News
CNN Money | Abound Solar is latest government-backed bankruptcy
Abound Solar announced plans Thursday to file for bankruptcy and suspend operations, becoming the industry's latest government-backed firm to close its doors.
CNBC | Trouble Signs Remain in GDP; Claims Down, Prices Up
U.S. consumer spending and export growth were not as robust as previously believed in the first quarter, suggesting less momentum in the economy.
CNN Money | Congress set to extend low student loan rates
Congress is expected to vote Friday to extend low 3.4% interest rates on federally subsidized student loans for another year, barely beating a July 1 deadline when the rates would double.
Bloomberg | Japan’s Industrial Output Falls Most Since 2011 Quake
Japan’s industrial output fell the most since the March 2011 earthquake and consumer prices declined, bolstering the case for extra stimulus to sustain the nation’s economic recovery.
Market Watch | U.S. consumer spending falls slightly in May
Consumer spending in the U.S. fell slightly in May and was revised downward in April, according to the latest government data.
Econ Comments & Analysis
CNN Money | Economists see multiple eurozone exits
As European leaders meet to discuss the future of the euro, economists think the ongoing crisis will lead to big changes for the common currency.
AEI | North America: Living in the political wake of the US housing bubble
The U.S. is living in the wake of the great 21st century bubble and its collapse, as a dominating influence in the financial, economic, and political spheres.
CBO | Federal Efforts to Reduce the Cost of Capturing and Storing Carbon Dioxide
Coal-powered facilities account for roughly a third of all U.S. emissions of carbon dioxide, and most climate scientists believe that the buildup of carbon dioxide and other greenhouse gases in the atmosphere could have costly consequences.
Mercatus | The Impacts of Overdraft Programs on Consumers
The Regulatory Studies Program (RSP) of the Mercatus Center at George Mason University is dedicated to advancing knowledge of the impact of regulation on society.
Market Watch | Fed's Dudley: Unclear if soft-patch is over
The "pay-back" to the economy from the mild winter is over but it is still unclear whether the economy will regain momentum, said William Dudley, the president of the New York Federal Reserve Bank, on Friday.
Forbes | Obamanomics: Economics For Dummies
President Obama’s June 14 address in Cleveland presented his foundational economic policy arguments for this fall’s campaign. We will hear those same rhetorical points over and over this year, at least until his pollsters realize they are doing more harm than good.
Blogs
Neighborhood Effects | Undermining Competition is No Way to Compete
Money is tight for state and local governments, and that’s never more obvious than when lawmakers work to finalize budgets before the new fiscal year starts on July 1.
Friday, June 29, 2012
Health Care
News
CNN Money | Medicaid expansion: Many could be left out
The Supreme Court may have upheld health care reform, but the ruling has left many of the poorest Americans at risk of remaining uninsured.
National Journal | Déjà Vu
The Affordable Care Act was supposed to pad the safety net by forcing states to expand their Medicaid programs and cover all of the poorest Americans—not just children, pregnant women, and the disabled. But Thursday’s Supreme Court ruling authored by Chief Justice John Roberts holds that states don’t have to join in the expansion if they don’t want to.
Econ Comments & Analysis
CATO | Court's Ruling a Frankenstein's Monster
Today's heart-wrenching, baby-splitting Supreme Court decision illegitimately rewrote the Affordable Care Act in order to save it. It's certainly gratifying that a majority on the court rejected the government's dangerous assertion of power to require people to engage in economic activity in order to then regulate that activity.
CATO | The ObamaCare Decision: A Gift for Congress
Did you know that Congress passed a massive tax increase when they passed the Affordable Care Act — a.k.a. ObamaCare — in 2010? If you didn't, then you were not alone.
Washington Times | Obamacare and the death of liberty
Virginia Attorney General Ken Cuccinelli put it best: “This is a dark day for the American people, the Constitution and the rule of law,” he said of the Supreme Court decision to let Obamacare stand as the law of the land. “This is a dark day for American liberty.”
CATO | A Taxing Decision
In upholding Obamacare as a tax, the Supreme Court, led by the politically astute Chief Justice Roberts, took the safest route around a thorny issue. Both sides, arguably, got something they want.
Blogs
Heritage Foundation | Morning Bell: Join the Fight to Repeal Obamacare
Like you, I am disappointed by the Supreme Court’s Obamacare decision. The Court misread and rewrote Obamacare in order to save it. Such contortions are not the proper role of judging. Most Americans are with you and me and deeply dislike this law.
WSJ | It’s Still Sick, the Price of Medicine
Many health-care experts and users share that sentiment sung by the Psychedelic Furs. Thursday’s Supreme Court ruling does little to change the rising trajectory of health-care costs.
Heritage Foundation | Senate GOP Will Use Reconciliation in Attempt to Repeal Obamacare
Now that the Supreme Court has ruled that Obamacare’s health insurance mandate is in fact a tax levied on those who do not purchase insurance, Senate Republicans will look to repeal the full law through the budget reconciliation process.
CNN Money | Medicaid expansion: Many could be left out
The Supreme Court may have upheld health care reform, but the ruling has left many of the poorest Americans at risk of remaining uninsured.
National Journal | Déjà Vu
The Affordable Care Act was supposed to pad the safety net by forcing states to expand their Medicaid programs and cover all of the poorest Americans—not just children, pregnant women, and the disabled. But Thursday’s Supreme Court ruling authored by Chief Justice John Roberts holds that states don’t have to join in the expansion if they don’t want to.
Econ Comments & Analysis
CATO | Court's Ruling a Frankenstein's Monster
Today's heart-wrenching, baby-splitting Supreme Court decision illegitimately rewrote the Affordable Care Act in order to save it. It's certainly gratifying that a majority on the court rejected the government's dangerous assertion of power to require people to engage in economic activity in order to then regulate that activity.
CATO | The ObamaCare Decision: A Gift for Congress
Did you know that Congress passed a massive tax increase when they passed the Affordable Care Act — a.k.a. ObamaCare — in 2010? If you didn't, then you were not alone.
Washington Times | Obamacare and the death of liberty
Virginia Attorney General Ken Cuccinelli put it best: “This is a dark day for the American people, the Constitution and the rule of law,” he said of the Supreme Court decision to let Obamacare stand as the law of the land. “This is a dark day for American liberty.”
CATO | A Taxing Decision
In upholding Obamacare as a tax, the Supreme Court, led by the politically astute Chief Justice Roberts, took the safest route around a thorny issue. Both sides, arguably, got something they want.
Blogs
Heritage Foundation | Morning Bell: Join the Fight to Repeal Obamacare
Like you, I am disappointed by the Supreme Court’s Obamacare decision. The Court misread and rewrote Obamacare in order to save it. Such contortions are not the proper role of judging. Most Americans are with you and me and deeply dislike this law.
WSJ | It’s Still Sick, the Price of Medicine
Many health-care experts and users share that sentiment sung by the Psychedelic Furs. Thursday’s Supreme Court ruling does little to change the rising trajectory of health-care costs.
Heritage Foundation | Senate GOP Will Use Reconciliation in Attempt to Repeal Obamacare
Now that the Supreme Court has ruled that Obamacare’s health insurance mandate is in fact a tax levied on those who do not purchase insurance, Senate Republicans will look to repeal the full law through the budget reconciliation process.
Monetary
News
Bloomberg | Credit Swaps in U.S. Fall as Euro Leaders Loosen Rescue Rules
A gauge of U.S. corporate debt risk fell the most in more than two weeks after European leaders agreed to relax rules on emergency loans for Spanish banks, reducing pressure on Spain and Italy’s bond yields.
Econ Comments & Analysis
Fiscal Times | 7 Reasons the Fed Should Raise Interest Rates…
Easier money is what causes low interest rates and bringing down the rate of interest is the principal means by which the Federal Reserve eases monetary policy. So saying we need higher interest rates and easier money appears to be a contradiction in terms. However, there is method to my madness.
Blogs
NY Times | Three More Governance Questions for the Fed
As a result of recent interactions with former officials and others who know the Fed intimately, I have three substantive governance concerns for the New York Fed that merit further discussion.
Calculated Risk | A QE Timeline
By request, here is an updated timeline of QE (and Twist operations)
WSJ | Fed’s Lockhart Open to Further Action if Economy Weakens
While he doesn’t think it’s going to be needed, the leader of the Federal Reserve Bank of Atlanta remains open to the idea of further central bank stimulus if the economy weakens.
Bloomberg | Credit Swaps in U.S. Fall as Euro Leaders Loosen Rescue Rules
A gauge of U.S. corporate debt risk fell the most in more than two weeks after European leaders agreed to relax rules on emergency loans for Spanish banks, reducing pressure on Spain and Italy’s bond yields.
