News
Politico | Tis the season for health and taxes
Government-funded health law “navigators” and advocacy groups helping people sign up are emphasizing the health benefits of getting covered, while tax preparation firms are hammering home the economic benefits.
CNN Money | Debit vs. credit cards: Which is safer to swipe?
While the tens of millions of Target shoppers who had their credit and debit card information stolen likely won't be on the hook for any fraudulent transactions that may occur, debit card users could face much bigger headaches than credit card users.
Fox Business | Pension Woes Have Cities, States Eyeing 401(k) Style Plans
Recent studies by the Pew Charitable Trust revealed that the 61 largest U.S. cities were a combined $217 billion short on their pension obligations and the 50 U.S. states were a combined $1.3 trillion short on pension promises made to state employees.
CNN Money | Wow! U.S. economy revved up
Gross domestic product -- the broadest measure of economic activity -- grew at a 4.1% annual pace in the third quarter, up from the 2.8% pace that was first reported in November.
Bloomberg | Bankers Become Realists as Recovery Leaves Them Sidelined
Throughout the current slump in takeovers, mergers and acquisitions advisers have said a recovery was around the corner, awaiting a stronger U.S. economy, rising stock markets or an end to the European debt crisis.
WSJ | Fed's Mortgage Role Expands
Central Bank's Asset Purchases Are Bigger Share of Market as It Begins to Taper.
Econ Comments & Analysis
TIME | Why Mortgages Will Soon Be More Expensive
Homebuyers are in a sudden headwind of rising home prices, mortgage rates and lending limits.
Washington Times | TRIPLETT: Shale revolution reality checks
In fact, this year, the IEA has predicted that the United States would take the lead in 2015, not 2020.
AEI | The Volcker rule won't reduce risk
After three years of regulatory wrangling, the Volcker Rule is finally out. The rule sharply curtails the types of trading activities that banks whose deposits are insured by the government can engage in. Volcker Rule supporters argue that it will make the financial sector a safer place. Don't bet on it.
Blogs
WSJ: Real Time Economics | Vital Signs: Businesses Brace for Benefits Bump
While the surveys focus on manufacturing, the healthcare challenge probably extends to all types of business, and has implications for future consumer spending. Paying more for health insurance means businesses have less for pay raises that would support more household shopping.
The Economist | The backlash against the BRICs backlash
Growth in the biggest emerging economies has disappointed the high expectations generated by their swift rebound from the 2008 financial crisis.
WSJ: Real Time Economics | Economists React: Third-Quarter GDP ‘Downright Impressive’
U.S. GDP rose a revised 4.1% in the third quarter of the year, the strongest annualized rate of growth since the end of 2011.
Friday, December 20, 2013
Health Care
News
National Journal | Obama Administration to Delay Individual Mandate for Some
Those with canceled policies will be exempt from Obamacare’s penalty for not buying insurance.
Blogs
Heritage Foundation | Obamacare Was Supposed to Help the Uninsured. So Why Don't They Like It?
More uninsured Americans (37 percent) believe Obamacare will hurt them—citing increased costs as a major reason—than uninsured Americans who believe the law will help them (33 percent).
Heritage Foundation | It's Official—HHS Says Obamacare Is a Hardship
Thus, the Health and Human Services (HHS) Secretary is now exercising her authority to grant a “hardship” exemption to the individual mandate to purchase health insurance.
National Journal | Obama Administration to Delay Individual Mandate for Some
Those with canceled policies will be exempt from Obamacare’s penalty for not buying insurance.
Blogs
Heritage Foundation | Obamacare Was Supposed to Help the Uninsured. So Why Don't They Like It?
More uninsured Americans (37 percent) believe Obamacare will hurt them—citing increased costs as a major reason—than uninsured Americans who believe the law will help them (33 percent).
Heritage Foundation | It's Official—HHS Says Obamacare Is a Hardship
Thus, the Health and Human Services (HHS) Secretary is now exercising her authority to grant a “hardship” exemption to the individual mandate to purchase health insurance.
Monetary
News
Bloomberg | Fed Seen Tapering QE in $10B Steps in Next Seven Meetings
If we’re making progress in terms of inflation and continued job gains, then I imagine we’ll continue to do, probably at each meeting, a measured reduction in purchases, Bernanke said
CNN Money | Fed's assets top $4 trillion
To be more exact, the Fed's assets now total $4,008,062,000,000 -- a new record high, according to a weekly report released by the central bank on Thursday afternoon. And it's going to keep climbing.
Bloomberg | Fed Seen Tapering QE in $10B Steps in Next Seven Meetings
If we’re making progress in terms of inflation and continued job gains, then I imagine we’ll continue to do, probably at each meeting, a measured reduction in purchases, Bernanke said
CNN Money | Fed's assets top $4 trillion
To be more exact, the Fed's assets now total $4,008,062,000,000 -- a new record high, according to a weekly report released by the central bank on Thursday afternoon. And it's going to keep climbing.
Taxes
Econ Comments & Analysis
Forbes | Romney Was Wrong About The 47 Percent, The Problem Is Much Worse
This suggests that in actuality around 70 percent of American families are receiving more from the government than they are paying in.
CRS | Energy Tax Policy: Issues in the 113th Congress
Energy tax policy may also be considered as part of comprehensive tax reform legislation in the 113th Congress. A base-broadening approach to tax reform might consider the elimination of various energy tax expenditures in conjunction with a reduction in overall tax rates.
Heritage Foundation | Business Tax Reform: Focus on Rate Reduction Now, Save Expensing for Later
Business tax reform is essential to increasing investment and restoring robust job creation and wage growth. Reform is necessary in large part because the U.S. has the highest corporate tax rate in the developed world.
Forbes | Romney Was Wrong About The 47 Percent, The Problem Is Much Worse
This suggests that in actuality around 70 percent of American families are receiving more from the government than they are paying in.
CRS | Energy Tax Policy: Issues in the 113th Congress
Energy tax policy may also be considered as part of comprehensive tax reform legislation in the 113th Congress. A base-broadening approach to tax reform might consider the elimination of various energy tax expenditures in conjunction with a reduction in overall tax rates.
Heritage Foundation | Business Tax Reform: Focus on Rate Reduction Now, Save Expensing for Later
Business tax reform is essential to increasing investment and restoring robust job creation and wage growth. Reform is necessary in large part because the U.S. has the highest corporate tax rate in the developed world.
Employment
Econ Comments & Analysis
Bloomberg | More Jobs Are the Antidote to Inequality
There are two different trends visible in data on income inequality: the stagnating -- at times, declining -- wages of working-class families on one hand, and the awesome spike in the incomes of the top 1 percent on the other.
MarketWatch | The real cost of raising the minimum wage
More low-skill Americans would be out of work. People would buy less of the higher-priced services. Supersizing a wage is not as simple as supersizing a hamburger.
Blogs
WSJ: Real Time Economics | Without Unemployment Extension, Which States Would Be Hit Hardest?
About 1.37 million people nationwide received emergency unemployment compensation at the end of November. That program, which provides an average of $300 a week in benefits to unemployed people once they exhaust their state benefits, is set to expire Dec. 28.
Bloomberg | More Jobs Are the Antidote to Inequality
There are two different trends visible in data on income inequality: the stagnating -- at times, declining -- wages of working-class families on one hand, and the awesome spike in the incomes of the top 1 percent on the other.
MarketWatch | The real cost of raising the minimum wage
More low-skill Americans would be out of work. People would buy less of the higher-priced services. Supersizing a wage is not as simple as supersizing a hamburger.
Blogs
WSJ: Real Time Economics | Without Unemployment Extension, Which States Would Be Hit Hardest?
About 1.37 million people nationwide received emergency unemployment compensation at the end of November. That program, which provides an average of $300 a week in benefits to unemployed people once they exhaust their state benefits, is set to expire Dec. 28.
Budget
News
CNN Money | Most bizarro budget moves Congress made in 2013
Sure, Congress cut a small budget deal in 2013. But that minor victory can't compensate for many of the nutty things lawmakers did on the fiscal front this year.
Econ Comments & Analysis
Washington Times | EDITORIAL: Doc Coburn’s government diet
Oklahoma senator prescribes $30 billion in federal restraint.
