News
Market Watch | Consumer confidence plunges as hope dims
Consumer confidence plunged in August as expectations dived, with worsening views on future business conditions, jobs and income.
CNN: Money | Bank of America still not out of the woods
Days after receiving $5 billion vote of confidence form the legendary investor, the list of opponents to BofA's proposed $8.5 billion settlement with investors in mortgage-backed bonds continues to grow.
Market Watch | Home prices edge up 1.1% in June: Case-Shiller
Prices rose 1.1% during June from May but are down 4.5% over the past year, according to the closely followed S&P/Case-Shiller 20-city composite home price index.
Econ Comments
WSJ | Who Would Bail Out the European Central Bank?
The ECB has been 'talking its book' by opposing sovereign debt restructurings.
Financial Times | Struggling with a great contraction
What has the market turmoil of August been telling us? The answer, I suggest, is three big things:
Cato Institute | Yes, It Is a Ponzi Scheme
Social Security, forces people to invest in it through a mandatory payroll tax. A small portion of that money is used to buy special-issue Treasury bonds that the government will eventually have to repay, but the vast majority of the money you pay in Social Security taxes is not invested in anything.
WSJ | Mere Proposals
Among the core assumptions of modern liberalism is that future regulations have no more effect on the economy than future taxes, as if expectations don't matter and businesses don't prepare now for their costs tomorrow.
Forbes | Paul Krugman Demands More From Hurricane Irene: A Satire
Paul Krugman lamented as Hurricane Irene failed to live up to its economic potential. “Compared to the utility of preparing for an alien invasion the massive destruction and subsequent rebuilding that would have occurred had Irene become the Storm of the Century could have provided a much needed boost to the ailing economy.”
Blogs
Café Hayek | The Microeconomics of the Broken Window Fallacy
The Keynesian defense of breaking windows or the economic virtues of hurricanes would go something like this:
Calculated Risk | Recession Measures
Here is an update to four key indicators used by the NBER for business cycle dating: GDP, Employment, Industrial production and real personal income less transfer payments.
Café Hayek | Finding ways to raise costs and make us poorer
So why does Apple, for example, outsource so much of its production? Because it’s cheaper and it allows more people to be able to afford more Apple products. Making stuff the cheapest way is the road to prosperity.
Reports
RCM: Wells Fargo | Consumer Confidence Tumbles in August
Uncertainty surrounding the debt-ceiling agreement, the S&P downgrade and a shaky stock market pulled consumer confidence down 14.7 points in August, with reduced expectations accounting for most of the drop.
Mercatus Center | No Such Thing as Shovel Ready
Since 2008, support for effective fiscal stimulus has been premised on the belief in the existence of hundreds of billions of dollars worth of what became popularly known as "shovel-ready projects." These infrastructure construction and improvement projects would simultaneously lower unemployment, provide value to taxpayers, stimulate private sector growth, and begin in 90 days of less.
Wednesday, August 31, 2011
Health Care
News
National Journal | Republican Governors Continue Push to Revamp Medicaid
Medicaid has been a major focus for governors on both sides of the aisle. The program has grown to become the largest piece of state budgets, eating up 21.8 percent of total state spending, according to the National Association of State Budget Officers.
Blogs
Cato @ Liberty | Nearly Two-Thirds of ObamaCare’s Supposed Beneficiaries Think It Won’t Help Them
The law’s supposed beneficiaries are the uninsured. Yet 61 percent of them think the law will either not help them or will hurt them. The main takeaway: Congress can repeal ObamaCare and its supposed beneficiaries won’t even care.
Heritage Foundation | In Obamacare, the President’s Disregard for Consent of the Governed
Congress and the President have low approval ratings because Congress and the President continue to ignore the will of the American people. One reason for this disapproval is ObamaCare – the President’s signature health care “reform” law.
National Journal | Republican Governors Continue Push to Revamp Medicaid
Medicaid has been a major focus for governors on both sides of the aisle. The program has grown to become the largest piece of state budgets, eating up 21.8 percent of total state spending, according to the National Association of State Budget Officers.
Blogs
Cato @ Liberty | Nearly Two-Thirds of ObamaCare’s Supposed Beneficiaries Think It Won’t Help Them
The law’s supposed beneficiaries are the uninsured. Yet 61 percent of them think the law will either not help them or will hurt them. The main takeaway: Congress can repeal ObamaCare and its supposed beneficiaries won’t even care.
Heritage Foundation | In Obamacare, the President’s Disregard for Consent of the Governed
Congress and the President have low approval ratings because Congress and the President continue to ignore the will of the American people. One reason for this disapproval is ObamaCare – the President’s signature health care “reform” law.
Monetary
News
Market Watch | Fed weighed several tools at last meeting: minutes
There was no clear consensus among Federal Reserve officials at their August 9 meeting about what the next easing step would be, according to the minutes of the meeting released on Tuesday.
Market Watch | China inflation winding down: analysts
China’s consumer inflation may have tapered off, with consumer-price-index growth slowing in the remaining months of this year from a three-year high of 6.5% in July.
WSJ | Economy Deeply Divides Fed
New Records Show Central Bank Officials at Odds Over How to Revive Recovery.
Econ Comments
WSJ | Beyond the Gold and Bond Bubbles
Shouldn't the Fed try to improve incentives to invest in growing businesses?
AEI | It's Time for Plan B from the IMF
By now the IMF must recognize that its strategy for the European periphery of draconian budget belt-tightening, and of wage and price deflation to restore fiscal sustainability and international competitiveness has failed.
Blogs
Daily Capitalist | The Fed’s War Against Savers v.2.0
The Fed needs to stop this war against savers, raise rates immediately, and stop destroying capital from “printing” money through quantitative easing. Our government should be rewarding savers, not punishing them. Only when savers are rewarded with positive yields will the destruction of capital stop and the economy will grow again.
Minyanville | How the Fed Has Distorted the Nature of the TIPS Market
Both implied real rates and inflation expectations have been distorted by the Fed's money-printing. As a result, the Fed has distorted the information it relies upon and bamboozled itself.
Market Watch | Fed weighed several tools at last meeting: minutes
There was no clear consensus among Federal Reserve officials at their August 9 meeting about what the next easing step would be, according to the minutes of the meeting released on Tuesday.
Market Watch | China inflation winding down: analysts
China’s consumer inflation may have tapered off, with consumer-price-index growth slowing in the remaining months of this year from a three-year high of 6.5% in July.
WSJ | Economy Deeply Divides Fed
New Records Show Central Bank Officials at Odds Over How to Revive Recovery.
Econ Comments
WSJ | Beyond the Gold and Bond Bubbles
Shouldn't the Fed try to improve incentives to invest in growing businesses?
AEI | It's Time for Plan B from the IMF
By now the IMF must recognize that its strategy for the European periphery of draconian budget belt-tightening, and of wage and price deflation to restore fiscal sustainability and international competitiveness has failed.
Blogs
Daily Capitalist | The Fed’s War Against Savers v.2.0
The Fed needs to stop this war against savers, raise rates immediately, and stop destroying capital from “printing” money through quantitative easing. Our government should be rewarding savers, not punishing them. Only when savers are rewarded with positive yields will the destruction of capital stop and the economy will grow again.
Minyanville | How the Fed Has Distorted the Nature of the TIPS Market
Both implied real rates and inflation expectations have been distorted by the Fed's money-printing. As a result, the Fed has distorted the information it relies upon and bamboozled itself.
Employment
News
Politico | State, local governments cut 200,000 workers
U.S. Census data show that state and local governments had 203,321 fewer full-time employees and 27,567 fewer part-time workers in 2010, compared with 2009.
MarketWatch | August private-sector jobs up 91,000: ADP
Private-sector payrolls increased 91,000 in August, led by the service-producing sector and small businesses, according to the ADP employment report released Wednesday.