Econ Comments & Analysis
Fiscal Times | 7 Reasons the Fed Should Raise Interest Rates…
Easier money is what causes low interest rates and bringing down the rate of interest is the principal means by which the Federal Reserve eases monetary policy. So saying we need higher interest rates and easier money appears to be a contradiction in terms. However, there is method to my madness.
Blogs
NY Times | Three More Governance Questions for the Fed
As a result of recent interactions with former officials and others who know the Fed intimately, I have three substantive governance concerns for the New York Fed that merit further discussion.
Calculated Risk | A QE Timeline
By request, here is an updated timeline of QE (and Twist operations)
WSJ | Fed’s Lockhart Open to Further Action if Economy Weakens
While he doesn’t think it’s going to be needed, the leader of the Federal Reserve Bank of Atlanta remains open to the idea of further central bank stimulus if the economy weakens.
Taxes
Econ Comments & Analysis
WSJ | ObamaCare and the Power to Tax
The provision challenged under the Constitution is either a penalty or else a tax. Of course in many cases what was a regulatory mandate enforced by a penalty could have been imposed as a tax upon permissible action; or what was imposed as a tax upon permissible action could have been a regulatory mandate enforced by a penalty.
Washington Times | The Obamacare tax
The Supreme Court affirmed on Thursday what the White House never wanted to hear: Obamacare constitutes the largest and most regressive tax in American history.
WSJ | ObamaCare and the Power to Tax
The provision challenged under the Constitution is either a penalty or else a tax. Of course in many cases what was a regulatory mandate enforced by a penalty could have been imposed as a tax upon permissible action; or what was imposed as a tax upon permissible action could have been a regulatory mandate enforced by a penalty.
Washington Times | The Obamacare tax
The Supreme Court affirmed on Thursday what the White House never wanted to hear: Obamacare constitutes the largest and most regressive tax in American history.
Employment
Econ Comments & Analysis
NBER | The China Syndrome: Local Labor Market Effects of Import Competition in the United States
We analyze the effect of rising Chinese import competition between 1990 and 2007 on local U.S. labor markets, exploiting cross-market variation in import exposure stemming from initial differences in industry specialization while instrumenting for imports using changes in Chinese imports by industry to other high-income countries.
Blogs
WSJ | Vital Signs: Jobless Claims Remain Elevated
Fewer Americans filed new claims for jobless benefits last week. The four-week moving average of first-time unemployment filings, which smooths out weekly volatility, fell slightly to 386,750, down 750 from a week earlier.
NBER | The China Syndrome: Local Labor Market Effects of Import Competition in the United States
We analyze the effect of rising Chinese import competition between 1990 and 2007 on local U.S. labor markets, exploiting cross-market variation in import exposure stemming from initial differences in industry specialization while instrumenting for imports using changes in Chinese imports by industry to other high-income countries.
Blogs
WSJ | Vital Signs: Jobless Claims Remain Elevated
Fewer Americans filed new claims for jobless benefits last week. The four-week moving average of first-time unemployment filings, which smooths out weekly volatility, fell slightly to 386,750, down 750 from a week earlier.
Budget
News
National Journal | Where Is Congress With Appropriations?
As of early summer, the House is a bit ahead of the Senate in passing its 12 annual major appropriations bills for fiscal year 2013. Will both chambers pass all 12 bills before the end of the current fiscal year on Sept. 30? Probably not
Blogs
Financial Times | Myths and truths of the Baltic austerity model
Visiting Latvia on Thursday, Hillary Clinton praised the Baltic state for taking “very difficult” austerity measures that would ensure a “stable, prosperous future”.
National Journal | Where Is Congress With Appropriations?
As of early summer, the House is a bit ahead of the Senate in passing its 12 annual major appropriations bills for fiscal year 2013. Will both chambers pass all 12 bills before the end of the current fiscal year on Sept. 30? Probably not
Blogs
Financial Times | Myths and truths of the Baltic austerity model
Visiting Latvia on Thursday, Hillary Clinton praised the Baltic state for taking “very difficult” austerity measures that would ensure a “stable, prosperous future”.
Thursday, June 28, 2012
General Economics
News
WSJ | Cities Outpace Suburbs in Growth
Many U.S. cities are growing faster than their suburbs for the first time in decades, reflecting shifting attitudes about urban living as well as the effect of a housing bust that has put a damper on moving.
Bloomberg | Oil Fluctuates Amid Speculation EU Outlook Will Worsen
Oil fluctuated in London amid speculation that the European Union’s economy will fail to grow, as the region’s leaders gathered in Brussels for a summit.
CNN Money | Congress close to deal on student loans
Senate and House leaders said Wednesday they're close to an agreement to extend for one year the current low 3.4% rates on federal subsidized student loans.
Bloomberg | U.S. Economy Grew 1.9% in First Quarter on Consumer Spending
The U.S. economy grew 1.9 percent in the first quarter, reflecting a gain in consumer spending that now shows signs of cooling as the labor market weakens.
Bloomberg | Euro-Area Confidence Slumps, German Unemployment Rises
Economic confidence in the euro area slumped to the lowest in more than 2 1/2 years in June and German unemployment increased more than economists forecast, adding to signs the economy fell back into a recession.
NY Times | After Years of False Hopes, Signs of a Turn in Housing
Announcements of a housing recovery have become a wrongheaded rite of summer, but after several years of false hopes, evidence is accumulating that the optimists may finally be right.
Econ Comments & Analysis
Fiscal Times | The Poor: Not As Bad Off As They Once Were?
Just how badly are the country’s poor and middle class doing? While the national debate about rising income inequality rages on, economists Kevin Hassett and Aparna Mathur of the conservative American Enterprise Institute are looking to shift the focus of the discussion.
CNN Money | Could cheap gas save the economy?
The good news is that cheaper gas could be the answer. America has hit the energy jackpot with new techniques to extract oil and gas from shale.
NBER | Evidence on the Impact of R&D and ICT Investment on Innovation and Productivity in Italian Firms
Both Research and Development (R&D) and Information and Communication Technology (ICT) investment have been identified as sources of relative innovation underperformance in Europe vis-à-vis the United States.
Washington Times | Bank downgrades with a twist
News from Europe continues to be bleak. Moody's downgraded 28 Spanish banks on Monday, not long after major financial institutions, including Citigroup, Morgan Stanley, Goldman Sachs, Bank of America and JPMorgan Chase, suffered the same fate.
Blogs
CNN Money | OECD warns U.S. on income inequality
The United States should aim to fix its income inequality problem by improving education for disadvantaged students and raising taxes on the wealthy, according to a new report from a consortium of developed countries.
FOX Business | U.S. Economy Thrives on the Pearls of Small Business
There’s a bull market in doom and gloom these days. But small businesses are still chugging along, the heart and soul of the U.S. economy, the artisanal small shops who create the lion's share of jobs in the U.S. economy.
Economist | American oil
For decades, American politicians have bemoaned their economy's dependence on foreign oil and failed utterly at doing anything about it. Now, two key developments—soaring prices and new technologies—are beginning to accomplish what politicians couldn't.
WSJ | Cities Outpace Suburbs in Growth
Many U.S. cities are growing faster than their suburbs for the first time in decades, reflecting shifting attitudes about urban living as well as the effect of a housing bust that has put a damper on moving.
Bloomberg | Oil Fluctuates Amid Speculation EU Outlook Will Worsen
Oil fluctuated in London amid speculation that the European Union’s economy will fail to grow, as the region’s leaders gathered in Brussels for a summit.
CNN Money | Congress close to deal on student loans
Senate and House leaders said Wednesday they're close to an agreement to extend for one year the current low 3.4% rates on federal subsidized student loans.
Bloomberg | U.S. Economy Grew 1.9% in First Quarter on Consumer Spending
The U.S. economy grew 1.9 percent in the first quarter, reflecting a gain in consumer spending that now shows signs of cooling as the labor market weakens.
Bloomberg | Euro-Area Confidence Slumps, German Unemployment Rises
Economic confidence in the euro area slumped to the lowest in more than 2 1/2 years in June and German unemployment increased more than economists forecast, adding to signs the economy fell back into a recession.
NY Times | After Years of False Hopes, Signs of a Turn in Housing
Announcements of a housing recovery have become a wrongheaded rite of summer, but after several years of false hopes, evidence is accumulating that the optimists may finally be right.
Econ Comments & Analysis
Fiscal Times | The Poor: Not As Bad Off As They Once Were?
Just how badly are the country’s poor and middle class doing? While the national debate about rising income inequality rages on, economists Kevin Hassett and Aparna Mathur of the conservative American Enterprise Institute are looking to shift the focus of the discussion.
