News
CNN Money | Gas prices spike 8% in February
February has been one heck of a month for American motorists, who have been hit with an 8% spike in the price of gas. And things are expected to get worse during the summer driving season, when gas prices could break their current record.
Washington Times | Consumers upbeat despite reports
The U.S. economy sent some mixed signals on growth Tuesday, with bad news on housing prices and durable goods orders, but consumer confidence jumping to its highest level in years and the Dow Jones index closing above 13,000 for the first time since May 2008.
WSJ | U.S. Growth Revised Up
The U.S. economy grew faster than initially thought as the recovery picked up steam in the during the final quarter of last year.
CNBC | What Can US Do to Halt Rising Gas Prices? Not Much
Rising gas prices are always a bad thing for an incumbent president, especially one heading into a tough re-election battle.
Econ Comments & Analysis
CATO | Don't Blame the Depression on the Gold Standard -- But Don't Expect It Back Either
Two of America’s Republican candidates — Newt Gingrich and Ron Paul — have dared to toy with the idea of bringing back the gold standard.
WSJ | Geithner and the 'Privilege' of Being American
Last week Treasury Secretary Tim Geithner said that the "most fortunate Americans" should pay more in taxes for the "privilege of being an American."
Washington Times | Keystone XL rejection weakens America and strengthens her enemies
The United States is by far the world’s leading oil importer. Thus, it follows that when the price of oil goes up, our economy is severely taxed and, therefore, it goes down. Indeed, every oil price increase for the past four decades, including those in 1973, 1979, 1991, 2001 and 2008, has been followed shortly afterward by a sharp rise in American unemployment.
Forbes | The "On Your Own" Economy
“From cradle to grave.” So goes the motto of the entitlement state, whose creator Otto von Bismarck said: “Give the working-man the right to work as long as he is healthy, assure him care when he is sick, assure him maintenance when he is old.”
Washington Times | Natural gas export ban would be costly
Despite the private sector’s willingness to invest billions of dollars in our country to develop the physical infrastructure necessary to export this “made in the USA” product, some in Washington are seeking to derail this economic boost by encouraging denial of export permits by the Obama administration’s Department of Energy.
WSJ | Money-Market Funds Aren't What You Think
The Securities and Exchange Commission is reportedly finishing a proposal to increase regulation on money-market funds, the $2.7 trillion industry that provides corporations with an important short-term funding source and individuals and institutions with an alternative to traditional bank deposits.
Blogs
Heritage Foundation | Wind Subsidies vs. Oil Subsidies
In sharp contrast to wind turbines, the wind lobby is spinning at 100 percent capacity—in order to keep the industry in the taxpayers’ pockets. Their dizzying logic makes you wonder if they have been riding the blades instead of examining the facts.
Library of Economics | Peter Thiel on Regulation and Progress
Peter Thiel gave an interesting talk at the International Students for Liberty Conference earlier this month. In it, he claimed that few sectors other than the relatively unregulated IT sector have had substantial progress decade by decade.
The American | Everything you need to know about the power of economic freedom in 3 charts
The West was quite poor heading into the 1700s and then it got richer. A lot richer. Real fast. Its embrace of economic freedom and creative destruction, both legally and culturally—what economist Deirdre McCloskey calls the idea of bourgeois dignity and liberty—led to a rise in real income per head in 2010 prices from about $2-3 a day in 1800 worldwide to over $100 today.
Library of Economics | How Real Wage Increases Have Been Understated
Over the years, In discussing the alleged decline in real U.S. median wages, I've pointed out that there are two important ways in which the growth in real wages has been understated
Wednesday, February 29, 2012
Health Care
News
CNN Money | Feds level charges in largest Medicare fraud
Dr. Jacques Roy, a Dallas area physician, allegedly led a scheme that bilked Medicare for nearly $375 million over five years, in the largest healthcare fraud committed in the United States, federal authorities announced Tuesday.
Econ Comments & Analysis
CATO | Sickening Regulation
The Department of Health and Human Services has announced that it must delay implementation of new reimbursement codes for Medicare. Those new regulations would have increased the total number of reimbursement codes from the current 18,000 to more than 140,000 separate codes.
Heritage Foundation | The "Doc Fix" Dilemma Calls for Immediate Medicare Reforms
Once again, Congress stopped a scheduled 27 percent payment cut to physicians who serve Medicare patients. This frequent exercise serves as a perfect example for the need to move Medicare away from its current price-control model toward a market-based, premium support model.
CNN Money | Feds level charges in largest Medicare fraud
Dr. Jacques Roy, a Dallas area physician, allegedly led a scheme that bilked Medicare for nearly $375 million over five years, in the largest healthcare fraud committed in the United States, federal authorities announced Tuesday.
Econ Comments & Analysis
CATO | Sickening Regulation
The Department of Health and Human Services has announced that it must delay implementation of new reimbursement codes for Medicare. Those new regulations would have increased the total number of reimbursement codes from the current 18,000 to more than 140,000 separate codes.
Heritage Foundation | The "Doc Fix" Dilemma Calls for Immediate Medicare Reforms
Once again, Congress stopped a scheduled 27 percent payment cut to physicians who serve Medicare patients. This frequent exercise serves as a perfect example for the need to move Medicare away from its current price-control model toward a market-based, premium support model.
Monetary
News
Market Watch | ECB allots $713 billion to banks in LTRO
European banks grabbed a larger-than-expected 529.5 billion euros ($713.4 billion) in cheap loans Wednesday, in the European Central Bank’s second and possibly last long-term refinancing operation.
CNN Money | Fed turns $2.8 billion profit on AIG bonds
"The completion of the sale of the Maiden Lane II portfolio has resulted in significant gains for the public and marks an important milestone in the wind-down of the extraordinary interventions necessitated by the financial crisis," William Dudley, president of the New York Fed, said in a statement.
Politico | Federal Reserve should focus more on inflation, bill says
Arguing that Federal Reserve Chairman Ben Bernanke isn’t taking the threat of inflation seriously enough, Rep. Kevin Brady (R-Texas) is building support for a bill that would make managing inflation the central bank’s sole mission.
Market Watch | ECB allots $713 billion to banks in LTRO
European banks grabbed a larger-than-expected 529.5 billion euros ($713.4 billion) in cheap loans Wednesday, in the European Central Bank’s second and possibly last long-term refinancing operation.
CNN Money | Fed turns $2.8 billion profit on AIG bonds
"The completion of the sale of the Maiden Lane II portfolio has resulted in significant gains for the public and marks an important milestone in the wind-down of the extraordinary interventions necessitated by the financial crisis," William Dudley, president of the New York Fed, said in a statement.
Politico | Federal Reserve should focus more on inflation, bill says
Arguing that Federal Reserve Chairman Ben Bernanke isn’t taking the threat of inflation seriously enough, Rep. Kevin Brady (R-Texas) is building support for a bill that would make managing inflation the central bank’s sole mission.
Taxes
News
Bloomberg | Obama Plan Uses Three Numbers With Four Definitions for $250,000 Tax Line
Obama’s simple 2008 campaign pledge to prevent tax increases for all but the highest earners has been transformed into tax-code arcana. The dividing line in his speeches - -$250,000 a year for married couples and $200,000 for individuals -- is established in his policies with four separate definitions and three different numbers.
Politico | Hill weighs tax trade-offs
To judge from the Republican presidential field, the answer is “no.” But converging political and economic forces could yet lead to a swap: raising capital gains and dividend rates for shareholders while lowering the corporate rate to help U.S. companies compete in global markets.
National Journal | Donovan Says Bank Tax Could Be Dropped to Advance Refi Plan
The administration would consider other ways to pay for the latest effort to improve the housing market by broadening refinancing opportunities, Housing and Urban Development Department Secretary Shaun Donovan said on Wednesday.
Econ Comments & Analysis
Washington Times | Virginia’s taxing governor
With the Republican National Convention less than six months away, candidates vying for the GOP nod are starting to give thought to possible running mates. In discussions of how best to achieve geographic and ideological balance on a ticket, Virginia Gov. Bob McDonnell’s name frequently pops up. Based on his recent actions, it shouldn’t.
WSJ | The Other GM Bailout
President Obama appeared at a United Auto Workers tent revival meeting Tuesday, and he made several notable claims. Critics of the Detroit bailout of 2008-09 are motivated, apparently, by their antipathy to American workers. The alternative to a government rescue was letting the entire auto industry "die." But one particular claim stood out.
