News
CNN Money | Home price rise continues to pick up speed
The pace of home price increases continued to accelerate in February, according to a reading Tuesday that showed the biggest gain since near the height of the housing bubble.
Econ Comments & Analysis
Market Watch | Roubini: Money supplies holding back economy, but run could last two years
Economic guru Noriel Roubini and a panel of experts told the Milken Global Conference Monday that there is a disconnect between the continually surging equities markets and the actual performance of the U.S. economy, but that the current market run could last another two years.
NY Times | The Warnings Behind the Numbers
On its face, Friday’s announcement that the nation’s gross domestic product expanded at a 2.5 percent annual rate in the first quarter was good news, following as it did an only marginally positive result for the previous three-month period.
Real Clear Markets | How Much Do Americans Care About Income Inequality?
Since the financial crisis, income inequality has been a topic of obsession in many journalistic and advocacy quarters. There is some irony in this, because the crash brought about the first reversal of inequality between "the 99 percent" and richer Americans in years, and there was much less concern about the subject during the period in which inequality was rising steadily.
Washington Times | Misplaced criticism of multinationals
Governments of all sizes and shapes have been chronically short of cash since the global financial meltdown five years ago. The result: From the United Kingdom to Zambia, lawmakers have been under constant pressure to reduce their budget shortfalls.
Real Clear Markets | Without Excusing Obamanomics, Bushonomics Was a Dismal Failure
Having studiously avoided the limelight since departing Washington a little over four years ago, former President George W. Bush's profile has recently grown with the opening of his presidential library at Southern Methodist University. Bush's re-emergence has predictably, and understandably, brought with it defenses of a presidency widely seen as a failure upon his leaving office in 2009.
Heritage Foundation | Tariff Reform Needed to Boost the U.S. Economy
Congress routinely engages in targeted, short-term tariff cuts through “miscellaneous tariff bills.” Although conventional wisdom says that unilateral tariff cuts are politically impossible, these bills show that it is possible to reduce tariffs given the right political environment.
Tuesday, April 30, 2013
Health Care
Econ Comments & Analysis
WSJ | The Coming ObamaCare Shock
In recent weeks, there have been increasing expressions of concern from surprising quarters about the implementation of ObamaCare. Montana Sen. Max Baucus, a Democrat, called it a "train wreck." A Democratic colleague, West Virginia's Sen. Jay Rockefeller, described the massive Affordable Care Act as "beyond comprehension."
Real Clear Markets | For An Obamacare Preview, Look To England
British newspapers are filled with the pros and cons of the National Health Service, which provides free or heavily subsidized care to all registered residents. The latest story is that British hospital emergency room visits are rising, from 18 million in 2005 to 22 million in 2012. That's an increase of 22 percent in 7 years, far above the population increase of 4 percent.
WSJ | The Coming ObamaCare Shock
In recent weeks, there have been increasing expressions of concern from surprising quarters about the implementation of ObamaCare. Montana Sen. Max Baucus, a Democrat, called it a "train wreck." A Democratic colleague, West Virginia's Sen. Jay Rockefeller, described the massive Affordable Care Act as "beyond comprehension."
Real Clear Markets | For An Obamacare Preview, Look To England
British newspapers are filled with the pros and cons of the National Health Service, which provides free or heavily subsidized care to all registered residents. The latest story is that British hospital emergency room visits are rising, from 18 million in 2005 to 22 million in 2012. That's an increase of 22 percent in 7 years, far above the population increase of 4 percent.
Monetary
News
Bloomberg | Euro-Area 1.2% Inflation Adds Pressure for ECB Rate Cut: Economy
Euro-area inflation at a three-year low and record unemployment increased pressure on the European Central Bank to cut interest rates later this week to spur lending and growth.
Bloomberg | Euro-Area 1.2% Inflation Adds Pressure for ECB Rate Cut: Economy
Euro-area inflation at a three-year low and record unemployment increased pressure on the European Central Bank to cut interest rates later this week to spur lending and growth.
Taxes
News
Fortune | Offshore account holders win a victory in government tax case
The Justice Department got a black eye last week in a case involving a 79-year old Florida widow with $43 million in offshore accounts.
Roll Call | Republicans Consider Tying Ambitious Tax Overhaul to Debt Limit Talks
House Republicans are discussing plans to bring an overhaul of the tax code into an upcoming fight with President Barack Obama over raising the debt ceiling, but they do not see a tax rewrite as a substitute for the big spending cuts they also hope to achieve.
Washington Post | Online sales tax forges odd political alliances
In what has become an unusual political dispute, legislation to allow state and local governments to collect sales tax on online transactions has rearranged some of the traditional battle lines in Washington. Called the Martketplace Fairness Act, the bill has found supporters and critics in both parties and split the oft-united retail community right down the middle.
