News
Bloomberg | European Recovery Path in Danger as Politics Menace Growth
Growth and job-creation in the 17-nation euro area were showing a mixed picture before the results of Italy’s vote sparked a new round of market turmoil on Feb. 26.
CNBC | Companies Take Action to Woo a Cautious US Consumer
The American paycheck's not the only thing that's shrinking as big business thinks of creative ways — everything from smaller packages to deep price cuts — to capture the hesitant consumer's dollar amid signs of weak sales.
CNBC | Slow Going: GDP Growth Inches Up; Claims Lower
The U.S. economy barely grew in the fourth quarter although a slightly better performance in exports and fewer imports led the government to scratch an earlier estimate that showed an economic contraction.
Econ Comments & Analysis
Politico | Small-business growth and recovery are inseparable
A holding pattern is when an airplane is delayed from its destination, still moving but no longer really getting anywhere. That’s also an apt description of the small-business mood under this president’s anti-growth policies.
WSJ | The Obamaian Universe
It may be that we have to move beyond politics alone to explain events in Washington. We are in the fifth year of the Obama presidency, and Washington is still dead in the water. Four straight years in which the government of the United States of America fails to enact a budget is, well, amazing.
Blogs
Motley Fool | How the Coming Demographic Shift Will Affect the Economy
You're reading this article because it promises an analysis of how demographic changes will affect the economy. Most of you probably think I'm about to talk about aging baby boomers shifting into retirement.
Thursday, February 28, 2013
Health Care
News
Bloomberg | Medicare Paid $5.1 Billion for Inadequate Nursing Homes
Medicare paid $5.1 billion to nursing homes in 2009 that failed to meet quality-of-care requirements, U.S. government investigators said.
Econ Comments & Analysis
Politico | Under ACA, employer mandate could mean fewer jobs
This March marks the third anniversary of the passage of the president’s sweeping health care legislation. But for many in the business community now facing a litany of difficult decisions in the law’s wake, this milestone will be met with capitulation rather than celebration.
Bloomberg | Medicare Paid $5.1 Billion for Inadequate Nursing Homes
Medicare paid $5.1 billion to nursing homes in 2009 that failed to meet quality-of-care requirements, U.S. government investigators said.
Econ Comments & Analysis
Politico | Under ACA, employer mandate could mean fewer jobs
This March marks the third anniversary of the passage of the president’s sweeping health care legislation. But for many in the business community now facing a litany of difficult decisions in the law’s wake, this milestone will be met with capitulation rather than celebration.
Monetary
News
Bloomberg | Central Banks Spewing Cash Need to Plan Exit Timing, Rohde Says
Central bankers across the globe need to plan for monetary tightening to avoid feeding asset bubbles, Danish central bank Governor Lars Rohde said.
Econ Comments & Analysis
Washington Post | The Federal Reserve’s not-so-golden rule
A display case in the lobby of the Federal Reserve Bank here might express humility. The case holds a 99.9 percent pure gold bar weighing 401.75 troy ounces. Minted in 1952, when the price of gold was $35 an ounce, the bar was worth about $14,000.
WSJ | Debunking the Myths About Central Banks
Myths govern modern central banking. Like many myths, they contain an element of truth that has been distorted by exaggeration and misapplication. This year marks the 100th anniversary of the U.S. Federal Reserve System—an appropriate time for some long-overdue myth-busting.
Bloomberg | Central Banks Spewing Cash Need to Plan Exit Timing, Rohde Says
Central bankers across the globe need to plan for monetary tightening to avoid feeding asset bubbles, Danish central bank Governor Lars Rohde said.
Econ Comments & Analysis
Washington Post | The Federal Reserve’s not-so-golden rule
A display case in the lobby of the Federal Reserve Bank here might express humility. The case holds a 99.9 percent pure gold bar weighing 401.75 troy ounces. Minted in 1952, when the price of gold was $35 an ounce, the bar was worth about $14,000.
WSJ | Debunking the Myths About Central Banks
Myths govern modern central banking. Like many myths, they contain an element of truth that has been distorted by exaggeration and misapplication. This year marks the 100th anniversary of the U.S. Federal Reserve System—an appropriate time for some long-overdue myth-busting.
Taxes
News
Politico | Debate grows over carbon tax, despite long odds
A tax on carbon emissions may not be on anyone’s short list of legislation likely to emerge from the gridlocked Congress, but that’s not dampening the debate over the merits of the idea.
Bloomberg | Deal to Raise U.S. Revenue on Foreign Income Gets Closer
Lawmakers are starting to see the outlines of a bipartisan agreement on how to tax the income that U.S.-based corporations earn outside the country.
WSJ | Tax Stances Harden in Wake of Last Deal
To understand why Republicans and Democrats remain far apart in averting automatic across-the-board spending cuts set for Friday, look no further than their last deal.
Econ Comments & Analysis
Mercatus | Would Taxing Banks Really Make the Banking System Safer?
In the wake of the 2007–09 banking crisis, some economists recommended imposing new taxes on banks. These proponents contend that policy makers could apply the taxes to correct “negative externalities,” or adverse spillover effects onto overall welfare, allegedly created by individual banks.
Politico | Debate grows over carbon tax, despite long odds
A tax on carbon emissions may not be on anyone’s short list of legislation likely to emerge from the gridlocked Congress, but that’s not dampening the debate over the merits of the idea.
Bloomberg | Deal to Raise U.S. Revenue on Foreign Income Gets Closer
Lawmakers are starting to see the outlines of a bipartisan agreement on how to tax the income that U.S.-based corporations earn outside the country.
WSJ | Tax Stances Harden in Wake of Last Deal
To understand why Republicans and Democrats remain far apart in averting automatic across-the-board spending cuts set for Friday, look no further than their last deal.
Econ Comments & Analysis
Mercatus | Would Taxing Banks Really Make the Banking System Safer?
In the wake of the 2007–09 banking crisis, some economists recommended imposing new taxes on banks. These proponents contend that policy makers could apply the taxes to correct “negative externalities,” or adverse spillover effects onto overall welfare, allegedly created by individual banks.
Employment
News
CNN Money | U.S. economic growth basically flat
The U.S. economy didn't contract in the fourth quarter after all, but the bigger picture remains the same: It's still stuck in slow motion. - See more at: http://money.cnn.com/2013/02/28/news/economy/gdp-report/index.html?iid=SF_E_LN#sthash.gMJTqrQt.dpuf
CNBC | Bernanke: 6% Unemployment Rate Still 3 Years Away
Unemployment probably won't reach the 6 percent level until 2016, Federal Reserve Chairman Ben Bernanke told Congress on Wednesday.
CNN Money | U.S. economic growth basically flat
The U.S. economy didn't contract in the fourth quarter after all, but the bigger picture remains the same: It's still stuck in slow motion. - See more at: http://money.cnn.com/2013/02/28/news/economy/gdp-report/index.html?iid=SF_E_LN#sthash.gMJTqrQt.dpuf
CNBC | Bernanke: 6% Unemployment Rate Still 3 Years Away
Unemployment probably won't reach the 6 percent level until 2016, Federal Reserve Chairman Ben Bernanke told Congress on Wednesday.
Budget
News
Politico | Dual Senate sequester votes expected to fail
Washington’s Great Sequester pregame show ends in the Senate on Thursday with Republicans still divided over how to disarm the doomsday budget machine they built in the previous Congress with Democrats and President Barack Obama.
CNBC | Type the Title You Want People to See
Type the sentence(s) summarizing the link here.
WSJ | Student-Loan Delinquencies Among the Young Soar
The number of young borrowers who have fallen behind on their student loan payments has soared over the past four years, the Federal Reserve Bank of New York said in a report released Thursday.
Econ Comments & Analysis
WSJ | How the GOP Can Call the President's Bluff
The $85 billion in spending that will eventually be cut after the sequester kicks in amounts to around two cents on the dollar in the overall federal budget. That hasn't kept Mr. Obama and his team from trying to scare the bejesus out of Americans about the spending reductions.
Washington Times | Obama cries robbery but it’s only about 2 cents
Like the little boy who cried wolf, the White House has decided that if there isn’t a crisis, you can create one and take advantage of it. That sums up President Obama’s approach to the looming sequestration.