AEI | Puzzling cheers for higher taxes
I have long been puzzled by the enthusiasm with which many young liberal bloggers cheer on proposals to raise tax rates on high earners. I can understand why they might favor them, but not why they seem to invest so much psychic energy in the issue.
CATO | Spain Becomes One of Europe's Highest Taxed Countries
The main reason for the tax hikes, according to Spain's new leadership, was that the government would miss its budget deficit target for 2011. While the previous Socialist Party government had promised the figure would be 6 percent of GDP, the revised data showed a budget deficit of 8 percent, a difference of approximately 20 billion euros ($26.3 billion).
CATO | Minnesota's Cigarette Tax: Trouble from the Beginning
Earlier this month, the federal Bureau of Alcohol, Tobacco, Firearms and Explosives announced that it had broken up a ring that smuggled millions of packs of cigarettes from Virginia to New Jersey, where state officials estimate that bootleg cigarettes constitute 40 percent of the market.
Bloomberg | Obama Plan Uses Three Numbers With Four Definitions for $250,000 Tax Line
Obama’s simple 2008 campaign pledge to prevent tax increases for all but the highest earners has been transformed into tax-code arcana. The dividing line in his speeches - -$250,000 a year for married couples and $200,000 for individuals -- is established in his policies with four separate definitions and three different numbers.
Politico | Hill weighs tax trade-offs
To judge from the Republican presidential field, the answer is “no.” But converging political and economic forces could yet lead to a swap: raising capital gains and dividend rates for shareholders while lowering the corporate rate to help U.S. companies compete in global markets.
National Journal | Donovan Says Bank Tax Could Be Dropped to Advance Refi Plan
The administration would consider other ways to pay for the latest effort to improve the housing market by broadening refinancing opportunities, Housing and Urban Development Department Secretary Shaun Donovan said on Wednesday.
Econ Comments & Analysis
Washington Times | Virginia’s taxing governor
With the Republican National Convention less than six months away, candidates vying for the GOP nod are starting to give thought to possible running mates. In discussions of how best to achieve geographic and ideological balance on a ticket, Virginia Gov. Bob McDonnell’s name frequently pops up. Based on his recent actions, it shouldn’t.
WSJ | The Other GM Bailout
President Obama appeared at a United Auto Workers tent revival meeting Tuesday, and he made several notable claims. Critics of the Detroit bailout of 2008-09 are motivated, apparently, by their antipathy to American workers. The alternative to a government rescue was letting the entire auto industry "die." But one particular claim stood out.
AEI | Puzzling cheers for higher taxes
I have long been puzzled by the enthusiasm with which many young liberal bloggers cheer on proposals to raise tax rates on high earners. I can understand why they might favor them, but not why they seem to invest so much psychic energy in the issue.
CATO | Spain Becomes One of Europe's Highest Taxed Countries
The main reason for the tax hikes, according to Spain's new leadership, was that the government would miss its budget deficit target for 2011. While the previous Socialist Party government had promised the figure would be 6 percent of GDP, the revised data showed a budget deficit of 8 percent, a difference of approximately 20 billion euros ($26.3 billion).
CATO | Minnesota's Cigarette Tax: Trouble from the Beginning
Earlier this month, the federal Bureau of Alcohol, Tobacco, Firearms and Explosives announced that it had broken up a ring that smuggled millions of packs of cigarettes from Virginia to New Jersey, where state officials estimate that bootleg cigarettes constitute 40 percent of the market.
Employment
News
WSJ | U.S. Pushes Target for Hiring the Disabled
Employers and business groups are trying to stop an Obama administration effort that calls for federal contractors to hire a minimum number of disabled workers and could penalize those who don't by revoking their contracts.
Bloomberg | Germany’s Jobless Rate Lowest in Two Decades
Germany’s unemployment held at the lowest in more than two decades in February, adding to signs Europe’s largest economy is regaining some strength after shrinking in the fourth quarter.
Econ Comments & Analysis
Real Clear Markets | Growing List of Winners, Losers Among the States
When the jobs economy was still humming along back in February of 2007, the performance of individual states seemed relatively uniform.
WSJ | U.S. Pushes Target for Hiring the Disabled
Employers and business groups are trying to stop an Obama administration effort that calls for federal contractors to hire a minimum number of disabled workers and could penalize those who don't by revoking their contracts.
Bloomberg | Germany’s Jobless Rate Lowest in Two Decades
Germany’s unemployment held at the lowest in more than two decades in February, adding to signs Europe’s largest economy is regaining some strength after shrinking in the fourth quarter.
Econ Comments & Analysis
Real Clear Markets | Growing List of Winners, Losers Among the States
When the jobs economy was still humming along back in February of 2007, the performance of individual states seemed relatively uniform.
Budget
Econ Comments & Analysis
Washington Times | Congress needs rehab
In treating addiction, experts say admitting there is a problem is the first step to recovery. Steps Two through 12 require stopping the drug of choice and taking action not to start again.
Heritage Foundation | President Obama’s 2013 Budget Delivers Tax Hikes, More Spending, More Debt
The President’s 2013 budget, released on February 13, repeats the stale and unsuccessful policies of the past three years. The Administration’s apparent vision is one of bigger government, more spending, higher taxes, and deeper deficits. At a time when runaway spending and swelling deficits must be reversed, President Obama increases both
Washington Times | Congress needs rehab
In treating addiction, experts say admitting there is a problem is the first step to recovery. Steps Two through 12 require stopping the drug of choice and taking action not to start again.
Heritage Foundation | President Obama’s 2013 Budget Delivers Tax Hikes, More Spending, More Debt
The President’s 2013 budget, released on February 13, repeats the stale and unsuccessful policies of the past three years. The Administration’s apparent vision is one of bigger government, more spending, higher taxes, and deeper deficits. At a time when runaway spending and swelling deficits must be reversed, President Obama increases both
Tuesday, February 28, 2012
General Economics
News
CNN Money | FHA to hike premiums on mortgages
In an effort to bolster its capital reserves, the Federal Housing Administration is planning to hike the insurance premiums it charges borrowers.
Market Watch | Orders for big-ticket items fall 4% in January
Orders for long-lasting U.S. goods fell a bigger-than-expected 4.0% in January, as demand for a broad array of products declined, the government reported Tuesday.
USA Today | 3 doomsaying experts who foresee economic devastation ahead
Behind the mainstream Wall Street happy talk about more stable financial markets and an improving economy are grim warnings of tough times ahead from a small cadre of doomsayers who warn that the worst of the financial crisis is still to come.
CNN Money | Water bills expected to triple in some parts of U.S.
Many consumers could see their water bills double or even triple, as the country attempts to overhaul its aging water system over the next 25 years.
NY Times | TransCanada Renewing Request to Build Keystone Pipeline
TransCanada said Monday that it would reapply for a permit to build the Keystone XL pipeline from Canadian oil sands formations in Alberta to refineries on the Gulf of Mexico, assuring that the fiercely contested project will remain a source of political heat throughout the presidential campaign.
CNN Money | Strategic oil reserve tap offers only a little relief
When gas prices are climbing, as they are now, there's an equivalent surge in talk of tapping the nation's Strategic Petroleum Reserve
Bloomberg | European Economic Confidence Beats Estimates
Economic confidence in the euro area improved more than forecast in February, adding to signs the economy is stabilizing after a fourth-quarter contraction.
Econ Comments & Analysis
Daily Caller | Government cannot be run like a business
Despite his big-government record as a governor, Mitt Romney has run for president as a conservative who would allow the free market to work. To bolster his credibility, he points to his success as CEO of Bain Capital. Romney led that company to become one of the largest and most successful private equity investment firms in the nation.
Politico | JOBS Act just what Obama ordered
America has always offered immense opportunity because innovators have had the ability to take risks, work hard and be rewarded for it. Innovators, entrepreneurs and small-business people built the framework for American success, creating legacies lasting generations.