CNN Money | Most bizarro budget moves Congress made in 2013
Sure, Congress cut a small budget deal in 2013. But that minor victory can't compensate for many of the nutty things lawmakers did on the fiscal front this year.
Econ Comments & Analysis
Washington Times | EDITORIAL: Doc Coburn’s government diet
Oklahoma senator prescribes $30 billion in federal restraint.
Thursday, December 19, 2013
General Economics
News
National Journal | The Best and Worst 2013 Predictions
In 2013, Bashar al-Assad was ousted from Syria, unemployment remained at 8 percent, and the Washington Redskins won the Super Bowl.
Market Watch | Leading economic index rises 0.8% in November
The leading economic index for the U.S. rose 0.8% in November to 98.3 from 97.5 in the prior month, the Conference Board said Thursday.
CNN Money | Is the economy as good as it looks?
On Wednesday the Federal Reserve felt confident enough to begin slowly withdrawing the huge economic stimulus the central bank has been pumping into the economy.
Bloomberg | Consumer Comfort in U.S. Rises to Highest Level Since September
Consumer confidence rose last week to the highest level since September, recovering the ground lost as a result of the partial federal shutdown and a sign the economy is regaining momentum.
Market Watch | 30-year-mortgage rate rises to 4.47%
The average rate for a 30-year fixed-rate mortgage rose to 4.47% in the week that ended Dec. 19 from 4.42% in the prior week, according to a Thursday report from federally controlled mortgage buyer Freddie Mac.
National Journal | Most Americans Want Tougher Food-Stamp Requirements
Driven by a strong sense the food-stamp program is rife with abuse, two-thirds of Americans say they want to make it harder for people to receive assistance by requiring recipients to be drug-free and looking for work.
Market Watch | Philly Manufacturing index recovers slightly in December
Manufacturing in the Philadelphia region rebounded only slightly in December after falling to its lowest reading in seven months in November, according to a new survey released Thursday.
Econ Comments & Analysis
Forbes | Mortgage Interest Deduction Saves Middle Class Taxpayers All Of $51/Month
Middle-class homeowners saved an average of $615 on their taxes in 2012 thanks to the mortgage interest deduction. That’s actually down from an average savings of $989 in 2010. Whether this is a good or bad development, though, depends on who is defining the goals for the special housing tax benefit.
Washington Times | The lost generation
Will we force doctors to treat the millions of new Medicaid patients who are signing up for services that can be only partially reimbursed? How exactly will the Internal Revenue Service collect penalties from millions of off-the-books youth who choose not to buy coverage?
Mercatus | President Obama Faces a Bigger Ticking Time Bomb than the Affordable Care Act Itself
Most of the media’s energy and focus over the past few months has been on 2010’s Affordable Care Act and its problematic roll-out, with its ensuing intended and unintended consequences. Flawed analysis led to flawed legislation and flawed outcomes for the health care industry and millions of Americans.
National Journal | The Best and Worst 2013 Predictions
In 2013, Bashar al-Assad was ousted from Syria, unemployment remained at 8 percent, and the Washington Redskins won the Super Bowl.
Market Watch | Leading economic index rises 0.8% in November
The leading economic index for the U.S. rose 0.8% in November to 98.3 from 97.5 in the prior month, the Conference Board said Thursday.
CNN Money | Is the economy as good as it looks?
On Wednesday the Federal Reserve felt confident enough to begin slowly withdrawing the huge economic stimulus the central bank has been pumping into the economy.
Bloomberg | Consumer Comfort in U.S. Rises to Highest Level Since September
Consumer confidence rose last week to the highest level since September, recovering the ground lost as a result of the partial federal shutdown and a sign the economy is regaining momentum.
Market Watch | 30-year-mortgage rate rises to 4.47%
The average rate for a 30-year fixed-rate mortgage rose to 4.47% in the week that ended Dec. 19 from 4.42% in the prior week, according to a Thursday report from federally controlled mortgage buyer Freddie Mac.
National Journal | Most Americans Want Tougher Food-Stamp Requirements
Driven by a strong sense the food-stamp program is rife with abuse, two-thirds of Americans say they want to make it harder for people to receive assistance by requiring recipients to be drug-free and looking for work.
Market Watch | Philly Manufacturing index recovers slightly in December
Manufacturing in the Philadelphia region rebounded only slightly in December after falling to its lowest reading in seven months in November, according to a new survey released Thursday.
Econ Comments & Analysis
Forbes | Mortgage Interest Deduction Saves Middle Class Taxpayers All Of $51/Month
Middle-class homeowners saved an average of $615 on their taxes in 2012 thanks to the mortgage interest deduction. That’s actually down from an average savings of $989 in 2010. Whether this is a good or bad development, though, depends on who is defining the goals for the special housing tax benefit.
Washington Times | The lost generation
Will we force doctors to treat the millions of new Medicaid patients who are signing up for services that can be only partially reimbursed? How exactly will the Internal Revenue Service collect penalties from millions of off-the-books youth who choose not to buy coverage?
Mercatus | President Obama Faces a Bigger Ticking Time Bomb than the Affordable Care Act Itself
Most of the media’s energy and focus over the past few months has been on 2010’s Affordable Care Act and its problematic roll-out, with its ensuing intended and unintended consequences. Flawed analysis led to flawed legislation and flawed outcomes for the health care industry and millions of Americans.
Health Care
News
National Journal | McCain Introduces Bill to Repeal and Replace Obamacare
John McCain introduced legislation Wednesday to repeal and replace the Affordable Care Act, citing an overdue responsibility of the Republican Party to present an alternative to the president's health law.
WSJ | More Turmoil in State Health Exchanges
The leader of Minnesota's health-insurance marketplace resigned after taking a two-week vacation in late November when the state's website was experiencing technical problems, making her the fourth state health-insurance chief to be ousted.
Econ Comments & Analysis
Forbes | Don't Believe The Pundits, Conservatives Are Bursting With Ideas To Replace Obamacare
Conservatives are being challenged to come up with their own alternative health policy plan to replace Obamacare as it becomes quite clear that government cannot centrally manage a vast part of the largest economy in the world. Democrats, the media, and many others are demanding that Republicans get behind their own “unified bill.”
WSJ | National Lampoon's ObamaCare Vacation
President Obama has responded to the ObamaCare debacle by bringing in Beltway liberal mastermind John Podesta as a senior West Wing hand, and he promptly announced his arrival by likening House Republicans to "a cult worthy of Jonestown" in an interview with Politico. The states running their own insurance exchanges are exacting more accountability for their ObamaCare failures.
AEI | OFA Obamacare ads attempt to cover up the law's failings
Every second spent discussing Pajama Boy and his hot chocolate is a second not spent discussing the Affordable Care Act. And that, of course, should be welcome news for Democrats across the country.
Heritage Foundation | Ten Broken Obamacare Promises
Since the passage of Obamacare in 2010, many of the President’s famous promises have been routinely broken. As he so ironically threatened in 2009, “If you misrepresent what’s in this plan, we will call you out.” To that end, here are 10 promises of Obamacare that have already proved to be broken.
National Journal | McCain Introduces Bill to Repeal and Replace Obamacare
John McCain introduced legislation Wednesday to repeal and replace the Affordable Care Act, citing an overdue responsibility of the Republican Party to present an alternative to the president's health law.
WSJ | More Turmoil in State Health Exchanges
The leader of Minnesota's health-insurance marketplace resigned after taking a two-week vacation in late November when the state's website was experiencing technical problems, making her the fourth state health-insurance chief to be ousted.
Econ Comments & Analysis
Forbes | Don't Believe The Pundits, Conservatives Are Bursting With Ideas To Replace Obamacare
Conservatives are being challenged to come up with their own alternative health policy plan to replace Obamacare as it becomes quite clear that government cannot centrally manage a vast part of the largest economy in the world. Democrats, the media, and many others are demanding that Republicans get behind their own “unified bill.”
WSJ | National Lampoon's ObamaCare Vacation
President Obama has responded to the ObamaCare debacle by bringing in Beltway liberal mastermind John Podesta as a senior West Wing hand, and he promptly announced his arrival by likening House Republicans to "a cult worthy of Jonestown" in an interview with Politico. The states running their own insurance exchanges are exacting more accountability for their ObamaCare failures.