CNN Money | Could cheap gas save the economy?
The good news is that cheaper gas could be the answer. America has hit the energy jackpot with new techniques to extract oil and gas from shale.
NBER | Evidence on the Impact of R&D and ICT Investment on Innovation and Productivity in Italian Firms
Both Research and Development (R&D) and Information and Communication Technology (ICT) investment have been identified as sources of relative innovation underperformance in Europe vis-à-vis the United States.
Washington Times | Bank downgrades with a twist
News from Europe continues to be bleak. Moody's downgraded 28 Spanish banks on Monday, not long after major financial institutions, including Citigroup, Morgan Stanley, Goldman Sachs, Bank of America and JPMorgan Chase, suffered the same fate.
Blogs
CNN Money | OECD warns U.S. on income inequality
The United States should aim to fix its income inequality problem by improving education for disadvantaged students and raising taxes on the wealthy, according to a new report from a consortium of developed countries.
FOX Business | U.S. Economy Thrives on the Pearls of Small Business
There’s a bull market in doom and gloom these days. But small businesses are still chugging along, the heart and soul of the U.S. economy, the artisanal small shops who create the lion's share of jobs in the U.S. economy.
Economist | American oil
For decades, American politicians have bemoaned their economy's dependence on foreign oil and failed utterly at doing anything about it. Now, two key developments—soaring prices and new technologies—are beginning to accomplish what politicians couldn't.
Health Care
News
FOX News | A look at the health care law in all 50 states
With the U.S. Supreme Court expected to rule Thursday on the President Barack Obama's federal health care overhaul, here is a look at where each of the 50 states stands.
National Journal | Health Care Ruling Won't Stop All of Industry's Changes
Legally, a ruling reversing or eviscerating the Affordable Care Act could bring the country back to 2009. But practically, there’s no going back.
CNBC | Obamacare: What Happens When Supreme Court Decides
The Supreme Court's ruling on its biggest case — President Barack Obama's health-care reform — almost certainly will not be the last word on America's tangled efforts to address health-care woes.
Blogs
WSJ | The Economic Effects of Supreme Court’s Health Law Ruling
With the Supreme Court poised to rule on the constitutionality of President Barack Obama’s health-care overhaul Thursday, analysts are racing to figure out the implications for the economy.
FOX News | A look at the health care law in all 50 states
With the U.S. Supreme Court expected to rule Thursday on the President Barack Obama's federal health care overhaul, here is a look at where each of the 50 states stands.
National Journal | Health Care Ruling Won't Stop All of Industry's Changes
Legally, a ruling reversing or eviscerating the Affordable Care Act could bring the country back to 2009. But practically, there’s no going back.
CNBC | Obamacare: What Happens When Supreme Court Decides
The Supreme Court's ruling on its biggest case — President Barack Obama's health-care reform — almost certainly will not be the last word on America's tangled efforts to address health-care woes.
Blogs
WSJ | The Economic Effects of Supreme Court’s Health Law Ruling
With the Supreme Court poised to rule on the constitutionality of President Barack Obama’s health-care overhaul Thursday, analysts are racing to figure out the implications for the economy.
Monetary
News
Market Watch | U.S. economy likely needs more help: Fed’s Evans
The Federal Reserve likely will have to take further steps to boost the economy, the central bank’s leading advocate for so-called quantitative easing said Wednesday.
CNBC | Does the Global Economy Need More Money Printing?
The global economy can only return to growth once looser monetary policy is employed by both Europe and the United States, including more quantitative easing, said Bob Parker, senior advisor at Credit Suisse.
Econ Comments & Analysis
WSJ | A Weaker Euro Could Rescue Europe
The only way to prevent the dissolution of the euro zone might be a sharp decline in the value of the euro relative to the dollar and to other currencies.
Fortune | Bernanke fiddles while Obama burns
With weak job growth, falling retail sales, and the threat of chaos in Europe, Ben Bernanke should be doing more. But it's hard not to feel sorry for him.
CNBC | Will All the Money Printing Lead to Hyperinflation?
Fiat money is a wonderful thing is it not? Truly one of the more useful developments in society since humans first learned to think / speak, that one can put in a day’s work and be rewarded with a piece of paper, which can itself be exchanged for something as marvelous as a punnet of strawberries or a Fender Jazz Bass.
Market Watch | U.S. economy likely needs more help: Fed’s Evans
The Federal Reserve likely will have to take further steps to boost the economy, the central bank’s leading advocate for so-called quantitative easing said Wednesday.
CNBC | Does the Global Economy Need More Money Printing?
The global economy can only return to growth once looser monetary policy is employed by both Europe and the United States, including more quantitative easing, said Bob Parker, senior advisor at Credit Suisse.
Econ Comments & Analysis
WSJ | A Weaker Euro Could Rescue Europe
The only way to prevent the dissolution of the euro zone might be a sharp decline in the value of the euro relative to the dollar and to other currencies.
Fortune | Bernanke fiddles while Obama burns
With weak job growth, falling retail sales, and the threat of chaos in Europe, Ben Bernanke should be doing more. But it's hard not to feel sorry for him.
CNBC | Will All the Money Printing Lead to Hyperinflation?
Fiat money is a wonderful thing is it not? Truly one of the more useful developments in society since humans first learned to think / speak, that one can put in a day’s work and be rewarded with a piece of paper, which can itself be exchanged for something as marvelous as a punnet of strawberries or a Fender Jazz Bass.
Taxes
News
Forbes | Californians Say No To More Taxes, Will The Other 49 States Follow?
This month, in my former state of residence California, voters narrowly rejected an increase in the state’s cigarette tax by voting down Proposition 29; an act that, for some, seemed out of touch with voter concerns about balancing their state budget.
Forbes | Californians Say No To More Taxes, Will The Other 49 States Follow?
This month, in my former state of residence California, voters narrowly rejected an increase in the state’s cigarette tax by voting down Proposition 29; an act that, for some, seemed out of touch with voter concerns about balancing their state budget.
Employment
News
Bloomberg | Jobless Claims in U.S. Hovered Last Week Near 2012 High
The number of applications for unemployment benefits hovered last week near the highest level of the year, showing little improvement in the U.S. labor market.
National Journal | Troops Paid Nearly $1 Billion in Unemployment
The Defense Department paid nearly $ 1 billion in unemployment benefits last year to troops who left the military but were unable to secure jobs, USA Today reported on Wednesday.
Bloomberg | German June Unemployment Rises as Crisis Starts to Bite
German unemployment climbed in June for the fourth month this year as the debt crisis in the euro region weighed on companies’ willingness to create jobs.
Bloomberg | Jobless Claims in U.S. Hovered Last Week Near 2012 High
The number of applications for unemployment benefits hovered last week near the highest level of the year, showing little improvement in the U.S. labor market.
National Journal | Troops Paid Nearly $1 Billion in Unemployment
The Defense Department paid nearly $ 1 billion in unemployment benefits last year to troops who left the military but were unable to secure jobs, USA Today reported on Wednesday.
Bloomberg | German June Unemployment Rises as Crisis Starts to Bite
German unemployment climbed in June for the fourth month this year as the debt crisis in the euro region weighed on companies’ willingness to create jobs.
Budget
News
CNN Money | Spending cuts: Congress risks another crisis
It's mindless, confusing and costly. It will likely result in private-sector and government job loss. It will hurt the economy.
Econ Comments & Analysis
Politico | How to handle our long-term debt
The public is undergoing a cultural shift, driven by generations of punted fiscal decisions and the need for innovative leadership in tough economic times. Voters have determined that budget issues once considered untouchable — including long-term pension and health care obligations — are now open for discussion.
CBO | Status of Discretionary Appropriations: FY 2013 House
Estimates of discretionary budget authority and outlays for fiscal year 2013.
Blogs
Café Hayek | Costs Are Not Benefits
You credulously accept the National Association of Manufacturers’s assumption that defense spending, apart from whatever benefit it might provide on the national-defense front, is a boon to the economy
Heritage Foundation | Student Loan Deal Risks Taxpayer Pension Bailout
The discussion over whether to extend federal subsidies for student loans largely hinges on whether the House and Senate come to an agreement over how to pay for the resulting $6 billion tab for taxpayers.
CNN Money | Spending cuts: Congress risks another crisis
It's mindless, confusing and costly. It will likely result in private-sector and government job loss. It will hurt the economy.
Econ Comments & Analysis
Politico | How to handle our long-term debt
The public is undergoing a cultural shift, driven by generations of punted fiscal decisions and the need for innovative leadership in tough economic times. Voters have determined that budget issues once considered untouchable — including long-term pension and health care obligations — are now open for discussion.