Blogs
Café Hayek | Gifts Do Not Cause Wages to Rise
So here’s why – referring to my earlier post – success by the University of Virginia’s hunger-striking students to pressure that institution to arbitrarily raise the wages that it pays to its janitors would not put upward pressure on wage rates for non-UVA-employed janitors and other low-wage workers: any such increase in wages would do nothing to increase the demand for janitors and other low-skilled workers
Heritage Foundation | Subsidies and Costs in the Solar Industry
According to Germany’s environment minister, Norbert Roettgen, “Solar is a success story made in Germany.” “Success” appears to mean having the world’s largest amount of ridiculously overpriced electricity. (The German subsidy for solar energy is up to five times the actual wholesale cost in the U.S.)
CNN Money | FHA to hike premiums on mortgages
In an effort to bolster its capital reserves, the Federal Housing Administration is planning to hike the insurance premiums it charges borrowers.
Market Watch | Orders for big-ticket items fall 4% in January
Orders for long-lasting U.S. goods fell a bigger-than-expected 4.0% in January, as demand for a broad array of products declined, the government reported Tuesday.
USA Today | 3 doomsaying experts who foresee economic devastation ahead
Behind the mainstream Wall Street happy talk about more stable financial markets and an improving economy are grim warnings of tough times ahead from a small cadre of doomsayers who warn that the worst of the financial crisis is still to come.
CNN Money | Water bills expected to triple in some parts of U.S.
Many consumers could see their water bills double or even triple, as the country attempts to overhaul its aging water system over the next 25 years.
NY Times | TransCanada Renewing Request to Build Keystone Pipeline
TransCanada said Monday that it would reapply for a permit to build the Keystone XL pipeline from Canadian oil sands formations in Alberta to refineries on the Gulf of Mexico, assuring that the fiercely contested project will remain a source of political heat throughout the presidential campaign.
CNN Money | Strategic oil reserve tap offers only a little relief
When gas prices are climbing, as they are now, there's an equivalent surge in talk of tapping the nation's Strategic Petroleum Reserve
Bloomberg | European Economic Confidence Beats Estimates
Economic confidence in the euro area improved more than forecast in February, adding to signs the economy is stabilizing after a fourth-quarter contraction.
Econ Comments & Analysis
Daily Caller | Government cannot be run like a business
Despite his big-government record as a governor, Mitt Romney has run for president as a conservative who would allow the free market to work. To bolster his credibility, he points to his success as CEO of Bain Capital. Romney led that company to become one of the largest and most successful private equity investment firms in the nation.
Politico | JOBS Act just what Obama ordered
America has always offered immense opportunity because innovators have had the ability to take risks, work hard and be rewarded for it. Innovators, entrepreneurs and small-business people built the framework for American success, creating legacies lasting generations.
Blogs
Café Hayek | Gifts Do Not Cause Wages to Rise
So here’s why – referring to my earlier post – success by the University of Virginia’s hunger-striking students to pressure that institution to arbitrarily raise the wages that it pays to its janitors would not put upward pressure on wage rates for non-UVA-employed janitors and other low-wage workers: any such increase in wages would do nothing to increase the demand for janitors and other low-skilled workers
Heritage Foundation | Subsidies and Costs in the Solar Industry
According to Germany’s environment minister, Norbert Roettgen, “Solar is a success story made in Germany.” “Success” appears to mean having the world’s largest amount of ridiculously overpriced electricity. (The German subsidy for solar energy is up to five times the actual wholesale cost in the U.S.)
Health Care
News
National Journal | Sebelius on Benefits: State Offerings Don't Vary Much
Health and Human Services Secretary Kathleeen Sebelius defended her decision to let states decide what essential health benefits to offer as part of health insurance plans on Tuesday, saying that the plans varied little.
Blogs
Heritage Foundation | Obamacare’s Top 5 Broken Promises
Talking about his health care law, President Obama has said, “If you misrepresent what’s in this plan, we will call you out.” In keeping with that spirit, below is a list of Obamacare’s top five biggest broken promises
National Journal | Sebelius on Benefits: State Offerings Don't Vary Much
Health and Human Services Secretary Kathleeen Sebelius defended her decision to let states decide what essential health benefits to offer as part of health insurance plans on Tuesday, saying that the plans varied little.
Blogs
Heritage Foundation | Obamacare’s Top 5 Broken Promises
Talking about his health care law, President Obama has said, “If you misrepresent what’s in this plan, we will call you out.” In keeping with that spirit, below is a list of Obamacare’s top five biggest broken promises
Monetary
Econ Comments & Analysis
Washington Times | Fixing the Federal Reserve
There is a growing consensus that the Federal Reserve is broken - because it is. The Fed was established to provide price stability and prevent periodic banking crises. It has accomplished neither.
Forbes | How to Stop the Spike In the Price of Gasoline
Once again we are faced with the pain of higher oil and gasoline prices, and the spectacle of politicians and pundits blaming all the usual suspects: trouble in the Middle East, greedy oil companies, OPEC, China, gas guzzling cars, and America’s penchant to consume too much energy.
Blogs
Economist | Crunch time at the Fed
On Friday, Brad DeLong blogged a slide from a Christina and David Romer lecture on practical monetary policy at the zero lower bound.
Washington Times | Fixing the Federal Reserve
There is a growing consensus that the Federal Reserve is broken - because it is. The Fed was established to provide price stability and prevent periodic banking crises. It has accomplished neither.
Forbes | How to Stop the Spike In the Price of Gasoline
Once again we are faced with the pain of higher oil and gasoline prices, and the spectacle of politicians and pundits blaming all the usual suspects: trouble in the Middle East, greedy oil companies, OPEC, China, gas guzzling cars, and America’s penchant to consume too much energy.
Blogs
Economist | Crunch time at the Fed
On Friday, Brad DeLong blogged a slide from a Christina and David Romer lecture on practical monetary policy at the zero lower bound.
Taxes
News
Politico | Corporate tax next battle for White House
President Barack Obama’s top financial wizards face an uphill climb on Capitol Hill in the coming weeks when they pitch the administration’s vision for revamping the corporate Tax Code — particularly on a provision that would tax all foreign earnings.
Econ Comments & Analysis
Washington Times | Rick Scott’s zero-percent tax
Florida Gov. Rick Scott joined fellow state executives for dinner at the White House Sunday night. Before the rib-eye steak or Maryland crab mac & cheese hit the plates, the first-term Republican served President Obama with a letter about corporate taxes.
Blogs
Heritage Foundation | New Poll Shows Most Voters Want Lower Taxes, Even on the Rich
To hear liberals tell the tale, you might think that most Americans want to tax the pants off businesses and wealthy Americans, making them pay their “fair share,” as President Obama would have you believe. But according to a new poll, that simply isn’t the case. In fact, the vast majority of likely voters want individuals and businesses to pay lower rates.
Politico | Corporate tax next battle for White House
President Barack Obama’s top financial wizards face an uphill climb on Capitol Hill in the coming weeks when they pitch the administration’s vision for revamping the corporate Tax Code — particularly on a provision that would tax all foreign earnings.
Econ Comments & Analysis
Washington Times | Rick Scott’s zero-percent tax
Florida Gov. Rick Scott joined fellow state executives for dinner at the White House Sunday night. Before the rib-eye steak or Maryland crab mac & cheese hit the plates, the first-term Republican served President Obama with a letter about corporate taxes.
Blogs
Heritage Foundation | New Poll Shows Most Voters Want Lower Taxes, Even on the Rich
To hear liberals tell the tale, you might think that most Americans want to tax the pants off businesses and wealthy Americans, making them pay their “fair share,” as President Obama would have you believe. But according to a new poll, that simply isn’t the case. In fact, the vast majority of likely voters want individuals and businesses to pay lower rates.
Employment
News
Market Watch | U.S. job quality is in trouble
Millions of voters are grappling with unemployment, underemployment and deteriorating jobs.
Blogs
Daily Capitalist | Employment: The Three-Eighths Solution
Professor Bob Higgs at the Independent Institute makes an interesting observation about employment: despite all the good news we are only three-eighths recovered from the pre-Crash high watermark. He cautions on how the data can be misleading.
Market Watch | U.S. job quality is in trouble
Millions of voters are grappling with unemployment, underemployment and deteriorating jobs.
Blogs
Daily Capitalist | Employment: The Three-Eighths Solution
Professor Bob Higgs at the Independent Institute makes an interesting observation about employment: despite all the good news we are only three-eighths recovered from the pre-Crash high watermark. He cautions on how the data can be misleading.