AEI | OFA Obamacare ads attempt to cover up the law's failings
Every second spent discussing Pajama Boy and his hot chocolate is a second not spent discussing the Affordable Care Act. And that, of course, should be welcome news for Democrats across the country.
Heritage Foundation | Ten Broken Obamacare Promises
Since the passage of Obamacare in 2010, many of the President’s famous promises have been routinely broken. As he so ironically threatened in 2009, “If you misrepresent what’s in this plan, we will call you out.” To that end, here are 10 promises of Obamacare that have already proved to be broken.
Monetary
News
WSJ | Fed Dials Back Bond Buying, Keeps a Wary Eye on Growth
Ben Bernanke gave the U.S. economy a nod of approval just a month before he leaves the Federal Reserve, moving the central bank to begin winding down a bond-buying program meant to boost growth with the recovery on firmer footing.
Econ Comments & Analysis
Washington Post | The Fed’s case for tapering is a good sign for the economy
It's not always wise to judge economic events by Wall Street’s reaction. But there was a rational basis for the markets’ ecstatic response to Federal Reserve Chairman Ben S. Bernanke’s announcement Wednesday of a “taper” in central-bank asset purchases .
FOX Business | How the Fed's Taper Announcement Could Impact Your Finances
The Federal Reserve’s $10 billion taper announcement isn’t a significant cut in the central bank’s massive bond-purchasing plan, but experts say consumers could feel the impact.
Fortune | Why stocks soared on the taper
For more than a year, investors have been bracing for the beginning of the end of the Fed's stimulus program. So on Wednesday when the Fed finally announced it would pull back a little, how far did stocks fall?
Blogs
Library of Economics | Higher Is Not Down
Low inflation may present a conundrum, but "downward pressure on prices" doesn't present a conundrum because prices are rising. That's what inflation means. Sure, some prices have fallen, but others have risen more than enough to offset those falling prices.
Economist | QE, finitely
Just a few months ago it appeared Ben Bernanke would finish his eight-year term as chairman of the Federal Reserve without knowing whether his boldest and most controversial attempt to revive the economy was going to work.
WSJ | Fed Dials Back Bond Buying, Keeps a Wary Eye on Growth
Ben Bernanke gave the U.S. economy a nod of approval just a month before he leaves the Federal Reserve, moving the central bank to begin winding down a bond-buying program meant to boost growth with the recovery on firmer footing.
Econ Comments & Analysis
Washington Post | The Fed’s case for tapering is a good sign for the economy
It's not always wise to judge economic events by Wall Street’s reaction. But there was a rational basis for the markets’ ecstatic response to Federal Reserve Chairman Ben S. Bernanke’s announcement Wednesday of a “taper” in central-bank asset purchases .
FOX Business | How the Fed's Taper Announcement Could Impact Your Finances
The Federal Reserve’s $10 billion taper announcement isn’t a significant cut in the central bank’s massive bond-purchasing plan, but experts say consumers could feel the impact.
Fortune | Why stocks soared on the taper
For more than a year, investors have been bracing for the beginning of the end of the Fed's stimulus program. So on Wednesday when the Fed finally announced it would pull back a little, how far did stocks fall?
Blogs
Library of Economics | Higher Is Not Down
Low inflation may present a conundrum, but "downward pressure on prices" doesn't present a conundrum because prices are rising. That's what inflation means. Sure, some prices have fallen, but others have risen more than enough to offset those falling prices.
Economist | QE, finitely
Just a few months ago it appeared Ben Bernanke would finish his eight-year term as chairman of the Federal Reserve without knowing whether his boldest and most controversial attempt to revive the economy was going to work.
Taxes
Blogs
WSJ | Some IRS Vendors Have Big Tax Debts
Some vendors doing business with the Internal Revenue Service owe substantial tax debts, according to a new report.
WSJ | Some IRS Vendors Have Big Tax Debts
Some vendors doing business with the Internal Revenue Service owe substantial tax debts, according to a new report.
Employment
News
Politico | Federal job satisfaction at all-time low
Job satisfaction among federal government workers dropped to an all-time low in 2013, according to a new study out Wednesday ranking the best and worst places to work in the federal government.
Bloomberg | U.S. Jobless Claims Unexpectedly Rise on Holiday Distortions
Applications for U.S. unemployment benefits unexpectedly rose last week to an almost nine-month high, showing fluctuation in the filings that typically occurs around the year-end holidays.
Blogs
WSJ | Vital Signs: Jobless Claims Look Unreasonably Adjusted
Once again, forecasters missed the direction in jobless claims: filing for unemployment benefits unexpectedly rose 10,000 last week after jumping a surprisingly large 64,000 gain in the previous week.
Politico | Federal job satisfaction at all-time low
Job satisfaction among federal government workers dropped to an all-time low in 2013, according to a new study out Wednesday ranking the best and worst places to work in the federal government.
Bloomberg | U.S. Jobless Claims Unexpectedly Rise on Holiday Distortions
Applications for U.S. unemployment benefits unexpectedly rose last week to an almost nine-month high, showing fluctuation in the filings that typically occurs around the year-end holidays.
Blogs
WSJ | Vital Signs: Jobless Claims Look Unreasonably Adjusted
Once again, forecasters missed the direction in jobless claims: filing for unemployment benefits unexpectedly rose 10,000 last week after jumping a surprisingly large 64,000 gain in the previous week.
Budget
News
Politico | Senate passes budget deal
With little suspense but still a bit of drama, the Senate passed a bipartisan budget deal Wednesday that will help Washington return to some fiscal normalcy after years of gridlock.
CNN Money | What the next debt ceiling fight will look like
House Budget Chairman Paul Ryan and Senate Minority Leader Mitch McConnell said this week that Republicans will demand something in exchange for an increase in the debt ceiling early next year.
Econ Comments & Analysis
Washington Times | Republicans cave on budget and principle of cutting runaway spending
The conservative wing in Congress, backed by like-minded outside groups, hate to stand by while a federal budget is enacted that increases spending and adds to the $17 trillion debt dragging down our economy.
Politico | Senate passes budget deal
With little suspense but still a bit of drama, the Senate passed a bipartisan budget deal Wednesday that will help Washington return to some fiscal normalcy after years of gridlock.
CNN Money | What the next debt ceiling fight will look like
House Budget Chairman Paul Ryan and Senate Minority Leader Mitch McConnell said this week that Republicans will demand something in exchange for an increase in the debt ceiling early next year.
Econ Comments & Analysis
Washington Times | Republicans cave on budget and principle of cutting runaway spending
The conservative wing in Congress, backed by like-minded outside groups, hate to stand by while a federal budget is enacted that increases spending and adds to the $17 trillion debt dragging down our economy.
Wednesday, December 18, 2013
General Economics
News
CNN Money | Home building surges
Builders rushed to start homes in November, with that key measure of the housing recovery enjoying a huge one-month jump.
WSJ | New Mortgages to Get Pricier Next Year
Consumers can expect to pay more to get a mortgage next year, the result of changes meant to reduce the role that Fannie Mae and Freddie Mac play in the market.
Econ Comments & Analysis
Weekly Standard | Subsidizing Rich and Poor
There is a vintage Corvette parked on the street nearby, a 1977 canary yellow model in perfect condition. The NADA Blue Book says it’s worth around $15,000.
Real Clear Markets | The Obama Administration Has Run Out of Ideas
For more than two years, Congress, the insurance industry and insurance consumers have been waiting for the report of the Federal Insurance Office (FIO)-an agency set up within the Treasury Department by the Dodd-Frank Act.
Fortune | The Volcker Rule: Complexity trumps common sense
Great sound bites often make for bad policy, because things that seem wonderful and simple in the abstract frequently turn out to be hideously complicated when you try to apply them in real life. That's my takeaway from the Volcker Rule, which was unveiled in mid-December after five different federal financial regulatory agencies -- another example of real-world complexity -- finally signed off on it.
WSJ | Bloomberg's Real Antipoverty Record
In November 2011, a domestic violence survivor named Joyce B. took her four children and left an abusive partner. Unemployed and now homeless, she turned to New York City for help.
Real Clear Markets | What You Missed Amid the Volcker Rule's Finalization
Last week, as all eyes were fixed on the finalization of the Volcker Rule, another long-awaited Dodd-Frank document was released.