NY Times | Our Debt, Ourselves
The significance of America’s national debt is a serious question, but you would not know this from the current political rhetoric, which consists mostly of vague apocalyptic warnings. I want to present a calmer view, by emphasizing six facts about the debt that many Americans may not be aware of.
CBO | Automatic Reductions in Government Spending -- aka Sequestration
In fiscal year 2013, by CBO’s estimates, federal revenues will rise and outlays will decline as shares of gross domestic product (GDP), resulting in a federal budget deficit equal to about 5.3 percent of GDP (compared with 7.0 percent last year).
Blogs
WSJ | Deficits Expected to Grow Among Developed Countries in 2013
Developed countries will continue to face the threat of debt downgrades in 2013 as deficits increase in the sluggish global economy, the OECD said Wednesday.
Politico | Dual Senate sequester votes expected to fail
Washington’s Great Sequester pregame show ends in the Senate on Thursday with Republicans still divided over how to disarm the doomsday budget machine they built in the previous Congress with Democrats and President Barack Obama.
CNBC | Type the Title You Want People to See
Type the sentence(s) summarizing the link here.
WSJ | Student-Loan Delinquencies Among the Young Soar
The number of young borrowers who have fallen behind on their student loan payments has soared over the past four years, the Federal Reserve Bank of New York said in a report released Thursday.
Econ Comments & Analysis
WSJ | How the GOP Can Call the President's Bluff
The $85 billion in spending that will eventually be cut after the sequester kicks in amounts to around two cents on the dollar in the overall federal budget. That hasn't kept Mr. Obama and his team from trying to scare the bejesus out of Americans about the spending reductions.
Washington Times | Obama cries robbery but it’s only about 2 cents
Like the little boy who cried wolf, the White House has decided that if there isn’t a crisis, you can create one and take advantage of it. That sums up President Obama’s approach to the looming sequestration.
NY Times | Our Debt, Ourselves
The significance of America’s national debt is a serious question, but you would not know this from the current political rhetoric, which consists mostly of vague apocalyptic warnings. I want to present a calmer view, by emphasizing six facts about the debt that many Americans may not be aware of.
CBO | Automatic Reductions in Government Spending -- aka Sequestration
In fiscal year 2013, by CBO’s estimates, federal revenues will rise and outlays will decline as shares of gross domestic product (GDP), resulting in a federal budget deficit equal to about 5.3 percent of GDP (compared with 7.0 percent last year).
Blogs
WSJ | Deficits Expected to Grow Among Developed Countries in 2013
Developed countries will continue to face the threat of debt downgrades in 2013 as deficits increase in the sluggish global economy, the OECD said Wednesday.
Wednesday, February 27, 2013
General Economics
News
Bloomberg | Euro-Area Economic Confidence Rises More Than Estimated: Economy
Economic confidence in the euro area increased more than economists forecast in February, adding to signs that the 17-nation currency bloc may be emerging from a recession.
CNN Money | Wealth inequality between blacks and whites worsens
The wealth gap between blacks and whites has nearly tripled over the past 25 years, due largely to inequality in home ownership, income, education and inheritances, according to a new study by Brandeis University.
Bloomberg | Confidence Jump With Housing Points to U.S. Growth: Economy
Purchases of new homes surged in January by the most in two decades and consumer confidence jumped this month, signs of a rebound in U.S. economic growth at the start of 2013.
Bloomberg | Orders for U.S. Non-Transportation Goods Jump Most in a Year
Orders for U.S. durable goods excluding transportation equipment climbed in January by the most in a year, indicating business investment is holding up.
CNN Money | The myth of the Great Rotation
As investors begin to dip back into the stock market, chatter about a so-called Great Rotation has been growing louder.
Econ Comments & Analysis
Politico | Entitlement reform key to U.S. future
As the sequester blame game hits fever pitch this week, Republicans’ stance on taxes is simply indefensible, falling hundreds of billions short of even their own prior positions. But as Democrats, we also share a large portion of responsibility for the coming cuts to domestic discretionary spending, as the party has decided in both action and rhetoric that meaningful fixes to the major entitlement programs of Medicare, Medicaid and Social Security are off-limits.
Washington Times | Crowding out the future
Big-spending liberals will soon run out of other people’s money. This should scare them straight. Social Security, Medicare, Medicaid, unemployment benefits, food stamps and other welfare programs reaching deep into American pockets will soon leave no money for anything else. Yet the White House and congressional Democrats are determined not to touch anything.
Blogs
WSJ | About 30% of Benefit Recipients Are Disabled
Nearly a third of Americans getting government assistance say they are disabled, new research shows.
Calculated Risk | MBA: Mortgage Applications Decrease
The Refinance Index decreased 3 percent from the previous week. The seasonally adjusted Purchase Index decreased 5 percent from one week earlier and is at its lowest level since the week ending December 28, 2012.
Bloomberg | Euro-Area Economic Confidence Rises More Than Estimated: Economy
Economic confidence in the euro area increased more than economists forecast in February, adding to signs that the 17-nation currency bloc may be emerging from a recession.
CNN Money | Wealth inequality between blacks and whites worsens
The wealth gap between blacks and whites has nearly tripled over the past 25 years, due largely to inequality in home ownership, income, education and inheritances, according to a new study by Brandeis University.
Bloomberg | Confidence Jump With Housing Points to U.S. Growth: Economy
Purchases of new homes surged in January by the most in two decades and consumer confidence jumped this month, signs of a rebound in U.S. economic growth at the start of 2013.
Bloomberg | Orders for U.S. Non-Transportation Goods Jump Most in a Year
Orders for U.S. durable goods excluding transportation equipment climbed in January by the most in a year, indicating business investment is holding up.
CNN Money | The myth of the Great Rotation
As investors begin to dip back into the stock market, chatter about a so-called Great Rotation has been growing louder.
Econ Comments & Analysis
Politico | Entitlement reform key to U.S. future
As the sequester blame game hits fever pitch this week, Republicans’ stance on taxes is simply indefensible, falling hundreds of billions short of even their own prior positions. But as Democrats, we also share a large portion of responsibility for the coming cuts to domestic discretionary spending, as the party has decided in both action and rhetoric that meaningful fixes to the major entitlement programs of Medicare, Medicaid and Social Security are off-limits.
Washington Times | Crowding out the future
Big-spending liberals will soon run out of other people’s money. This should scare them straight. Social Security, Medicare, Medicaid, unemployment benefits, food stamps and other welfare programs reaching deep into American pockets will soon leave no money for anything else. Yet the White House and congressional Democrats are determined not to touch anything.
Blogs
WSJ | About 30% of Benefit Recipients Are Disabled
Nearly a third of Americans getting government assistance say they are disabled, new research shows.
Calculated Risk | MBA: Mortgage Applications Decrease
The Refinance Index decreased 3 percent from the previous week. The seasonally adjusted Purchase Index decreased 5 percent from one week earlier and is at its lowest level since the week ending December 28, 2012.
Health Care
Econ Comments & Analysis
Real Clear Markets | Obamacare and Doctor Shortages: A Bad Situation Worsens
With the implementation of the 2,800 page Patient Protection and Affordable Care Act ("Affordable Care Act"), the projected access of 34 million additional Americans to health insurance, along with the growth in both the general and aging population, is placing greater emphasis on the need for an increase in the number of primary care physicians ("PCPs").
Real Clear Markets | Obamacare and Doctor Shortages: A Bad Situation Worsens
With the implementation of the 2,800 page Patient Protection and Affordable Care Act ("Affordable Care Act"), the projected access of 34 million additional Americans to health insurance, along with the growth in both the general and aging population, is placing greater emphasis on the need for an increase in the number of primary care physicians ("PCPs").
Monetary
News
Bloomberg | Bernanke Defends Asset Buying as Benefits Outweigh Risks
Federal Reserve Chairman Ben S. Bernanke defended the central bank’s unprecedented asset purchases, saying they are supporting the expansion with little risk of inflation or asset-price bubbles.
Washington Times | Banks see 2nd-most profitable year
The U.S. banking industry enjoyed its second-most profitable year in history in 2012, according to a new report from the Federal Deposit Insurance Corp., but that may not be enough to save the jobs of thousands of bankers.