CBO | Status of Discretionary Appropriations: FY 2013 House
Estimates of discretionary budget authority and outlays for fiscal year 2013.
Blogs
Café Hayek | Costs Are Not Benefits
You credulously accept the National Association of Manufacturers’s assumption that defense spending, apart from whatever benefit it might provide on the national-defense front, is a boon to the economy
Heritage Foundation | Student Loan Deal Risks Taxpayer Pension Bailout
The discussion over whether to extend federal subsidies for student loans largely hinges on whether the House and Senate come to an agreement over how to pay for the resulting $6 billion tab for taxpayers.
Wednesday, June 27, 2012
General Economics
News
CNN Money | South Carolina gas falls below $3 a gallon
Gas prices continued their nationwide decline on Tuesday, as South Carolina became the first state in nearly a year and a half to hit an average of less than $3 per gallon.
Washington Times | U.S. gasoline prices cheapest since January
The price of gasoline has dropped to a five-month low, giving drivers some relief ahead of the July 4 holiday.
Market Watch | Orders for U.S. durable goods rise 1.1% in May
Orders for long-lasting U.S. goods rose 1.1% in May after falling in the prior two months, the Commerce Department said Wednesday.
CNN Money | Home prices rise for first time in 7 months
Average home prices increased 1.3% in April in 20 major markets, according to the S&P/Case-Shiller home price index. This comes after prices hit new post-bubble lows in March.
WSJ | U.S. Urged To Bolster Economy
The U.S. economy is likely to grow moderately this year, but is limited by stagnant wages, relatively high income inequality and an education system that provides few resources to those likely to need help, the Organization for Economic Cooperation and Development said.
CNN Money | Obama to allow more Arctic drilling
The Obama administration will go ahead with more drilling in Arctic waters, though at a pace that allows for more research before additional permits are granted.
Econ Comments & Analysis
Washington Times | Get ready for another surge in imports
The deteriorating world economy rightly has produced lower American growth forecasts in anticipation of falling U.S. exports.
CRS | An Economic Analysis of Large-Scale Mortgage Refinancing Proposals: A Brief Overview
The bursting of the housing bubble in 2006 precipitated the December 2007-June 2009 recession and a financial panic in September 2008. With the housing market seen as a locus for many of the economic problems that emerged, some Members of Congress propose intervening in the housing market as a means of improving not only the housing market itself but also the financial sector and the broader economy.
American | Dodd-Frank: The Economic Case for Repeal
As the second anniversary of the act approaches, its role in slowing our economic recovery is coming into focus. GDP growth shrunk immediately after the law passed and has never recovered, while key terms in the law remain undefined.
CRS | Hydropower: Federal and Nonfederal Investment
Congress is examining numerous energy sources to determine their contribution to the nation's energy portfolio and the federal role in supporting these sources.
Washington Times | Europe’s master plan
The world was able to breathe a sigh of relief after last week’s elections in Greece, as it looks as if Athens will try to keep the country’s membership in the eurozone. But it won’t be easy.
AEI | A big deal: Canada and Mexico join the Pacific Trade Pact
The most significant development during the G-20 summit in Mexico occurred on the sidelines and was largely buried in media reports: The decision to invite Canada and Mexico to join negotiations for the Trans-Pacific Partnership agreement (TPP).
Blogs
National Review | European Roundup: ‘Why They Aren’t Getting Better’ Edition
I must be honest. I don’t understand what he means by the growth agenda. Does it mean an end to austerity? If so, why not say so? And if so, how do you ensure fiscal discipline moving forward?
CATO | Census Bureau Confirms: DC Spends $29,409 / pupil
Oh, and, BTW, this spending figure is about triple what the DC voucher program spends per pupil—and the voucher students have a much higher graduation rate and perform as well or better academically.
Marginal Revolution | My 28-minute talk on black swans
What would we do if it turned out there were more black swans than we had thought? What should we do?
Library of Economics | Changing World Trade Patterns
Whereas high-income economies accounted for four-fifths of global trade in 1985, they will account for less than half by the middle of this decade.
Political Calculations | The Quality of Government-Produced Economic Data
That's very old news to readers of Political Calculations, a little-read blog that somehow managed to scoop a number of financial institutions and even the New York Times in reporting on the poor health of China's economy back in February 2012.
Café Hayek | Two different stories
Robert Samuelson has an interesting narrative in the Washington Post. He argues that the prosperity of the last 30 years was driven by consumer spending, consumer spending that came from a false sense of wealth as housing prices rose artificially high due to an expansion of credit
CNN Money | South Carolina gas falls below $3 a gallon
Gas prices continued their nationwide decline on Tuesday, as South Carolina became the first state in nearly a year and a half to hit an average of less than $3 per gallon.
Washington Times | U.S. gasoline prices cheapest since January
The price of gasoline has dropped to a five-month low, giving drivers some relief ahead of the July 4 holiday.
Market Watch | Orders for U.S. durable goods rise 1.1% in May
Orders for long-lasting U.S. goods rose 1.1% in May after falling in the prior two months, the Commerce Department said Wednesday.
CNN Money | Home prices rise for first time in 7 months
Average home prices increased 1.3% in April in 20 major markets, according to the S&P/Case-Shiller home price index. This comes after prices hit new post-bubble lows in March.
WSJ | U.S. Urged To Bolster Economy
The U.S. economy is likely to grow moderately this year, but is limited by stagnant wages, relatively high income inequality and an education system that provides few resources to those likely to need help, the Organization for Economic Cooperation and Development said.
CNN Money | Obama to allow more Arctic drilling
The Obama administration will go ahead with more drilling in Arctic waters, though at a pace that allows for more research before additional permits are granted.
Econ Comments & Analysis
Washington Times | Get ready for another surge in imports
The deteriorating world economy rightly has produced lower American growth forecasts in anticipation of falling U.S. exports.
CRS | An Economic Analysis of Large-Scale Mortgage Refinancing Proposals: A Brief Overview
The bursting of the housing bubble in 2006 precipitated the December 2007-June 2009 recession and a financial panic in September 2008. With the housing market seen as a locus for many of the economic problems that emerged, some Members of Congress propose intervening in the housing market as a means of improving not only the housing market itself but also the financial sector and the broader economy.
American | Dodd-Frank: The Economic Case for Repeal
As the second anniversary of the act approaches, its role in slowing our economic recovery is coming into focus. GDP growth shrunk immediately after the law passed and has never recovered, while key terms in the law remain undefined.
CRS | Hydropower: Federal and Nonfederal Investment
Congress is examining numerous energy sources to determine their contribution to the nation's energy portfolio and the federal role in supporting these sources.
Washington Times | Europe’s master plan
The world was able to breathe a sigh of relief after last week’s elections in Greece, as it looks as if Athens will try to keep the country’s membership in the eurozone. But it won’t be easy.
AEI | A big deal: Canada and Mexico join the Pacific Trade Pact
The most significant development during the G-20 summit in Mexico occurred on the sidelines and was largely buried in media reports: The decision to invite Canada and Mexico to join negotiations for the Trans-Pacific Partnership agreement (TPP).
Blogs
National Review | European Roundup: ‘Why They Aren’t Getting Better’ Edition
I must be honest. I don’t understand what he means by the growth agenda. Does it mean an end to austerity? If so, why not say so? And if so, how do you ensure fiscal discipline moving forward?
CATO | Census Bureau Confirms: DC Spends $29,409 / pupil
Oh, and, BTW, this spending figure is about triple what the DC voucher program spends per pupil—and the voucher students have a much higher graduation rate and perform as well or better academically.
Marginal Revolution | My 28-minute talk on black swans
What would we do if it turned out there were more black swans than we had thought? What should we do?
Library of Economics | Changing World Trade Patterns
Whereas high-income economies accounted for four-fifths of global trade in 1985, they will account for less than half by the middle of this decade.
Political Calculations | The Quality of Government-Produced Economic Data
That's very old news to readers of Political Calculations, a little-read blog that somehow managed to scoop a number of financial institutions and even the New York Times in reporting on the poor health of China's economy back in February 2012.
Café Hayek | Two different stories
Robert Samuelson has an interesting narrative in the Washington Post. He argues that the prosperity of the last 30 years was driven by consumer spending, consumer spending that came from a false sense of wealth as housing prices rose artificially high due to an expansion of credit
Health Care
News
CNN Money | Doctors: We could go out of business
As the nation awaits the Supreme Court's ruling on health care reform, America's doctors are debating a serious issue of their own -- the possibility of going out of business.