American Spectator | Of 'Equality' and Other Ancient Frauds
The minimum wage fracas emerging in politics highlights the mother of all political fracases: the one titled, Who Gets What? Anybody surprised to see the question emerge in early 21st-century America must have been doodling on the history book cover when -- just for example -- the French Revolution heaved into sight. Who started and carried on the revolution?
CBO | The 2013 Long-Term Projections for Social Security: Additional Information
Social Security is the federal government’s largest single program. Of the 58 million people who currently receive Social Security benefits, about 70 percent are retired workers or their spouses and children, and another 11 percent are survivors of deceased workers; all of those beneficiaries receive payments through Old-Age and Survivors Insurance (OASI).
Blogs
Library of Economics | How Big of a Deal Is Social Security?
The issue, of course, is not whether the government can make Social Security solvent: lower benefits, higher taxes, or means-testing would all do the trick. The issue, rather, is how big these adjustments would have to be.
WSJ | Low Inflation Tests World's Central Banks
Inflation is slowing across the developed world despite ultralow interest rates and unprecedented money-printing campaigns, posing a dilemma for the Federal Reserve and other major central banks as they plot their next policy moves.
CNN Money | Home building surges
Builders rushed to start homes in November, with that key measure of the housing recovery enjoying a huge one-month jump.
WSJ | New Mortgages to Get Pricier Next Year
Consumers can expect to pay more to get a mortgage next year, the result of changes meant to reduce the role that Fannie Mae and Freddie Mac play in the market.
Econ Comments & Analysis
Weekly Standard | Subsidizing Rich and Poor
There is a vintage Corvette parked on the street nearby, a 1977 canary yellow model in perfect condition. The NADA Blue Book says it’s worth around $15,000.
Real Clear Markets | The Obama Administration Has Run Out of Ideas
For more than two years, Congress, the insurance industry and insurance consumers have been waiting for the report of the Federal Insurance Office (FIO)-an agency set up within the Treasury Department by the Dodd-Frank Act.
Fortune | The Volcker Rule: Complexity trumps common sense
Great sound bites often make for bad policy, because things that seem wonderful and simple in the abstract frequently turn out to be hideously complicated when you try to apply them in real life. That's my takeaway from the Volcker Rule, which was unveiled in mid-December after five different federal financial regulatory agencies -- another example of real-world complexity -- finally signed off on it.
WSJ | Bloomberg's Real Antipoverty Record
In November 2011, a domestic violence survivor named Joyce B. took her four children and left an abusive partner. Unemployed and now homeless, she turned to New York City for help.
Real Clear Markets | What You Missed Amid the Volcker Rule's Finalization
Last week, as all eyes were fixed on the finalization of the Volcker Rule, another long-awaited Dodd-Frank document was released.
American Spectator | Of 'Equality' and Other Ancient Frauds
The minimum wage fracas emerging in politics highlights the mother of all political fracases: the one titled, Who Gets What? Anybody surprised to see the question emerge in early 21st-century America must have been doodling on the history book cover when -- just for example -- the French Revolution heaved into sight. Who started and carried on the revolution?
CBO | The 2013 Long-Term Projections for Social Security: Additional Information
Social Security is the federal government’s largest single program. Of the 58 million people who currently receive Social Security benefits, about 70 percent are retired workers or their spouses and children, and another 11 percent are survivors of deceased workers; all of those beneficiaries receive payments through Old-Age and Survivors Insurance (OASI).
Blogs
Library of Economics | How Big of a Deal Is Social Security?
The issue, of course, is not whether the government can make Social Security solvent: lower benefits, higher taxes, or means-testing would all do the trick. The issue, rather, is how big these adjustments would have to be.
WSJ | Low Inflation Tests World's Central Banks
Inflation is slowing across the developed world despite ultralow interest rates and unprecedented money-printing campaigns, posing a dilemma for the Federal Reserve and other major central banks as they plot their next policy moves.
Health Care
News
National Journal | Obamacare's Unlikely Winners
After angrily calling her state auditor's office, Spanke, a self-employed artist in her 50s, found she was eligible for a federal subsidy. Her new insurance will cover her for a mere $30 to $40 a month with a deductible of only $500. She had been paying $350 a month for a Blue Cross policy with a $5,000 deductible. "I went from a horrible policy that didn't cover anything, that was breaking me, to the best policy at the best price I've had since I was in my 20s," she said.
CNN Money | The new inequality: health care
Inequality between the rich and the poor is on the rise, and we're not just talking income.
Econ Comments & Analysis
Washington Times | Why Millennials are jumping off the Obamacare bandwagon
Since its launch on Oct. 1, the Obamacare rollout has encountered many failures, especially when it comes to the website, Healthcare.gov. However, perhaps of most concern to the White House is declining support among young people for President Obama’s signature legislation.
National Journal | Obamacare's Unlikely Winners
After angrily calling her state auditor's office, Spanke, a self-employed artist in her 50s, found she was eligible for a federal subsidy. Her new insurance will cover her for a mere $30 to $40 a month with a deductible of only $500. She had been paying $350 a month for a Blue Cross policy with a $5,000 deductible. "I went from a horrible policy that didn't cover anything, that was breaking me, to the best policy at the best price I've had since I was in my 20s," she said.
CNN Money | The new inequality: health care
Inequality between the rich and the poor is on the rise, and we're not just talking income.
Econ Comments & Analysis
Washington Times | Why Millennials are jumping off the Obamacare bandwagon
Since its launch on Oct. 1, the Obamacare rollout has encountered many failures, especially when it comes to the website, Healthcare.gov. However, perhaps of most concern to the White House is declining support among young people for President Obama’s signature legislation.
Monetary
News
Bloomberg | Fed Decision Day Guide From Tapering QE to Employment Thresholds
Here’s what to look for when the Federal Open Market Committee releases its statement today at 2 p.m. after a two-day meeting in Washington. The panel will also provide new economic forecasts, and Federal Reserve Chairman Ben S. Bernanke will hold a news conference at 2:30 p.m.
WSJ | Low Inflation Tests World's Central Banks
Inflation is slowing across the developed world despite ultralow interest rates and unprecedented money-printing campaigns, posing a dilemma for the Federal Reserve and other major central banks as they plot their next policy moves.
CNBC | What the Fed meeting could mean for the dollar
The outcome of Wednesday's Federal Reserve meeting is expected to set the tone for trade in the U.S. dollar heading into 2014, whatever decision is reached on the highly-anticipated tapering of monetary stimulus.
Econ Comments & Analysis
Investors | Fed Monetary Policy Can't Solve Our Economic Ills
The final meeting of the year for the Federal Reserve's Open Market Committee will ideally result in the Fed finding a way out of its asset purchase, or Quantitative Easing (QE), program.
Market Watch | The case for the Fed tapering today
To sum up why I still say the Federal Open Market Committee will start tapering its bond-buying program at the end of its policy meeting this afternoon: It’s because it can.
Blogs
Economist | Time for taper?
Tomorrow your correspondent will board a plane back to America for a holiday sojourn. I will be in flight when the Federal Open Market Committee announces...whatever it is it will announce.
WSJ | A Look Inside the Fed’s Balance Sheet
As the Federal Reserve debates whether to keep buying $85 billion of bonds a month, the assets on its balance sheet are on the cusp of surpassing $4 trillion for the first time.
Bloomberg | Fed Decision Day Guide From Tapering QE to Employment Thresholds
Here’s what to look for when the Federal Open Market Committee releases its statement today at 2 p.m. after a two-day meeting in Washington. The panel will also provide new economic forecasts, and Federal Reserve Chairman Ben S. Bernanke will hold a news conference at 2:30 p.m.
WSJ | Low Inflation Tests World's Central Banks
Inflation is slowing across the developed world despite ultralow interest rates and unprecedented money-printing campaigns, posing a dilemma for the Federal Reserve and other major central banks as they plot their next policy moves.
CNBC | What the Fed meeting could mean for the dollar
The outcome of Wednesday's Federal Reserve meeting is expected to set the tone for trade in the U.S. dollar heading into 2014, whatever decision is reached on the highly-anticipated tapering of monetary stimulus.
