medicare Rise Could Mean no Social Security COLA
Millions of retired and disabled people in the United States had better brace for another year with no increase in Social Security payments.
CNN: Money | Shrinking Medicaid funds pummel states
Strapped states are scrambling to address Medicaid's ballooning costs before the federal government cuts back a critical source of funding this week.
NationalJournal | New Health Regs in Doubt Before They Are Even Out
This could be the week the federal government releases delayed regulations for a major piece of the health care law, which aims to bring down health costs by grouping together doctors, nurses, nursing homes and other providers and holding them accountable for the health of their patients.
Econ Comments
Cato Institute | Should Governments Subsidize Health Insurance?
Most people believe that government should subsidize health insurance. Liberals endorse this view with gusto, arguing for universal provision as in Canada or Western Europe.
WSJ | Rhode Island's Medicaid Lesson
A case study in how waivers for state innovation can work.
Blogs
Heritage Foundation | Accepting Federal Exchange Funding for Obamacare: A Dangerous Proposition for the States
Right now, states across the country are trying to figure out what to do in response to Obamacare and its health insurance exchange architecture.
Taxes
News
CNN Money | White House, taxes and the CEO who shall not be named
Carney reiterated Obama's commitment to reform, but made clear he was not referring specifically to GE.
CNN Money | Tax cheats: Single, young and male
At least that's what an annual survey by DDB Worldwide Communications Group found.
CNN Money | White House, taxes and the CEO who shall not be named
Carney reiterated Obama's commitment to reform, but made clear he was not referring specifically to GE.
CNN Money | Tax cheats: Single, young and male
At least that's what an annual survey by DDB Worldwide Communications Group found.
Monetary
News
CNBC | Gold Replacing Dollar as World's Reserve Currency
Central banks are shedding dollars, reducing their holdings by about $9 billion in previous quarter.
WSJ | Fed Official Hoenig, a Policy Critic, to Retire
Federal Reserve Bank of Kansas City President Thomas Hoenig will retire Oct. 1, marking nearly four decades of central bank service. The announcement by his bank Friday wasn't unexpected, as Mr. Hoenig is approaching the central bank's mandatory retirement age of 65. He took office in 1991.
Econ Comments
Ludwig von Mises Institute | Where Is QE2 Taking Us?
Five months into the second round of quantitative easing — "QE2" — it is useful to take stock of what it has, and has not, accomplished. In short, the monetary base is way, way up, price inflation is up, long-term interest rates are up, and bank lending is down.
Ludwig von Mises Institute | The Moral Hazard of the Euro
The current sovereign-debt crisis is the direct result of credit expansion by the European banking system. In the early 2000s, credit was expanded especially in the periphery of the European Monetary Union such as in Ireland, Greece, Portugal, and Spain. Interest rates were reduced substantially by credit expansion coupled with a fall both in inflationary expectations and risk premiums.
Minyanville | Fractional Reserve Banking: A Response to Mish Shedlock
Mike "Mish" Shedlock responded critically to an article by Keith Weiner. Here, Weiner responds, noting the importance of determining the validity of fractional reserve banking.
Blogs
WSJ: Real Time Economics | Fed’s Plosser: Monetary Policy Creates Inflation
Federal Reserve Bank of Philadelphia President Charles Plosser warned Friday of the risks of keeping monetary policy too easy in the face of an energy price shock.
WSJ: Real Time Economics | A Look Inside the Fed’s Balance Sheet
Assets on the Fed’s balance sheet expanded to around $2.584 trillion in the latest week from $2.566 trillion a week earlier. Nearly all the additions came from $25 billion in Treasury purchases. The Fed announced earlier last year that it will buy an additional $600 billion of Treasurys through June in addition to previously announced purchases with money reinvested from its MBS portfolio.
WSJ: Real Time Economics | Fed Sets Schedule for 2012 — No November Meeting
Last year, the Federal Reserve launched its controversial QE2 — quantitative easing, round 2 — effort at its Nov. 2-3 meeting, which coincided with Election Day. Republicans took control of the House of Representatives in the Nov 2 balloting, and, with new attention to their utterances, immediately turned to bashing the Fed and QE2.
CNBC | Gold Replacing Dollar as World's Reserve Currency
Central banks are shedding dollars, reducing their holdings by about $9 billion in previous quarter.
WSJ | Fed Official Hoenig, a Policy Critic, to Retire
Federal Reserve Bank of Kansas City President Thomas Hoenig will retire Oct. 1, marking nearly four decades of central bank service. The announcement by his bank Friday wasn't unexpected, as Mr. Hoenig is approaching the central bank's mandatory retirement age of 65. He took office in 1991.
Econ Comments
Ludwig von Mises Institute | Where Is QE2 Taking Us?
Five months into the second round of quantitative easing — "QE2" — it is useful to take stock of what it has, and has not, accomplished. In short, the monetary base is way, way up, price inflation is up, long-term interest rates are up, and bank lending is down.
Ludwig von Mises Institute | The Moral Hazard of the Euro
The current sovereign-debt crisis is the direct result of credit expansion by the European banking system. In the early 2000s, credit was expanded especially in the periphery of the European Monetary Union such as in Ireland, Greece, Portugal, and Spain. Interest rates were reduced substantially by credit expansion coupled with a fall both in inflationary expectations and risk premiums.
Minyanville | Fractional Reserve Banking: A Response to Mish Shedlock
Mike "Mish" Shedlock responded critically to an article by Keith Weiner. Here, Weiner responds, noting the importance of determining the validity of fractional reserve banking.
Blogs
WSJ: Real Time Economics | Fed’s Plosser: Monetary Policy Creates Inflation
Federal Reserve Bank of Philadelphia President Charles Plosser warned Friday of the risks of keeping monetary policy too easy in the face of an energy price shock.
WSJ: Real Time Economics | A Look Inside the Fed’s Balance Sheet
Assets on the Fed’s balance sheet expanded to around $2.584 trillion in the latest week from $2.566 trillion a week earlier. Nearly all the additions came from $25 billion in Treasury purchases. The Fed announced earlier last year that it will buy an additional $600 billion of Treasurys through June in addition to previously announced purchases with money reinvested from its MBS portfolio.
WSJ: Real Time Economics | Fed Sets Schedule for 2012 — No November Meeting
Last year, the Federal Reserve launched its controversial QE2 — quantitative easing, round 2 — effort at its Nov. 2-3 meeting, which coincided with Election Day. Republicans took control of the House of Representatives in the Nov 2 balloting, and, with new attention to their utterances, immediately turned to bashing the Fed and QE2.
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