CNN Money | Medicare: Seniors saved $3.7 billion on medicine
More than 5.2 million Medicare beneficiaries have saved a total of $3.7 billion on their prescription drugs since the health care reform law went into effect, the Centers for Medicare & Medicaid Services said Monday.
National Journal | Republican Study Committee: We Have Health Care Ideas--27 Pages Worth
Anticipating a certain attack line from Democrats should the Supreme Court overturn all or part of the 2010 health care law, the Republican Study Committee published a 27-page list on Tuesday of health-related legislation that the group's members have introduced in the current Congress.
CNN Money | What health reform could cost you
Among the promises of the health reform law -- now in the hands of the Supreme Court -- is affordable insurance for millions of low- and middle-income Americans.
Econ Comments & Analysis
WSJ | Health Care Reform v. the Founders
The president has announced his health care plan, and congressional Republicans have announced theirs. Although the details are still murky, the plans seem to share one fundamental assumption -- that every man, woman and child in the U.S. must participate in the system.
CATO | Why the Obamacare Ruling Matters
As we eagerly await the Supreme Court’s decision on the constitutionality of the Patient Protection and Affordable Care Act, a.k.a. Obamacare, expected shortly after 10 a.m. Thursday morning, much of the political Left remains mystified by the health-care law’s continued unpopularity.
CNN Money | Doctors: We could go out of business
As the nation awaits the Supreme Court's ruling on health care reform, America's doctors are debating a serious issue of their own -- the possibility of going out of business.
CNN Money | Medicare: Seniors saved $3.7 billion on medicine
More than 5.2 million Medicare beneficiaries have saved a total of $3.7 billion on their prescription drugs since the health care reform law went into effect, the Centers for Medicare & Medicaid Services said Monday.
National Journal | Republican Study Committee: We Have Health Care Ideas--27 Pages Worth
Anticipating a certain attack line from Democrats should the Supreme Court overturn all or part of the 2010 health care law, the Republican Study Committee published a 27-page list on Tuesday of health-related legislation that the group's members have introduced in the current Congress.
CNN Money | What health reform could cost you
Among the promises of the health reform law -- now in the hands of the Supreme Court -- is affordable insurance for millions of low- and middle-income Americans.
Econ Comments & Analysis
WSJ | Health Care Reform v. the Founders
The president has announced his health care plan, and congressional Republicans have announced theirs. Although the details are still murky, the plans seem to share one fundamental assumption -- that every man, woman and child in the U.S. must participate in the system.
CATO | Why the Obamacare Ruling Matters
As we eagerly await the Supreme Court’s decision on the constitutionality of the Patient Protection and Affordable Care Act, a.k.a. Obamacare, expected shortly after 10 a.m. Thursday morning, much of the political Left remains mystified by the health-care law’s continued unpopularity.
Monetary
News
Market Watch | The Treasury won’t do the twist
The Federal Reserve’s latest efforts to push long term interest rates down is running up against the Treasury’s attempt to lock in today’s historically low borrowing costs.
Bloomberg | Draghi May Enter Twilight Zone Where Fed Fears to Tread
European Central Bank President Mario Draghi is contemplating taking interest rates into a twilight zone shunned by the Federal Reserve.
Blogs
WSJ | Fed’s Fisher: Twist Plan Having Very Minor Effect
The Federal Reserve‘s Operation Twist program to push down bond yields is only having a “very minor effect” on the economy, said Richard Fisher, the president of the Federal Reserve Bank of Dallas, on Tuesday.
Economist | The twilight of the central banker
The ability of central bankers to bandage over the harm inflicted by bumbling politicians is limited, warns the BIS in its latest annual report. Unless the world embraces the sober leadership of the wise central banker disaster looms.
WSJ | Forecasts Hint Fed Might Change Rate Guidance
As regional Federal Reserve bank presidents return to the speaking circuit this week, many investors will be scrounging for clues as to whether the central bank plans to launch a third major bond-buying program later this summer.
Market Watch | The Treasury won’t do the twist
The Federal Reserve’s latest efforts to push long term interest rates down is running up against the Treasury’s attempt to lock in today’s historically low borrowing costs.
Bloomberg | Draghi May Enter Twilight Zone Where Fed Fears to Tread
European Central Bank President Mario Draghi is contemplating taking interest rates into a twilight zone shunned by the Federal Reserve.
Blogs
WSJ | Fed’s Fisher: Twist Plan Having Very Minor Effect
The Federal Reserve‘s Operation Twist program to push down bond yields is only having a “very minor effect” on the economy, said Richard Fisher, the president of the Federal Reserve Bank of Dallas, on Tuesday.
Economist | The twilight of the central banker
The ability of central bankers to bandage over the harm inflicted by bumbling politicians is limited, warns the BIS in its latest annual report. Unless the world embraces the sober leadership of the wise central banker disaster looms.
WSJ | Forecasts Hint Fed Might Change Rate Guidance
As regional Federal Reserve bank presidents return to the speaking circuit this week, many investors will be scrounging for clues as to whether the central bank plans to launch a third major bond-buying program later this summer.
Taxes
Blogs
Heritage Foundation | Federal Advisory Committee Members Land Millions in Taxpayer Backing
Members of a federal advisory committee on the adoption of biofuels have seen millions in taxpayer dollars steered to their companies while sitting on the committee, Scribe reports in today’s Washington Examiner.
Heritage Foundation | Fabricated Details on Tax Reform
The Tax Policy Center (TPC) and the Democratic staff of the Joint Economic Committee (JEC) fabricated details about the tax reform outline passed by the House of Representatives as part of Budget Committee chairman Paul Ryan’s (R–WI) budget. Their “analysis” rests on thin air.
Heritage Foundation | Federal Advisory Committee Members Land Millions in Taxpayer Backing
Members of a federal advisory committee on the adoption of biofuels have seen millions in taxpayer dollars steered to their companies while sitting on the committee, Scribe reports in today’s Washington Examiner.
Heritage Foundation | Fabricated Details on Tax Reform
The Tax Policy Center (TPC) and the Democratic staff of the Joint Economic Committee (JEC) fabricated details about the tax reform outline passed by the House of Representatives as part of Budget Committee chairman Paul Ryan’s (R–WI) budget. Their “analysis” rests on thin air.
Employment
News
Bloomberg | Older Workers in U.S. Drive Competition in Labor Market
Richard InLove, 60, works 20 hours a week as a receptionist and office assistant in Eugene, Oregon, and wants more. After losing a full-time job in a cereal factory three years ago, he hasn’t been able to find a second position.
Bloomberg | Older Workers in U.S. Drive Competition in Labor Market
Richard InLove, 60, works 20 hours a week as a receptionist and office assistant in Eugene, Oregon, and wants more. After losing a full-time job in a cereal factory three years ago, he hasn’t been able to find a second position.
Budget
News
Washington Times | Tax cheats got $1.4 billion in stimulus loans
Tax cheats were given $1.4 billion in government-backed mortgage loans under President Obama’s economic stimulus, and the government doled out at least an additional $27 million in tax credits to delinquents who took the first-time-homebuyer tax break, according to a government audit released Wednesday.
Econ Comments & Analysis
Market Watch | Germany's Merkel: No quick fix for debt crisis
Chancellor Angela Merkel told Germany's parliament Wednesday that there is no quick fix for the euro-zone's debt crisis and that the introduction of euro bonds at this stage would be "economically wrong," news reports said.
Forbes | Fiscal Austerity and Economic Prosperity
In this third and last of my entries on the “fiscal austerity” debate I discuss how, historically, prosperity has resulted not from the alleged “stimulus” of government deficit spending but from less government spending and big tax cuts.
WSJ | Let's Ban the Word 'Trillion'
The thing is, it should be really hard to ever get our heads around a "trillion." Very few of us have ever seen a trillion of anything with our own eyes. Maybe a trillion grains of sand, but not a trillion trees or a trillion stars.
Washington Times | Tax cheats got $1.4 billion in stimulus loans
Tax cheats were given $1.4 billion in government-backed mortgage loans under President Obama’s economic stimulus, and the government doled out at least an additional $27 million in tax credits to delinquents who took the first-time-homebuyer tax break, according to a government audit released Wednesday.
Econ Comments & Analysis
Market Watch | Germany's Merkel: No quick fix for debt crisis
Chancellor Angela Merkel told Germany's parliament Wednesday that there is no quick fix for the euro-zone's debt crisis and that the introduction of euro bonds at this stage would be "economically wrong," news reports said.
Forbes | Fiscal Austerity and Economic Prosperity
In this third and last of my entries on the “fiscal austerity” debate I discuss how, historically, prosperity has resulted not from the alleged “stimulus” of government deficit spending but from less government spending and big tax cuts.