Fox News | On The Job Hunt: Unfilled Jobs Across America, Are You Qualified?
While millions of people can’t find work, there are many American companies who can’t find people to fill open jobs. Thousands of jobs. Good paying jobs.
WSJ | Business Irked as Labor Board Backs Unions
The National Labor Relations Board sided with unions in several cases involving rules for organizing and representing workers, further riling business groups as the board continues to push through decisions by year's end.
Econ Comments
Washington Times | ALLEN: Job growth
Restoring American dream means rekindling entrepreneurial spirit.
WSJ | The Labor Board Wants You
The NLRB will now require union posters.
Washington Times | LAMBRO: Obama jobs plan: Plan on being unemployed
No new economic strategy will work while the fundamentals are wrong.
Blogs
Marginal Revolution | Why didn’t the stimulus create more jobs?
One major problem with ARRA was not the crowding out of financial capital but rather the crowding out of labor.
Reports
Mercatus Center | Did Stimulus Dollars Hire the Unemployed?
Answers to Questions about the American Recovery and Reinvestment Act.
Politico | State, local governments cut 200,000 workers
U.S. Census data show that state and local governments had 203,321 fewer full-time employees and 27,567 fewer part-time workers in 2010, compared with 2009.
MarketWatch | August private-sector jobs up 91,000: ADP
Private-sector payrolls increased 91,000 in August, led by the service-producing sector and small businesses, according to the ADP employment report released Wednesday.
Fox News | On The Job Hunt: Unfilled Jobs Across America, Are You Qualified?
While millions of people can’t find work, there are many American companies who can’t find people to fill open jobs. Thousands of jobs. Good paying jobs.
WSJ | Business Irked as Labor Board Backs Unions
The National Labor Relations Board sided with unions in several cases involving rules for organizing and representing workers, further riling business groups as the board continues to push through decisions by year's end.
Econ Comments
Washington Times | ALLEN: Job growth
Restoring American dream means rekindling entrepreneurial spirit.
WSJ | The Labor Board Wants You
The NLRB will now require union posters.
Washington Times | LAMBRO: Obama jobs plan: Plan on being unemployed
No new economic strategy will work while the fundamentals are wrong.
Blogs
Marginal Revolution | Why didn’t the stimulus create more jobs?
One major problem with ARRA was not the crowding out of financial capital but rather the crowding out of labor.
Reports
Mercatus Center | Did Stimulus Dollars Hire the Unemployed?
Answers to Questions about the American Recovery and Reinvestment Act.
Taxes
News
WSJ | GOP Tax Expert to Lead Deficit-Committee Staff
The panel's co-chairmen chose as their staff director Mark Prater, a senior aide and chief tax counsel to Republicans on the Senate Finance Committee.
Econ Comments
Forbes | The Fingerprints of 2000-01 Are All Over the Crisis
Coming through with a real tax cut in 2001 could have changed everything.
WSJ | GOP Tax Expert to Lead Deficit-Committee Staff
The panel's co-chairmen chose as their staff director Mark Prater, a senior aide and chief tax counsel to Republicans on the Senate Finance Committee.
Econ Comments
Forbes | The Fingerprints of 2000-01 Are All Over the Crisis
Coming through with a real tax cut in 2001 could have changed everything.
Budget
News
National Journal | War Contracting Commission Estimates $31 Billion to $60 Billion Wasted
Estimates $12 million squandered every day for the last 10 years.
Econ Comments
Daily Caller | Debt ceiling is only first step in debate over federal spending
“The fiscal consolidation plan … falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics.” S&P, August 5
Fox News | Real Economic Recovery Demands a Balanced Budget Amendment
The bottom line is that we need more effective policies that will ensure the efforts made to cut spending today aren’t undone by politicians in the future.
WSJ | Bank of Political Works
A Fannie Mae for 'infrastructure.'
Blogs
Cato@Liberty | Federal Spending Hits $4.1 Trillion
The $3.6 trillion figure is “net” outlays. But “gross” outlays, or total spending, is quite a bit higher.
National Journal | War Contracting Commission Estimates $31 Billion to $60 Billion Wasted
Estimates $12 million squandered every day for the last 10 years.
Econ Comments
Daily Caller | Debt ceiling is only first step in debate over federal spending
“The fiscal consolidation plan … falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics.” S&P, August 5
Fox News | Real Economic Recovery Demands a Balanced Budget Amendment
The bottom line is that we need more effective policies that will ensure the efforts made to cut spending today aren’t undone by politicians in the future.
WSJ | Bank of Political Works
A Fannie Mae for 'infrastructure.'
Blogs
Cato@Liberty | Federal Spending Hits $4.1 Trillion
The $3.6 trillion figure is “net” outlays. But “gross” outlays, or total spending, is quite a bit higher.
Tuesday, August 30, 2011
General Economics
News
Bloomberg | European Economic Confidence Falls Most Since December 2008
European confidence in the economic outlook in August plunged the most since December 2008 as a persistent debt crisis roiled markets and clouded growth prospects across the 17-nation euro region.
CNN Money | Wind power makes greenhouses greener
From the outside, it looks like a crash-landed blimp. On the inside, it feels like a wind tunnel. For inventor David Chelf, this strange structure -- a high-tech greenhouse with no skeleton, whose lightweight skin is held aloft on breezes from giant fans -- looks like the future of agriculture.
National Journal | Ron Johnson Slams Obama, Puts Forward Own Economic Plan
Johnson blamed economic stimulus, health care reform, the Dodd-Frank bill, and an “explosion” of regulations for unsettling markets, businesses, and consumers. He accused the president of being “blinded by ideology” and noted that few in the administration have private-sector experience.
Fox News | Lean' Manufacturing Takes Root in U.S.
A century after Henry Ford developed the assembly line production method for the manufacture of Model-T Fords, a Japanese automaker has pioneered the next evolution on the concept – and begun a revolution that is quietly spreading beyond the business world.
National Journal | House Republican Fall Agenda Takes Aim at Regulations, Taxes
While the spotlight will be on the workings of the new deficit-reduction “super committee” after Congress returns next week, House Republican leaders said on Monday they also have set a legislative agenda for fall and winter that concentrates heavily on regulatory and tax relief.
Econ Comments
Washington Times | BLANKLEY: Obama’s economic-policy last chance
Only a dramatic switch to free-market principles can save his presidency.
NYT | Manufacturing a Recovery
Rebuilding our manufacturing capacity requires the demolition of the idea that the United States can thrive on its service sector alone. We need to create at least 20 million jobs in the next decade to offset the effects of the recession and to address our $500 billion trade deficit in manufactured goods.
WSJ | Mr. Sunstein Can't Be Serious About Cutting Red Tape
Regarding regulatory czar Cass Sunstein's Aug. 23 op-ed, "Washington Is Eliminating Red Tape": The savings outlined by Mr. Sunstein don't even represent one-quarter of 1% of total private-sector compliance costs—and that assumes that the savings are realized and not just bureaucratic finagling for political purposes.
Blogs
Cato @ Liberty | Disaster Relief Is Not Free
Disaster relief is a form of welfare — transferring assets from some to others. We can do that voluntarily, or through government.
Heritage Foundation | White House’s New Top Economist: Unemployment Benefits Are Not Stimulus
President Obama’s pick as chairman of the White House Council on Economic Advisors co-authored a paper that showed that extending unemployment benefits will likely exacerbate joblessness.
Minyanville | Why There's No Reason to Fear a Double-Dip Recession
While the world wrings its collective hands about a second recession clouding the US economic recovery, don't waste your time -- it's not there.
Calculated Risk | Unofficial Problem Bank list increases to 988 Institutions
Here is the unofficial problem bank list for Aug 27, 2011.