Econ Comments & Analysis
AEI | The Bernanke inflation record revisited
While being questioned in his Semi-Annual Report to Congress, Federal Reserve Chairman Ben Bernanke was criticized as dovish for his expansion of the Fed's balance sheet. In response, Bernanke retorted, "You called me a dove ... My inflation record is the best of any of the governors in the post-war period."
Real Clear Markets | The Fed Shouldn't Regulate What It Doesn't Understand
Fed Chairman Bernanke is making one of his semi-annual appearances before Congress this week to testify on monetary policy. Yesterday, he appeared before the Senate Banking Committee and today he will face the House Financial Services Committee.
CNN Money | Bernanke: There is no stock bubble
Stocks have recently been hovering near a five-year high, but Federal Reserve Chairman Ben Bernanke says a stock market bubble is not in the works.
Bloomberg | Bernanke Defends Asset Buying as Benefits Outweigh Risks
Federal Reserve Chairman Ben S. Bernanke defended the central bank’s unprecedented asset purchases, saying they are supporting the expansion with little risk of inflation or asset-price bubbles.
Washington Times | Banks see 2nd-most profitable year
The U.S. banking industry enjoyed its second-most profitable year in history in 2012, according to a new report from the Federal Deposit Insurance Corp., but that may not be enough to save the jobs of thousands of bankers.
Econ Comments & Analysis
AEI | The Bernanke inflation record revisited
While being questioned in his Semi-Annual Report to Congress, Federal Reserve Chairman Ben Bernanke was criticized as dovish for his expansion of the Fed's balance sheet. In response, Bernanke retorted, "You called me a dove ... My inflation record is the best of any of the governors in the post-war period."
Real Clear Markets | The Fed Shouldn't Regulate What It Doesn't Understand
Fed Chairman Bernanke is making one of his semi-annual appearances before Congress this week to testify on monetary policy. Yesterday, he appeared before the Senate Banking Committee and today he will face the House Financial Services Committee.
CNN Money | Bernanke: There is no stock bubble
Stocks have recently been hovering near a five-year high, but Federal Reserve Chairman Ben Bernanke says a stock market bubble is not in the works.
Taxes
Econ Comments & Analysis
Washington Times | Leveraging taxes with sequestration
President Obama was back on the campaign trail Tuesday, preaching doom and gloom over the approaching budget cuts that will likely take place in March.
Fortune | The hidden tax Washington doesn't want you to know
Okay, middle-class taxpayers: Listen up. Our national government in Washington is screwing you again. This time the screwing involves the way that two new income tax surcharges, supposedly designed to affect only the "rich," will reach deeper and deeper into the middle class unless something is done now to rein them in.
NY Times | In Wall St. Tax, a Simple Idea but Unintended Consequences
Some say that a financial transaction tax is a cost-free way to kill many a bird with one stone — raising revenue, preventing financial crashes and making markets safer. But advocates of this neat idea conveniently ignore the century of less-than-successful experience with this tax, including New York State’s own failed attempt.
CRS | Medical Device Excise Tax Regulations
This report provides a brief overview of the recently enacted Treasury regulations and the legal implications of the regulations.
Washington Times | Leveraging taxes with sequestration
President Obama was back on the campaign trail Tuesday, preaching doom and gloom over the approaching budget cuts that will likely take place in March.
Fortune | The hidden tax Washington doesn't want you to know
Okay, middle-class taxpayers: Listen up. Our national government in Washington is screwing you again. This time the screwing involves the way that two new income tax surcharges, supposedly designed to affect only the "rich," will reach deeper and deeper into the middle class unless something is done now to rein them in.
NY Times | In Wall St. Tax, a Simple Idea but Unintended Consequences
Some say that a financial transaction tax is a cost-free way to kill many a bird with one stone — raising revenue, preventing financial crashes and making markets safer. But advocates of this neat idea conveniently ignore the century of less-than-successful experience with this tax, including New York State’s own failed attempt.
CRS | Medical Device Excise Tax Regulations
This report provides a brief overview of the recently enacted Treasury regulations and the legal implications of the regulations.
Employment
Econ Comments & Analysis
Real Clear Markets | The Jobs Crisis Is About Much More Than Unemployment
President Obama has positioned himself as champion of the middle class. In his State of the Union speech, he declared that it was "our generation's task" to "reignite the true engine of America's economic growth-a rising, thriving middle class." Repeatedly, he has appealed to the middle class as a means of justifying tax increases, rolling back the sequester, or expanding government programs. But how have middle class workers fared since the start of the recession in 2007?
Real Clear Markets | The Jobs Crisis Is About Much More Than Unemployment
President Obama has positioned himself as champion of the middle class. In his State of the Union speech, he declared that it was "our generation's task" to "reignite the true engine of America's economic growth-a rising, thriving middle class." Repeatedly, he has appealed to the middle class as a means of justifying tax increases, rolling back the sequester, or expanding government programs. But how have middle class workers fared since the start of the recession in 2007?
Budget
News
CNN Money | Bernanke: Spending cuts add 'significant' burden to recovery
Automatic budget cuts set to go into effect this week will slow the already sluggish U.S. economy even further, Federal Reserve Chairman Ben Bernanke warned senators Tuesday.
Market Watch | Cantor expects fiscal impasse for 'weeks, months'
House Majority Leader Eric Cantor Wednesday did not express any optimism that a deal will be reached to avert the sequester ahead of Friday's deadline. "We are going to be mired in some of these fiscal issues for the foreseeable future -- the next several weeks, months," the Virginia Republican said at the Credit Union National Association's Governmental Affairs Conference in Washington.
Econ Comments & Analysis
WSJ | Obama and the Sequester Scare
President Obama's message could not be clearer: Life as we know it in America will change dramatically on March 1, when automatic cuts are imposed to achieve $85 billion in government-spending reductions. Furloughed government employees, flight delays and criminals set free are among the dire consequences the president has predicted. If the Washington Monument weren't already closed for repairs, no doubt it too would be shut down.
CNN Money | Bernanke: Spending cuts add 'significant' burden to recovery
Automatic budget cuts set to go into effect this week will slow the already sluggish U.S. economy even further, Federal Reserve Chairman Ben Bernanke warned senators Tuesday.
Market Watch | Cantor expects fiscal impasse for 'weeks, months'
House Majority Leader Eric Cantor Wednesday did not express any optimism that a deal will be reached to avert the sequester ahead of Friday's deadline. "We are going to be mired in some of these fiscal issues for the foreseeable future -- the next several weeks, months," the Virginia Republican said at the Credit Union National Association's Governmental Affairs Conference in Washington.
Econ Comments & Analysis
WSJ | Obama and the Sequester Scare
President Obama's message could not be clearer: Life as we know it in America will change dramatically on March 1, when automatic cuts are imposed to achieve $85 billion in government-spending reductions. Furloughed government employees, flight delays and criminals set free are among the dire consequences the president has predicted. If the Washington Monument weren't already closed for repairs, no doubt it too would be shut down.
Tuesday, February 26, 2013
General Economics
News
CNN Money | American consumers upbeat in February
Consumers are feeling more upbeat about the U.S. economy in February than they have been in the last two months, as fiscal cliff worries have finally subsided.
Bloomberg | New-Home Sales in U.S. Surge to Highest Level Since 2008
Purchases of new U.S. homes jumped in January to the highest level since July 2008, showing the industry will keep adding to growth in the economy.
Econ Comments & Analysis
Forbes | In Asking About Income Inequality, Obama Begins With The Wrong Question
When Obama and his supporters refer to income inequality, they are taking a complex set of economic and social issues and boiling them down to a single data point: how large is the difference between the annual incomes of top earners compared with those on the bottom of the income scale. While that is one interesting question—though even as it is there are problems with it—having it stand alone as the driving force for change is a gross oversimplification that will lead to bad outcomes.
Blogs
Economist | The 1974 trap
Do countries often get trapped betwixt poverty and prosperity? The concept of a middle-income trap was popular long before it was thoroughly tested, or even very clearly defined.
CNN Money | American consumers upbeat in February
Consumers are feeling more upbeat about the U.S. economy in February than they have been in the last two months, as fiscal cliff worries have finally subsided.
Bloomberg | New-Home Sales in U.S. Surge to Highest Level Since 2008
Purchases of new U.S. homes jumped in January to the highest level since July 2008, showing the industry will keep adding to growth in the economy.