Budget
News
National Journal | Hoyer Calls for 'Bold' Action on Deficit but Offers No Details
House Democratic Whip Steny Hoyer, D-Md., on Monday called for lawmakers to come together behind a “big, bold, balanced solution” to the country’s fiscal problems but failed to offer any specific ideas on how to get there.
Econ Comments & Analysis
Bloomberg | Krugman Says Greece Running Out of Alternatives to Quitting Euro Currrency
Nobel-prize winning economist Paul Krugman said Greece is “close” to having to leave the 17- member currency region as austerity measures imposed on the nation hamper its economic recovery.
Blogs
The American | Larry Summers spills the beans on the real reason why Obama rejected Bowles-Simpson
President Obama created a debt commission—and then rejected its recommendations. As I just wrote in a previous post, the rejection was complete and overwhelming.
Daily Capitalist | S&P: Greece Now Rated “SD” Selective Default
Standard & Poor’s Ratings Services said today that it has lowered its ‘CC’ long-term and ‘C’ short-term sovereign credit ratings on the Hellenic Republic (Greece) to ‘SD’ (selective default).
WSJ | Consumer Debt Falls on Less Mortgage Borrowing
Total consumer debt levels fell 1.1% to $11.53 trillion in the fourth quarter of 2011 compared to the prior quarter, largely due to developments in the housing market, a report from the Federal Reserve Bank of New York said Monday.
National Journal | Hoyer Calls for 'Bold' Action on Deficit but Offers No Details
House Democratic Whip Steny Hoyer, D-Md., on Monday called for lawmakers to come together behind a “big, bold, balanced solution” to the country’s fiscal problems but failed to offer any specific ideas on how to get there.
Econ Comments & Analysis
Bloomberg | Krugman Says Greece Running Out of Alternatives to Quitting Euro Currrency
Nobel-prize winning economist Paul Krugman said Greece is “close” to having to leave the 17- member currency region as austerity measures imposed on the nation hamper its economic recovery.
Blogs
The American | Larry Summers spills the beans on the real reason why Obama rejected Bowles-Simpson
President Obama created a debt commission—and then rejected its recommendations. As I just wrote in a previous post, the rejection was complete and overwhelming.
Daily Capitalist | S&P: Greece Now Rated “SD” Selective Default
Standard & Poor’s Ratings Services said today that it has lowered its ‘CC’ long-term and ‘C’ short-term sovereign credit ratings on the Hellenic Republic (Greece) to ‘SD’ (selective default).
WSJ | Consumer Debt Falls on Less Mortgage Borrowing
Total consumer debt levels fell 1.1% to $11.53 trillion in the fourth quarter of 2011 compared to the prior quarter, largely due to developments in the housing market, a report from the Federal Reserve Bank of New York said Monday.
Monday, February 27, 2012
General Economics
News
CNN Money | World Bank to China: Free up your economy or bust
The World Bank and a Chinese think tank will have a stern warning in store for China's government on Monday: Transition to a freer commercial system, or else face an impending economic crisis.
Market Watch | NABE: U.S. economy to grow at 2.4% rate in 2012
The group's outlook panel of 45 forecasters projects growth in U.S. gross domestic product at 2.4%, skewed slightly toward the second half.
CNN Money | A new recession seems inevitable
While most economists have stopped worrying that the U.S. will fall into a double-dip recession, one influential economist maintains his position that the nation won't be able to avoid a new downturn.
Econ Comments & Analysis
Market Watch | Fed's Bullard: $4 gas would not derail economy
Four-dollars-a-gallon gasoline would not derail the economy, St. Louis Federal Reserve Bank President James Bullard said Friday. In remarks to reporters following a speech,
WSJ | U.S. Manufacturing and the Skills Crisis
Following 12 straight years of declines, U.S. manufacturers added 109,000 workers to their payrolls in 2010 and another 237,000 in 2011. And in January of this year, the number of manufacturing jobs increased by 50,000.
The American | Government Is a Lousy Venture Capitalist
While government has a legitimate and valuable role in basic science, technology, engineering, and mathematics research, it is a lousy venture capitalist and is largely incapable of picking winning technologies in the market.
Washington Times | Burning cash with gas
Gather around, boys and girls, for another quick lesson in real-world Nugenomics 101. Not “if” but “when”gas prices soar to four bucks a gallon this summer, the impact to our economy will be thunderous.
Politico | Obama policies threaten America's energy boom
During our historically slow economic recovery, the energy industry has been a bright spot amid otherwise gloomy economic news. Domestic energy production is increasing, and jobs are beginning to spring up around new energy construction.
CRS | U.S. Implementation of Basel II.5, Basel III, and Harmonization with the Dodd-Frank Act
The Basel III Capital Accord, which was produced by the Basel Committee on Banking Supervision at the Bank for International Settlements, is the latest in a series of evolving agreements among central banks and bank supervisory authorities from around the world to establish minimum capital requirements for financial institutions. Capital serves as a cushion against sudden financial shocks (such as an unusually high occurrence of loan defaults), which can otherwise lead to insolvency.
Blogs
The American | Why Obama can be blamed for 50 percent of the weak recovery
The current U.S. economic recovery is arguably the weakest since the Great Depression. Even though the Great Recession ended in the summer of 2009, unemployment is still over 8 percent. In fact, the past three years have seen the longest stretch of high unemployment in this country since the Great Depression.
Heritage Foundation | Winter Gas Prices Reach All-Time High
The cost of gasoline today is at its highest point ever during winter, an ominous sign of what might be on the horizon in the months to come.
Calculated Risk | Schedule for Week of February 26th
The key reports this week are the January Personal Income and Outlays report, and the ISM Manufacturing survey - both will be released on Thursday. Other key reports include the Case-Shiller house price index on Tuesday, vehicle sales on Thursday, and the second estimate of Q4 GDP on Wednesday.
National Review | Government Bonds Aren’t Always the Safest
Yesterday morning, Senator Jeff Sessions’s office circulated a chart showing that government debt per capita in the U.S. is greater than it is in Greece and other European welfare states such as Spain and Italy.
Calculated Risk | Unofficial Problem Bank list increases to 960 Institutions
There have been 425 bank failures since the beginning of 2008, and so far, closings this year are running at about half the rate of 2010.
Marginal Revolution | The balance sheet recession and The Great Stagnation
Many people point out that we are in a balance sheet recession. I agree with this view but wish to push it one step deeper.
CNN Money | World Bank to China: Free up your economy or bust
The World Bank and a Chinese think tank will have a stern warning in store for China's government on Monday: Transition to a freer commercial system, or else face an impending economic crisis.
Market Watch | NABE: U.S. economy to grow at 2.4% rate in 2012
The group's outlook panel of 45 forecasters projects growth in U.S. gross domestic product at 2.4%, skewed slightly toward the second half.
CNN Money | A new recession seems inevitable
While most economists have stopped worrying that the U.S. will fall into a double-dip recession, one influential economist maintains his position that the nation won't be able to avoid a new downturn.
Econ Comments & Analysis
Market Watch | Fed's Bullard: $4 gas would not derail economy
Four-dollars-a-gallon gasoline would not derail the economy, St. Louis Federal Reserve Bank President James Bullard said Friday. In remarks to reporters following a speech,
WSJ | U.S. Manufacturing and the Skills Crisis
Following 12 straight years of declines, U.S. manufacturers added 109,000 workers to their payrolls in 2010 and another 237,000 in 2011. And in January of this year, the number of manufacturing jobs increased by 50,000.
The American | Government Is a Lousy Venture Capitalist
While government has a legitimate and valuable role in basic science, technology, engineering, and mathematics research, it is a lousy venture capitalist and is largely incapable of picking winning technologies in the market.
Washington Times | Burning cash with gas
Gather around, boys and girls, for another quick lesson in real-world Nugenomics 101. Not “if” but “when”gas prices soar to four bucks a gallon this summer, the impact to our economy will be thunderous.
Politico | Obama policies threaten America's energy boom
During our historically slow economic recovery, the energy industry has been a bright spot amid otherwise gloomy economic news. Domestic energy production is increasing, and jobs are beginning to spring up around new energy construction.
CRS | U.S. Implementation of Basel II.5, Basel III, and Harmonization with the Dodd-Frank Act
The Basel III Capital Accord, which was produced by the Basel Committee on Banking Supervision at the Bank for International Settlements, is the latest in a series of evolving agreements among central banks and bank supervisory authorities from around the world to establish minimum capital requirements for financial institutions. Capital serves as a cushion against sudden financial shocks (such as an unusually high occurrence of loan defaults), which can otherwise lead to insolvency.