Reports
NBER | Time Use During Recessions
We use data from the American Time Use Survey (ATUS), covering both the recent recession and the pre-recessionary period, to explore how foregone market work hours are allocated to other activities over the business cycle.
RCM: Wells Fargo | Spending Bounces Back in July but Income Is Still Lagging
Consumer spending jumped 0.8 in July, more than making up for the 0.1 percent drop in June. Spending for services and durable goods accounted for most of the increase. Income growth continues to lag, however.
Bloomberg | European Economic Confidence Falls Most Since December 2008
European confidence in the economic outlook in August plunged the most since December 2008 as a persistent debt crisis roiled markets and clouded growth prospects across the 17-nation euro region.
CNN Money | Wind power makes greenhouses greener
From the outside, it looks like a crash-landed blimp. On the inside, it feels like a wind tunnel. For inventor David Chelf, this strange structure -- a high-tech greenhouse with no skeleton, whose lightweight skin is held aloft on breezes from giant fans -- looks like the future of agriculture.
National Journal | Ron Johnson Slams Obama, Puts Forward Own Economic Plan
Johnson blamed economic stimulus, health care reform, the Dodd-Frank bill, and an “explosion” of regulations for unsettling markets, businesses, and consumers. He accused the president of being “blinded by ideology” and noted that few in the administration have private-sector experience.
Fox News | Lean' Manufacturing Takes Root in U.S.
A century after Henry Ford developed the assembly line production method for the manufacture of Model-T Fords, a Japanese automaker has pioneered the next evolution on the concept – and begun a revolution that is quietly spreading beyond the business world.
National Journal | House Republican Fall Agenda Takes Aim at Regulations, Taxes
While the spotlight will be on the workings of the new deficit-reduction “super committee” after Congress returns next week, House Republican leaders said on Monday they also have set a legislative agenda for fall and winter that concentrates heavily on regulatory and tax relief.
Econ Comments
Washington Times | BLANKLEY: Obama’s economic-policy last chance
Only a dramatic switch to free-market principles can save his presidency.
NYT | Manufacturing a Recovery
Rebuilding our manufacturing capacity requires the demolition of the idea that the United States can thrive on its service sector alone. We need to create at least 20 million jobs in the next decade to offset the effects of the recession and to address our $500 billion trade deficit in manufactured goods.
WSJ | Mr. Sunstein Can't Be Serious About Cutting Red Tape
Regarding regulatory czar Cass Sunstein's Aug. 23 op-ed, "Washington Is Eliminating Red Tape": The savings outlined by Mr. Sunstein don't even represent one-quarter of 1% of total private-sector compliance costs—and that assumes that the savings are realized and not just bureaucratic finagling for political purposes.
Blogs
Cato @ Liberty | Disaster Relief Is Not Free
Disaster relief is a form of welfare — transferring assets from some to others. We can do that voluntarily, or through government.
Heritage Foundation | White House’s New Top Economist: Unemployment Benefits Are Not Stimulus
President Obama’s pick as chairman of the White House Council on Economic Advisors co-authored a paper that showed that extending unemployment benefits will likely exacerbate joblessness.
Minyanville | Why There's No Reason to Fear a Double-Dip Recession
While the world wrings its collective hands about a second recession clouding the US economic recovery, don't waste your time -- it's not there.
Calculated Risk | Unofficial Problem Bank list increases to 988 Institutions
Here is the unofficial problem bank list for Aug 27, 2011.
Reports
NBER | Time Use During Recessions
We use data from the American Time Use Survey (ATUS), covering both the recent recession and the pre-recessionary period, to explore how foregone market work hours are allocated to other activities over the business cycle.
RCM: Wells Fargo | Spending Bounces Back in July but Income Is Still Lagging
Consumer spending jumped 0.8 in July, more than making up for the 0.1 percent drop in June. Spending for services and durable goods accounted for most of the increase. Income growth continues to lag, however.
Health Care
News
National Journal | Voters Know Even Less About Obamacare Than They Did in 2010
Today, 49 percent of Americans think that the health care overhaul will make things better for the uninsured; in April 2010, just after it became law, 67 percent of Americans believed that Yet the law's approval rating is about the same as it was a year ago, with 44 percent holding an unfavorable view of the law.
WSJ | Steep Rises in Health Premiums Scrutinized
A new federal and state program on health-insurance rates will determine whether bad publicity alone is enough to stop insurers from levying steep increases.
National Journal | Insurers Say Rewards, Education Can Prevent Pricey Errors
Rewarding hospitals and clinics for improving hygiene practices can pay off with fewer infections, America’s Health Insurance Plans reported on Monday. So can simple education about the need to wash hands, carefully handle catheters, and move patients to prevent bedsores.
Econ Comments
Washington Times | FEULNER: Prescription for Obamacare’s faults: Repeal
American taxpayers can’t afford the price tag of a nanny state.
National Journal | Voters Know Even Less About Obamacare Than They Did in 2010
Today, 49 percent of Americans think that the health care overhaul will make things better for the uninsured; in April 2010, just after it became law, 67 percent of Americans believed that Yet the law's approval rating is about the same as it was a year ago, with 44 percent holding an unfavorable view of the law.
WSJ | Steep Rises in Health Premiums Scrutinized
A new federal and state program on health-insurance rates will determine whether bad publicity alone is enough to stop insurers from levying steep increases.
National Journal | Insurers Say Rewards, Education Can Prevent Pricey Errors
Rewarding hospitals and clinics for improving hygiene practices can pay off with fewer infections, America’s Health Insurance Plans reported on Monday. So can simple education about the need to wash hands, carefully handle catheters, and move patients to prevent bedsores.
Econ Comments
Washington Times | FEULNER: Prescription for Obamacare’s faults: Repeal
American taxpayers can’t afford the price tag of a nanny state.
Monetary
News
CNBC | China Says Inflation Pressures Stay High
Persistently high global prices for commodities and other goods are fueling consumer inflation in China and may put Beijing's full-year inflation target out of reach, the country's top economic planner said on Monday.
Blogs
Daily Capitalist | Martin Feldstein Advocates Trashing The Dollar
Aside from some built-in momentum from past inventory build-up and effciencies related to technology, one can only look to the dollar and its benefit to U.S. exporters as being the key factor behind corporate profits. By devaluing the dollar multinationals have done well abroad.
Free Banking | What modern free banks might look like
It has not been discussed so far in this blog what modern free banks might look like. Partly that is because several of us who blog here have the same picture in mind. It would be good for the rest of you to know what it is and decide what you think of it.
CNBC | China Says Inflation Pressures Stay High
Persistently high global prices for commodities and other goods are fueling consumer inflation in China and may put Beijing's full-year inflation target out of reach, the country's top economic planner said on Monday.
Blogs
Daily Capitalist | Martin Feldstein Advocates Trashing The Dollar
Aside from some built-in momentum from past inventory build-up and effciencies related to technology, one can only look to the dollar and its benefit to U.S. exporters as being the key factor behind corporate profits. By devaluing the dollar multinationals have done well abroad.
Free Banking | What modern free banks might look like
It has not been discussed so far in this blog what modern free banks might look like. Partly that is because several of us who blog here have the same picture in mind. It would be good for the rest of you to know what it is and decide what you think of it.
Taxes
Econ Comments
WSJ | Buffett's Latest Tax Break
For a guy who spends a lot of time advocating for higher taxes, Warren Buffett does a remarkably good job of minimizing his own corporate tax bill.
WSJ | Buffett's Latest Tax Break
For a guy who spends a lot of time advocating for higher taxes, Warren Buffett does a remarkably good job of minimizing his own corporate tax bill.