WSJ | Let's Ban the Word 'Trillion'
The thing is, it should be really hard to ever get our heads around a "trillion." Very few of us have ever seen a trillion of anything with our own eyes. Maybe a trillion grains of sand, but not a trillion trees or a trillion stars.
Tuesday, June 26, 2012
General Economics
News
FOX News | Moody's cuts debt ratings of 28 Spanish banks
The rating agency said that it is cutting its views on the debt issued by 28 Spanish banks, including international heavyweights Banco Santander and Banco Bilbao Vizcaya Argentaria.
CNBC | Gas Prices Are a Silver Lining for Wobbly Economy
The national average for regular gasoline has fallen 9 cents in the past week to $3.41, according to AAA. Gasoline was $3.65 a month ago and $3.935 a gallon when it peaked in April.
CNN Money | New home sales jump 7.6% in May
The housing market got some good news on Monday, as the government reported that sales of new homes rose 7.6% in May.
Bloomberg | Biggest U.S. Banks Curb Loans as Regional Firms Fill Gap
The biggest U.S. banks are extending less credit amid a faltering economic recovery as regional lenders step in to fill the gap.
NY Times | Report Predicts Huge Gap in Educated Workers
By 2020, there will be about 38 million to 40 million too few college and university graduates to satisfy the demands of the global labor market, a report issued this month has found
WSJ | New-Home Sales Reach 2-Year High
Sales of newly built homes climbed to the highest level in two years, driven by limited supply of previously owned homes and record-low mortgage rates.
Econ Comments & Analysis
WSJ | Shareholders Can Cure Too Big to Fail
There are many reasons people give for breaking up financial institutions that are "too big to fail." It would reduce their complexity, making it less likely they would fail in first place. And ending the government's implicit subsidies to these behemoths means they would no longer enjoy a lower cost of borrowing funds—a competitive advantage that now leads them to grow bigger.
NY Times | Fixing College
Setting aside the specifics of the Virginia drama, university leaders desperately need to transform how colleges do business. Higher education must make up for the mistakes it made in what I call the industry’s “lost decade,” from 1999 to 2009.
Mercatus | Beware the Surge: "Midnight Regulations"
History teaches us that the outcome of presidential elections is rarely certain, with one exception. A change in administration will be followed by a “lame duck” session, during which politicians are all-but freed from normal political constraints.
WSJ | Smearing Small Business
On the eve of the Supreme Court's ruling on ObamaCare, and with the Justices now presumably beyond political pressure, the liberal intimidation campaign has moved on to other targets. The latest is the small business lobby for having dared to join 26 states in challenging the law.
AEI | The Pension Benefit Guaranty Corporation: Who will guarantee this guarantor?
Defined-benefit pension plans are very difficult to finance successfully: That is why so many of them, both private and public, are deeply underfunded. It is also why they are a disappearing financial species.
Mercatus | Baselines
For more than three decades, executive branch agencies have been required to conduct regulatory impact analyses (RIAs) for all regulations deemed to be “economically significant.”
Blogs
National Review | Scott Winship on Income Mobility: Good News Edition
This is a great interview of Brookings Institution’s Scott Winship by Nick Gillespie of Reason TV about income mobility in America. As Winship’s work demonstrates, mobility is not declining in spite of evidence that income inequality is indeed growing (especially at the top end of the income distribution).
AEI | Graphic of the Day: The economic catastrophe of a euro breakup
Well, this wouldn’t be good at all
Library of Economics | Mexico's Economic Growth
In the United States, the image of Mexico is abysmal and largely wrong. The average American seems to believe that Mexico is a destitute, quasi-socialist nation with rampant drug violence that is sending waves of illegal immigrants to the United States.
FOX News | Moody's cuts debt ratings of 28 Spanish banks
The rating agency said that it is cutting its views on the debt issued by 28 Spanish banks, including international heavyweights Banco Santander and Banco Bilbao Vizcaya Argentaria.
CNBC | Gas Prices Are a Silver Lining for Wobbly Economy
The national average for regular gasoline has fallen 9 cents in the past week to $3.41, according to AAA. Gasoline was $3.65 a month ago and $3.935 a gallon when it peaked in April.
CNN Money | New home sales jump 7.6% in May
The housing market got some good news on Monday, as the government reported that sales of new homes rose 7.6% in May.
Bloomberg | Biggest U.S. Banks Curb Loans as Regional Firms Fill Gap
The biggest U.S. banks are extending less credit amid a faltering economic recovery as regional lenders step in to fill the gap.
NY Times | Report Predicts Huge Gap in Educated Workers
By 2020, there will be about 38 million to 40 million too few college and university graduates to satisfy the demands of the global labor market, a report issued this month has found
WSJ | New-Home Sales Reach 2-Year High
Sales of newly built homes climbed to the highest level in two years, driven by limited supply of previously owned homes and record-low mortgage rates.
Econ Comments & Analysis
WSJ | Shareholders Can Cure Too Big to Fail
There are many reasons people give for breaking up financial institutions that are "too big to fail." It would reduce their complexity, making it less likely they would fail in first place. And ending the government's implicit subsidies to these behemoths means they would no longer enjoy a lower cost of borrowing funds—a competitive advantage that now leads them to grow bigger.
NY Times | Fixing College
Setting aside the specifics of the Virginia drama, university leaders desperately need to transform how colleges do business. Higher education must make up for the mistakes it made in what I call the industry’s “lost decade,” from 1999 to 2009.
Mercatus | Beware the Surge: "Midnight Regulations"
History teaches us that the outcome of presidential elections is rarely certain, with one exception. A change in administration will be followed by a “lame duck” session, during which politicians are all-but freed from normal political constraints.
WSJ | Smearing Small Business
On the eve of the Supreme Court's ruling on ObamaCare, and with the Justices now presumably beyond political pressure, the liberal intimidation campaign has moved on to other targets. The latest is the small business lobby for having dared to join 26 states in challenging the law.
AEI | The Pension Benefit Guaranty Corporation: Who will guarantee this guarantor?
Defined-benefit pension plans are very difficult to finance successfully: That is why so many of them, both private and public, are deeply underfunded. It is also why they are a disappearing financial species.
Mercatus | Baselines
For more than three decades, executive branch agencies have been required to conduct regulatory impact analyses (RIAs) for all regulations deemed to be “economically significant.”
Blogs
National Review | Scott Winship on Income Mobility: Good News Edition
This is a great interview of Brookings Institution’s Scott Winship by Nick Gillespie of Reason TV about income mobility in America. As Winship’s work demonstrates, mobility is not declining in spite of evidence that income inequality is indeed growing (especially at the top end of the income distribution).
AEI | Graphic of the Day: The economic catastrophe of a euro breakup
Well, this wouldn’t be good at all
Library of Economics | Mexico's Economic Growth
In the United States, the image of Mexico is abysmal and largely wrong. The average American seems to believe that Mexico is a destitute, quasi-socialist nation with rampant drug violence that is sending waves of illegal immigrants to the United States.
Health Care
News
National Journal | More Than 22 Million Could Lose Insurance With Supreme Court Decision
More than 22 million people who would have gotten cheaper health insurance or coverage from Medicaid will be out of luck if the Supreme Court overturns the entire health care law, according to analysis from consulting firm Avalere Health.
Politico | Health care ruling expected Thursday
The Supreme Court on Monday said that Thursday would be the last day it would release opinions. Rulings are expected in two cases, plus the closely watched decision on President Barack Obama’s health care reform law.
National Journal | HHS Tallies "Donut Hole" Savings
According to the Department of Health and Human Services, 5.25 million beneficiaries have saved a combined $3.7 billion on drug costs since 2010, thanks to discounts negotiated as part of the health care reform law.
Blogs
National Review | Health Care after the Supreme Court Ruling
Since it looks like we will find out on Thursday what the Supreme Court ruling on Obamacare will be, I have a few questions for experts on both sides of the political spectrum about its potential consequences.
Mercatus | The Fiscal Consequences of the Supreme Court's Healthcare Ruling
The Supreme Court's decision on the 2010 healthcare law may result in what appears to be a fiscal windfall for the federal government. But it would be a grave mistake for lawmakers to react to illusory savings with real new spending.
National Journal | More Than 22 Million Could Lose Insurance With Supreme Court Decision
More than 22 million people who would have gotten cheaper health insurance or coverage from Medicaid will be out of luck if the Supreme Court overturns the entire health care law, according to analysis from consulting firm Avalere Health.
Politico | Health care ruling expected Thursday
The Supreme Court on Monday said that Thursday would be the last day it would release opinions. Rulings are expected in two cases, plus the closely watched decision on President Barack Obama’s health care reform law.