Econ Comments & Analysis
Investors | Fed Monetary Policy Can't Solve Our Economic Ills
The final meeting of the year for the Federal Reserve's Open Market Committee will ideally result in the Fed finding a way out of its asset purchase, or Quantitative Easing (QE), program.
Market Watch | The case for the Fed tapering today
To sum up why I still say the Federal Open Market Committee will start tapering its bond-buying program at the end of its policy meeting this afternoon: It’s because it can.
Blogs
Economist | Time for taper?
Tomorrow your correspondent will board a plane back to America for a holiday sojourn. I will be in flight when the Federal Open Market Committee announces...whatever it is it will announce.
WSJ | A Look Inside the Fed’s Balance Sheet
As the Federal Reserve debates whether to keep buying $85 billion of bonds a month, the assets on its balance sheet are on the cusp of surpassing $4 trillion for the first time.
Taxes
News
Politico | Paul Ryan wants House tax-writing gavel in 2015
Paul Ryan will seek to become the next chairman of the Ways and Means Committee, a move that would bring instant star power to the cause of tax reform while complicating his presidential ambitions.
Politico | Paul Ryan wants House tax-writing gavel in 2015
Paul Ryan will seek to become the next chairman of the Ways and Means Committee, a move that would bring instant star power to the cause of tax reform while complicating his presidential ambitions.
Employment
News
National Journal | Bipartisan Miracle? Senate Republicans Open to Unemployment Extension
Senate Republicans are willing to discuss an extension of long-term unemployment benefits early next year, as long as it is paid for, several of them told National Journal on Tuesday.
Econ Comments & Analysis
CNN Money | Maryland: A minimum wage battleground
More workers in Maryland will get a boost in pay as a second county in the state has agreed to raise its minimum wage.
National Journal | Bipartisan Miracle? Senate Republicans Open to Unemployment Extension
Senate Republicans are willing to discuss an extension of long-term unemployment benefits early next year, as long as it is paid for, several of them told National Journal on Tuesday.
Econ Comments & Analysis
CNN Money | Maryland: A minimum wage battleground
More workers in Maryland will get a boost in pay as a second county in the state has agreed to raise its minimum wage.
Budget
Econ Comments & Analysis
Politico | This Budget Deal Is Not Conservative
For months, my group, Americans for Prosperity (AFP), and our grassroots activists have been united in support of the discretionary spending limits established in the 2011 Budget Control Act. Our reason is simple: Although these cuts are modest, so-called sequestration is the only successful bipartisan spending restraint passed under an administration that has allowed the nation’s debt to balloon by almost $7 trillion.
Politico | This Budget Deal Is Not Conservative
For months, my group, Americans for Prosperity (AFP), and our grassroots activists have been united in support of the discretionary spending limits established in the 2011 Budget Control Act. Our reason is simple: Although these cuts are modest, so-called sequestration is the only successful bipartisan spending restraint passed under an administration that has allowed the nation’s debt to balloon by almost $7 trillion.
Tuesday, December 17, 2013
General Economics
News
WSJ | U.S. Industrial Production Hits Prerecession Peak
U.S. industrial output in November surpassed its prerecession peak for the first time, the latest sign of momentum for the economic recovery.
NY Times | Big Bonuses, but a Shift in Who Gets the Biggest
Wall Street’s senior executives have been holed up in conference rooms across Manhattan the last couple of weeks, locked in tense all-day sessions. The special project: dividing up this year’s spoils as bonus season approaches.
Barrons | Some Good and Bad Lessons from 2013
The basics of sound investing shouldn't change from one year, or market cycle, to the next. But recent results often have a way of influencing how we think about such a timeless topic.
Econ Comments & Analysis
Washington Times | The deniers of economic reality
Only 12 percent of likely U.S. voters favor a federal budget that increases government spending, but that’s just what the bipartisan budget deal passed by the House late [last] week does. It restores billions cut by the sequester on March 30 and puts off potential savings for several years.” This quotation does not come from some conservative blogger, but from the respected polling company, Rasmussen, in its report of Dec. 14.
WSJ | How Britain Returned to Growth
As the U.S. and Britain recover from the Great Recession, the question being asked of advanced economies like ours is this: Do we now face secular stagnation and long-term decline, so that it simply won't be possible to promise the next generation better lives than our own?
Washington Times | Fairness Doctrine 2.0
Fairness, like beauty, lies in the eye of the beholder, but some of President Obama’s men are eager to tell everyone who’s pretty and who’s not. There’s a buzz inside the Federal Communications Commission to deputize the government once more as the news cop, commissioning bureaucrats to decide what’s fair and what isn’t. We don’t need a rocket scientist or even a shade-tree mechanic to see where that leads.
WSJ | Washington's Worst Mistake of 2014?
Some consequences of government action remain largely unforeseen until a moment of crisis. That will not be the case if Washington regulators forge ahead on a misguided attempt to treat every large financial firm like a bank.
The Nation | Who’s Really Waging the Class War?
There’s little support among the wealthiest Americans for policy reforms to reduce income inequality.
NBER | Accounting for Income Changes over the Great Recession (2007-2010) Relative to Previous Recessions: The Importance of Taxes and Transfers
With data from the March CPS and using shift-share analysis, we analyze the factors that account for changes in post-tax post-transfer income during each of the past four recessions.
Heritage Foundation | GSE Reform: FHFA Should Not Pursue Mortgage Principal Reduction Alternatives
Until Congress finally resolves the important reform issues surrounding Fannie Mae and Freddie Mac and government guarantees in the U.S. housing market, the FHFA should not begin any new mortgage modification programs, specifically any PRA programs.
AEI | INFOGRAPHIC: Who's looking out for homebuyers?
Bad habits are hard to break. As America climbs out of recession fueled by the 2007 housing market collapse, government-sponsored agencies are up to their old tricks, lending out billions of dollars for risky home mortgage loans.
Blogs
WSJ | Key Inflation Measures Still Weak as Fed Meets
Both of the government’s consumer inflation measures are trending well below the Federal Reserve’s 2% target, complicating the central bank’s decision on whether to curtail its easy-money policies this week.
CATO | Lessons from Dutch Welfare Reform
Welfare advocates regularly urge Americans to look to the European welfare state as a model. At least in the case of the Netherlands, they might be on to something.
WSJ | Watchdog: More Payout Options Needed for 401(k) Plans
A new government watchdog report encourages federal regulators to expand payout options for people who save for retirement through 401(k) plans. That could benefit people who are pondering how to live off – and not beyond – their savings.
WSJ | U.S. Industrial Production Hits Prerecession Peak
U.S. industrial output in November surpassed its prerecession peak for the first time, the latest sign of momentum for the economic recovery.
NY Times | Big Bonuses, but a Shift in Who Gets the Biggest
Wall Street’s senior executives have been holed up in conference rooms across Manhattan the last couple of weeks, locked in tense all-day sessions. The special project: dividing up this year’s spoils as bonus season approaches.
Barrons | Some Good and Bad Lessons from 2013
The basics of sound investing shouldn't change from one year, or market cycle, to the next. But recent results often have a way of influencing how we think about such a timeless topic.
Econ Comments & Analysis
Washington Times | The deniers of economic reality
Only 12 percent of likely U.S. voters favor a federal budget that increases government spending, but that’s just what the bipartisan budget deal passed by the House late [last] week does. It restores billions cut by the sequester on March 30 and puts off potential savings for several years.” This quotation does not come from some conservative blogger, but from the respected polling company, Rasmussen, in its report of Dec. 14.
WSJ | How Britain Returned to Growth
As the U.S. and Britain recover from the Great Recession, the question being asked of advanced economies like ours is this: Do we now face secular stagnation and long-term decline, so that it simply won't be possible to promise the next generation better lives than our own?
Washington Times | Fairness Doctrine 2.0
Fairness, like beauty, lies in the eye of the beholder, but some of President Obama’s men are eager to tell everyone who’s pretty and who’s not. There’s a buzz inside the Federal Communications Commission to deputize the government once more as the news cop, commissioning bureaucrats to decide what’s fair and what isn’t. We don’t need a rocket scientist or even a shade-tree mechanic to see where that leads.
WSJ | Washington's Worst Mistake of 2014?