Employment
News
National Journal | Some Possible Proposals in Obama's Big Jobs Speech
President Obama is slated to deliver a major speech on job creation next week. He may propose steps to increase hiring directly, perhaps through tax credits and new work-training programs, and indirectly, by backing measures to stimulate consumer demand, said the forecasting firm Macroeconomic Advisers.
Bloomberg Businessweek | Job Offers Increased for Class of 2011
As the economy sputters, undergraduate hiring is up for the first time since the crisis. Those with business skills are better positioned than most.
Econ Comments
Investors | Krueger's Keynesian Leftovers
Just a week before he unveils a new, improved jobs plan, President Obama has named a new person to be his top economic adviser, Princeton University's Alan Krueger. This doesn't bode well for job creation.
Bloomberg | Shlaes: Support Workers, Not Pushy Unions
For although unions may be good for a worker, singular, they are not always good for workers, plural. Especially when it comes to finding a job.
WSJ | Krueger vs. Obama
The new chief White House economist on jobless benefits.
Blogs
Cato@Liberty | For U.S. Multinationals, More Jobs Abroad Mean More Jobs at Home
Like many U.S. multinational companies, Caterpillar has been expanding its sales and profits by selling its products in rapidly growing emerging markets while spreading its production facilities around the world.
WSJ | White House This Week to Provide Unemployment Forecast
Before President Barack Obama unveils a plan to grow jobs next week, his administration will provide a new economic forecast for unemployment and the nation’s deficit.
National Journal | Some Possible Proposals in Obama's Big Jobs Speech
President Obama is slated to deliver a major speech on job creation next week. He may propose steps to increase hiring directly, perhaps through tax credits and new work-training programs, and indirectly, by backing measures to stimulate consumer demand, said the forecasting firm Macroeconomic Advisers.
Bloomberg Businessweek | Job Offers Increased for Class of 2011
As the economy sputters, undergraduate hiring is up for the first time since the crisis. Those with business skills are better positioned than most.
Econ Comments
Investors | Krueger's Keynesian Leftovers
Just a week before he unveils a new, improved jobs plan, President Obama has named a new person to be his top economic adviser, Princeton University's Alan Krueger. This doesn't bode well for job creation.
Bloomberg | Shlaes: Support Workers, Not Pushy Unions
For although unions may be good for a worker, singular, they are not always good for workers, plural. Especially when it comes to finding a job.
WSJ | Krueger vs. Obama
The new chief White House economist on jobless benefits.
Blogs
Cato@Liberty | For U.S. Multinationals, More Jobs Abroad Mean More Jobs at Home
Like many U.S. multinational companies, Caterpillar has been expanding its sales and profits by selling its products in rapidly growing emerging markets while spreading its production facilities around the world.
WSJ | White House This Week to Provide Unemployment Forecast
Before President Barack Obama unveils a plan to grow jobs next week, his administration will provide a new economic forecast for unemployment and the nation’s deficit.
Budget
Econ Comments
WSJ | Another Deficit Standoff This Year? Maybe Not
If you want to be an optimist—and are willing to risk sounding naïve—there actually are reasons to think this effort can work better than the summer's follies.
Politico | Which balanced budget amendment?
If conservatives had a real victory in the debate about raising the debt ceiling, it was in getting Congress members of both parties to support a balanced budget amendment.
CNBC | How Debt Shrinks the Economy
...spending constraint comes from the realization that too much government spending disorganizes and crony-izes the economy.
WSJ | Another Deficit Standoff This Year? Maybe Not
If you want to be an optimist—and are willing to risk sounding naïve—there actually are reasons to think this effort can work better than the summer's follies.
Politico | Which balanced budget amendment?
If conservatives had a real victory in the debate about raising the debt ceiling, it was in getting Congress members of both parties to support a balanced budget amendment.
CNBC | How Debt Shrinks the Economy
...spending constraint comes from the realization that too much government spending disorganizes and crony-izes the economy.
Monday, August 29, 2011
General Economics
News
Bloomberg | Consumer Spending Rises in July, Beats Forecast
Consumer spending climbed more than forecast in July as Americans dipped into savings to buy cars and cool their homes, showing the biggest part of the economy is holding up.
WSJ | Mousetraps, Maybe, but Can You Build a Better Paper Clip?
U.S. Manufacturers Churn Out Billions Each Year; Hoping a New Model Clicks.
Bloomberg | Treasuries Decline as Personal Spending Rises in July More Than Forecast
Treasuries fell as stocks advanced after Federal Reserve Chairman Ben S. Bernanke said last week that the U.S. economy isn’t weak enough to warrant immediate additional stimulus, sapping demand for a refuge.
WSJ | Labor Economist to Fill Key Post
If confirmed by the Senate, Mr. Krueger, a labor economist, is likely to provide a voice inside the administration for more-aggressive government action to bring down unemployment and, particularly, to address long-term joblessness.
Market Watch | Republican on need for government role in housing
To maintain the 30-year fixed rate mortgage and to allow the housing finance system, and economy, to recover, the government needs to provide a guarantee for mortgages, according to Republican Representative John Campbell.
National Journal | Can Dow Chemical’s CEO Sell Obama-esque Manufacturing Vision?
Last January, Andrew Liveris, the CEO of Dow Chemical, published a book called Make it in America that laid out a path for the United States to reclaim its onetime manufacturing dominance. The book details an ambitious agenda to set U.S. manufacturing back on a course for success, arguing that if the country cedes production of all the high-tech gadgets it produces.
Roll Call | RSC Looks to Advance ‘Growth’ Agenda, Mend Fences
Republican insiders say they expect the effort to include a mash-up of tax and regulatory moves that could include an attempt to restrict the federal government’s ability to regulate oil and gas drilling and a long-term repatriation tax holiday, among other elements.
Econ Comments
WSJ | An Entrepreneurial Fix for the U.S. Economy
Several reforms can make it faster and easier for new business startups.
NYT | Does America Need Manufacturing?
For decades, the federal government has generally resisted throwing its weight —and its money — behind particular industries. If the market was killing manufacturing jobs, it was pointless to fight it. The government wasn’t in the business of picking winners.
WSJ | An EPA Moratorium
Obama has the power to delay new rules that will shut down 8% of all U.S. power generation.
Washington Times | DREVNA: Cutting rules would spark economic growth
Obama should block EPA from restraining creation of energy jobs.
Bloomberg | Failing at Innovation? Bank on It
There's less entrepreneurship today than 20 years ago. Chris Farrell blames the rush for a fast buck.
Washington Times | GHEI: A Capitol crash course
Congress needs remedial instruction in basic economic principles.
Blogs
Political Calculations | The Changing Distribution of Adjusted Gross Income for U.S. Households
If you had to guess, what adjusted gross income range would you say had the biggest gains in the number of households included within that range during the years from 1996 through 2009? Here are the choices:
Cato @ Liberty | Hurricane Irene as Economic Stimulus
No matter how many times economists debunk the broken window fallacy, not a natural disaster goes by that journalists don’t try to cheer us up by saying “at least it will stimulate economic growth.”
Heritage Foundation | Want Stimulus? Reduce Regulation
If President Obama needs to find 20 regulations to kill that would spur economic growth, then one need to look further than the Diane Katz report that identifies the biggest job destroying culprits: Dodd-Frank, ObamaCare and the global warming crusade of the EPA.
Minyanville | Key Indicators Suggest Fall Rally Is Coming
When the Pressure Factor indicator is deeply oversold -- as it is now -- the odds of a sharp rebound dramatically increase.
Reports
RCM: Wells Fargo | Weekly Economic & Financial Commentary
The Economy Continues to Grow at a Snail’s Pace.
AEI | What Drives Gas Prices: Cartels, Speculators, or Supply and Demand?
The public is unhappy with these high gas prices, and politicians are scrambling to find ways to reduce the pain--or, failing that, to publicly shoot the messenger by investigating, penalizing, or punitively taxing oil companies. This Outlook explores the true causes of oil price fluctuation and explains how policymakers can help lower gasoline prices.
