News
Bloomebrg | Stocks Advance as Earnings Overshadow GDP; Euro Climbs
U.S. stocks rose for a fourth straight day as improving consumer confidence and earnings overshadowed lower-than-forecast economic growth and a downgrade of Spain’s credit rating. The dollar weakened versus most major peers while Treasuries were little changed.
USA Today | AAA study finds driving costs get small increase
There's bad news and good news for economically battered drivers in auto club AAA's annual report on the cost of owning and operating a vehicle.
Politico | Poll: Feds' favorability at 15-year low
Today, just one in three has a favorable view of the federal government — the lowest level in 15 years, according to a Pew survey. The majority of Americans remain satisfied with their local and state governments — 61 percent and 52 percent, respectively — but only 33 percent feel likewise about the federal government.
National Journal | First-Quarter GDP Underwhelms, Fueling Concern Over a Possible Slowing Recovery
Real gross domestic product grew by 2.2 percent from the fourth quarter of 2011 to the first of 2012, less than the 2.6 percent expected by economists polled by Dow Jones Newswires. That number is roughly in line with consensus estimates conducted by other organizations.
Market Watch | Student loan fees may be capped as House vote set
A step was taken Wednesday by the House Republican leadership to cap federal student loan fees, in a development that could take away an issue President Barack Obama has been campaigning on this week.
Econ Comments & Analysis
Forbes | The 99% Need Growth, Not Economic Fairness
President Obama and his merry band of Progressives are beating the drums for big tax increases on “The 1%” for the sake of “fairness”. This is about the only campaign strategy left to him, because he has proved over the past three years that he doesn’t have a clue as to how to produce jobs and economic growth. However, if you look at the numbers, “The 99%” needs faster economic growth a lot more than it needs Obama’s version of “tax fairness”.
Real Clear Markets | Europe Is In Recession, the U.S. Isn't Far Behind
The global banking system in 2012 has seen a marked transition from the monetary concept that gained universal traction nearly 100 years ago. The United States in 1912 was the only economic power without a central bank, but by 1913 one had been created, though its creators, both bankers and government officials, were very cautious about having the words "central bank" in the title of the agency. Instead the Federal Reserve System was born as a private corporation capitalized by individual regional banking interests, by far the largest being the banks in New York City.
Politico | Keystone XL feeds dangerous addiction
With all the talk on Capitol Hill and Main Street about gas prices, it is critical to start discussing ways of decreasing the demand for gasoline by weaning ourselves off oil—for our energy security and our national security. This ought to be top priority for all politicians, regardless of party.
Forbes | Yo-Yo Economics?
President Obama recently disparaged free-market economics as “you’re-on-your-own economics.” It’s a catchy phrase—rhythmic, alliterative, clever. I like the sound of it. Too bad it’s bunk.
Economist | New rivers of gold
Last year Mexicans received an estimated $24 billion from friends and family working abroad, mainly in the United States, with which Mexico forms the world’s busiest remittance corridor. But a closer look at the Tapachulan queue shows how the remittance business is changing. Many are not Mexicans receiving cash from America, but migrant workers sending it back home to Guatemala or Honduras.
Politico | Big Labor’s big moment
For years Big Labor has been looking small, but it doesn’t feel that way now. Unions won an Ohio referendum overturning Gov. John Kasich’s effort to restrict collective bargaining for government employees.
AEI | Would you settle your claims on Social Security for 80 cents on the dollar? (I would)
The problem is pretty basic: According to the new calculations of the Social Security Trustees’ 2012 Report, Social Security’s future costs are a lot bigger than its future income.
Blogs
Economist | The black hole
For much of the past few years, China has been at the centre of heated rhetoric over its contribution to global imbalances and a corresponding shortfall in global aggregate demand.
WSJ | New Grads’ Pay Gap Is Lasting Legacy of Recession
A new study by the Conference Board measures how median wages within different labor groups fared during and after the Great Recession that ran from December 2007 until June 2009.
National Review | The Crucial Distinction Between Being Pro-Business and Pro-Market
There is nothing wrong about lowering tax rates to promote economic growth or attract investments. However, it is wrong to dole out lower rates to specific and well-connected businesses or to target these lower rates based on size.
WSJ | What’s Wrong With Education in the U.S.?
Like home ownership, Americans are obsessed with the importance of obtaining a college degree, and so it gets over-emphasized and over-subsidized through student loans that lead in many cases to too many people paying ever-higher tuition rates at mediocre colleges and obtaining a worthless degree.