Blogs
The American | Why Obama can be blamed for 50 percent of the weak recovery
The current U.S. economic recovery is arguably the weakest since the Great Depression. Even though the Great Recession ended in the summer of 2009, unemployment is still over 8 percent. In fact, the past three years have seen the longest stretch of high unemployment in this country since the Great Depression.
Heritage Foundation | Winter Gas Prices Reach All-Time High
The cost of gasoline today is at its highest point ever during winter, an ominous sign of what might be on the horizon in the months to come.
Calculated Risk | Schedule for Week of February 26th
The key reports this week are the January Personal Income and Outlays report, and the ISM Manufacturing survey - both will be released on Thursday. Other key reports include the Case-Shiller house price index on Tuesday, vehicle sales on Thursday, and the second estimate of Q4 GDP on Wednesday.
National Review | Government Bonds Aren’t Always the Safest
Yesterday morning, Senator Jeff Sessions’s office circulated a chart showing that government debt per capita in the U.S. is greater than it is in Greece and other European welfare states such as Spain and Italy.
Calculated Risk | Unofficial Problem Bank list increases to 960 Institutions
There have been 425 bank failures since the beginning of 2008, and so far, closings this year are running at about half the rate of 2010.
Marginal Revolution | The balance sheet recession and The Great Stagnation
Many people point out that we are in a balance sheet recession. I agree with this view but wish to push it one step deeper.
Health Care
News
Politico | Poll: Sharp split on health care repeal
Americans are deeply divided over whether a Republican president should repeal President Barack Obama’s health care law if elected this November, a new poll Monday shows, although the vast majority of those surveyed believe the individual mandate is unconstitutional.
NY Times | Many States Take a Wait-and-See Approach on New Insurance Exchanges
States are lagging in the creation of health insurance exchanges, the supermarkets where millions of consumers are supposed to buy subsidized private coverage under President Obama’s health care overhaul.
National Journal | Governors Talk Prevention
With state budgets straining and Medicaid budgets ever rising, a group of governers meeting on Sunday were eager to hear about prevention programs that work.
Blogs
The American | Healthcare fact of the week: Why do Americans spend more on healthcare? Because they can
Americans have the highest health spending on the planet. Why? Because they can afford to do so. What few people realize is that the United States has increased its standard of living vis-à-vis its biggest competitors despite rising health expenditures
Hertitage Foundation | Obamacare: Pay No Attention to Mandate Behind Curtain of Spin
Last week, the Department of Justice filed a legal response to one of numerous lawsuits currently challenging the constitutionality of the Obamacare anti-conscience mandate. The Administration submitted its response to the legal complaint of Belmont Abbey College, represented by the Becket Fund for Religious Liberty, to the U.S. District Court of the District of Columbia.
Café Hayek | The insanity of health insurance
It is insane that we get our health care from our employers. That happens because we have given a tax advantage to in-kind compensation such as health care. It’s a horrible idea and it leads people to complain about our employers deciding what health care we can receive.
Politico | Poll: Sharp split on health care repeal
Americans are deeply divided over whether a Republican president should repeal President Barack Obama’s health care law if elected this November, a new poll Monday shows, although the vast majority of those surveyed believe the individual mandate is unconstitutional.
NY Times | Many States Take a Wait-and-See Approach on New Insurance Exchanges
States are lagging in the creation of health insurance exchanges, the supermarkets where millions of consumers are supposed to buy subsidized private coverage under President Obama’s health care overhaul.
National Journal | Governors Talk Prevention
With state budgets straining and Medicaid budgets ever rising, a group of governers meeting on Sunday were eager to hear about prevention programs that work.
Blogs
The American | Healthcare fact of the week: Why do Americans spend more on healthcare? Because they can
Americans have the highest health spending on the planet. Why? Because they can afford to do so. What few people realize is that the United States has increased its standard of living vis-à-vis its biggest competitors despite rising health expenditures
Hertitage Foundation | Obamacare: Pay No Attention to Mandate Behind Curtain of Spin
Last week, the Department of Justice filed a legal response to one of numerous lawsuits currently challenging the constitutionality of the Obamacare anti-conscience mandate. The Administration submitted its response to the legal complaint of Belmont Abbey College, represented by the Becket Fund for Religious Liberty, to the U.S. District Court of the District of Columbia.
Café Hayek | The insanity of health insurance
It is insane that we get our health care from our employers. That happens because we have given a tax advantage to in-kind compensation such as health care. It’s a horrible idea and it leads people to complain about our employers deciding what health care we can receive.
Monetary
News
CNBC | Republican House Bill Would Strip US Fed's Jobs Mandate
Representative Kevin Brady, vice chairman of the Joint Economic Committee, said in a statement his "Sound Dollar Act" aims to "maintain the purchasing power of the dollar in order to foster long-term economic growth and stability." He plans to formally introduce it in early March.
CNN Money | Fed official warns of higher interest bill for Uncle Sam
The Federal Reserve takes a lot of heat from critics for keeping interest rates low. But there's an upside that most people overlook: Low interest rates save the government money.
Market Watch | Dollar gains as euro fades following G-20
The dollar rose Monday, pushing the euro down from a three-month high, after the Group of 20 nations refused to boost funding for the International Monetary Fund until the euro zone boosts the size of its own firewall.
CNN Money | Why the Federal Reserve can't fix housing
Housing is still one of the biggest drags on U.S. economic growth, but don't look to the Federal Reserve for help. The central bank may have few tools left to fix it.
Econ Comments & Analysis
Real Clear Markets | Inflation Held in Check by Fear
Inflation remains low now because of game changing events that have reduced the demand for money.
Fortune | Why low interest rates are bad for community banks
The business model of America's community banks is relatively simple: Take deposits and generate loans. Unlike the JPMorgans (JPM) of the world, smaller mom and pop banks fill a lending void, providing loans in rural communities, small towns and inner-city neighborhoods.
WSJ | What's Right With Gas Prices
It is always pitiful to see a president of the United States in the grip of energy panic, uttering desperate nonsense about gasoline prices.
WSJ | For the Fed, There's No Easy Exit
The crash of Zero Mostel's quasi-Ponzi scheme in 1968's "The Producers" left his partner Gene Wilder muttering, "No way out. No way out." Federal Reserve Chairman Ben Bernanke is in a somewhat similar position.
Blogs
Daily Capitalist | The ‘High Oil Prices = Recession’ Fallacy
What causes price inflation is an expansion of money supply (and a desire of people to spend it, often quickly). What causes recessions is malinvestment of capital caused, again, by money supply expansion.
CNBC | Republican House Bill Would Strip US Fed's Jobs Mandate
Representative Kevin Brady, vice chairman of the Joint Economic Committee, said in a statement his "Sound Dollar Act" aims to "maintain the purchasing power of the dollar in order to foster long-term economic growth and stability." He plans to formally introduce it in early March.
CNN Money | Fed official warns of higher interest bill for Uncle Sam
The Federal Reserve takes a lot of heat from critics for keeping interest rates low. But there's an upside that most people overlook: Low interest rates save the government money.
Market Watch | Dollar gains as euro fades following G-20
The dollar rose Monday, pushing the euro down from a three-month high, after the Group of 20 nations refused to boost funding for the International Monetary Fund until the euro zone boosts the size of its own firewall.
CNN Money | Why the Federal Reserve can't fix housing
Housing is still one of the biggest drags on U.S. economic growth, but don't look to the Federal Reserve for help. The central bank may have few tools left to fix it.
Econ Comments & Analysis
Real Clear Markets | Inflation Held in Check by Fear
Inflation remains low now because of game changing events that have reduced the demand for money.
Fortune | Why low interest rates are bad for community banks
The business model of America's community banks is relatively simple: Take deposits and generate loans. Unlike the JPMorgans (JPM) of the world, smaller mom and pop banks fill a lending void, providing loans in rural communities, small towns and inner-city neighborhoods.
WSJ | What's Right With Gas Prices
It is always pitiful to see a president of the United States in the grip of energy panic, uttering desperate nonsense about gasoline prices.