National Journal | HHS Tallies "Donut Hole" Savings
According to the Department of Health and Human Services, 5.25 million beneficiaries have saved a combined $3.7 billion on drug costs since 2010, thanks to discounts negotiated as part of the health care reform law.
Blogs
National Review | Health Care after the Supreme Court Ruling
Since it looks like we will find out on Thursday what the Supreme Court ruling on Obamacare will be, I have a few questions for experts on both sides of the political spectrum about its potential consequences.
Mercatus | The Fiscal Consequences of the Supreme Court's Healthcare Ruling
The Supreme Court's decision on the 2010 healthcare law may result in what appears to be a fiscal windfall for the federal government. But it would be a grave mistake for lawmakers to react to illusory savings with real new spending.
Monetary
Econ Comments & Analysis
CNBC | Pessimistic UK Central Bank Sees Outlook Worsening
The outlook for Britain's economy has worsened over the past few weeks due to turmoil in the euro zone and signs of deterioration in emerging markets, the Bank of England said on Tuesday.
CNBC | Dallas Fed’s Fisher Sees ‘Positive Momentum’
Dallas Federal Reserve President Richard Fisher brushed off concerns of looming deflationary pressures and told CNBC on Monday that he believed the U.S. economy is moving in the right direction.
Blogs
Minyanville | Operation Twist II: Project Escape Velocity
This week, the US Bureau of Economic Analysis will release the final reading on Q1 GDP. By all accounts, it will reflect that the velocity of money will be at the lowest level in half a century.
CNBC | Pessimistic UK Central Bank Sees Outlook Worsening
The outlook for Britain's economy has worsened over the past few weeks due to turmoil in the euro zone and signs of deterioration in emerging markets, the Bank of England said on Tuesday.
CNBC | Dallas Fed’s Fisher Sees ‘Positive Momentum’
Dallas Federal Reserve President Richard Fisher brushed off concerns of looming deflationary pressures and told CNBC on Monday that he believed the U.S. economy is moving in the right direction.
Blogs
Minyanville | Operation Twist II: Project Escape Velocity
This week, the US Bureau of Economic Analysis will release the final reading on Q1 GDP. By all accounts, it will reflect that the velocity of money will be at the lowest level in half a century.
Taxes
News
Market Watch | Japan tax hike approved despite rebellion
The lower house of Japan’s parliament voted Tuesday in favor of a controversial bill to double the consumption-tax rate to 10% by 2015, likely setting in motion a chain of events that could split the ruling party and lead to early elections.
Market Watch | Japan tax hike approved despite rebellion
The lower house of Japan’s parliament voted Tuesday in favor of a controversial bill to double the consumption-tax rate to 10% by 2015, likely setting in motion a chain of events that could split the ruling party and lead to early elections.
Employment
Econ Comments & Analysis
Forbes | Crowdsourcing a New Report On Government Job Destruction
When the government issues the June employment report on July 6th, the one data point that will be missing is the number of jobs that have been lost – or never created – because of government regulatory, tax and monetary policies.
WSJ | Employment, Italian Style
Prime Minister Mario Monti has issued a new "growth decree" to revive Italy's moribund economy. Among other initiatives, the 185-page plan proposes discount loans for corporate R&D, tax credits for businesses that hire employees with advanced degrees, and reduced headcount at select government ministries.
Blogs
Café Hayek | Moretti on jobs and cities
The latest EconTalk is Enrico Moretti talking about his new book, The New Geography of Jobs. Lots of interesting observations about the impact of education on how cities grow
Forbes | Crowdsourcing a New Report On Government Job Destruction
When the government issues the June employment report on July 6th, the one data point that will be missing is the number of jobs that have been lost – or never created – because of government regulatory, tax and monetary policies.
WSJ | Employment, Italian Style
Prime Minister Mario Monti has issued a new "growth decree" to revive Italy's moribund economy. Among other initiatives, the 185-page plan proposes discount loans for corporate R&D, tax credits for businesses that hire employees with advanced degrees, and reduced headcount at select government ministries.
Blogs
Café Hayek | Moretti on jobs and cities
The latest EconTalk is Enrico Moretti talking about his new book, The New Geography of Jobs. Lots of interesting observations about the impact of education on how cities grow
Budget
News
Market Watch | Plan would give EU national budget powers: report
European leaders meeting later this week will consider a plan that would allow the European Union to rewrite national budgets for euro-zone countries that fail to meet debt and deficit rules, the Financial Times reported Tuesday, citing a draft report.
Bloomberg | Congress Said to Delay Automatic Budget Cuts Until March
Republican and Democratic congressional leaders are weighing whether to delay automatic federal spending cuts until March 2013, according to a House aide and industry officials who were briefed on the discussions.
Econ Comments & Analysis
Real Clear Markets | Message to Europe: Government Spending IS Austerity
A Wall Street Journal headline from last month, "Europe, in Slump, Rethinks Austerity", captures well the binary view of economic growth at the moment: spend or recess.
Washington Times | Constitutional fix to overspending
Tea Party members are going to be very unhappy. Many of the new members of the House and Senate that the Tea Party helped elect are already becoming part of the political class, as evidenced by their votes for continued farm subsidies, refusals to put reasonable limits on the growth of the food- stamp program, support for unaccountable international organizations, and on and on.
Market Watch | Plan would give EU national budget powers: report
European leaders meeting later this week will consider a plan that would allow the European Union to rewrite national budgets for euro-zone countries that fail to meet debt and deficit rules, the Financial Times reported Tuesday, citing a draft report.
Bloomberg | Congress Said to Delay Automatic Budget Cuts Until March
Republican and Democratic congressional leaders are weighing whether to delay automatic federal spending cuts until March 2013, according to a House aide and industry officials who were briefed on the discussions.
Econ Comments & Analysis
Real Clear Markets | Message to Europe: Government Spending IS Austerity
A Wall Street Journal headline from last month, "Europe, in Slump, Rethinks Austerity", captures well the binary view of economic growth at the moment: spend or recess.
Washington Times | Constitutional fix to overspending
Tea Party members are going to be very unhappy. Many of the new members of the House and Senate that the Tea Party helped elect are already becoming part of the political class, as evidenced by their votes for continued farm subsidies, refusals to put reasonable limits on the growth of the food- stamp program, support for unaccountable international organizations, and on and on.
Monday, June 25, 2012
General Economics
News
CNN Money | Gas prices down 6% this month
Amid the global economic gloom, there's a ray of sunshine for summertime motorists in the U.S.: The price of gas has dropped 6% over the last month.
CNN Money | 28% of Americans have no emergency savings
Most Americans don't have nearly enough money stashed away for emergencies and more than one-in-four don't even have a single penny saved.
CNN Money | Economists give Obama and Congress a 'D'
When it comes to handling the economy, neither Obama nor Congress make the grade.
WSJ | China, U.S. Sign $3.4 Billion in Deals
Companies from China and the U.S. on Saturday signed a total of $3.4 billion in bilateral investment projects, as the world's two biggest economies seek to boost trade and investment.
CNN Money | Government wants more people on food stamps
More than one in seven Americans are on food stamps, but the federal government wants even more people to sign up for the safety net program.
Market Watch | Citi cuts China's 2012 growth outlook to 7.8%
Citi on Monday cut its 2012 China growth forecast to 7.8% from 8.1% previously, saying the move reflects slower domestic growth in the second quarter and a further weakening of conditions in the European Union.
CNN Money | U.S. cuts greenhouse gases despite do-nothing Congress
A curious thing is happening to the air in the United States. It's getting cleaner.
Econ Comments & Analysis
NY Times | Old vs. Young
Draw it at the age of 65, 50 or 40. Wherever the line is, the people on either side of it end up looking very different, both economically and politically.
Washington Times | U.S. still stuck in recession
This latest recession started in December 2007. Since the Great Depression 75 years ago, recessions in America have lasted an average of 10 months, with the longest previously lasting 16 months, not counting this latest spooky downturn.
WSJ | Smearing Small Business
On the eve of the Supreme Court's ruling on ObamaCare, and with the Justices now presumably beyond political pressure, the liberal intimidation campaign has moved on to other targets. The latest is the small business lobby for having dared to join 26 states in challenging the law.
Motley Fool | The Most Important Numbers of the Next Half-Century
In 1991, former MIT dean Lester Thurow wrote: "If one looks at the last 20 years, Japan would have to be considered the betting favorite to win the economy honors of owning the 21st century."
Washington Post | The sources of the global economic stalemate
We live in a world of broken models. To understand why world leaders can’t easily fix the sputtering global economy, you have to realize that the economic models on which the United States, Europe and China relied are collapsing.