Blogs
CATO | The American Roots of Tax Aversion
In last Sunday’s Washington Post, Jennifer Rubin wrote that Republicans must move beyond their adoration of Ronald Reagan and recognize
Heritage Foundation | Internet Sales Tax: Here Come the Auditors
Internet sales tax legislation could subject small online businesses to up to 46 state audits. And since sales taxes vary among thousands of tax jurisdictions across the country, the chances that auditors will find mistakes—and slap the business owners with penalties—are very good. If truth-in-advertising requirements applied to legislation, says Heritage Action’s Dan Holler, the Marketplace Fairness Act would be renamed the Tax Audits from Hell Act of 2013.
Fortune | Offshore account holders win a victory in government tax case
The Justice Department got a black eye last week in a case involving a 79-year old Florida widow with $43 million in offshore accounts.
Roll Call | Republicans Consider Tying Ambitious Tax Overhaul to Debt Limit Talks
House Republicans are discussing plans to bring an overhaul of the tax code into an upcoming fight with President Barack Obama over raising the debt ceiling, but they do not see a tax rewrite as a substitute for the big spending cuts they also hope to achieve.
Washington Post | Online sales tax forges odd political alliances
In what has become an unusual political dispute, legislation to allow state and local governments to collect sales tax on online transactions has rearranged some of the traditional battle lines in Washington. Called the Martketplace Fairness Act, the bill has found supporters and critics in both parties and split the oft-united retail community right down the middle.
Blogs
CATO | The American Roots of Tax Aversion
In last Sunday’s Washington Post, Jennifer Rubin wrote that Republicans must move beyond their adoration of Ronald Reagan and recognize
Heritage Foundation | Internet Sales Tax: Here Come the Auditors
Internet sales tax legislation could subject small online businesses to up to 46 state audits. And since sales taxes vary among thousands of tax jurisdictions across the country, the chances that auditors will find mistakes—and slap the business owners with penalties—are very good. If truth-in-advertising requirements applied to legislation, says Heritage Action’s Dan Holler, the Marketplace Fairness Act would be renamed the Tax Audits from Hell Act of 2013.
Employment
News
Bloomberg | Employment Costs in U.S. Climbed at Slower Pace in First Quarter
Employment expenses in the U.S. grew at a slower pace in the first quarter, signaling the job market will not contribute to inflation.
CNN Money | For the unemployed, no reprieve on budget cuts
Starting this week, many in California collecting federal unemployment benefits will get about 17.7% less than they got last week, thanks to Washington's across-the-board budget cuts.
Bloomberg | Euro-Area Unemployment Increases to Record 12.1% Amid Recession
The euro-area jobless rate rose to a record in March, increasing pressure on the European Central Bank to take additional measures to boost growth.
Econ Comments & Analysis
Politico | The immigration solution the nation needs
I always loved the last line of Emma Lazarus’s beautiful sonnet that adorns the Statue of Liberty: “I lift my lamp beside the golden door!”
NY Post | Labor pains continue despite soaring profits
This Friday, at precisely 8:30 a.m., everyone will be asking the same question: Why aren’t companies hiring more workers? That’s the same question America has been asking for the past six years. And the simple answer hasn’t changed: Because corporate executives don’t want to.
Mercatus | The Truth About Long-Term Unemployment
This has been a historically slow economic recovery, and one of the results has been the persistent and unprecedented number of long-term unemployed. As bad as the official data appears, it actually underestimates the problem.
Blogs
WSJ | Was the Journal Wrong About Labor Force Participation?
In the Outlook column in today’s Wall Street Journal, I argued that the historic decline in the workforce participation — that is, the share of the population that’s working or looking for work — is more about demographics than about discouraged job seekers abandoning their job searches.
Bloomberg | Employment Costs in U.S. Climbed at Slower Pace in First Quarter
Employment expenses in the U.S. grew at a slower pace in the first quarter, signaling the job market will not contribute to inflation.
CNN Money | For the unemployed, no reprieve on budget cuts
Starting this week, many in California collecting federal unemployment benefits will get about 17.7% less than they got last week, thanks to Washington's across-the-board budget cuts.
Bloomberg | Euro-Area Unemployment Increases to Record 12.1% Amid Recession
The euro-area jobless rate rose to a record in March, increasing pressure on the European Central Bank to take additional measures to boost growth.
Econ Comments & Analysis
Politico | The immigration solution the nation needs
I always loved the last line of Emma Lazarus’s beautiful sonnet that adorns the Statue of Liberty: “I lift my lamp beside the golden door!”
NY Post | Labor pains continue despite soaring profits
This Friday, at precisely 8:30 a.m., everyone will be asking the same question: Why aren’t companies hiring more workers? That’s the same question America has been asking for the past six years. And the simple answer hasn’t changed: Because corporate executives don’t want to.