Some consequences of government action remain largely unforeseen until a moment of crisis. That will not be the case if Washington regulators forge ahead on a misguided attempt to treat every large financial firm like a bank.
The Nation | Who’s Really Waging the Class War?
There’s little support among the wealthiest Americans for policy reforms to reduce income inequality.
NBER | Accounting for Income Changes over the Great Recession (2007-2010) Relative to Previous Recessions: The Importance of Taxes and Transfers
With data from the March CPS and using shift-share analysis, we analyze the factors that account for changes in post-tax post-transfer income during each of the past four recessions.
Heritage Foundation | GSE Reform: FHFA Should Not Pursue Mortgage Principal Reduction Alternatives
Until Congress finally resolves the important reform issues surrounding Fannie Mae and Freddie Mac and government guarantees in the U.S. housing market, the FHFA should not begin any new mortgage modification programs, specifically any PRA programs.
AEI | INFOGRAPHIC: Who's looking out for homebuyers?
Bad habits are hard to break. As America climbs out of recession fueled by the 2007 housing market collapse, government-sponsored agencies are up to their old tricks, lending out billions of dollars for risky home mortgage loans.
Blogs
WSJ | Key Inflation Measures Still Weak as Fed Meets
Both of the government’s consumer inflation measures are trending well below the Federal Reserve’s 2% target, complicating the central bank’s decision on whether to curtail its easy-money policies this week.
CATO | Lessons from Dutch Welfare Reform
Welfare advocates regularly urge Americans to look to the European welfare state as a model. At least in the case of the Netherlands, they might be on to something.
WSJ | Watchdog: More Payout Options Needed for 401(k) Plans
A new government watchdog report encourages federal regulators to expand payout options for people who save for retirement through 401(k) plans. That could benefit people who are pondering how to live off – and not beyond – their savings.
Health Care
News
Bloomberg | Next Obamacare Worry Is Getting Enrollees to Pay Premium
Aetna Inc. (AET), the third-biggest U.S. health insurer, has seen Obamacare enrollments increase since the federal government declared its troubled website fixed last week. Now, the concern is getting people to pay their premiums.
Bloomberg | Next Obamacare Worry Is Getting Enrollees to Pay Premium
Aetna Inc. (AET), the third-biggest U.S. health insurer, has seen Obamacare enrollments increase since the federal government declared its troubled website fixed last week. Now, the concern is getting people to pay their premiums.
Monetary
News
Bloomberg | Fed’s $4 Trillion in Assets Draw Lawmakers’ Scrutiny
The Federal Reserve’s balance sheet is poised to exceed $4 trillion, prompting warnings its record easing is inflating asset-price bubbles and drawing renewed lawmaker scrutiny just as Janet Yellen prepares to take charge.
Bloomberg | Consumer Prices Steady in U.S. as Fed Weighs QE Taper: Economy
The U.S. cost of living was unchanged in November, showing it will take time for inflation to approach the level desired by Federal Reserve officials, who begin their policy meeting today.
Bloomberg | U.S. Banks Hit New Stress-Test Hurdle as Fed, Firm Data at Odds
U.S. banks seeking regulatory approval to boost payouts to shareholders next year will face a new hurdle as the Federal Reserve begins making its own projections for lenders’ balance sheets in annual stress tests.
Econ Comments & Analysis
Fortune | Why a Fed taper will be good for the economy
The US Federal Reserve is one of the most powerful bodies on the planet today, able to shake global markets with the force of a single word: Taper. Analysts shudder, investors wail, bond yields spike, and stocks collapse whenever the mere possibility of a taper arises. And yet, the fear that the world will end if the Fed ratchets down its $85 billion-a-month bond buying program is mostly unfounded.
Blogs
WSJ | Vital Signs: Where Inflation Calls Home
Inflation news continues to be no news. Total consumer prices are up just 1.2% in the year ended in November, while core prices that exclude food and energy are up 1.7%. Both rates are below the 2% target set by the Federal Reserve.
WSJ | Key Inflation Measures Still Weak as Fed Meets
Both of the government’s consumer inflation measures are trending well below the Federal Reserve’s 2% target, complicating the central bank’s decision on whether to curtail its easy-money policies this week.
Bloomberg | Fed’s $4 Trillion in Assets Draw Lawmakers’ Scrutiny
The Federal Reserve’s balance sheet is poised to exceed $4 trillion, prompting warnings its record easing is inflating asset-price bubbles and drawing renewed lawmaker scrutiny just as Janet Yellen prepares to take charge.
Bloomberg | Consumer Prices Steady in U.S. as Fed Weighs QE Taper: Economy
The U.S. cost of living was unchanged in November, showing it will take time for inflation to approach the level desired by Federal Reserve officials, who begin their policy meeting today.
Bloomberg | U.S. Banks Hit New Stress-Test Hurdle as Fed, Firm Data at Odds
U.S. banks seeking regulatory approval to boost payouts to shareholders next year will face a new hurdle as the Federal Reserve begins making its own projections for lenders’ balance sheets in annual stress tests.
Econ Comments & Analysis
Fortune | Why a Fed taper will be good for the economy
The US Federal Reserve is one of the most powerful bodies on the planet today, able to shake global markets with the force of a single word: Taper. Analysts shudder, investors wail, bond yields spike, and stocks collapse whenever the mere possibility of a taper arises. And yet, the fear that the world will end if the Fed ratchets down its $85 billion-a-month bond buying program is mostly unfounded.
Blogs
WSJ | Vital Signs: Where Inflation Calls Home
Inflation news continues to be no news. Total consumer prices are up just 1.2% in the year ended in November, while core prices that exclude food and energy are up 1.7%. Both rates are below the 2% target set by the Federal Reserve.
WSJ | Key Inflation Measures Still Weak as Fed Meets
Both of the government’s consumer inflation measures are trending well below the Federal Reserve’s 2% target, complicating the central bank’s decision on whether to curtail its easy-money policies this week.
Taxes
News
WSJ | Government Tax Revenues Are Recovering, Says OECD
Government tax revenues are rebounding from the declines seen in the aftermath of the financial crisis, reflecting a combination of recovering incomes and increased tax rates, the Organization for Economic Cooperation and Development said Tuesday.
WSJ | Government Tax Revenues Are Recovering, Says OECD
Government tax revenues are rebounding from the declines seen in the aftermath of the financial crisis, reflecting a combination of recovering incomes and increased tax rates, the Organization for Economic Cooperation and Development said Tuesday.
Employment
News
USA Today | Self-employed face a retirement crisis
TD Ameritrade's Self-Employment and Retirement Survey found that 40% of the self-employed are not saving regularly for retirement, and 28% are not saving at all. The problem plagued all age groups: 29% of Generation X and 32% of Generation Y who were self-employed are not saving for retirement.
Econ Comments & Analysis
Mercatus | Labor Force Participation Rate Continues to Sink
The four and a half years since the Great Recession of 2008 could be called “the Dismal Recovery.” The most widely cited sign of progress toward a healthy economy has been the declining unemployment rate; however, the fall in the unemployment rate has largely been due to a shrinking labor-force participation rate rather than strong job growth.
USA Today | Self-employed face a retirement crisis
TD Ameritrade's Self-Employment and Retirement Survey found that 40% of the self-employed are not saving regularly for retirement, and 28% are not saving at all. The problem plagued all age groups: 29% of Generation X and 32% of Generation Y who were self-employed are not saving for retirement.
Econ Comments & Analysis
Mercatus | Labor Force Participation Rate Continues to Sink
The four and a half years since the Great Recession of 2008 could be called “the Dismal Recovery.” The most widely cited sign of progress toward a healthy economy has been the declining unemployment rate; however, the fall in the unemployment rate has largely been due to a shrinking labor-force participation rate rather than strong job growth.
Budget
News
National Journal | Are We Sequestering Ourselves to Death?
Congress's year-end budget deal would blunt spending cuts scheduled to hit the federal government's premier medical research board, but that's cold comfort to advocates who insist the sequester spending cuts are already putting the public in peril.
Bloomberg | Budget Deal Easing $63 Billion in Cuts Advances in Senate
The Senate advanced a budget deal that would ease $63 billion in spending cuts for a vote as soon as tomorrow, setting the stage for President Barack Obama to sign the bipartisan measure into law.