WSJ | For the Fed, There's No Easy Exit
The crash of Zero Mostel's quasi-Ponzi scheme in 1968's "The Producers" left his partner Gene Wilder muttering, "No way out. No way out." Federal Reserve Chairman Ben Bernanke is in a somewhat similar position.
Blogs
Daily Capitalist | The ‘High Oil Prices = Recession’ Fallacy
What causes price inflation is an expansion of money supply (and a desire of people to spend it, often quickly). What causes recessions is malinvestment of capital caused, again, by money supply expansion.
Taxes
Econ Comments & Analysis
Daily Caller | Obama’s tax proposals would make the tax code more complicated, less fair
President Obama has a new budget and a new Treasury study that promise “tax reform.” He says that he wants to abolish “dozens of tax loopholes,” but he also proposes a boatload of new special-interest tax breaks. The president says that he wants everyone to “play by the same rules.” His tax plan does the opposite.
Financial Times | The US tax system needs rebuilding
Less discussed in the context of major deficit reduction is tax reform. For a variety of reasons, 2013 should be the year when the tax code is overhauled in a substantial way.
WSJ | Tangled Tax Code Primed for Pruning
President Barack Obama's business-tax-overhaul plan underscores the growing likelihood of a serious effort to revamp the nation's much-criticized tax system, no matter who wins the White House.
Blogs
CATO | Patriotism, Loyalty, Tax Competition, and ‘Tax Fugitives’
I fight to preserve tax competition, fiscal sovereignty, and financial privacy for the simple reason that politicians are less likely to impose destructive tax policy if they know that labor and capital can escape to jurisdictions with more responsible fiscal climates.
The American | 3 ways Obama’s corporate tax reform framework falls short
On Wednesday, President Obama proposed a framework that lowers the top corporate tax rate from 35 to 28 percent and offsets the revenue loss by curtailing various business tax credits and deductions. Although the proposal sounds like a step forward, closer examination reveals that it is unlikely to benefit the overall economy.
Daily Caller | Obama’s tax proposals would make the tax code more complicated, less fair
President Obama has a new budget and a new Treasury study that promise “tax reform.” He says that he wants to abolish “dozens of tax loopholes,” but he also proposes a boatload of new special-interest tax breaks. The president says that he wants everyone to “play by the same rules.” His tax plan does the opposite.
Financial Times | The US tax system needs rebuilding
Less discussed in the context of major deficit reduction is tax reform. For a variety of reasons, 2013 should be the year when the tax code is overhauled in a substantial way.
WSJ | Tangled Tax Code Primed for Pruning
President Barack Obama's business-tax-overhaul plan underscores the growing likelihood of a serious effort to revamp the nation's much-criticized tax system, no matter who wins the White House.
Blogs
CATO | Patriotism, Loyalty, Tax Competition, and ‘Tax Fugitives’
I fight to preserve tax competition, fiscal sovereignty, and financial privacy for the simple reason that politicians are less likely to impose destructive tax policy if they know that labor and capital can escape to jurisdictions with more responsible fiscal climates.
The American | 3 ways Obama’s corporate tax reform framework falls short
On Wednesday, President Obama proposed a framework that lowers the top corporate tax rate from 35 to 28 percent and offsets the revenue loss by curtailing various business tax credits and deductions. Although the proposal sounds like a step forward, closer examination reveals that it is unlikely to benefit the overall economy.
Employment
News
Bloomberg | Employment Forecast Raised by U.S. Business Economists in Fillip to Growth
Payrolls will rise 170,000 a month on average in 2012, up from a November projection of 127,000, according to the results of a survey by the National Association for Business Economics issued today in Washington.
Econ Comments & Analysis
Washington Times | Disabling employment
The Labor Department is about to make it harder for the disabled to find a job. The new policy is a painful reminder why it is important to get away fast when the government says it is trying to help you.
NBER | Labor Supply of Politicians
We examine the labor supply of politicians using data on Members of the European Parliament (MEPs).
Blogs
National Review | Your Taxpayer Dollars at Work: Crony Green-Jobs Edition
A new Wall Street Journal investigative report shows that once again there are discrepancies between the number of jobs claimed to have been created by the stimulus money and the actual number of jobs created.
Neighborhood Effects | It Isn’t Easy to Count Stimulus Jobs
The 1603 program gave $10.7 billion to 5,098 businesses for 31,540 projects, according to the Treasury Department. Recipients were generally reimbursed 30% of their costs after projects were finished.
Greg Mankiw | Abbott and Costello explain unemployment
(COSTELLO): The unemployment just goes down because you don't look for work? (ABBOTT): Absolutely it goes down. That's how you get to 9%. Otherwise it would be 16%. You don't want to read about 16% unemployment do ya?
Bloomberg | Employment Forecast Raised by U.S. Business Economists in Fillip to Growth
Payrolls will rise 170,000 a month on average in 2012, up from a November projection of 127,000, according to the results of a survey by the National Association for Business Economics issued today in Washington.
Econ Comments & Analysis
Washington Times | Disabling employment
The Labor Department is about to make it harder for the disabled to find a job. The new policy is a painful reminder why it is important to get away fast when the government says it is trying to help you.
NBER | Labor Supply of Politicians
We examine the labor supply of politicians using data on Members of the European Parliament (MEPs).
Blogs
National Review | Your Taxpayer Dollars at Work: Crony Green-Jobs Edition
A new Wall Street Journal investigative report shows that once again there are discrepancies between the number of jobs claimed to have been created by the stimulus money and the actual number of jobs created.
Neighborhood Effects | It Isn’t Easy to Count Stimulus Jobs
The 1603 program gave $10.7 billion to 5,098 businesses for 31,540 projects, according to the Treasury Department. Recipients were generally reimbursed 30% of their costs after projects were finished.
Greg Mankiw | Abbott and Costello explain unemployment
(COSTELLO): The unemployment just goes down because you don't look for work? (ABBOTT): Absolutely it goes down. That's how you get to 9%. Otherwise it would be 16%. You don't want to read about 16% unemployment do ya?
Budget
News
CNN Money | Debt ceiling fight may come sooner than expected
The deal cut this summer to end the debt ceiling standoff provided for a $2.1 trillion increase in the country's legal borrowing limit, which now stands at $16.394 trillion.
Econ Comments & Analysis
FOX Business | G20 to Europe: Show Us the Money
Leading economies told Europe it must put up extra money to fight its debt crisis if it wants more help from the rest of the world, piling pressure on Germany to drop its opposition to a bigger European bailout fund.
Real Clear Markets | Today's Reckless Spenders Enslave Future Generations
Bleak Future: A fresh report says the new federal debt ceiling of $16.4 trillion will likely be reached just after Election Day. Those driving it up will be relatively unaffected. They'll just deliver the bill to our children.
NY Times | Obama’s Deficit Dilemma
Today, Mr. Obama and Republicans are battling rather than making deals, positioning themselves for an election that will determine which side has the upper hand in December, when critical budget deadlines could force a compromise in a lame-duck Congress.
Blogs
Daily Capitalist | Our Problem Is Not Insolvency: It’s Infinite Solvency
There is, indeed, a direct relationship between the popularity of economics and monetary policy among the under 30s and the overwhelming support of this group for the candidate whose very political career begun on the day the U.S. went to a pure federally monopolized fiat fraction reserve monetary system back in ’71 when Nixon closed the gold window.
CNN Money | Debt ceiling fight may come sooner than expected
The deal cut this summer to end the debt ceiling standoff provided for a $2.1 trillion increase in the country's legal borrowing limit, which now stands at $16.394 trillion.
Econ Comments & Analysis
FOX Business | G20 to Europe: Show Us the Money
Leading economies told Europe it must put up extra money to fight its debt crisis if it wants more help from the rest of the world, piling pressure on Germany to drop its opposition to a bigger European bailout fund.
Real Clear Markets | Today's Reckless Spenders Enslave Future Generations
Bleak Future: A fresh report says the new federal debt ceiling of $16.4 trillion will likely be reached just after Election Day. Those driving it up will be relatively unaffected. They'll just deliver the bill to our children.
NY Times | Obama’s Deficit Dilemma
Today, Mr. Obama and Republicans are battling rather than making deals, positioning themselves for an election that will determine which side has the upper hand in December, when critical budget deadlines could force a compromise in a lame-duck Congress.
