News
Bloomberg | Monti Cabinet Backs Spending-Cut Package to Replace Tax Increase
Italian Prime Minister Mario Monti replaced a looming sales-tax increase with a package of spending cuts, seeking to counter rising anger over the government’s demand for revenue.
Bloomberg | Credit Swaps in U.S. Climb as Payrolls Rise Less Than Forecast
A gauge of U.S. corporate debt risk rose for a second day after U.S. employment increased less than forecast, fueling concerns that labor-market growth is cooling.
Econ Comments & Analysis
USA Today | Debt buries American dream
America has long prided itself on being a land of opportunity. The American dream, stories of those rising from rags to riches, is etched into our sense of identity. But increasingly, this seems just a myth.
Blogs
National Review | Greek Government: Not As Austere As It Claimed
Greece conceded on Thursday it had slipped “in some respects” in implementing the cuts and reforms demanded by lenders in exchange for saving Athens from bankruptcy, and tried to persuade them to cut the country some slack.
Library of Economics | The Debt-Fueled Binge Story, Keynes, and PSST
In the Keynesian model, borrowing money to maintain high public-worker salaries will create trickle-down prosperity for the private sector. In the PSST model, it won't.