National Journal | The Budget Deal That Stole Christmas
While much of Capitol Hill is getting ready for the holiday break, those who work on the Appropriations committees have a different vision for the days ahead—and it ain’t sugar plums.
Market Watch | U.S. current-account gap falls to $94.8 billion
The U.S. current account deficit narrowed to $94.8 billion in the third quarter, marking the lowest level since the fall of 2009, the government said Tuesday.
Econ Comments & Analysis
WSJ | The Debt Ceiling Doesn't Limit Debt
The budget deal announced last week authorizes federal spending for the current fiscal year that will exceed general tax revenues available to pay for it by almost 40%. Congress has raised the debt ceiling to cover all spending through Feb. 7, after which it will consider raising it again.
Blogs
Heritage Foundation | Spending Caps Have Worked, but Ryan-Murray Budget Would Lift Them
In terms of cutting government spending, the Budget Control Act’s spending caps and sequestration have been an unparalleled success story in recent years. And yet, the House of Representatives voted last Thursday to weaken the caps in 2014 and 2015 for a $63 billion increase in the discretionary budget.
National Journal | Are We Sequestering Ourselves to Death?
Congress's year-end budget deal would blunt spending cuts scheduled to hit the federal government's premier medical research board, but that's cold comfort to advocates who insist the sequester spending cuts are already putting the public in peril.
Bloomberg | Budget Deal Easing $63 Billion in Cuts Advances in Senate
The Senate advanced a budget deal that would ease $63 billion in spending cuts for a vote as soon as tomorrow, setting the stage for President Barack Obama to sign the bipartisan measure into law.
National Journal | The Budget Deal That Stole Christmas
While much of Capitol Hill is getting ready for the holiday break, those who work on the Appropriations committees have a different vision for the days ahead—and it ain’t sugar plums.
Market Watch | U.S. current-account gap falls to $94.8 billion
The U.S. current account deficit narrowed to $94.8 billion in the third quarter, marking the lowest level since the fall of 2009, the government said Tuesday.
Econ Comments & Analysis
WSJ | The Debt Ceiling Doesn't Limit Debt
The budget deal announced last week authorizes federal spending for the current fiscal year that will exceed general tax revenues available to pay for it by almost 40%. Congress has raised the debt ceiling to cover all spending through Feb. 7, after which it will consider raising it again.
Blogs
Heritage Foundation | Spending Caps Have Worked, but Ryan-Murray Budget Would Lift Them
In terms of cutting government spending, the Budget Control Act’s spending caps and sequestration have been an unparalleled success story in recent years. And yet, the House of Representatives voted last Thursday to weaken the caps in 2014 and 2015 for a $63 billion increase in the discretionary budget.
Monday, December 16, 2013
General Economics
News
Bloomberg | Industrial Production in U.S. Increases 1.1%, Most in a Year
Industrial production in the U.S. climbed in November by the most in a year, a sign manufacturing (IPMGCHNG) is bolstering the world’s biggest economy.
Politico | Federal workers' pensions targeted in budget deal
Distinctly unpopular among voters and a scant presence in most congressional districts, federal workers have become an easy target in the hunt for budget savings.
FOX Business | Foreigners Head Back into U.S. Assets
Foreigners rushed back into U.S. assets in October, after they fled from them in September on fears that the government could default on some of its debt obligations, U.S. Treasury data showed on Monday.
National Journal | How One Mayor Pulled Back His City From Potential Bankruptcy
Angel Taveras had been in office barely eight weeks when his chief of staff walked in with the news. Michael D'Amico had just come from a somber meeting with the city's municipal finance review panel. D'Amico sat in the ancient couch in the mayor's second-floor City Hall office. The window behind him looked out on Providence's "Superman building," a city icon strikingly like the Daily Planet tower of comic-book fame, which was on its way to total vacancy.
Bloomberg | Euro-Area Factory Output Expands Faster Than Forecast: Economy
Euro-area factory output grew at a faster pace than economists forecast in December, led by Germany, as the currency bloc continued its gradual recovery from a record-long recession.
Market Watch | U.S. Markit flash PMI slightly lower in December
The U.S. flash manufacturing purchasing managers' index inched lower to a 54.4 reading in December from 54.7 in November, but still signaled solid business conditions, Markit said Monday.
Econ Comments & Analysis
WSJ | The Hidden Danger in Public Pension Funds
The threat that public-employee pensions pose to state and local government finances is well known—witness the federal ruling earlier this month that Detroit's pension obligations are not sacrosanct in a municipal bankruptcy. Less well known is that pensions are larger and their investments riskier than at any point since public employees began unionizing in earnest nearly half a century ago.
Real Clear Markets | Mortgage Originators Must Have Skin In the Game
The Dodd-Frank financial regulation reform law passed after the 2008 financial crisis is mostly a misguided over-regulation of the financial sector that punishes financial firms with costs and compliance burdens for little gain.
CNN Money | How 2013 shaped up
So how did last year's predictions work out? Here's what Money magazine's December 2012 issue said would happen -- and how the year turned out.
Daily Caller | Paul Ryan saves the GOP from itself
If the GOP wants to retake the Senate and hold the House in 2014, the key issues must be the catastrophic pitfalls of Obamacare and better economic growth. A shutdown would be a distraction. It would take the heat off Obama and Obamacare, and all the Democrats who falsely promised that if you like your insurance and doctor, you can keep them.
Blogs
Economist | The new European Union
It has been a brutal half decade for the European Union. Given the tempestuousness, it is interesting to note that real per capita output across the EU is about where it was in 2008. While many countries have had it bad in many ways at many times over the past five years, the most significant economic shift in the EU has been shift in its internal economic order.
WSJ | Number of the Week: Half of U.S. Lives in Household Getting Benefits
49.2%: Percent of the population that lives in a household where at least one member received some type of government benefit in the fourth quarter of 2011.
Bloomberg | Industrial Production in U.S. Increases 1.1%, Most in a Year
Industrial production in the U.S. climbed in November by the most in a year, a sign manufacturing (IPMGCHNG) is bolstering the world’s biggest economy.
Politico | Federal workers' pensions targeted in budget deal
Distinctly unpopular among voters and a scant presence in most congressional districts, federal workers have become an easy target in the hunt for budget savings.
FOX Business | Foreigners Head Back into U.S. Assets
Foreigners rushed back into U.S. assets in October, after they fled from them in September on fears that the government could default on some of its debt obligations, U.S. Treasury data showed on Monday.
National Journal | How One Mayor Pulled Back His City From Potential Bankruptcy
Angel Taveras had been in office barely eight weeks when his chief of staff walked in with the news. Michael D'Amico had just come from a somber meeting with the city's municipal finance review panel. D'Amico sat in the ancient couch in the mayor's second-floor City Hall office. The window behind him looked out on Providence's "Superman building," a city icon strikingly like the Daily Planet tower of comic-book fame, which was on its way to total vacancy.
Bloomberg | Euro-Area Factory Output Expands Faster Than Forecast: Economy
Euro-area factory output grew at a faster pace than economists forecast in December, led by Germany, as the currency bloc continued its gradual recovery from a record-long recession.
Market Watch | U.S. Markit flash PMI slightly lower in December
The U.S. flash manufacturing purchasing managers' index inched lower to a 54.4 reading in December from 54.7 in November, but still signaled solid business conditions, Markit said Monday.
Econ Comments & Analysis
WSJ | The Hidden Danger in Public Pension Funds
The threat that public-employee pensions pose to state and local government finances is well known—witness the federal ruling earlier this month that Detroit's pension obligations are not sacrosanct in a municipal bankruptcy. Less well known is that pensions are larger and their investments riskier than at any point since public employees began unionizing in earnest nearly half a century ago.
Real Clear Markets | Mortgage Originators Must Have Skin In the Game
The Dodd-Frank financial regulation reform law passed after the 2008 financial crisis is mostly a misguided over-regulation of the financial sector that punishes financial firms with costs and compliance burdens for little gain.
CNN Money | How 2013 shaped up
So how did last year's predictions work out? Here's what Money magazine's December 2012 issue said would happen -- and how the year turned out.