Blogs
Daily Capitalist | Our Problem Is Not Insolvency: It’s Infinite Solvency
There is, indeed, a direct relationship between the popularity of economics and monetary policy among the under 30s and the overwhelming support of this group for the candidate whose very political career begun on the day the U.S. went to a pure federally monopolized fiat fraction reserve monetary system back in ’71 when Nixon closed the gold window.
Friday, February 24, 2012
General Economics
News
National Journal | House GOP Readying New Strategy on Highway Bill
House Republican leaders are mulling a significant retreat from their stalled $260 billion highway bill -- including shifting away from a five-year reauthorization to a version that would kick longer-term decisions to a new Congress, a senior House GOP aide said on Thursday.
Bloomberg | U.K. Economy Shrank in Fourth Quarter as Companies Scaled Back Investment
The U.K. economy shrank in the fourth quarter as companies scaled back investment, underlining the risks to a recovery that Bank of England Governor Mervyn King says will be “slow and uncertain.”
CNN Money | Bank of America to freeze pension plans
Bank of America announced plans Thursday to freeze pension plans, effective in July, and increase its 401(k) contributions instead.
Bloomberg | Consumer Comfort Highest in Almost Four Years
Consumer confidence in the U.S. increased last week to the highest level since April 2008 as more Americans had a favorable view of their finances.
Econ Comments & Analysis
NBER | Reducing Petroleum Consumption from Transportation
This paper examines the main channels through which reductions in U.S. oil consumption might take place
Heritage Foundation | High Gas Prices: Obama's Half-Truths vs. Reality
The national average for gas prices is almost $3.60 per gallon, increasing 40 cents from a year ago and jumping 20 cents from just one month ago.
CNN Money | Why the mortgage settlement is a fair deal
Earlier this month, I was proud to join Attorney General Eric Holder, colleagues from across the federal government, and 49 state attorneys general to announce a historic mortgage servicing settlement on behalf of American homeowners
Market Watch | Obama: No quick fixes to rising gas prices
President Barack Obama on Thursday said there was no silver bullet to bring down high gas prices as Republicans sought to pin the blame on the White House for the rising prices.
Washington Times | Red dragon in North American oil patch
Of the three shale plays that are transforming American onshore oil and gas production, the Eagle Ford in South Texas is perhaps the least well-known outside the industry.
WSJ | America's 'Unbanked' Masses
Fewer Americans have access to traditional banking services such as checking accounts, consumer loans and credit cards than they did five years ago.
Washington Times | Obama budget’s backdoor amnesty
President Obama’s fiscal 2013 budget came out this month and again includes the same spending, borrowing and taxing policies that have come to define his presidency.
National Journal | House GOP Readying New Strategy on Highway Bill
House Republican leaders are mulling a significant retreat from their stalled $260 billion highway bill -- including shifting away from a five-year reauthorization to a version that would kick longer-term decisions to a new Congress, a senior House GOP aide said on Thursday.
Bloomberg | U.K. Economy Shrank in Fourth Quarter as Companies Scaled Back Investment
The U.K. economy shrank in the fourth quarter as companies scaled back investment, underlining the risks to a recovery that Bank of England Governor Mervyn King says will be “slow and uncertain.”
CNN Money | Bank of America to freeze pension plans
Bank of America announced plans Thursday to freeze pension plans, effective in July, and increase its 401(k) contributions instead.
Bloomberg | Consumer Comfort Highest in Almost Four Years
Consumer confidence in the U.S. increased last week to the highest level since April 2008 as more Americans had a favorable view of their finances.
Econ Comments & Analysis
NBER | Reducing Petroleum Consumption from Transportation
This paper examines the main channels through which reductions in U.S. oil consumption might take place
Heritage Foundation | High Gas Prices: Obama's Half-Truths vs. Reality
The national average for gas prices is almost $3.60 per gallon, increasing 40 cents from a year ago and jumping 20 cents from just one month ago.
CNN Money | Why the mortgage settlement is a fair deal
Earlier this month, I was proud to join Attorney General Eric Holder, colleagues from across the federal government, and 49 state attorneys general to announce a historic mortgage servicing settlement on behalf of American homeowners
Market Watch | Obama: No quick fixes to rising gas prices
President Barack Obama on Thursday said there was no silver bullet to bring down high gas prices as Republicans sought to pin the blame on the White House for the rising prices.
Washington Times | Red dragon in North American oil patch
Of the three shale plays that are transforming American onshore oil and gas production, the Eagle Ford in South Texas is perhaps the least well-known outside the industry.
WSJ | America's 'Unbanked' Masses
Fewer Americans have access to traditional banking services such as checking accounts, consumer loans and credit cards than they did five years ago.
Washington Times | Obama budget’s backdoor amnesty
President Obama’s fiscal 2013 budget came out this month and again includes the same spending, borrowing and taxing policies that have come to define his presidency.
Health Care
News
National Journal | Experts: Obama Got It Wrong on Contraception
The Obama administration initially got it wrong on its controversial contraception rule and likely violated federal law, religious-policy experts at the Brookings Institution said on Thursday.
Econ Comments & Analysis
CBO | Regulations Limiting Incentives to Employees to Use TRICARE
Retirees of the Uniformed Services often have several options available to them to cover at least some of their health care costs.
Blogs
Heritage Foundation | If You Like Your HSA, Get Ready to Lose It
Everyone remembers President Obama’s repeated promise, “If you like your health care plan, you’ll be able to keep your health care plan, period.” Unfortunately, Obamacare breaks this promise many times over.
National Journal | Experts: Obama Got It Wrong on Contraception
The Obama administration initially got it wrong on its controversial contraception rule and likely violated federal law, religious-policy experts at the Brookings Institution said on Thursday.
Econ Comments & Analysis
CBO | Regulations Limiting Incentives to Employees to Use TRICARE
Retirees of the Uniformed Services often have several options available to them to cover at least some of their health care costs.
Blogs
Heritage Foundation | If You Like Your HSA, Get Ready to Lose It
Everyone remembers President Obama’s repeated promise, “If you like your health care plan, you’ll be able to keep your health care plan, period.” Unfortunately, Obamacare breaks this promise many times over.
Monetary
News
USA Today | More drivers than ever may pay $5 per gallon
More drivers than ever could soon be paying $5 for a gallon of gasoline. But the national average, up sharply in recent weeks, is still expected to top out at about $4.
CNN Money | Gas price surge: Up 10% this year
The national average price for a gallon of gasoline jumped 3.3 cents overnight, to $3.612, according to the motorist group AAA. That's the 16th consecutive increase.
CNBC | Republican House Bill Would Strip US Fed's Jobs Mandate
Seeking to make good on past threats in Congress to rein in the Federal Reserve's powers, a prominent Republican lawmaker said on Thursday he will introduce legislation to focus the U.S. central bank on a single mandate to fight inflation and protect the dollar's value.
Econ Comments & Analysis
WSJ | 'Stupid' and Oil Prices
'The American people aren't stupid," thundered President Obama yesterday in Miami, ridiculing Republicans who are blaming him for rising gasoline prices. Let's hope he's right, because not even Forrest Gump could believe the logic of what Mr. Obama is trying to sell.
Blogs
Library of Economics | How Real Wage Increases Have Been Understated
Over the years, In discussing the alleged decline in real U.S. median wages, I've pointed out that there are two important ways in which the growth in real wages has been understated
Daily Capitalist | The “Sound Dollar Act”
Rep. Kevin Brady (R) Tex., will introduce the “Sound Dollar Act” in March. Mr. Brady is Vice-Chairman of the Joint Economic Committee and must be under the influence of Ron Paul.
Tax Foundation | More Thoughts on Obama’s Corporate Tax Plan
As we wrote yesterday, the Obama administration should be given credit for recognizing that the U.S. corporate tax system is out of step with the rest of the world and their plan to cut the rate from 35 percent to 28 percent would represent a good first step toward making the U.S. more competitive.
USA Today | More drivers than ever may pay $5 per gallon
More drivers than ever could soon be paying $5 for a gallon of gasoline. But the national average, up sharply in recent weeks, is still expected to top out at about $4.
CNN Money | Gas price surge: Up 10% this year
The national average price for a gallon of gasoline jumped 3.3 cents overnight, to $3.612, according to the motorist group AAA. That's the 16th consecutive increase.