Bloomberg | Consumer Spending Rises in July, Beats Forecast
Consumer spending climbed more than forecast in July as Americans dipped into savings to buy cars and cool their homes, showing the biggest part of the economy is holding up.
WSJ | Mousetraps, Maybe, but Can You Build a Better Paper Clip?
U.S. Manufacturers Churn Out Billions Each Year; Hoping a New Model Clicks.
Bloomberg | Treasuries Decline as Personal Spending Rises in July More Than Forecast
Treasuries fell as stocks advanced after Federal Reserve Chairman Ben S. Bernanke said last week that the U.S. economy isn’t weak enough to warrant immediate additional stimulus, sapping demand for a refuge.
WSJ | Labor Economist to Fill Key Post
If confirmed by the Senate, Mr. Krueger, a labor economist, is likely to provide a voice inside the administration for more-aggressive government action to bring down unemployment and, particularly, to address long-term joblessness.
Market Watch | Republican on need for government role in housing
To maintain the 30-year fixed rate mortgage and to allow the housing finance system, and economy, to recover, the government needs to provide a guarantee for mortgages, according to Republican Representative John Campbell.
National Journal | Can Dow Chemical’s CEO Sell Obama-esque Manufacturing Vision?
Last January, Andrew Liveris, the CEO of Dow Chemical, published a book called Make it in America that laid out a path for the United States to reclaim its onetime manufacturing dominance. The book details an ambitious agenda to set U.S. manufacturing back on a course for success, arguing that if the country cedes production of all the high-tech gadgets it produces.
Roll Call | RSC Looks to Advance ‘Growth’ Agenda, Mend Fences
Republican insiders say they expect the effort to include a mash-up of tax and regulatory moves that could include an attempt to restrict the federal government’s ability to regulate oil and gas drilling and a long-term repatriation tax holiday, among other elements.
Econ Comments
WSJ | An Entrepreneurial Fix for the U.S. Economy
Several reforms can make it faster and easier for new business startups.
NYT | Does America Need Manufacturing?
For decades, the federal government has generally resisted throwing its weight —and its money — behind particular industries. If the market was killing manufacturing jobs, it was pointless to fight it. The government wasn’t in the business of picking winners.
WSJ | An EPA Moratorium
Obama has the power to delay new rules that will shut down 8% of all U.S. power generation.
Washington Times | DREVNA: Cutting rules would spark economic growth
Obama should block EPA from restraining creation of energy jobs.
Bloomberg | Failing at Innovation? Bank on It
There's less entrepreneurship today than 20 years ago. Chris Farrell blames the rush for a fast buck.
Washington Times | GHEI: A Capitol crash course
Congress needs remedial instruction in basic economic principles.
Blogs
Political Calculations | The Changing Distribution of Adjusted Gross Income for U.S. Households
If you had to guess, what adjusted gross income range would you say had the biggest gains in the number of households included within that range during the years from 1996 through 2009? Here are the choices:
Cato @ Liberty | Hurricane Irene as Economic Stimulus
No matter how many times economists debunk the broken window fallacy, not a natural disaster goes by that journalists don’t try to cheer us up by saying “at least it will stimulate economic growth.”
Heritage Foundation | Want Stimulus? Reduce Regulation
If President Obama needs to find 20 regulations to kill that would spur economic growth, then one need to look further than the Diane Katz report that identifies the biggest job destroying culprits: Dodd-Frank, ObamaCare and the global warming crusade of the EPA.
Minyanville | Key Indicators Suggest Fall Rally Is Coming
When the Pressure Factor indicator is deeply oversold -- as it is now -- the odds of a sharp rebound dramatically increase.
Reports
RCM: Wells Fargo | Weekly Economic & Financial Commentary
The Economy Continues to Grow at a Snail’s Pace.
AEI | What Drives Gas Prices: Cartels, Speculators, or Supply and Demand?
The public is unhappy with these high gas prices, and politicians are scrambling to find ways to reduce the pain--or, failing that, to publicly shoot the messenger by investigating, penalizing, or punitively taxing oil companies. This Outlook explores the true causes of oil price fluctuation and explains how policymakers can help lower gasoline prices.
Health Care
News
National Journal | U.S. Obesity Rates to Soar, Researchers Report
But good policy can bend the curve, a second study in Friday's Lancet says.
National Journal | How Medicare Managed Care Could Save Money
Medicare’s managed-care plans may be able to help the federal government cut costs, researchers said, by encouraging patients to have more appropriate, cost-effective courses of treatment than traditional plans.
Econ Comments
AEI | Better Prices--Through Competitive Bidding--Can Help Solve Medicare's Fiscal Crisis
Medicare faces a severe fiscal crisis and one reason is that it pays too much for the Medicare entitlement benefit. There is a way to fix the Medicare program without raising taxes: use market-like arrangements to set prices for both the traditional fee-for-service (FFS) program and for private Medicare Advantage (MA) plans.
National Journal | U.S. Obesity Rates to Soar, Researchers Report
But good policy can bend the curve, a second study in Friday's Lancet says.
National Journal | How Medicare Managed Care Could Save Money
Medicare’s managed-care plans may be able to help the federal government cut costs, researchers said, by encouraging patients to have more appropriate, cost-effective courses of treatment than traditional plans.
Econ Comments
AEI | Better Prices--Through Competitive Bidding--Can Help Solve Medicare's Fiscal Crisis
Medicare faces a severe fiscal crisis and one reason is that it pays too much for the Medicare entitlement benefit. There is a way to fix the Medicare program without raising taxes: use market-like arrangements to set prices for both the traditional fee-for-service (FFS) program and for private Medicare Advantage (MA) plans.
Monetary
News
Market Watch | Low rates good — and bad — for consumers
Borrowers breathed a collective sigh of relief when the Federal Reserve said earlier this month that it would hold interest rates at rock bottom for the next two years. But savers were far from happy.
Bloomberg | Dollar Cheap in Purchasing Power as Investors See Shelter
The greenback has appreciated 1.2 percent in August against a basket of the developed world’s nine most-traded exchange rates, according to data compiled by Bloomberg. That compares with a decline of 14 percent in the world’s reserve currency from this time last year through July.
Econ Comments
Financial Times | A lost chance to jolt ailing America
It would be best if the Fed could be explicit about its reasoning. Unfortunately the unannounced inflation target that is said to guide the Fed’s actions does not easily justify the required new stimulus.
Market Watch | Fed’s Bullard sees no need for easing
Economic conditions are not at the point now where the Federal Reserve should ease monetary policy further, James Bullard, the president of the St. Louis Fed.
Blogs
Minyanville | Hopes for Further Fed Easing in September Reignites Speculation
Last week's Jackson Hole speech didn't do much to assuage investor fears.
Reports
NBER | Stories of the Twentieth Century for the Twenty-First
A discrete-choice panel analysis using 1973-2010 data suggests that domestic credit expansion and real currency appreciation have been the most robust and significant predictors of financial crises, regardless of whether a country is emerging or advanced.
Market Watch | Low rates good — and bad — for consumers
Borrowers breathed a collective sigh of relief when the Federal Reserve said earlier this month that it would hold interest rates at rock bottom for the next two years. But savers were far from happy.
Bloomberg | Dollar Cheap in Purchasing Power as Investors See Shelter
The greenback has appreciated 1.2 percent in August against a basket of the developed world’s nine most-traded exchange rates, according to data compiled by Bloomberg. That compares with a decline of 14 percent in the world’s reserve currency from this time last year through July.
Econ Comments
Financial Times | A lost chance to jolt ailing America
It would be best if the Fed could be explicit about its reasoning. Unfortunately the unannounced inflation target that is said to guide the Fed’s actions does not easily justify the required new stimulus.