Econ Comments & Analysis
Forbes | In Asking About Income Inequality, Obama Begins With The Wrong Question
When Obama and his supporters refer to income inequality, they are taking a complex set of economic and social issues and boiling them down to a single data point: how large is the difference between the annual incomes of top earners compared with those on the bottom of the income scale. While that is one interesting question—though even as it is there are problems with it—having it stand alone as the driving force for change is a gross oversimplification that will lead to bad outcomes.
Blogs
Economist | The 1974 trap
Do countries often get trapped betwixt poverty and prosperity? The concept of a middle-income trap was popular long before it was thoroughly tested, or even very clearly defined.
Health Care
Blogs
FOX Business | Why Health-Care Costs Are So Out of Control
To put it in another way, we spend more on health care than the next 10 big spenders combined: Japan, Germany, France, China, the U.K., Italy, Canada, Brazil, Spain and Australia. U.S. health care spending will probably total $2.8 trillion this year alone.
FOX Business | Why Health-Care Costs Are So Out of Control
To put it in another way, we spend more on health care than the next 10 big spenders combined: Japan, Germany, France, China, the U.K., Italy, Canada, Brazil, Spain and Australia. U.S. health care spending will probably total $2.8 trillion this year alone.
Monetary
News
Bloomberg | Fed Faces Explaining Billion-Dollar Losses in QE Exit Stress
Federal Reserve Chairman Ben S. Bernanke’s efforts to rescue the economy could result in more than a half trillion dollars of paper losses on the central bank’s books if interest rates rise abruptly from recent levels.
National Journal | Could Bernanke's Testimony Signal an Early End to Easy Money?
Folks from Wall Street to Washington are hoping for a better sense this week of when the central bank’s latest unemployment-fighting program, an open-ended round of bond-buying known as QE3, will come to an end.
Market Watch | Fed's Lockhart backs QE at least into second half
The Federal Reserve should stick with its current $85 billion per month bond-buying program, at least into the second half of the year, said Dennis Lockhart, the president of the Atlanta Federal Reserve Bank, on Monday.
Bloomberg | Fed Faces Explaining Billion-Dollar Losses in QE Exit Stress
Federal Reserve Chairman Ben S. Bernanke’s efforts to rescue the economy could result in more than a half trillion dollars of paper losses on the central bank’s books if interest rates rise abruptly from recent levels.
National Journal | Could Bernanke's Testimony Signal an Early End to Easy Money?
Folks from Wall Street to Washington are hoping for a better sense this week of when the central bank’s latest unemployment-fighting program, an open-ended round of bond-buying known as QE3, will come to an end.
Market Watch | Fed's Lockhart backs QE at least into second half
The Federal Reserve should stick with its current $85 billion per month bond-buying program, at least into the second half of the year, said Dennis Lockhart, the president of the Atlanta Federal Reserve Bank, on Monday.
Taxes
News
Politico | Opposition to online sales tax wanes
The push for a federal online sales tax bill previously pitched the young Internet industry against the old retail sector.
Econ Comments & Analysis
Politico | Setting the stage for tax reform
In his State of the Union address, President Barack Obama said that achieving tax reform “won’t be easy” and that “the politics will be hard for both sides.” This may be true, but we agree with the president that now is our best chance to achieve it. In fact, there are a number of factors that suggest tax reform is not only possible but that the environment for its passage is particularly encouraging.
Washington Times | Ending the corporate tax
Can you name the worst tax? In recent weeks, there have been a slew of articles in major publications about how many multinational corporations have found legal ways to reduce their tax burdens by running some of their operations through low-tax jurisdictions. Many who love high taxes and big government demand that corporations pay more.
Politico | Opposition to online sales tax wanes
The push for a federal online sales tax bill previously pitched the young Internet industry against the old retail sector.
Econ Comments & Analysis
Politico | Setting the stage for tax reform
In his State of the Union address, President Barack Obama said that achieving tax reform “won’t be easy” and that “the politics will be hard for both sides.” This may be true, but we agree with the president that now is our best chance to achieve it. In fact, there are a number of factors that suggest tax reform is not only possible but that the environment for its passage is particularly encouraging.
Washington Times | Ending the corporate tax
Can you name the worst tax? In recent weeks, there have been a slew of articles in major publications about how many multinational corporations have found legal ways to reduce their tax burdens by running some of their operations through low-tax jurisdictions. Many who love high taxes and big government demand that corporations pay more.
Employment
News
CNN Money | Workers over 50 are the new 'unemployables'
Unemployed workers in their fifties are increasingly finding themselves stuck in limbo. On one hand, they're too young to retire. They may also be too old to get re-hired.
Washington Times | Gun maker Beretta threatens to leave Maryland, take hundreds of jobs
The multimillion dollar, centuries-old manufacturer provides hundreds of jobs in the state, the Blaze reports. It was considering an expansion to its existing Prince George County plant — until Maryland lawmakers introduced a bill to ban so-called assault weapons.
Econ Comments & Analysis
WSJ | Why Unions Want a Higher Minimum Wage
Organized labor's instantaneous support for President Obama's recent proposal to hike the minimum wage doesn't make much sense at first glance. The average private-sector union member—at least one who still has a job—earns $22 an hour according to the Bureau of Labor Statistics. That's a far cry from the current $7.25 per hour federal minimum wage, or the $9 per hour the president has proposed. Altruistic solidarity with lower-paid workers isn't the reason for organized labor's cheerleading, either.
CNN Money | Workers over 50 are the new 'unemployables'
Unemployed workers in their fifties are increasingly finding themselves stuck in limbo. On one hand, they're too young to retire. They may also be too old to get re-hired.
Washington Times | Gun maker Beretta threatens to leave Maryland, take hundreds of jobs
The multimillion dollar, centuries-old manufacturer provides hundreds of jobs in the state, the Blaze reports. It was considering an expansion to its existing Prince George County plant — until Maryland lawmakers introduced a bill to ban so-called assault weapons.
Econ Comments & Analysis
WSJ | Why Unions Want a Higher Minimum Wage
Organized labor's instantaneous support for President Obama's recent proposal to hike the minimum wage doesn't make much sense at first glance. The average private-sector union member—at least one who still has a job—earns $22 an hour according to the Bureau of Labor Statistics. That's a far cry from the current $7.25 per hour federal minimum wage, or the $9 per hour the president has proposed. Altruistic solidarity with lower-paid workers isn't the reason for organized labor's cheerleading, either.
Budget
News
Roll Call | 15 Things You Need to Know About the Sequester
Nearly two years in the making, the first $85 billion of automatic budget cuts known as the sequester are about to hit starting Friday, but on Monday, there were no real talks under way to prevent it.
Econ Comments & Analysis
Washington Times | The sky won’t fall
There is very little agreement in Washington on how to avoid the across-the-board spending reductions scheduled for Friday. Republicans are less than thrilled to see half the sequestration hitting defense, and Democrats are in a meltdown over the prospects of their welfare-state handouts getting a nip and tuck.
WSJ | China Has Its Own Debt Bomb
Six years ago, Chinese Premier Wen Jiabao cautioned that China's economy is "unstable, unbalanced, uncoordinated and unsustainable." China has since doubled down on the economic model that prompted his concern.
Investors | Obama's Sequester Cuts Are A Mere 1% Of Budget
President Obama is almost breathless predicting "devastating" consequences if the sequester trigger is pulled. He warns the cuts "will hurt our economy ... add hundreds of thousands of Americans to the unemployment rolls. ... The unemployment rate might tick up again."
CBO | Testimony on the Budget and Economic Outlook: Fiscal Years 2013 to 2023
Economic growth will remain slow this year, CBO anticipates, as gradual improvement in many of the forces that drive the economy is offset by the effects of budgetary changes that are scheduled to occur under current law. After this year, economic growth will speed up, CBO projects, causing the unemployment rate to decline and inflation and interest rates to eventually rise from their current low levels.
CATO | America in Denial as Fiscal Tsunami Approaches
It’s hard to hear yourself think over all the caterwauling on Capitol Hill about the looming sequestration “crisis.” For opponents of the spending cuts — at $85 billion, 2.3 percent of the $3.6 trillion federal budget — the rallying cry is half Lord Keynes, half St. Augustine: “Grant me chastity and continence — but not yet.”
