News
Market Watch | Treasury to raise $5 billion from AIG stock sale
The U.S. Treasury said late Sunday it had agreed to sell nearly 164 million of its shares in American International Group Inc. AIG -4.77% at $30.50 apiece in an underwritten public offering.
Econ Comments & Analysis
WSJ | The 2013 Fiscal Cliff Could Crush Stocks
On Dec. 31, trillions of dollars in tax cuts will expire, trillions more in new tax hikes under ObamaCare will kick in, and a trillion in automatic spending cuts will begin. Yet stock prices are the highest in four years.
Blogs
Café Hayek | European Government Spending as % of GDP, 2009
Russ asks for some data regarding spending by European governments. Quite by coincidence, I opened this morning an e-mail from my friend Gary Hoover – an e-mail not prompted by Russ’s post – that contained data on 2009 spending.
CATO | A Contradiction in Keynesian Fiscal Policy
There’s an internal contradiction in the way that Keynesian-oriented economists and policymakers address the federal budget situation. I’ve noticed it over and over.
Library of Economics | Chris Edwards on Time-Inconsistent Fiscal Policy
To Keynesians, the short run is always more important than the long run, so it's impossible for them to have a "credible" long-run commitment to deficit reduction. Even today, prominent Keynesian economists are demanding more "stimulus," but the economy is not in recession and the budget deficit (which is "stimulus" to Keynesians) is already over $1 trillion.
Marginal Revolution | Social Security, Savings and Stagnation
Here is Evans, Kotlikoff, and Phillips making the case that transfers to the elderly, such as Social Security and Medicare, have dramatically lowered the US savings rate, the investment rate and real wage growth
Atlantic | We're Spent: Why the U.S. Is in Danger of Losing Its Responsible Rep
"Stimulus now, austerity later." Sounds like good economic policy, whatever your political leanings. If you're on the right, you want tax cuts now, if you're on the left, you want government spending to get the economy moving.
Café Hayek | The austerity experiment
I have seen many articles on austerity. I can’t remember seeing any that suggest that government spending in any European country has actually fallen. Yes, there is talk of spending cuts or cuts in growth rates. But I’d like to see the data that shows the cuts have actually been implemented.
