News
Market Watch | Housing rebound gives economy more pop
Consumers are feeling pinched by higher taxes and business investment has been choppy, so it’s a good thing the housing sector continues to build up speed.
Bloomberg | German Investor Confidence Increases to 2 1/2-Year High
German investor confidence increased to the highest in 2 1/2 years in January, adding to signs that Europe’s largest economy may gather momentum.
Market Watch | Sales of existing homes tick down in December
Sales of existing homes ticked down in December, while the total for 2012 hit the highest level in five years, according to data released Tuesday by the National Association of Realtors.
Politico | President Obama dodges 'hard choices' on entitlements
President Barack Obama insisted four years ago that the nation must make “hard decisions” to preserve entitlement programs.
Market Watch | Richmond Fed business index falls in January
The Richmond Fed's index of manufacturing activity fell in January to negative 12 from 5 in December, the bank said Tuesday.
Econ Comments & Analysis
Washington Times | Economic judgment day
The current debate about the debt vote is minor league compared to what will happen when the government literally cannot spend more than it is taking in. That time may be nearer than you think. It is true that the U.S. government can always “print” money to pay its bills, but at some point, printing more money becomes self-defeating because the resulting increase in the government bond interest rate and required interest payment will spiral out of control.
CRS | An Analysis of Where American Companies Report Profits: Indications of Profit Shifting
This report uses data on the operations of U.S. multinational companies (MNCs) to examine the extent to which, if any, MNCs are moving profits out of high-tax countries (or out of the U.S.) and into low-tax countries with little corresponding change in business operations, a practice known as "profit shifting."
CATO | Energy Future of Abundance
With an Arab Fall if not Winter dominating the Middle East, the U.S. is under pressure to intervene even more. Unfortunately, reliance on imported oil continues to entangle America and other countries in the Middle East’s volatile politics. Washington should free North America’s abundant natural resources instead.
Forbes | Academics Have Spoken, And Obamanomics Is The Path To Slow Growth
The fiscal policy debate over how to stimulate the economy and reduce the budget deficits has been resolved – at least among academic economists. The way forward lies in reducing tax rates – especially on corporations and high-income individuals – and reducing spending. The way backward lies in pursuing President Barack Obama’s call for more taxes and increased government spending.
Mercatus | Leadership on Social Security Desperately Needed
When President Obama was first inaugurated four years ago, the budget-related meme of the moment was that virtually all of our projected fiscal problems were due to health care, and Social Security represented a relatively small problem. After all, the previous year’s trustees’ report had shown twice as large a deficit in Medicare’s HI fund than was projected for all of Social Security.
AEI | Absent fiscal restraint, history will be unkind to Obama
President Obama took office four years ago talking not just about short-term stimulus, but also about the need to face up to the challenge of the long-term U.S. fiscal deficit.
CATO | Infrastructure Investment: A State, Local, and Private Responsibility
The current spending and debt crisis eventually will force debate on the role of the federal government — which programs necessitate taxpayer funding and which can be eliminated.
Blogs
The Volokh Conspiracy | Privatization and Competition Policy
This is the first in a series of posts serial-blogging a draft chapter I’ve written on privatization and competition policy for a forthcoming Stanford University Press book on Competition and the Role of the State. What follows represents the current draft, though sans footnotes for the blog format.
Economist | How we got here
Mainstream macroeconomics has a pretty poor reputation these days, both among the public at large and among economists in other fields. This is hardly surprising. There is little consensus on even the most basic questions in macro.
WSJ | Richmond Fed Notes Weakness in Central Atlantic Manufacturing
Manufacturers in the central Atlantic region report that activity turned decidedly worse this month as nearly all categories turned negative, the Federal Reserve Bank of Richmond said Monday. Service-sector revenue in the area rebounded this month.
Economist | The boom this time
It is a holiday in America and inauguration day (ceremonial, anyway) and as good a time as any for reflection on what might be ahead for the American economy. Bill McBride has two good posts laying out a case for optimism and spotting possible sources of recession. I suppose I'll add my two cents.