Blogs
CATO | Sequestration Cuts in Perspective
According to the Congressional Budget Office, the $85 billion in sequestration spending cuts translates into $44 billion reduction in actual federal outlays for 2013.
Economist | On predicting fiscal doomsday
It sure seems like high public debt levels ought to represent a looming economic problem. Why, then, is it so difficult to demonstrate, conclusively, that they are? It could be due to the econometric challenges posed by any macroeconomic issue: sample sizes are small and the possibility of any number of statistical biases throwing things off is large. Or it could be that debt levels simply aren't, in many cases, as bad as everyone seems to think.
Roll Call | 15 Things You Need to Know About the Sequester
Nearly two years in the making, the first $85 billion of automatic budget cuts known as the sequester are about to hit starting Friday, but on Monday, there were no real talks under way to prevent it.
Econ Comments & Analysis
Washington Times | The sky won’t fall
There is very little agreement in Washington on how to avoid the across-the-board spending reductions scheduled for Friday. Republicans are less than thrilled to see half the sequestration hitting defense, and Democrats are in a meltdown over the prospects of their welfare-state handouts getting a nip and tuck.
WSJ | China Has Its Own Debt Bomb
Six years ago, Chinese Premier Wen Jiabao cautioned that China's economy is "unstable, unbalanced, uncoordinated and unsustainable." China has since doubled down on the economic model that prompted his concern.
Investors | Obama's Sequester Cuts Are A Mere 1% Of Budget
President Obama is almost breathless predicting "devastating" consequences if the sequester trigger is pulled. He warns the cuts "will hurt our economy ... add hundreds of thousands of Americans to the unemployment rolls. ... The unemployment rate might tick up again."
CBO | Testimony on the Budget and Economic Outlook: Fiscal Years 2013 to 2023
Economic growth will remain slow this year, CBO anticipates, as gradual improvement in many of the forces that drive the economy is offset by the effects of budgetary changes that are scheduled to occur under current law. After this year, economic growth will speed up, CBO projects, causing the unemployment rate to decline and inflation and interest rates to eventually rise from their current low levels.
CATO | America in Denial as Fiscal Tsunami Approaches
It’s hard to hear yourself think over all the caterwauling on Capitol Hill about the looming sequestration “crisis.” For opponents of the spending cuts — at $85 billion, 2.3 percent of the $3.6 trillion federal budget — the rallying cry is half Lord Keynes, half St. Augustine: “Grant me chastity and continence — but not yet.”
Blogs
CATO | Sequestration Cuts in Perspective
According to the Congressional Budget Office, the $85 billion in sequestration spending cuts translates into $44 billion reduction in actual federal outlays for 2013.
Economist | On predicting fiscal doomsday
It sure seems like high public debt levels ought to represent a looming economic problem. Why, then, is it so difficult to demonstrate, conclusively, that they are? It could be due to the econometric challenges posed by any macroeconomic issue: sample sizes are small and the possibility of any number of statistical biases throwing things off is large. Or it could be that debt levels simply aren't, in many cases, as bad as everyone seems to think.
Monday, February 25, 2013
General Economics
News
Bloomberg | China’s Slower Manufacturing Casts Shadow Over Recovery: Economy
China’s manufacturing is expanding at the slowest pace in four months, a private survey showed, underscoring the headwinds faced by policy makers in the world’s second-biggest economy.
Market Watch | National activity below trend in January
The Chicago Fed's national activity index fell to -0.32 in January from +0.25 in December, a reading that indicates the U.S. economy is running below trend.
Bloomberg | Spending Cuts Threaten State Recoveries, Governors Say
Federal budget cuts will probably push the U.S. back into recession by damaging states’ economies recovering from the worst fiscal crisis since the Great Depression, governors said.
Washington Post | Business economists looking for moderate growth in 2013 with stronger growth in 2014
Business economists expect 2013 will be another year of sub-par growth for the U.S. economy, reflecting uncertainty stemming from the budget battles in Washington and Europe’s on-going debt problems. But they think the economy will improve as the year progresses and by 2014 will grow at the fastest pace in nine years.
Econ Comments & Analysis
Politico | A plan to fix housing
Six years after the collapse of the housing market, the problems in housing remain as severe as ever, and solutions continue to be elusive.
Businessweek | Don't Weep for Boomers Close to Retirement
Thanks to the brutal combination of the recent recession and boomer demographics, the words “retirement” and “penury” are practically synonymous.
Mercatus | The Regressive Effects of Regulation: Who Bears the Cost?
In a market economy, regulations are often thought of as a useful tool in correcting the imbalance of power between large, entrenched interests and consumers. Federal agencies are supposed to create universal rules of the road that protect the health, safety, and welfare of customers and employees, secondary considerations for companies focused on profits.
NBER | Growth Slowdowns Redux: New Evidence on the Middle-Income Trap
We analyze the incidence and correlates of growth slowdowns in fast-growing middle-income countries, extending the analysis of an earlier paper (Eichengreen, Park and Shin 2012).
Blogs
National Journal | What Does the Keystone XL Pipeline Represent?
What does the controversial Keystone XL pipeline stand for? And what is at stake when President Obama decides its fate? The 1,700-mile, tar-sands project has come to symbolize much more than a pipeline. Almost five years after the project's first step into the regulatory process, Washington is still fighting about its fate.
Library of Economics | Should Cost/Benefit Analysis Consider Only Benefits?
Don't worry. I'm not going to produce a new insight that cost/benefit analysis should consider only benefits. But the reason for the title of this post is that a logical conclusion to draw is that Josh Barro thinks so.
Café Hayek | Import-Led Growth
Many people – high-school teachers, celebrated historians, politicians, the list is long – are convinced that nations can grow wealthy through exports. This belief is nonsense.
Bloomberg | China’s Slower Manufacturing Casts Shadow Over Recovery: Economy
China’s manufacturing is expanding at the slowest pace in four months, a private survey showed, underscoring the headwinds faced by policy makers in the world’s second-biggest economy.
Market Watch | National activity below trend in January
The Chicago Fed's national activity index fell to -0.32 in January from +0.25 in December, a reading that indicates the U.S. economy is running below trend.
Bloomberg | Spending Cuts Threaten State Recoveries, Governors Say
Federal budget cuts will probably push the U.S. back into recession by damaging states’ economies recovering from the worst fiscal crisis since the Great Depression, governors said.
Washington Post | Business economists looking for moderate growth in 2013 with stronger growth in 2014
Business economists expect 2013 will be another year of sub-par growth for the U.S. economy, reflecting uncertainty stemming from the budget battles in Washington and Europe’s on-going debt problems. But they think the economy will improve as the year progresses and by 2014 will grow at the fastest pace in nine years.
Econ Comments & Analysis
Politico | A plan to fix housing
Six years after the collapse of the housing market, the problems in housing remain as severe as ever, and solutions continue to be elusive.
Businessweek | Don't Weep for Boomers Close to Retirement
Thanks to the brutal combination of the recent recession and boomer demographics, the words “retirement” and “penury” are practically synonymous.
Mercatus | The Regressive Effects of Regulation: Who Bears the Cost?
In a market economy, regulations are often thought of as a useful tool in correcting the imbalance of power between large, entrenched interests and consumers. Federal agencies are supposed to create universal rules of the road that protect the health, safety, and welfare of customers and employees, secondary considerations for companies focused on profits.
NBER | Growth Slowdowns Redux: New Evidence on the Middle-Income Trap
We analyze the incidence and correlates of growth slowdowns in fast-growing middle-income countries, extending the analysis of an earlier paper (Eichengreen, Park and Shin 2012).
Blogs
National Journal | What Does the Keystone XL Pipeline Represent?
What does the controversial Keystone XL pipeline stand for? And what is at stake when President Obama decides its fate? The 1,700-mile, tar-sands project has come to symbolize much more than a pipeline. Almost five years after the project's first step into the regulatory process, Washington is still fighting about its fate.
Library of Economics | Should Cost/Benefit Analysis Consider Only Benefits?
Don't worry. I'm not going to produce a new insight that cost/benefit analysis should consider only benefits. But the reason for the title of this post is that a logical conclusion to draw is that Josh Barro thinks so.
Café Hayek | Import-Led Growth
Many people – high-school teachers, celebrated historians, politicians, the list is long – are convinced that nations can grow wealthy through exports. This belief is nonsense.