Mercatus | The Truth About Long-Term Unemployment
This has been a historically slow economic recovery, and one of the results has been the persistent and unprecedented number of long-term unemployed. As bad as the official data appears, it actually underestimates the problem.
Blogs
WSJ | Was the Journal Wrong About Labor Force Participation?
In the Outlook column in today’s Wall Street Journal, I argued that the historic decline in the workforce participation — that is, the share of the population that’s working or looking for work — is more about demographics than about discouraged job seekers abandoning their job searches.
Budget
News
Bloomberg | U.S. Sees First Debt Reduction Since 2007 as Revenue Rises
The U.S. Treasury Department (USGG10YR) projected it will reduce government debt this quarter for the first time in six years as tax receipts exceed forecasts and spending diminishes.
Washington Post | In Europe, widening impatience over austerity hits politicians hard
With economic growth stuck near zero and unemployment rising, Europeans are increasingly impatient with the budget discipline imposed as part of the European Union’s showcase anti-crisis pact.
Econ Comments & Analysis
Washington Times | Privatize almost everything
As a mental challenge, try to think of all of the governmental activities — federal, state and local — that could be privatized. Now, go a step further. Suppose you were required to develop a plan to privatize, or make self-supporting through user fees, nearly every activity of government. Could you or a group of your friends do it? Try it. I expect your success will surprise you.
Bloomberg | U.S. Sees First Debt Reduction Since 2007 as Revenue Rises
The U.S. Treasury Department (USGG10YR) projected it will reduce government debt this quarter for the first time in six years as tax receipts exceed forecasts and spending diminishes.
Washington Post | In Europe, widening impatience over austerity hits politicians hard
With economic growth stuck near zero and unemployment rising, Europeans are increasingly impatient with the budget discipline imposed as part of the European Union’s showcase anti-crisis pact.
Econ Comments & Analysis
Washington Times | Privatize almost everything
As a mental challenge, try to think of all of the governmental activities — federal, state and local — that could be privatized. Now, go a step further. Suppose you were required to develop a plan to privatize, or make self-supporting through user fees, nearly every activity of government. Could you or a group of your friends do it? Try it. I expect your success will surprise you.
Monday, April 29, 2013
General Economics
News
CNN Money | Income, spending both up
Both personal income and spending by consumers grew modestly in March, according to the government's latest reading out Monday.
Bloomberg | Euro-Area Economic Confidence Falls More Than Forecast
Economic confidence in the euro area decreased more than economists forecast in April as the 17- nation currency bloc struggled to emerge from a recession and the bailout of Cyprus renewed debt-crisis concerns.
Washington Times | U.S. shows shale technology to the world; foreigners learn techniques, but have long way to go
Oil companies from China, Norway, Japan and other nations are investing billions of dollars in U.S. shale projects so they can learn how to extract oil and gas from bedrock and use those technologies to tap into the large and mostly undeveloped shale deposits outside the U.S.
Econ Comments & Analysis
Bloomberg | Refereeing the Reinhart-Rogoff Debate
The discovery of an error in an influential research paper by Harvard University economists Carmen Reinhart and Kenneth Rogoff has sparked an academic firestorm. It’s time to sort through the wreckage.
WSJ | Uncertainty Is the Enemy of Recovery
Anyone hoping for signs of a healthy economic recovery was disappointed by lower-than-expected GDP growth for the first quarter of 2013—a mere 2.5%, far short of the forecast 3.2%. Meanwhile, the stock market continues to soar, hitting record levels in recent weeks. It's a striking disconnect, and one that is discouraging and confusing for Americans as they seek to earn a living and save for the future.
Washington Post | The twilight of entitlement
We are passing through something more than a period of disappointing economic growth and increasing political polarization. What’s happening is more powerful: the collapse of “entitlement.” By this, I do not mean primarily cuts in specific government benefits, most prominently Social Security, but the demise of a broader mind-set — attitudes and beliefs — that, in one form or another, has gripped Americans since the 1960s.
Washington Times | Gloomy prospects
Barack Obama has been president for 51 months, and America is still waiting for that change he told us to hope for. The latest economic indicators continue to point in the wrong direction: Durable-goods orders are falling, growth in factory output is sluggish and optimism is dissolving.
FOX Business | Why Americans are Miserable and Broke
Want to know why the gap between the haves and the have-nots keeps growing? Because the haves live within their means. They don’t waste their hard-earned money on all the crap that Americans spend billions, maybe even trillions, on each year.
AEI | The upside of economic pessimism
The disappointing first-quarter GDP report dashed hopes that 2013 might prove a breakout year for the U.S. economy. Even worse, the same-old-same-old anemic results provide another disturbing data point for gloomy New Normal theorists.
Blogs
Economist | A stiffening headwind
An outbreak of disappointing American economic data is raising fears of a return of the "spring swoon". For a fourth year running, the American economy seemed to sprint out of the gates in January and February only to lose pace by April.
