News
Bloomberg | U.S. Corporate Profit Growth Slows as Europe Drags
U.S. corporations ended 2011 with the slowest profit growth in two years as the mending economy that lifted Macy’s Inc. (M) was met by a European slump that vexed companies more tied to global sales, such as Cisco Systems Inc.
CNN: Money | Washington, D.C. leads U.S. in attracting new residents
Often, people go where the jobs are. As unemployment soared throughout most of the nation over the past four years, jobs were being created in or near D.C., thanks to one big employer: The government.
Econ Comments
Washington Times | MICHAELS: A sustainable depression
Governments find inefficient renewable energy is unaffordable.
National Journal | QUICK TAKE: Obama to Propose Raise in Federal Worker Pay
A senior administration official familiar with Obama’s 2013 budget says the proposal will include a raise in pay for federal workers. The increase is marginal—only 0.5 percent—but, if passed by Congress, would mark the first pay raise the federal government has seen since 2010 when Obama ordered a two-year freeze.
WSJ | Time for a China-U.S. Free Trade Agreement
China does not have to invest here, but it is to America's advantage.
RCM | What Politicians Can Do to Help the Economy
In reality, there is an awful lot that our political leaders can do to help the economy. The problem is that what they can do is the opposite of what they want to do. What they can do, to borrow a line from Ayn Rand's Atlas Shrugged, is to get the hell out of our way.
Blogs
Heritage Foundation | Wage and Price Stickiness and Economic Recovery
In a weak economy, the government should not erect barriers to hiring. But two government policies have hindered the already slow recovery: increases in the minimum wage and government unionization.
Mercatus Center | Why Would Light Bulb Manufacturers Want to Be Regulated?
Last weekend, Congress passed a trillion-dollar budget bill. Among its provisions, plenty of things not related to spending. One of these so-called riders is aimed at saving the hundred-watt incandescent light bulb.
Econlog | Wilkinson, Rogoff, and the Presumption in Favor of Economic Growth
If something seems extremely good, you need a let more than "coulds" to counter it. Indeed, you need strong evidence that side effects of the seemingly-extremely good-thing are on balance extremely bad.
Coordination Problem | What Remains of the Consensus in Macroeconomics?
Economics is constantly evolving as any science must, but the hard-core of the discipline is not. It is this hard-core that I often describe as mainline economics -- in juxtaposition to mainstream.
WSJ: Real Time Economics | Household Income Creeping Up
Here’s another glimmer of good news about the state of the U.S. economy: Household income is creeping up, notching a third consecutive month of gains in November.
Calculated Risk | Schedule for Week of Jan 8th
Retail sales and the trade balance report are the key economic releases this week. Consumer sentiment might recover some more in early January. Also several regional Fed presidents are scheduled to speak this week.
Ecolong | Bryan Caplan on Income Inequality
In the 1970s, when oil companies with large inventories of crude oil were being lambasted because of their record profits, politicians excoriated oil-company officials, hauling them before Congress to explain themselves.
Calculated Risk | Unofficial Problem Bank list declines to 970 institutions
At year-end 2011, the Unofficial Problem Bank List included 970 institutions with assets of $391.2.
AEI: American | Are we headed for a ‘Recovery Winter?’
More jobs would not only be good for American workers, of course, but also for President Obama’s reelection chances. A strong jobs number tomorrow from the Labor Department, along with a 3 percent-plus GDP number for the fourth quarter, would certainly tempt Team Obama to adopt a more optimistic tone on the economy.
WSJ: Real Time Economics | Fewer Kids in the U.S.
The U.S. minor population fell in the 1970s as well, as baby boomers moved into adulthood and women entered the labor force en masse, delaying families in the process. A large drop in fertility was also behind a decline in minors between 1920 and 1930.
Daily Capitalist | How To Cure A (Our) Depression
If government wishes to alleviate, rather than aggravate, a depression, its only valid course is laissez-faire-to leave the economy alone. Only if there is no interference, direct or threatened, with prices, wage rates, and business liquidation will the necessary adjustment proceed with smooth dispatch.
WSJ: Real Time Economics | Number of the Week: Americans’ Cheaper Restaurant Bills
Americans spend less per visit to restaurants than most other major industrialized countries, according to data compiled by market research firm NPD Group.
Reports
CRS | U.S. Manufacturing in International Perspective
The health of the U.S. manufacturing sector has long been of great concern to Congress. The decline in manufacturing employment since the start of the 21st century has stimulated particular congressional interest. Members have introduced hundreds of bills intended to support domestic manufacturing activity in various ways.