Health Care
News
Bloomberg | Health Premium Increases Damped by Greater U.S. Scrutiny
The number of requests by health insurers for double-digit rate increases fell about 41 percentage points since the end of 2009, according to a U.S. report that cited the success of the health-care overhaul.
Bloomberg | Health Premium Increases Damped by Greater U.S. Scrutiny
The number of requests by health insurers for double-digit rate increases fell about 41 percentage points since the end of 2009, according to a U.S. report that cited the success of the health-care overhaul.
Monetary
News
CNBC | Bernanke's Challenge: Prime Markets for End of QE
Federal Reserve Chairman Ben Bernanke is preparing for a most sensitive task: telling jittery investors who have grown accustomed to the U.S. central bank's ultra-easy monetary policies that things will eventually have to change.
Bloomberg | Bernanke’s Stimulus Spurring U.S. Employment in Housing
Federal Reserve Chairman Ben S. Bernanke has something to tout before Congress in hearings this week: job growth in the auto and housing industries.
Econ Comments & Analysis
Washington Times | The Fed’s bubble fuel
The consequences of the Federal Reserve’s loose-money policy are starting to hit home. Even members of the Federal Open Market Committee are concerned, as revealed in the Wednesday release of the minutes of a meeting earlier this year.
Blogs
WSJ | Fed Exit Strategy a Work in Progress
Two developments are worth watching on the Federal Reserve front these days. Both relate to Fed planning for how it will withdraw one day from the aggressive bond buying it is now pursuing to bolster the markets and the economy.
CNBC | Bernanke's Challenge: Prime Markets for End of QE
Federal Reserve Chairman Ben Bernanke is preparing for a most sensitive task: telling jittery investors who have grown accustomed to the U.S. central bank's ultra-easy monetary policies that things will eventually have to change.
Bloomberg | Bernanke’s Stimulus Spurring U.S. Employment in Housing
Federal Reserve Chairman Ben S. Bernanke has something to tout before Congress in hearings this week: job growth in the auto and housing industries.
Econ Comments & Analysis
Washington Times | The Fed’s bubble fuel
The consequences of the Federal Reserve’s loose-money policy are starting to hit home. Even members of the Federal Open Market Committee are concerned, as revealed in the Wednesday release of the minutes of a meeting earlier this year.
Blogs
WSJ | Fed Exit Strategy a Work in Progress
Two developments are worth watching on the Federal Reserve front these days. Both relate to Fed planning for how it will withdraw one day from the aggressive bond buying it is now pursuing to bolster the markets and the economy.
Taxes
News
Politico | Sequestration: Expecting a tax refund? It may be delayed
Law-abiding taxpayers could shoulder the brunt of the blow when the sequester hits the Internal Revenue Service Friday — and tax cheats might find it easier to rig the system.
CNN Money | Marijuana dealers get slammed by taxes
Thanks to a decades-old law targeting drug runners, entrepreneurs in the nascent medical marijuana industry face a unique burden: an effective federal income tax rate that can soar as high as 75%.
Politico | Sequestration: Expecting a tax refund? It may be delayed
Law-abiding taxpayers could shoulder the brunt of the blow when the sequester hits the Internal Revenue Service Friday — and tax cheats might find it easier to rig the system.
CNN Money | Marijuana dealers get slammed by taxes
Thanks to a decades-old law targeting drug runners, entrepreneurs in the nascent medical marijuana industry face a unique burden: an effective federal income tax rate that can soar as high as 75%.
Employment
Econ Comments & Analysis
Real Clear Markets | It's Time To End Our Minimum Wage Psychosis
The minimum wage is the perfect example of how Americans have lost contact with reality and exhibit delusional thinking. Simply because it sounds like it makes sense, Americans lap up the minimum wage elixir like dehydrated groupies of Jim Jones in the Peoples Temple.
Real Clear Markets | It's Time To End Our Minimum Wage Psychosis
The minimum wage is the perfect example of how Americans have lost contact with reality and exhibit delusional thinking. Simply because it sounds like it makes sense, Americans lap up the minimum wage elixir like dehydrated groupies of Jim Jones in the Peoples Temple.
Budget
News
Politico | Sequestration: Cuts before compromise?
Congress returns Monday with all eyes on a last Senate attempt to forestall across-the-board spending cuts March 1 that threaten to cripple government services this spring and roll back the clock to before Barack Obama’s presidency.
CNBC | One Quarter of US Has More Card Debt Than Savings
Rumors of the spendthrift American consumer may be slightly exaggerated. Bankrate's 2013 February Financial Security Index found that a majority of consumers — by a narrow margin — say they have more savings than credit card debt.
Econ Comments & Analysis
Washington Times | Sequestration follies
Here we go again. Lawmakers are once more warning that the nation hangs on the brink of unimaginable disaster. Another cliff, you might say. Five days from now automatic budget restraint is scheduled to take effect, and nothing frightens a politician more than restraint on spending.
WSJ | A Silver Linings Deficit Playbook
Cheer up, America. Yes, it's February. But spring training has begun, the days are growing longer, the weather is getting warmer, and—are you ready for this?—the federal budget picture is improving.
CATO | The Fairy Tale on Spending Cuts
“The sequester is coming, the sequester is coming,” cries Chicken Little, speaking of the across-the-board spending reductions set to kick in next Friday. As a result, much of the Washington establishment, politicians of both parties, and the media are bracing for the apocalypse.
Washington Post | The true national debt
You’d think this would be an easy question. Surely we know how much the government owes. Unfortunately, it’s not that simple. The true national debt could be triple the conventional estimate, anywhere from $11 trillion to $31 trillion by my reckoning.
Politico | Sequestration: Cuts before compromise?
Congress returns Monday with all eyes on a last Senate attempt to forestall across-the-board spending cuts March 1 that threaten to cripple government services this spring and roll back the clock to before Barack Obama’s presidency.
CNBC | One Quarter of US Has More Card Debt Than Savings
Rumors of the spendthrift American consumer may be slightly exaggerated. Bankrate's 2013 February Financial Security Index found that a majority of consumers — by a narrow margin — say they have more savings than credit card debt.
Econ Comments & Analysis
Washington Times | Sequestration follies
Here we go again. Lawmakers are once more warning that the nation hangs on the brink of unimaginable disaster. Another cliff, you might say. Five days from now automatic budget restraint is scheduled to take effect, and nothing frightens a politician more than restraint on spending.
WSJ | A Silver Linings Deficit Playbook
Cheer up, America. Yes, it's February. But spring training has begun, the days are growing longer, the weather is getting warmer, and—are you ready for this?—the federal budget picture is improving.
CATO | The Fairy Tale on Spending Cuts
“The sequester is coming, the sequester is coming,” cries Chicken Little, speaking of the across-the-board spending reductions set to kick in next Friday. As a result, much of the Washington establishment, politicians of both parties, and the media are bracing for the apocalypse.
Washington Post | The true national debt
You’d think this would be an easy question. Surely we know how much the government owes. Unfortunately, it’s not that simple. The true national debt could be triple the conventional estimate, anywhere from $11 trillion to $31 trillion by my reckoning.
Friday, February 22, 2013
General Economics
News
CNN Money | Housing rebound continues with strong sales and price gains
The housing rebound continued in January: The pace of home sales stayed strong and prices gained the most since the boom days.
Market Watch | Euro-zone economy to shrink again in 2013: EU
The euro-zone economy will shrink for the second year in a row as a return to growth appears likely to be more gradual than previously expected, the European Commission said Friday in its most recent round of economic forecasts.
WSJ | Home Supply Falls Before Key Selling Season
The number of homes for sale fell to a 13-year low in January, leaving would-be buyers chasing a shrinking supply of homes just before the spring selling season.
Econ Comments & Analysis
CNBC | Strike Three! The American Consumer Is Out
Faced with delayed tax refunds, an increased paycheck tax bite and higher gas prices, U.S. consumers are proceeding cautiously and scaling back, a trend that has already impacted one large retailer's bottom line.
CRS | NAFTA at 20: Overview and Trade Effects
The 113th Congress faces numerous issues related to international trade. Canada and Mexico are the first and third largest U.S. trading partners, respectively. With the two countries participating in the negotiations to conclude a Trans-Pacific Partnership (TPP) free trade agreement among the United States and ten other countries, policy issues related to NAFTA continue to be of interest for Congress.