Daily Caller | Paul Ryan saves the GOP from itself
If the GOP wants to retake the Senate and hold the House in 2014, the key issues must be the catastrophic pitfalls of Obamacare and better economic growth. A shutdown would be a distraction. It would take the heat off Obama and Obamacare, and all the Democrats who falsely promised that if you like your insurance and doctor, you can keep them.
Blogs
Economist | The new European Union
It has been a brutal half decade for the European Union. Given the tempestuousness, it is interesting to note that real per capita output across the EU is about where it was in 2008. While many countries have had it bad in many ways at many times over the past five years, the most significant economic shift in the EU has been shift in its internal economic order.
WSJ | Number of the Week: Half of U.S. Lives in Household Getting Benefits
49.2%: Percent of the population that lives in a household where at least one member received some type of government benefit in the fourth quarter of 2011.
Health Care
News
Politico | The Republican Answer to Obamacare
It’s been a rough two months for the White House since HealthCare.gov went live on Oct 1. In the weeks that followed, it soon became clear that the problem was not just one of technical incompetence leading to a shoddy website, but of bad policy.
Washington Times | Obamacare to drive up health care cost for everyone
Just when the government’s insurance website is starting to run more smoothly, an Associated Press-GfK poll finds a potentially bigger problem for President Barack Obama’s health care overhaul.
Econ Comments & Analysis
WSJ | ObamaCare's Troubles Are Only Beginning
The White House is claiming that the Healthcare.gov website is mostly fixed, that the millions of Americans whose health plans were canceled thanks to government rules may be able to keep them for another year, and that in any event these people will get better plans through ObamaCare exchanges.
Blogs
Heritage Foundation | How to Help Uninsured Americans
Two of the problems Obamacare promised to solve were getting coverage for people with pre-existing conditions and helping the uninsured get coverage. Last week, we talked about how Heritage’s alternative to Obamacare would help people with pre-existing conditions. Today, let’s talk about the uninsured.
Politico | The Republican Answer to Obamacare
It’s been a rough two months for the White House since HealthCare.gov went live on Oct 1. In the weeks that followed, it soon became clear that the problem was not just one of technical incompetence leading to a shoddy website, but of bad policy.
Washington Times | Obamacare to drive up health care cost for everyone
Just when the government’s insurance website is starting to run more smoothly, an Associated Press-GfK poll finds a potentially bigger problem for President Barack Obama’s health care overhaul.
Econ Comments & Analysis
WSJ | ObamaCare's Troubles Are Only Beginning
The White House is claiming that the Healthcare.gov website is mostly fixed, that the millions of Americans whose health plans were canceled thanks to government rules may be able to keep them for another year, and that in any event these people will get better plans through ObamaCare exchanges.
Blogs
Heritage Foundation | How to Help Uninsured Americans
Two of the problems Obamacare promised to solve were getting coverage for people with pre-existing conditions and helping the uninsured get coverage. Last week, we talked about how Heritage’s alternative to Obamacare would help people with pre-existing conditions. Today, let’s talk about the uninsured.
Monetary
News
National Journal | How Janet Yellen's Agenda Could Transform Washington
Every Federal Reserve Board chairman comes into office with a secret agenda, a hidden passion. It's the sort of thing you don't hear about at the confirmation hearings, and yet it is often this grand passion—suddenly given voice in the world's bulliest economic pulpit—that shapes the nation's future in unexpected ways.
Econ Comments & Analysis
Washington Times | A bad idea making America even less competitive
The usual suspects were positively giddy last week after five federal agencies got together to adopt what’s known as the Volcker rule. This somewhat obscure, thousand-page regulation isn’t the sort of thing to come up in casual conversation around the water cooler (except on Wall Street). But it’s another example of the bad ideas making America less competitive.
Blogs
Market Watch | Fed never grabs punch bowl in December, analyst points out
More than one economist believes the Federal Reserve’s decision this week on whether to start to pull back, or taper, its bond-buying program is a “coin toss.”
National Journal | How Janet Yellen's Agenda Could Transform Washington
Every Federal Reserve Board chairman comes into office with a secret agenda, a hidden passion. It's the sort of thing you don't hear about at the confirmation hearings, and yet it is often this grand passion—suddenly given voice in the world's bulliest economic pulpit—that shapes the nation's future in unexpected ways.
Econ Comments & Analysis
Washington Times | A bad idea making America even less competitive
The usual suspects were positively giddy last week after five federal agencies got together to adopt what’s known as the Volcker rule. This somewhat obscure, thousand-page regulation isn’t the sort of thing to come up in casual conversation around the water cooler (except on Wall Street). But it’s another example of the bad ideas making America less competitive.
Blogs
Market Watch | Fed never grabs punch bowl in December, analyst points out
More than one economist believes the Federal Reserve’s decision this week on whether to start to pull back, or taper, its bond-buying program is a “coin toss.”
Taxes
Econ Comments & Analysis
Politico | Congress turns to tax reform
Updating the federal tax code could be the next area in which the Democratic Senate can find common ground with the Republican House, according to Rep. Paul Ryan (R-Wis.) and Sen. Patty Murray (D-Wash.).
Fortune | Corporate tax giveaways are not worth the trouble
Tax incentives in exchange for corporate commitments have now become the norm, and they are only growing more costly. But they rarely do what they promise.
AEI | Distributional effects of a carbon tax in broader US fiscal reform
This paper analyzes the distributional implications of an illustrative $15 carbon tax imposed in 2010 on carbon in fossil fuels. We analyze its incidence across income classes and regions, both in isolation and when combined with measures that apply the carbon tax revenue to lowering other distortionary taxes in the economy.
Politico | Congress turns to tax reform
Updating the federal tax code could be the next area in which the Democratic Senate can find common ground with the Republican House, according to Rep. Paul Ryan (R-Wis.) and Sen. Patty Murray (D-Wash.).
Fortune | Corporate tax giveaways are not worth the trouble
Tax incentives in exchange for corporate commitments have now become the norm, and they are only growing more costly. But they rarely do what they promise.
AEI | Distributional effects of a carbon tax in broader US fiscal reform
This paper analyzes the distributional implications of an illustrative $15 carbon tax imposed in 2010 on carbon in fossil fuels. We analyze its incidence across income classes and regions, both in isolation and when combined with measures that apply the carbon tax revenue to lowering other distortionary taxes in the economy.
Employment
News
National Journal | Unemployment Benefits End Right After Christmas. Here’s What Happens Next.
Just three days after Christmas, 1.3 million people will lose their federal emergency unemployment insurance. The extension of the benefits for the long-time jobless didn't make its way into the budget deal that is expected to pass the Senate this week.
FOX News | US worker productivity grew 3 percent over the summer as output rose; labor costs fall
U.S. workers boosted their productivity from July through September at the fastest pace since the end of 2009, adding to signs of stronger growth.
Econ Comments & Analysis
CRS | Expiring Unemployment Insurance Provisions
Once these federal unemployment provisions expire, only regular, state-financed unemployment benefits from the Unemployment Compensation (UC) program will generally be available. In most states, UC provides up to 26 weeks of benefits.
AEI | Why unemployment benefits should be extended
We shouldn’t let emergency federal benefits expire because the same fundamental logic that led to their being (correctly) enacted still holds today: The labor market is still in bad shape, the economy is still weak, there are three times as many unemployed workers as job openings.
National Journal | Unemployment Benefits End Right After Christmas. Here’s What Happens Next.
Just three days after Christmas, 1.3 million people will lose their federal emergency unemployment insurance. The extension of the benefits for the long-time jobless didn't make its way into the budget deal that is expected to pass the Senate this week.
FOX News | US worker productivity grew 3 percent over the summer as output rose; labor costs fall
U.S. workers boosted their productivity from July through September at the fastest pace since the end of 2009, adding to signs of stronger growth.
Econ Comments & Analysis
CRS | Expiring Unemployment Insurance Provisions
Once these federal unemployment provisions expire, only regular, state-financed unemployment benefits from the Unemployment Compensation (UC) program will generally be available. In most states, UC provides up to 26 weeks of benefits.
AEI | Why unemployment benefits should be extended
We shouldn’t let emergency federal benefits expire because the same fundamental logic that led to their being (correctly) enacted still holds today: The labor market is still in bad shape, the economy is still weak, there are three times as many unemployed workers as job openings.
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