Market Watch | Fed’s Bullard sees no need for easing
Economic conditions are not at the point now where the Federal Reserve should ease monetary policy further, James Bullard, the president of the St. Louis Fed.
Blogs
Minyanville | Hopes for Further Fed Easing in September Reignites Speculation
Last week's Jackson Hole speech didn't do much to assuage investor fears.
Reports
NBER | Stories of the Twentieth Century for the Twenty-First
A discrete-choice panel analysis using 1973-2010 data suggests that domestic credit expansion and real currency appreciation have been the most robust and significant predictors of financial crises, regardless of whether a country is emerging or advanced.
Taxes
Econ Comments
Forbes | Warren Buffett And The Other Anti-Rich Capitalists
Ignoring the fact that 47% of U.S. households pay no federal income taxes, he decried the fact that Washington taxes investors’ capital gains at 15%, below the top rate of 35% on “ordinary” income.
Cato Institute | How Property Taxes and the 'Curley Effect' Are Killing Baltimore
The city's main streets will be closed so that IndyCar racers can compete in the inaugural Baltimore Grand Prix. Much more than prize money is at stake.
Forbes | Warren Buffett And The Other Anti-Rich Capitalists
Ignoring the fact that 47% of U.S. households pay no federal income taxes, he decried the fact that Washington taxes investors’ capital gains at 15%, below the top rate of 35% on “ordinary” income.
Cato Institute | How Property Taxes and the 'Curley Effect' Are Killing Baltimore
The city's main streets will be closed so that IndyCar racers can compete in the inaugural Baltimore Grand Prix. Much more than prize money is at stake.
Employment
News
CNN Money | Obama praises Georgia jobs training program
Participants don't get paid, but they do get to keep their jobless benefits and receive a stipend of up to $240 for transportation and other expenses.
CNN Money | Part-time workers: More fine with no full-time job
Since hitting a peak of 9.5 million last September, the number of part-time workers who tell the Labor Department they are doing so for economic reasons rather than personal reasons has dropped to 8.4 million in July.
CNN Money | Obama praises Georgia jobs training program
Participants don't get paid, but they do get to keep their jobless benefits and receive a stipend of up to $240 for transportation and other expenses.
CNN Money | Part-time workers: More fine with no full-time job
Since hitting a peak of 9.5 million last September, the number of part-time workers who tell the Labor Department they are doing so for economic reasons rather than personal reasons has dropped to 8.4 million in July.
Budget
News
Washington Times | Pentagon mulls ways to make major cuts
The Pentagon is considering a range of options to meet a bipartisan call to greatly reduce defense spending in what is a “perfect storm” rocking the military’s once-plump budget plans.
National Journal | Where Is Congress With Appropriations?
This is true in any calendar year, given that the federal government's fiscal year begins October 1, but may be especially pertinent this year with the new congressional super committee scheduled to meet.
Econ Comments
WSJ | A Short Primer on the National Debt
With a return to 1990s growth rates, the debt-to-GDP ratio could drop to 56.7%, about where it was in 2000, in just one decade.
Washington Times | Pentagon mulls ways to make major cuts
The Pentagon is considering a range of options to meet a bipartisan call to greatly reduce defense spending in what is a “perfect storm” rocking the military’s once-plump budget plans.
National Journal | Where Is Congress With Appropriations?
This is true in any calendar year, given that the federal government's fiscal year begins October 1, but may be especially pertinent this year with the new congressional super committee scheduled to meet.
Econ Comments
WSJ | A Short Primer on the National Debt
With a return to 1990s growth rates, the debt-to-GDP ratio could drop to 56.7%, about where it was in 2000, in just one decade.
Friday, August 26, 2011
General Economics
News
CNN: Money | Weak growth. Monster debt. Which to tackle first?
The CBO is not in the business of telling Congress what to do. But it is in the business of showing Congress how what it chooses to do may affect the country's economic future.
Fox News | Refineries Likely to Shut as Hurricane Irene Nears, Boosting Gas Prices
It takes several days for a refinery to start operating again following a shutdown. And many would need almost a month to get back to full operation. Gasoline futures rose nearly 2 percent Thursday.
CNN: Money | Economy: 'Slowdown is here to stay'
In the first quarter, economic growth was stifled by temporary factors, including supply disruptions stemming from the Japan earthquake and a spike in gasoline prices following the Arab Spring political uprisings. But the malaise seems to be taking hold, with consumers pulling back sharply in the second quarter.
Econ Comments
WSJ | Obamanonics vs. Reaganomics
One program for recovery worked, and the other hasn't.
Source | World Economy Faces 50% Chance of Renewed Slump, Nobel Winner Spence Says
“A combined downward dip in Europe and America, which is a good chunk of the industrialized economies, I’m quite sure will take down growth in China particularly, and that will then immediately spread to the rest of the emerging economies.” He put the likelihood of such a scenario “at about 50 percent.”
Washington Times | VERSACE: When will earnings catch up to economic reality?
Despite the negative economic-outlook revisions across the board, one area that has yet to catch up is analysts’ expectations for earnings and earnings growth for the S&P 500.
Forbes | No, Paul Krugman, WWII Did Not End The Great Depression
Stimulus efforts allow politicians to dispense dollars in patronage schemes conferring power upon themselves at taxpayer expense. Congress buys votes with your money. Even if public spending did stimulate, such corruption is too repugnant to condone.
RCM | Earthquake Economics: The Vew from the Epicenter
The essence of President Obama's economic policy is to go around smashing people's windows (and shattering the value of our dollars), in the hope that he can get the economy moving by stimulating business for the world's glass-makers. Call it Earthquake Economics.
Blogs
Cato Institute | Forced Mortgage Refinance Does Not Create Wealth
What again is the great tragedy of borrowers being stuck with mortgage rates of 5.5 or 6.0 percent? Those are quite low by historical standards. And if the borrower wanted their rate to decline when overall rates decline, they should have taken out an adjustable rate mortgage.
Cato Institute | Small Business Administration to Close?
Unfortunately, Burr’s legislation does not close the SBA. It merely combines the SBA, the Department of Commerce, and the Department of Labor into one bigger bureaucracy that would be known as the “Department of Commerce and the Workforce.”
CNN: Money | Weak growth. Monster debt. Which to tackle first?
The CBO is not in the business of telling Congress what to do. But it is in the business of showing Congress how what it chooses to do may affect the country's economic future.
Fox News | Refineries Likely to Shut as Hurricane Irene Nears, Boosting Gas Prices
It takes several days for a refinery to start operating again following a shutdown. And many would need almost a month to get back to full operation. Gasoline futures rose nearly 2 percent Thursday.
CNN: Money | Economy: 'Slowdown is here to stay'
In the first quarter, economic growth was stifled by temporary factors, including supply disruptions stemming from the Japan earthquake and a spike in gasoline prices following the Arab Spring political uprisings. But the malaise seems to be taking hold, with consumers pulling back sharply in the second quarter.
Econ Comments
WSJ | Obamanonics vs. Reaganomics
One program for recovery worked, and the other hasn't.
Source | World Economy Faces 50% Chance of Renewed Slump, Nobel Winner Spence Says
“A combined downward dip in Europe and America, which is a good chunk of the industrialized economies, I’m quite sure will take down growth in China particularly, and that will then immediately spread to the rest of the emerging economies.” He put the likelihood of such a scenario “at about 50 percent.”
Washington Times | VERSACE: When will earnings catch up to economic reality?
Despite the negative economic-outlook revisions across the board, one area that has yet to catch up is analysts’ expectations for earnings and earnings growth for the S&P 500.