CATO | License to Drill: The Case for Modernizing America’s Crude Oil and Natural Gas Export Licensing Systems
Revolutionary extraction technologies have helped increase the supply of fossil fuels in the United States, driving down prices, spurring economic activity, and potentially reversing the longtime status of the United States as a net energy importer to a significant exporter.
Blogs
Economist | The ever-receding recovery
A week after official figures showed a steep fall in euro-zone output in late 2012 the European Commission (EC) has added to the gloom by unveiling some gloomy forecasts for 2013. Three months ago the EC envisaged a modest recovery getting under way in the first half of this year. Now that is not expected until the second half of 2013.
CNN Money | Housing rebound continues with strong sales and price gains
The housing rebound continued in January: The pace of home sales stayed strong and prices gained the most since the boom days.
Market Watch | Euro-zone economy to shrink again in 2013: EU
The euro-zone economy will shrink for the second year in a row as a return to growth appears likely to be more gradual than previously expected, the European Commission said Friday in its most recent round of economic forecasts.
WSJ | Home Supply Falls Before Key Selling Season
The number of homes for sale fell to a 13-year low in January, leaving would-be buyers chasing a shrinking supply of homes just before the spring selling season.
Econ Comments & Analysis
CNBC | Strike Three! The American Consumer Is Out
Faced with delayed tax refunds, an increased paycheck tax bite and higher gas prices, U.S. consumers are proceeding cautiously and scaling back, a trend that has already impacted one large retailer's bottom line.
CRS | NAFTA at 20: Overview and Trade Effects
The 113th Congress faces numerous issues related to international trade. Canada and Mexico are the first and third largest U.S. trading partners, respectively. With the two countries participating in the negotiations to conclude a Trans-Pacific Partnership (TPP) free trade agreement among the United States and ten other countries, policy issues related to NAFTA continue to be of interest for Congress.
CATO | License to Drill: The Case for Modernizing America’s Crude Oil and Natural Gas Export Licensing Systems
Revolutionary extraction technologies have helped increase the supply of fossil fuels in the United States, driving down prices, spurring economic activity, and potentially reversing the longtime status of the United States as a net energy importer to a significant exporter.
Blogs
Economist | The ever-receding recovery
A week after official figures showed a steep fall in euro-zone output in late 2012 the European Commission (EC) has added to the gloom by unveiling some gloomy forecasts for 2013. Three months ago the EC envisaged a modest recovery getting under way in the first half of this year. Now that is not expected until the second half of 2013.
Health Care
News
Politico | The GOP split on Obamacare
The next stage of Obamacare is shaping up into a fight between two camps of Republican governors sure to duke it out in the 2016 presidential primary — ideologues versus pragmatists.
CNN Money | Millions more could join Medicaid as Republican governors cave in
Despite their initial, vehement protests, a growing number of Republican governors are giving their blessing to expanding Medicaid in their states. That opens the door for millions of poor Americans to enroll in government health care coverage, beginning in 2014.
Econ Comments & Analysis
CBO | How Have CBO’s Projections of Spending for Medicare and Medicaid Changed Since the August 2012 Baseline?
In its most recent baseline projections, CBO reduced its estimates of spending for the Medicare and Medicaid programs compared with its estimates in the August 2012 baseline. For the 2013–2022 period, projected spending for those programs is now $382 billion (or 3½ percent) below the agency’s estimates in August 2012.
Politico | The GOP split on Obamacare
The next stage of Obamacare is shaping up into a fight between two camps of Republican governors sure to duke it out in the 2016 presidential primary — ideologues versus pragmatists.
CNN Money | Millions more could join Medicaid as Republican governors cave in
Despite their initial, vehement protests, a growing number of Republican governors are giving their blessing to expanding Medicaid in their states. That opens the door for millions of poor Americans to enroll in government health care coverage, beginning in 2014.
Econ Comments & Analysis
CBO | How Have CBO’s Projections of Spending for Medicare and Medicaid Changed Since the August 2012 Baseline?
In its most recent baseline projections, CBO reduced its estimates of spending for the Medicare and Medicaid programs compared with its estimates in the August 2012 baseline. For the 2013–2022 period, projected spending for those programs is now $382 billion (or 3½ percent) below the agency’s estimates in August 2012.
Monetary
Econ Comments & Analysis
WSJ | When Interest Rates Rise, Watch Out
Can Ben Bernanke fly us through a needle's eye? Minutes released this week from the last Federal Reserve policy meeting suggest evaluations are taking place that "might well lead the Committee to taper or end its purchases before it judged that a substantial improvement in the outlook for the labor market had occurred." It's about time.
Bloomberg | More Inflation Is the Cure for the Fed’s Impotence
The U.S. Federal Reserve has all but exhausted its most powerful weapon: the ability to lower short- term interest rates. If it wants ammo to fight the next economic slump, it will have to give up its obsession with ultralow inflation.
Blogs
WSJ | St. Louis Fed’s Bullard: Fed’s ‘Easy’ Policy To Stay For A ‘Long Time’
The Federal Reserve’s ”easy” monetary policy will remain in effect for a “long time,” St. Louis Fed President James Bullard said Friday, adding that global economic uncertainty is “way down.”
WSJ | When Interest Rates Rise, Watch Out
Can Ben Bernanke fly us through a needle's eye? Minutes released this week from the last Federal Reserve policy meeting suggest evaluations are taking place that "might well lead the Committee to taper or end its purchases before it judged that a substantial improvement in the outlook for the labor market had occurred." It's about time.
Bloomberg | More Inflation Is the Cure for the Fed’s Impotence
The U.S. Federal Reserve has all but exhausted its most powerful weapon: the ability to lower short- term interest rates. If it wants ammo to fight the next economic slump, it will have to give up its obsession with ultralow inflation.
Blogs
WSJ | St. Louis Fed’s Bullard: Fed’s ‘Easy’ Policy To Stay For A ‘Long Time’
The Federal Reserve’s ”easy” monetary policy will remain in effect for a “long time,” St. Louis Fed President James Bullard said Friday, adding that global economic uncertainty is “way down.”
Taxes
Econ Comments & Analysis
NY Times | A Tax That May Change the Trading Game
To the dismay of the United States government — not to mention Wall Street — much of Europe seems poised to begin taxing financial trading as soon as next year.
Fortune | The California tax that terrifies tech
Retroactive tax bills and the elimination of a state tax-break for California's entrepreneurs and early stage investors could force them to move to ... Texas.
NY Times | A Tax That May Change the Trading Game
To the dismay of the United States government — not to mention Wall Street — much of Europe seems poised to begin taxing financial trading as soon as next year.
Fortune | The California tax that terrifies tech
Retroactive tax bills and the elimination of a state tax-break for California's entrepreneurs and early stage investors could force them to move to ... Texas.
Employment
News
Market Watch | Bullard sees jobless rate below 6.5% in June 2014
The unemployment rate could fall below 6.5% in June 2014, the threshold the Federal Reserve has set to consider a rate hike, said St. Louis Federal Reserve Bank President James Bullard on Thursday.
Market Watch | Bullard sees jobless rate below 6.5% in June 2014
The unemployment rate could fall below 6.5% in June 2014, the threshold the Federal Reserve has set to consider a rate hike, said St. Louis Federal Reserve Bank President James Bullard on Thursday.
Budget
News
Bloomberg | Americans Back Spending-Cut Delay Amid Budget-Deal Push
Americans want Congress to delay steep spending cuts to give the economic recovery more time to take hold, according to a Bloomberg News poll.
Econ Comments & Analysis
Washington Times | Sequestration was Obama’s idea in the first place
The White House is still trying to stir up a climate of fear over the looming budget sequester that is not supported by the size of its puny spending cuts.
Politico | The great sequester panic
Prepare for the end of food safety as we have known it. For a breakdown in public order. For little children languishing in ignorance. If only Edward Gibbon were here to chronicle the devastation. On March 1, the fabric of our civilization begins to unwind.
CNBC | Automatic Spending Cuts Are a Joke: Druckenmiller
The focus on the sequester is obscuring the real issue which is the exploding cost of entitlements, Stanley Druckenmiller founder of Duquesne Capital, told CNBC's "Closing Bell" on Thursday.
