News
Market Watch | U.S. job growth, economy stuck in doldrums
Slackening U.S. and global growth likely means the nation’s unemployment rate will remain stuck around 8%, reducing the odds of a faster economic recovery kicking in before the end of the year.
WSJ | Weak Economy Heads Lower
The U.S. economy slowed sharply in the second quarter, growing just 1.5% as consumers slashed spending and businesses grew more cautious about hiring and investing, underscoring that an already wobbly recovery is losing even more steam.
Politico | Poll: Corruption is No. 2 issue for 2013
Americans view reducing government corruption as the second-highest priority for the next president, behind only job creation, according to a new Gallup poll released Monday.
Bloomberg | Euro-Area Economic Confidence Drops More Than Forecast
Economic confidence in the euro area fell more than economists forecast to the lowest in almost three years in July, suggesting the economy’s slump extended into the third quarter as governments struggled to tame the debt crisis.
USA Today | Recovery's pace may depend on worried wealthy
The shaky economic recovery may depend on wealthy consumers to keep spending — and they may not have the confidence to do the job.
Econ Comments & Analysis
WSJ | The 1.5% Presidency
President Obama didn't comment on Friday's report of declining growth in the second quarter, and that's no surprise. The economic story of his Presidency is by now familiar: a plodding recovery that has taken its third dip in three years and is barely raising incomes for most Americans.
AEI | Why capitalism has an image problem
Mitt Romney's résumé at Bain should be a slam dunk. He has been a successful capitalist, and capitalism is the best thing that has ever happened to the material condition of the human race.
Reason | Government Did Not Build Your Business
Evidently, the president believes that economic growth and job creation are largely the result of actions taken by benevolent government agencies. But while it is certainly the case that good governance is essential, entrepreneurs engaging in voluntary cooperation coordinated through competition in free markets is what actually creates wealth and jobs.
Bloomberg | Burn Your iPhone With Chinese Olympic Uniforms
Tonight, as American athletes enter London’s Olympic Stadium, all eyes will be on China. More to the point, on the made-in-China uniforms Team USA is sporting.
WSJ | Slow Recovery or Failed Agenda?
President Obama has a tough task ahead of him. He must convince the American voter that the economy is improving and that he deserves the credit. At the same time, he must make the case that the blame for the slowness of the recovery lies with others.
Washington Times | JORDAN AND SOUTHERLAND: To fight poverty, empower people
President Johnson declared a War on Poverty in 1964. Over the subsequent three decades, the federal government created a maze of welfare programs to distribute a growing mountain of taxpayer money. But year after year, poverty seemed to win the war.
WSJ | The Russia Trade Pile-Up
So how can legislation supported by business groups, democracy activists, Senate Democrats, House Republicans and the Obama Administration be in danger of failing? Answer: Only in Washington.
Bloomberg | How Recession Will Change University Financing
The latest recession will probably be seen as a turning point for college and university financing.
Blogs
Political Calculations | The GDP Revision
On Friday, 27 July 2012, the Bureau of Economic Analysis revised its estimates of the U.S.' inflation-adjusted GDP going back to the first quarter of 2009.
Library of Economics | Enrico Moretti on Mobility
In total, almost half of college graduates move out of their birth states by age 30. Only 27 percent of high school graduates and 17 percent of high school dropouts do so.
WSJ | Economists React: GDP ‘Not Satisfactory by Any Gauge’
Economists and others weigh in on the tepid second-quarter gross domestic product growth rate.
Calculated Risk | Unofficial Problem Bank list declines to 900 Institutions
For the week, there were seven removals and two additions leaving the list at 900 institutions with assets of $349.5 billion.
Neighborhood Effects | New Research From Henderson on Cronyism
Today Mercatus published a new piece on the economics and history of cronyism. It is by Professor David Henderson. David highlights his piece in an OpEd over at Real Clear Politics and in a blog post at EconLog.
Library of Economics | Reforming Government as an Institution
The time is ripe to push for new fiscal institutions to engage in a long-overdue rethinking of the rules shaping fiscal decisionmaking, to consolidate certain related government functions within unified bureaucratic structures and undo earlier consolidations that have failed, and to adopt measures aimed at depolarizing American politics, including reforms to the judicial confirmation process and to the congressional redistricting system.
WSJ | Is This Worst or Second-Worst Postwar Recovery?
There’s no question this is a lousy recovery. But is it the worst since World War II, or only the second-worst? It depends on how you count.
Calculated Risk | Schedule for Week of July 29th
The key report for this week will be the July employment report to be released on Friday, Aug 3rd.
Marginal Revolution | Krugman on income mobility
The rich man in his castle, The poor man at his gate, God made them high and lowly, And ordered their estate.
WSJ | Number of the Week: No Rush to Lock in Low Rate
9: Number of months in the last 12 when mortgage rates hit new record lows.
Daily Capitalist | The Japan Syndrome
Before taking a multi-week break with family in which I intend to post only for major market action, it’s time for some review. The macro theme in the U.S. economy and financial markets strikes me as just what I stated in one of my first blogs.
AEI | Maybe private sector is doing fine? Growth in post-recession ‘private GDP’ (3%) is above average
So maybe it’s true that the “private sector is doing fine” and most of the sub-par economic growth measured by real GDP is simply reflecting the decreases in government spending, and not weakness in the private sector?