Forbes | No, Paul Krugman, WWII Did Not End The Great Depression
Stimulus efforts allow politicians to dispense dollars in patronage schemes conferring power upon themselves at taxpayer expense. Congress buys votes with your money. Even if public spending did stimulate, such corruption is too repugnant to condone.
RCM | Earthquake Economics: The Vew from the Epicenter
The essence of President Obama's economic policy is to go around smashing people's windows (and shattering the value of our dollars), in the hope that he can get the economy moving by stimulating business for the world's glass-makers. Call it Earthquake Economics.
Blogs
Cato Institute | Forced Mortgage Refinance Does Not Create Wealth
What again is the great tragedy of borrowers being stuck with mortgage rates of 5.5 or 6.0 percent? Those are quite low by historical standards. And if the borrower wanted their rate to decline when overall rates decline, they should have taken out an adjustable rate mortgage.
Cato Institute | Small Business Administration to Close?
Unfortunately, Burr’s legislation does not close the SBA. It merely combines the SBA, the Department of Commerce, and the Department of Labor into one bigger bureaucracy that would be known as the “Department of Commerce and the Workforce.”
Health Care
News
National Journal | Vaccines Cause Few Health Problems, Expert Panel Reports
"The findings should be reassuring to parents that few health problems are clearly connected to immunizations, and these effects occur relatively rarely,” Ellen Wright Clayton, professor of pediatrics and law at Vanderbilt University in Nashville, Tenn., said in a statement.
Econ Comments
Econlog | Poor Have Higher Time Values than We Thought
What I call health policy orthodoxy is committed to two propositions: (1) The really important health issue for poor people is access to care and (2) to insure [sic] access, waiting for care is always better that paying for care. In other words, if you have to ration scarce medical resources somehow, rationing by waiting is always better than rationing by price.
Heritage Foundation | Employers Consider Dropping Health Coverage Under Obamacare
Reports from employers continue to belie President Obama’s repeated insistence that, under his new health care law, Americans would not lose their employer-provided health insurance coverage. A new survey shows that more than one in ten midsized and large employers are at least “somewhat likely” to drop their health coverage once Obamacare’s “exchanges” go into effect in 2014.
National Journal | Vaccines Cause Few Health Problems, Expert Panel Reports
"The findings should be reassuring to parents that few health problems are clearly connected to immunizations, and these effects occur relatively rarely,” Ellen Wright Clayton, professor of pediatrics and law at Vanderbilt University in Nashville, Tenn., said in a statement.
Econ Comments
Econlog | Poor Have Higher Time Values than We Thought
What I call health policy orthodoxy is committed to two propositions: (1) The really important health issue for poor people is access to care and (2) to insure [sic] access, waiting for care is always better that paying for care. In other words, if you have to ration scarce medical resources somehow, rationing by waiting is always better than rationing by price.
Heritage Foundation | Employers Consider Dropping Health Coverage Under Obamacare
Reports from employers continue to belie President Obama’s repeated insistence that, under his new health care law, Americans would not lose their employer-provided health insurance coverage. A new survey shows that more than one in ten midsized and large employers are at least “somewhat likely” to drop their health coverage once Obamacare’s “exchanges” go into effect in 2014.
Monetary
News
Market Watch | 5 questions Bernanke’s speech may answer
Game time for Federal Reserve Chairman Ben Bernanke’s speech in Jackson Hole, Wyo. is 10 a.m. Eastern Friday. Here’s what to look for in the speech by the world’s most important central banker.
Bloomberg | Bernanke Is Unlikely to Promise New Action by the Fed
Fed Chairman Ben Bernanke is unlikely to use his speech Friday at the Federal Reserve's annual Jackson Hole, Wyo., conclave to unveil new efforts to bolster the U.S. economy—despite financial markets' lingering hopes that he will.
Econ Comments
WSJ | The Fed vs. the Recovery
How is increasing the price of imported oil and industrial commodities supposed to make U.S. industry more competitive?
CNBC | Fed Too Pessimistic, More Easing Not Needed: Plosser
"Monetary policy should be dictated on the state of the economy, not on the calendar. A lot can happen in two years," Plosser said. "I think we need to be clear about conditioning our actions on how the economy evolves...I didn't think it was a well-crafted communication strategy that we used."
Cato Institute | The Federal Reserve's Flawed Approach To Monetary Policy
Printing money is not a panacea for the ailing U.S. economy. The unemployment/slow growth quandary is due to structural problems and to policy uncertainty, not to the lack of monetary stimulus.
Market Watch | 5 questions Bernanke’s speech may answer
Game time for Federal Reserve Chairman Ben Bernanke’s speech in Jackson Hole, Wyo. is 10 a.m. Eastern Friday. Here’s what to look for in the speech by the world’s most important central banker.
Bloomberg | Bernanke Is Unlikely to Promise New Action by the Fed
Fed Chairman Ben Bernanke is unlikely to use his speech Friday at the Federal Reserve's annual Jackson Hole, Wyo., conclave to unveil new efforts to bolster the U.S. economy—despite financial markets' lingering hopes that he will.
Econ Comments
WSJ | The Fed vs. the Recovery
How is increasing the price of imported oil and industrial commodities supposed to make U.S. industry more competitive?
CNBC | Fed Too Pessimistic, More Easing Not Needed: Plosser
"Monetary policy should be dictated on the state of the economy, not on the calendar. A lot can happen in two years," Plosser said. "I think we need to be clear about conditioning our actions on how the economy evolves...I didn't think it was a well-crafted communication strategy that we used."
Cato Institute | The Federal Reserve's Flawed Approach To Monetary Policy
Printing money is not a panacea for the ailing U.S. economy. The unemployment/slow growth quandary is due to structural problems and to policy uncertainty, not to the lack of monetary stimulus.
Taxes
News
MarketWatch | Tax deadline looms for people with money overseas
If you have a bank account or other assets overseas that you’ve failed to report to the IRS, you’re almost out of time to take part in an amnesty program that could help you avoid steep tax penalties.
Fox Business | Snapshot: Taxes We Paid Then vs. Now
However, to get the full impact of what we are paying tax wise, we should include all the other taxes that we now pay that were unheard of back in the day.
Econ Comments
Washington Times | LAMBRO: Taxing time for business
Obama ties down commerce with heavy levies.
MarketWatch | Tax deadline looms for people with money overseas
If you have a bank account or other assets overseas that you’ve failed to report to the IRS, you’re almost out of time to take part in an amnesty program that could help you avoid steep tax penalties.
Fox Business | Snapshot: Taxes We Paid Then vs. Now
However, to get the full impact of what we are paying tax wise, we should include all the other taxes that we now pay that were unheard of back in the day.
Econ Comments
Washington Times | LAMBRO: Taxing time for business
Obama ties down commerce with heavy levies.
Employment
News
CNN Money | Halliburton adding 11,000 jobs, mostly in North Dakota
Halliburton is on a hiring spree this year, planning to create as many 15,000 jobs globally, including 11,000 in North America.
Econ Comments
Washington Times | COLE: A ‘free lunch’ for small business
Exempting costs of hiring first employee would create millions of jobs.
WSJ | The Importance of Jobs
Apple's former CEO, Say's Law, and the sources of prosperity.
Washington Times | MILLER: A reptile messes with Texas
Obama cares more about sagebrush lizards than jobs.
Blogs
American: Enterprise Blog | Some But Not All Female Health Workers Also Have Margin of Advantage in Unemployment
Last week, I pointed out that for almost 50 years, unemployment rates among males working in hospitals or other parts of the health services industry have been lower than for their counterparts in the rest of the economy. The pattern for women, however, is far different.
CNN Money | Halliburton adding 11,000 jobs, mostly in North Dakota
Halliburton is on a hiring spree this year, planning to create as many 15,000 jobs globally, including 11,000 in North America.