WSJ | Corporate Pensions Need Relief
Pension plans measure their liabilities by applying a discount, or interest, rate that is prescribed by law. The lower the discount rate, the more they will have to contribute to fund their plans.
NY Times | A Georgia Town Takes the People’s Business Private
If your image of a city hall involves a venerable building, some Roman pillars and lots of public employees, the version offered by this Atlanta suburb of 94,000 residents is a bit of a shocker.
WSJ | The Dodd-Frank Downgrade
We've never put much stock in the judgment of credit-ratings agencies. But by issuing a series of downgrades of giant banks this week, Moody's Investors Service may have performed a taxpayer service.
Atlantic | The Economic History of the Last 2000 Years: Part II
The graph above is an economic history of the world, after 1 AD, from a research letter written by Michael Cembalest, chairman of market and investment strategy at JP Morgan.
Blogs
Calculated Risk | Unofficial Problem Bank list increases to 921 Institutions
Quiet week for the Unofficial Problem Bank List with three additions and one removal. The changes leave the list with 921 institutions with assets of $354.6 billion, up for the second consecutive week.
National Review | Green Energy Loans: Beyond the Solyndra Drama
I testified before Congress earlier this week about the Section 1705 loan guarantee program of the Department of Energy. That’s the loan program that guaranteed $538 million in loans for the now-bankrupt energy company Solyndra.
Library of Economics | Eurozone Crisis: what is the solution?
The problem is that some governments and some banks are insolvent. When a financial institution is insolvent, its liabilities must be taken over by a solvent institution. The solvent institution gets to set the price, which typically is a discount.
Calculated Risk | Schedule for Week of June 24th
The key US economic reports this week are May New Home Sales on Monday, April Case-Shiller house prices on Tuesday, and the May Personal Income and Outlays report on Friday.
CNN Money | Gas prices down 6% this month
Amid the global economic gloom, there's a ray of sunshine for summertime motorists in the U.S.: The price of gas has dropped 6% over the last month.
CNN Money | 28% of Americans have no emergency savings
Most Americans don't have nearly enough money stashed away for emergencies and more than one-in-four don't even have a single penny saved.
CNN Money | Economists give Obama and Congress a 'D'
When it comes to handling the economy, neither Obama nor Congress make the grade.
WSJ | China, U.S. Sign $3.4 Billion in Deals
Companies from China and the U.S. on Saturday signed a total of $3.4 billion in bilateral investment projects, as the world's two biggest economies seek to boost trade and investment.
CNN Money | Government wants more people on food stamps
More than one in seven Americans are on food stamps, but the federal government wants even more people to sign up for the safety net program.
Market Watch | Citi cuts China's 2012 growth outlook to 7.8%
Citi on Monday cut its 2012 China growth forecast to 7.8% from 8.1% previously, saying the move reflects slower domestic growth in the second quarter and a further weakening of conditions in the European Union.
CNN Money | U.S. cuts greenhouse gases despite do-nothing Congress
A curious thing is happening to the air in the United States. It's getting cleaner.
Econ Comments & Analysis
NY Times | Old vs. Young
Draw it at the age of 65, 50 or 40. Wherever the line is, the people on either side of it end up looking very different, both economically and politically.
Washington Times | U.S. still stuck in recession
This latest recession started in December 2007. Since the Great Depression 75 years ago, recessions in America have lasted an average of 10 months, with the longest previously lasting 16 months, not counting this latest spooky downturn.
WSJ | Smearing Small Business
On the eve of the Supreme Court's ruling on ObamaCare, and with the Justices now presumably beyond political pressure, the liberal intimidation campaign has moved on to other targets. The latest is the small business lobby for having dared to join 26 states in challenging the law.
Motley Fool | The Most Important Numbers of the Next Half-Century
In 1991, former MIT dean Lester Thurow wrote: "If one looks at the last 20 years, Japan would have to be considered the betting favorite to win the economy honors of owning the 21st century."
Washington Post | The sources of the global economic stalemate
We live in a world of broken models. To understand why world leaders can’t easily fix the sputtering global economy, you have to realize that the economic models on which the United States, Europe and China relied are collapsing.
WSJ | Corporate Pensions Need Relief
Pension plans measure their liabilities by applying a discount, or interest, rate that is prescribed by law. The lower the discount rate, the more they will have to contribute to fund their plans.
NY Times | A Georgia Town Takes the People’s Business Private
If your image of a city hall involves a venerable building, some Roman pillars and lots of public employees, the version offered by this Atlanta suburb of 94,000 residents is a bit of a shocker.
WSJ | The Dodd-Frank Downgrade
We've never put much stock in the judgment of credit-ratings agencies. But by issuing a series of downgrades of giant banks this week, Moody's Investors Service may have performed a taxpayer service.
Atlantic | The Economic History of the Last 2000 Years: Part II
The graph above is an economic history of the world, after 1 AD, from a research letter written by Michael Cembalest, chairman of market and investment strategy at JP Morgan.
Blogs
Calculated Risk | Unofficial Problem Bank list increases to 921 Institutions
Quiet week for the Unofficial Problem Bank List with three additions and one removal. The changes leave the list with 921 institutions with assets of $354.6 billion, up for the second consecutive week.
National Review | Green Energy Loans: Beyond the Solyndra Drama
I testified before Congress earlier this week about the Section 1705 loan guarantee program of the Department of Energy. That’s the loan program that guaranteed $538 million in loans for the now-bankrupt energy company Solyndra.
Library of Economics | Eurozone Crisis: what is the solution?
The problem is that some governments and some banks are insolvent. When a financial institution is insolvent, its liabilities must be taken over by a solvent institution. The solvent institution gets to set the price, which typically is a discount.
Calculated Risk | Schedule for Week of June 24th
The key US economic reports this week are May New Home Sales on Monday, April Case-Shiller house prices on Tuesday, and the May Personal Income and Outlays report on Friday.
Health Care
News
FOX Business | Health-Care Ruling: Who Wins, Who Loses
It’s not just the Obama Administration that has so much at stake over the Supreme Court’s looming decision over the constitutionality of health-care reform.
Econ Comments & Analysis
Real Clear Markets | Global Governments' Growing Embrace of Big Pharma
As the pharmaceutical industry wrestles with multiple existential threats-from price controls to patent cliffs to dwindling pipelines-calls are growing for deeper government-industry cooperation. As private investors flee, the guiding hand and bottomless pockets of government technocrats are somehow supposed to conjure up the twin genies of innovation and efficiency.
Washington Times | A regulatory drug shortage
The last thing a sick person wants to hear is that ample supplies of a life-saving medicine have been replaced by a surplus of red tape. That’s precisely what’s happening nationwide, with 82 percent of hospitals reporting shortages so severe that treatment must be put on hold, according to the American Hospital Association.
Blogs
Heritage Foundation | Top Five Reasons Obamacare Is Bad for Doctors
The Supreme Court’s Obamacare decision is expected next week, but it’s important to remember that the constitutionality of the law’s individual mandate isn’t the only concern. Several surveys have revealed that doctors have a negative view of the law and its impact on the practice of medicine.
Marginal Revolution | Yana reviews the new John Goodman book
While it is impossible that any entrepreneur will devise an overarching solution for our healthcare problems we have forgotten how to let process innovators test solutions and chip away at problems the way they do to roaring success in other industries.
FOX Business | Health-Care Ruling: Who Wins, Who Loses
It’s not just the Obama Administration that has so much at stake over the Supreme Court’s looming decision over the constitutionality of health-care reform.
Econ Comments & Analysis
Real Clear Markets | Global Governments' Growing Embrace of Big Pharma
As the pharmaceutical industry wrestles with multiple existential threats-from price controls to patent cliffs to dwindling pipelines-calls are growing for deeper government-industry cooperation. As private investors flee, the guiding hand and bottomless pockets of government technocrats are somehow supposed to conjure up the twin genies of innovation and efficiency.
Washington Times | A regulatory drug shortage
The last thing a sick person wants to hear is that ample supplies of a life-saving medicine have been replaced by a surplus of red tape. That’s precisely what’s happening nationwide, with 82 percent of hospitals reporting shortages so severe that treatment must be put on hold, according to the American Hospital Association.
Blogs
Heritage Foundation | Top Five Reasons Obamacare Is Bad for Doctors
The Supreme Court’s Obamacare decision is expected next week, but it’s important to remember that the constitutionality of the law’s individual mandate isn’t the only concern. Several surveys have revealed that doctors have a negative view of the law and its impact on the practice of medicine.
Marginal Revolution | Yana reviews the new John Goodman book
While it is impossible that any entrepreneur will devise an overarching solution for our healthcare problems we have forgotten how to let process innovators test solutions and chip away at problems the way they do to roaring success in other industries.
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