Mercatus | Bowles-Simpson 2.0 Won't Be Enough
Erskine Bowles and former senator Alan Simpson, the two co-chairmen of the President's bipartisan National Commission on Fiscal Responsibility and Reform, put out a new plan to address our long-term debt problems.
Heritage Foundation | High Debt Is a Real Drag
Three teams of economists have separately shown that high government debt has a negative effect on long-term economic growth. When government debt grows, private investment shrinks, lowering future growth and future wages.
Blogs
WSJ | Young Adults Are Shedding Debt Faster Than Older People
Young adults are cutting debt faster than older people and are less in hock to creditors than a decade ago–despite the ballooning of student loans, a new study shows.
Bloomberg | Americans Back Spending-Cut Delay Amid Budget-Deal Push
Americans want Congress to delay steep spending cuts to give the economic recovery more time to take hold, according to a Bloomberg News poll.
Econ Comments & Analysis
Washington Times | Sequestration was Obama’s idea in the first place
The White House is still trying to stir up a climate of fear over the looming budget sequester that is not supported by the size of its puny spending cuts.
Politico | The great sequester panic
Prepare for the end of food safety as we have known it. For a breakdown in public order. For little children languishing in ignorance. If only Edward Gibbon were here to chronicle the devastation. On March 1, the fabric of our civilization begins to unwind.
CNBC | Automatic Spending Cuts Are a Joke: Druckenmiller
The focus on the sequester is obscuring the real issue which is the exploding cost of entitlements, Stanley Druckenmiller founder of Duquesne Capital, told CNBC's "Closing Bell" on Thursday.
Mercatus | Bowles-Simpson 2.0 Won't Be Enough
Erskine Bowles and former senator Alan Simpson, the two co-chairmen of the President's bipartisan National Commission on Fiscal Responsibility and Reform, put out a new plan to address our long-term debt problems.
Heritage Foundation | High Debt Is a Real Drag
Three teams of economists have separately shown that high government debt has a negative effect on long-term economic growth. When government debt grows, private investment shrinks, lowering future growth and future wages.
Blogs
WSJ | Young Adults Are Shedding Debt Faster Than Older People
Young adults are cutting debt faster than older people and are less in hock to creditors than a decade ago–despite the ballooning of student loans, a new study shows.
Wednesday, February 20, 2013
General Economics
News
CNN Money | Zombie foreclosures: Borrowers hit with debts that won't die
Borrowers are discovering that their foreclosed homes are coming back to haunt them -- long after they have moved out.
Bloomberg | JPMorgan Leads U.S. Banks Lending Least Deposits in 5 Years
The biggest U.S. banks including JPMorgan Chase & Co. and Citigroup Inc. are lending the smallest portion of their deposits in five years as cash floods in from savers and a slow economy damps demand from borrowers.
CNN Money | Home construction off to strong start
Home construction got off to a strong start in 2013, as builders filed for the greatest number of permits in more than four years in January
Econ Comments & Analysis
Real Clear Markets | The Obama "Recovery:" Less Unemployment, But More Dependence
A strange and disturbing new social pattern is unfolding before our eyes in America today: growing dependence on government handouts in the face of declining unemployment rates. Though we are now preparing to enter into the fourth year of recovery from our Great Recession, the roster of Americans seeking and obtaining entitlement benefits from our government just seems to keep on going up.
WSJ | Take the Public-Private Road to Efficiency
In his State of the Union address, President Obama laid out an array of new spending proposals, including a $50 billion plan for highways, bridges and other projects. He wants to attract "private capital" for the plan, but the problem is that federal planners would remain in control of the allocations.
Washington Times | Energy’s bad charges
The White House insists investments in renewable-energy technologies will pay off with a strong middle class. As President Obama declared in last week’s State of the Union, increasing government spending on solar panels will “drive down costs even further” and kick off an explosion in the green jobs of the future.
NY Times | ‘Currency War’ Is Less a Battle Than a Debate on Economic Policy
Never mind about North Korea; the talk in some quarters is that the biggest threat to Asia and the rest of the world today may very well be a “currency war,” in which countries race to devalue their currencies in a desperate attempt to stimulate growth.
Blogs
WSJ | Recession Prompted Big Spike in Short-Distance Moves
The recession forced a surprisingly high number of Americans to make short-distance moves, new research shows.
Heritage Foundation | Calvin Coolidge: Bigger Government Isn’t Better
Less than a century ago, the United States enjoyed an economic boom under the leadership of a quiet, restrained, and often forgotten American. Calvin Coolidge valued limited government and based his action (or more often inaction) on his commitment to personal responsibility, frugality, and honesty.
Neighborhood Effects | Why did the ratings agencies mess up so badly?
When companies or countries issue debt, ratings agencies assign grades based on how creditworthy the issuers are believed to be. Low grades can cost the issuers dearly.
CNN Money | Zombie foreclosures: Borrowers hit with debts that won't die
Borrowers are discovering that their foreclosed homes are coming back to haunt them -- long after they have moved out.
Bloomberg | JPMorgan Leads U.S. Banks Lending Least Deposits in 5 Years
The biggest U.S. banks including JPMorgan Chase & Co. and Citigroup Inc. are lending the smallest portion of their deposits in five years as cash floods in from savers and a slow economy damps demand from borrowers.
CNN Money | Home construction off to strong start
Home construction got off to a strong start in 2013, as builders filed for the greatest number of permits in more than four years in January
Econ Comments & Analysis
Real Clear Markets | The Obama "Recovery:" Less Unemployment, But More Dependence
A strange and disturbing new social pattern is unfolding before our eyes in America today: growing dependence on government handouts in the face of declining unemployment rates. Though we are now preparing to enter into the fourth year of recovery from our Great Recession, the roster of Americans seeking and obtaining entitlement benefits from our government just seems to keep on going up.
WSJ | Take the Public-Private Road to Efficiency
In his State of the Union address, President Obama laid out an array of new spending proposals, including a $50 billion plan for highways, bridges and other projects. He wants to attract "private capital" for the plan, but the problem is that federal planners would remain in control of the allocations.
Washington Times | Energy’s bad charges
The White House insists investments in renewable-energy technologies will pay off with a strong middle class. As President Obama declared in last week’s State of the Union, increasing government spending on solar panels will “drive down costs even further” and kick off an explosion in the green jobs of the future.
NY Times | ‘Currency War’ Is Less a Battle Than a Debate on Economic Policy
Never mind about North Korea; the talk in some quarters is that the biggest threat to Asia and the rest of the world today may very well be a “currency war,” in which countries race to devalue their currencies in a desperate attempt to stimulate growth.
Blogs
WSJ | Recession Prompted Big Spike in Short-Distance Moves
The recession forced a surprisingly high number of Americans to make short-distance moves, new research shows.
Heritage Foundation | Calvin Coolidge: Bigger Government Isn’t Better
Less than a century ago, the United States enjoyed an economic boom under the leadership of a quiet, restrained, and often forgotten American. Calvin Coolidge valued limited government and based his action (or more often inaction) on his commitment to personal responsibility, frugality, and honesty.
Neighborhood Effects | Why did the ratings agencies mess up so badly?
When companies or countries issue debt, ratings agencies assign grades based on how creditworthy the issuers are believed to be. Low grades can cost the issuers dearly.
Health Care
Econ Comments & Analysis
Washington Times | Obamacare will hurt young people most
Brace yourselves for higher medical insurance costs that will hit young and old alike as a result of President Obama’s nationalized health care mandates.
CATO | Obamacare: Nothing to Brag About
During last week’s State of the Union address, one item curiously went almost unmentioned. We heard all about President Obama’s past triumphs and future plans, but his health-care-reform law was strangely missing. Sure, there was one throwaway line about how Obamacare was reducing health-care costs, but the seminal achievement of the president’s first term was almost ignored.
Washington Times | Obamacare will hurt young people most
Brace yourselves for higher medical insurance costs that will hit young and old alike as a result of President Obama’s nationalized health care mandates.
CATO | Obamacare: Nothing to Brag About
During last week’s State of the Union address, one item curiously went almost unmentioned. We heard all about President Obama’s past triumphs and future plans, but his health-care-reform law was strangely missing. Sure, there was one throwaway line about how Obamacare was reducing health-care costs, but the seminal achievement of the president’s first term was almost ignored.
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