Econ Comments
Washington Times | COLE: A ‘free lunch’ for small business
Exempting costs of hiring first employee would create millions of jobs.
WSJ | The Importance of Jobs
Apple's former CEO, Say's Law, and the sources of prosperity.
Washington Times | MILLER: A reptile messes with Texas
Obama cares more about sagebrush lizards than jobs.
Blogs
American: Enterprise Blog | Some But Not All Female Health Workers Also Have Margin of Advantage in Unemployment
Last week, I pointed out that for almost 50 years, unemployment rates among males working in hospitals or other parts of the health services industry have been lower than for their counterparts in the rest of the economy. The pattern for women, however, is far different.
Budget
Econ Comments
Washington Times | HANSON: If at first you don’t succeed, try trillions again
True believers won’t admit government spending doesn’t work
Washington Times | HANSON: If at first you don’t succeed, try trillions again
True believers won’t admit government spending doesn’t work
Thursday, August 25, 2011
General Economics
News
Market Watch | Get ready for a double-dip recession
Economists and strategists are increasingly predicting another recession. But they’re also getting prepared, with strategies that include a balanced approach and European and Asian ETF plays.
CNN: Money | Foreclosure settlement: Spat among the states
A deal to help victims of improper foreclosures has been slow going, in large part because of infighting among state attorneys general over giving banks a free pass from future lawsuits.
Fox News | Financial turmoil intensifies home buyers' anxiety
Part of the problem is that many people can't buy even if they want to. More than 23 percent of homeowners owe more on their homes than they're worth. An additional 25 percent have less than 20 percent equity in their homes, according to Capital Economics.
Washington Times | After earthquake, homeowners find insurance policies lack coverage
The 5.8 magnitude quake - the largest in this region in more than a century - served as a rattling awakening for many homeowners in the Washington area, who assumed they were covered.
Econ Comments
Fox Business | Congress: Economic Illiterates
Politicians mess with the economy. They create tens of thousands of pages of burdensome regulations every year. They pass ""stimulus"" bills that they promise will reduce unemployment. They pass a health care law that's more than a thousand pages, and give "waivers" to politically connected unions and corporations.
WSJ | Business Regulation vs. Growth: The View from Middle America
It has become clear that the Sarbanes-Oxley Act has been a real deterrent to companies that would like to go public.
RCM | Getting Real On Immigration
Congress shows no signs of passing legislation to fix our convoluted immigration laws. Indeed, despite much discussion on Capitol Hill and much public debate, Congress has passed no broad revision of immigration law since the 1990s.
WSJ | Fairness Doctrine, R.I.P.
A good deed from the FCC.
Cato Institute | Squaring the U.S., China, Taiwan Triangle
Washington should help Taipei defend itself. Peace is in the interest of Taiwan, China and the U.S. Washington should maintain a good relationship with China. And continuing arms sales to Taipei may be the best means to preserve stability and peace across the Taiwan Strait.
Blogs
Atlantic: Megan McArdle | Welfare Reform: The Downside
Since the social service system was manifestly not good at distinguishing those who were capable of working, and those who weren't, before reform changed the incentives, we are stuck with a choice between false positives and false negatives.
Heritage Foundation | Jones Act Oil Waiver Symptom of Regulatory Overload
The Obama Administration’s decision to waive provisions of the Jones Act last month when releasing oil from the Strategic Petroleum Reserve is typical of this Administration’s disregard for the principle of equal protection under the law when it becomes too inconvenient.
Café Hayek | Not a Novel Question, but One Worth Asking Again and Again
If human choices and actions in private settings are so heavily influenced by animal spirits that the economy is often significantly damaged by their musings and muckings around, aren’t human choices and actions in political settings at least equally influenced by these same animal spirits – and, hence, isn’t political activity at least equally distorted by these unpredictable poltergeists?
Reports
RCM: Wells Fargo | Are We Headed for Another Global Recession?
Financial markets have encountered significant volatility recently due to a cocktail of negative news that includes Standard and Poor’s downgrade of U.S. government debt, the continuing saga of the European sovereign debt crisis and fears of a double-dip recession in the United States.
CBO | Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output from April 2011 Through June 2011
The American Recovery and Reinvestment Act of 2009 (ARRA) contains provisions that are intended to boost economic activity and employment in the United States. Section 1512(e) of the law requires the Congressional Budget Office (CBO) to comment on reports filed by recipients of ARRA funding that detail the number of jobs funded through their activities.
Market Watch | Get ready for a double-dip recession
Economists and strategists are increasingly predicting another recession. But they’re also getting prepared, with strategies that include a balanced approach and European and Asian ETF plays.
CNN: Money | Foreclosure settlement: Spat among the states
A deal to help victims of improper foreclosures has been slow going, in large part because of infighting among state attorneys general over giving banks a free pass from future lawsuits.
Fox News | Financial turmoil intensifies home buyers' anxiety
Part of the problem is that many people can't buy even if they want to. More than 23 percent of homeowners owe more on their homes than they're worth. An additional 25 percent have less than 20 percent equity in their homes, according to Capital Economics.
Washington Times | After earthquake, homeowners find insurance policies lack coverage
The 5.8 magnitude quake - the largest in this region in more than a century - served as a rattling awakening for many homeowners in the Washington area, who assumed they were covered.
Econ Comments
Fox Business | Congress: Economic Illiterates
Politicians mess with the economy. They create tens of thousands of pages of burdensome regulations every year. They pass ""stimulus"" bills that they promise will reduce unemployment. They pass a health care law that's more than a thousand pages, and give "waivers" to politically connected unions and corporations.
WSJ | Business Regulation vs. Growth: The View from Middle America
It has become clear that the Sarbanes-Oxley Act has been a real deterrent to companies that would like to go public.
RCM | Getting Real On Immigration
Congress shows no signs of passing legislation to fix our convoluted immigration laws. Indeed, despite much discussion on Capitol Hill and much public debate, Congress has passed no broad revision of immigration law since the 1990s.
WSJ | Fairness Doctrine, R.I.P.
A good deed from the FCC.
Cato Institute | Squaring the U.S., China, Taiwan Triangle
Washington should help Taipei defend itself. Peace is in the interest of Taiwan, China and the U.S. Washington should maintain a good relationship with China. And continuing arms sales to Taipei may be the best means to preserve stability and peace across the Taiwan Strait.
Blogs
Atlantic: Megan McArdle | Welfare Reform: The Downside
Since the social service system was manifestly not good at distinguishing those who were capable of working, and those who weren't, before reform changed the incentives, we are stuck with a choice between false positives and false negatives.
Heritage Foundation | Jones Act Oil Waiver Symptom of Regulatory Overload
The Obama Administration’s decision to waive provisions of the Jones Act last month when releasing oil from the Strategic Petroleum Reserve is typical of this Administration’s disregard for the principle of equal protection under the law when it becomes too inconvenient.
Café Hayek | Not a Novel Question, but One Worth Asking Again and Again
If human choices and actions in private settings are so heavily influenced by animal spirits that the economy is often significantly damaged by their musings and muckings around, aren’t human choices and actions in political settings at least equally influenced by these same animal spirits – and, hence, isn’t political activity at least equally distorted by these unpredictable poltergeists?
Reports
RCM: Wells Fargo | Are We Headed for Another Global Recession?
Financial markets have encountered significant volatility recently due to a cocktail of negative news that includes Standard and Poor’s downgrade of U.S. government debt, the continuing saga of the European sovereign debt crisis and fears of a double-dip recession in the United States.
CBO | Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output from April 2011 Through June 2011
The American Recovery and Reinvestment Act of 2009 (ARRA) contains provisions that are intended to boost economic activity and employment in the United States. Section 1512(e) of the law requires the Congressional Budget Office (CBO) to comment on reports filed by recipients of ARRA funding that detail the number of jobs funded through their activities.
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