CNBC | Republican House Bill Would Strip US Fed's Jobs Mandate
Seeking to make good on past threats in Congress to rein in the Federal Reserve's powers, a prominent Republican lawmaker said on Thursday he will introduce legislation to focus the U.S. central bank on a single mandate to fight inflation and protect the dollar's value.
Econ Comments & Analysis
WSJ | 'Stupid' and Oil Prices
'The American people aren't stupid," thundered President Obama yesterday in Miami, ridiculing Republicans who are blaming him for rising gasoline prices. Let's hope he's right, because not even Forrest Gump could believe the logic of what Mr. Obama is trying to sell.
Blogs
Library of Economics | How Real Wage Increases Have Been Understated
Over the years, In discussing the alleged decline in real U.S. median wages, I've pointed out that there are two important ways in which the growth in real wages has been understated
Daily Capitalist | The “Sound Dollar Act”
Rep. Kevin Brady (R) Tex., will introduce the “Sound Dollar Act” in March. Mr. Brady is Vice-Chairman of the Joint Economic Committee and must be under the influence of Ron Paul.
Tax Foundation | More Thoughts on Obama’s Corporate Tax Plan
As we wrote yesterday, the Obama administration should be given credit for recognizing that the U.S. corporate tax system is out of step with the rest of the world and their plan to cut the rate from 35 percent to 28 percent would represent a good first step toward making the U.S. more competitive.
Taxes
News
CNN Money | The corporate tax 'shell game'
If you want to lower the top rate to 25%, as House Republicans want, or 28%, as President Obama wants, you can't pay for it simply by cutting some business tax breaks, or even "dozens" as the president recommends.
Econ Comments & Analysis
WSJ | David Cameron's Tax Lesson
Speaking of higher taxes (and President Obama always does), there's news from once fair Britannia.
FOX Business | Small Business to Obama: Tax Plan Needs Rate Reform
The Obama administration’s proposal for corporate tax reform ignores what matters most to small businesses, a coalition of small-business advocacy groups says. While the overall plan is sound, critics acknowledge, it overlooks the fundamental need for rate reform.
Blogs
WSJ | Giving Tax Edge to Manufacturing Carries Risks
U.S. President Barack Obama and GOP candidate Rick Santorum recently released proposals that would give manufacturing enterprises a tax break. Santorum advocates factories pay no federal income tax at all.
Minyanville | Homeowners Who Negotiate Debt Relief Could Soon Face Massive Tax Bill
You bought your house when the market was high and then lost your job. In order to avoid foreclosure, you negotiated a short sale for half of what you paid, ruining your credit rating for years and draining your bank account. But there is a tiny silver lining
The American | Why conservatives should love consumption taxes
Strangely, or maybe not so strangely, many conservatives are repelled by the idea of a consumption tax because they think it is synonymous with a VAT, the fave tax of European social market economies. Indeed, the VAT has many fans among Obamacrats as a way of paying for government-run healthcare.
CNN Money | The corporate tax 'shell game'
If you want to lower the top rate to 25%, as House Republicans want, or 28%, as President Obama wants, you can't pay for it simply by cutting some business tax breaks, or even "dozens" as the president recommends.
Econ Comments & Analysis
WSJ | David Cameron's Tax Lesson
Speaking of higher taxes (and President Obama always does), there's news from once fair Britannia.
FOX Business | Small Business to Obama: Tax Plan Needs Rate Reform
The Obama administration’s proposal for corporate tax reform ignores what matters most to small businesses, a coalition of small-business advocacy groups says. While the overall plan is sound, critics acknowledge, it overlooks the fundamental need for rate reform.
Blogs
WSJ | Giving Tax Edge to Manufacturing Carries Risks
U.S. President Barack Obama and GOP candidate Rick Santorum recently released proposals that would give manufacturing enterprises a tax break. Santorum advocates factories pay no federal income tax at all.
Minyanville | Homeowners Who Negotiate Debt Relief Could Soon Face Massive Tax Bill
You bought your house when the market was high and then lost your job. In order to avoid foreclosure, you negotiated a short sale for half of what you paid, ruining your credit rating for years and draining your bank account. But there is a tiny silver lining
The American | Why conservatives should love consumption taxes
Strangely, or maybe not so strangely, many conservatives are repelled by the idea of a consumption tax because they think it is synonymous with a VAT, the fave tax of European social market economies. Indeed, the VAT has many fans among Obamacrats as a way of paying for government-run healthcare.
Employment
News
CNN Money | 35,000 Postal Service jobs on the chopping block
The U.S. Postal Service announced on Thursday new plans to consolidate or close 223 mail processing plants, putting 35,000 jobs at stake starting in late May or June.
CNN Money | Procter and Gamble cutting 5,700 jobs
In a presentation to the Consumer Analyst Group of New York, Procter & Gamble CEO Bob McDonald and CFO Jon Moeller said the cuts were part of a plan to save $10 billion in costs by 2016.
CNN Money | Michigan's incredible shrinking workforce
As the presidential race moves to Michigan for next week's primary, a lot of focus is on the state's economy -- one of the hardest-hit by the recession.
Econ Comments & Analysis
WSJ | Cost of $10 Billion Stimulus Easier to Tally Than New Jobs
Alfredo Garcia was among the residents of Webb County, Texas, banking on a windfall from federal stimulus money.
Blogs
Real Clear Markets | In Obama's '1984'-Speak, Unemployment Is A Plus
Failed presidents always come up with excuses, but Obama spinmeister Valerie Jarrett has repeated a White House ploy that takes the cake. In true "1984" style, she says bad times are really good.
CNN Money | 35,000 Postal Service jobs on the chopping block
The U.S. Postal Service announced on Thursday new plans to consolidate or close 223 mail processing plants, putting 35,000 jobs at stake starting in late May or June.
CNN Money | Procter and Gamble cutting 5,700 jobs
In a presentation to the Consumer Analyst Group of New York, Procter & Gamble CEO Bob McDonald and CFO Jon Moeller said the cuts were part of a plan to save $10 billion in costs by 2016.
CNN Money | Michigan's incredible shrinking workforce
As the presidential race moves to Michigan for next week's primary, a lot of focus is on the state's economy -- one of the hardest-hit by the recession.
Econ Comments & Analysis
WSJ | Cost of $10 Billion Stimulus Easier to Tally Than New Jobs
Alfredo Garcia was among the residents of Webb County, Texas, banking on a windfall from federal stimulus money.
Blogs
Real Clear Markets | In Obama's '1984'-Speak, Unemployment Is A Plus
Failed presidents always come up with excuses, but Obama spinmeister Valerie Jarrett has repeated a White House ploy that takes the cake. In true "1984" style, she says bad times are really good.
Budget
News
WSJ | Europe's Banker Talks Tough
European Central Bank President Mario Draghi warned beleaguered euro-zone countries that there is no escape from tough austerity measures and that the Continent's traditional social contract is obsolete, as he waded into an increasingly divisive debate over how to tackle the region's fiscal and economic troubles.
Econ Comments & Analysis
CATO | Are European Fiscal Rules a Greek Farce?
Now teetering on the edge of bankruptcy, Greece was first sanctioned for violating the European growth and stability pact in 2005.
Blogs
Heritage Foundation | Debt Ceiling, the Sequel: Coming to a Theater Near You
Of course, the election will be in large part about President Obama’s dreadful handling of the economy, which is finally showing real signs of life despite—not because of—Obama’s policies. And the election will also be about America’s future, a future that is not as bright as it should be because the national debt will have risen by more than $5 trillion over the course of Obama’s term.
WSJ | Europe's Banker Talks Tough
European Central Bank President Mario Draghi warned beleaguered euro-zone countries that there is no escape from tough austerity measures and that the Continent's traditional social contract is obsolete, as he waded into an increasingly divisive debate over how to tackle the region's fiscal and economic troubles.
Econ Comments & Analysis
CATO | Are European Fiscal Rules a Greek Farce?
Now teetering on the edge of bankruptcy, Greece was first sanctioned for violating the European growth and stability pact in 2005.
Blogs
Heritage Foundation | Debt Ceiling, the Sequel: Coming to a Theater Near You
Of course, the election will be in large part about President Obama’s dreadful handling of the economy, which is finally showing real signs of life despite—not because of—Obama’s policies. And the election will also be about America’s future, a future that is not as bright as it should be because the national debt will have risen by more than $5 trillion over the course of Obama’s term.
Subscribe to:
Posts (Atom)