CNN Money | Income, spending both up
Both personal income and spending by consumers grew modestly in March, according to the government's latest reading out Monday.
Bloomberg | Euro-Area Economic Confidence Falls More Than Forecast
Economic confidence in the euro area decreased more than economists forecast in April as the 17- nation currency bloc struggled to emerge from a recession and the bailout of Cyprus renewed debt-crisis concerns.
Washington Times | U.S. shows shale technology to the world; foreigners learn techniques, but have long way to go
Oil companies from China, Norway, Japan and other nations are investing billions of dollars in U.S. shale projects so they can learn how to extract oil and gas from bedrock and use those technologies to tap into the large and mostly undeveloped shale deposits outside the U.S.
Econ Comments & Analysis
Bloomberg | Refereeing the Reinhart-Rogoff Debate
The discovery of an error in an influential research paper by Harvard University economists Carmen Reinhart and Kenneth Rogoff has sparked an academic firestorm. It’s time to sort through the wreckage.
WSJ | Uncertainty Is the Enemy of Recovery
Anyone hoping for signs of a healthy economic recovery was disappointed by lower-than-expected GDP growth for the first quarter of 2013—a mere 2.5%, far short of the forecast 3.2%. Meanwhile, the stock market continues to soar, hitting record levels in recent weeks. It's a striking disconnect, and one that is discouraging and confusing for Americans as they seek to earn a living and save for the future.
Washington Post | The twilight of entitlement
We are passing through something more than a period of disappointing economic growth and increasing political polarization. What’s happening is more powerful: the collapse of “entitlement.” By this, I do not mean primarily cuts in specific government benefits, most prominently Social Security, but the demise of a broader mind-set — attitudes and beliefs — that, in one form or another, has gripped Americans since the 1960s.
Washington Times | Gloomy prospects
Barack Obama has been president for 51 months, and America is still waiting for that change he told us to hope for. The latest economic indicators continue to point in the wrong direction: Durable-goods orders are falling, growth in factory output is sluggish and optimism is dissolving.
FOX Business | Why Americans are Miserable and Broke
Want to know why the gap between the haves and the have-nots keeps growing? Because the haves live within their means. They don’t waste their hard-earned money on all the crap that Americans spend billions, maybe even trillions, on each year.
AEI | The upside of economic pessimism
The disappointing first-quarter GDP report dashed hopes that 2013 might prove a breakout year for the U.S. economy. Even worse, the same-old-same-old anemic results provide another disturbing data point for gloomy New Normal theorists.
Blogs
Economist | A stiffening headwind
An outbreak of disappointing American economic data is raising fears of a return of the "spring swoon". For a fourth year running, the American economy seemed to sprint out of the gates in January and February only to lose pace by April.
Health Care
News
CNN Money | Health care spending growth is at a record low. Here's the catch.
After years of scary, rocket-like growth, America's health care spending has slowed to record lows. That much we know for certain.
CNN Money | Health care spending growth is at a record low. Here's the catch.
After years of scary, rocket-like growth, America's health care spending has slowed to record lows. That much we know for certain.
Monetary
News
CNN Money | If not now, when will ECB cut rates?
Stuck in recession, with inflation rates tumbling and unemployment rising, the eurozone looks set to get its first cut in interest rates in 10 months this week.
Bloomberg | Ebbing Inflation Means More Easy Money
Slowing inflation is giving central bankers scope to provide the world economy with more liquidity and lower interest rates for longer, all in the name of price stability.
Econ Comments & Analysis
Washington Times | Austerity, IMF-style
Along with the cherry blossoms, hordes of bureaucrats descended on Washington for the spring meeting of the World Bank and the International Monetary Fund (IMF).
Blogs
Economist | Can the Fed offset contractionary fiscal policy?
Mike Konczal writes that 2013 is shaping up to be a grand experiment, testing an important macroeconomic proposition: that expansionary monetary policy can offset fiscal cuts.
CNN Money | If not now, when will ECB cut rates?
Stuck in recession, with inflation rates tumbling and unemployment rising, the eurozone looks set to get its first cut in interest rates in 10 months this week.
Bloomberg | Ebbing Inflation Means More Easy Money
Slowing inflation is giving central bankers scope to provide the world economy with more liquidity and lower interest rates for longer, all in the name of price stability.
Econ Comments & Analysis
Washington Times | Austerity, IMF-style
Along with the cherry blossoms, hordes of bureaucrats descended on Washington for the spring meeting of the World Bank and the International Monetary Fund (IMF).
Blogs
Economist | Can the Fed offset contractionary fiscal policy?
Mike Konczal writes that 2013 is shaping up to be a grand experiment, testing an important macroeconomic proposition: that expansionary monetary policy can offset fiscal cuts.
Taxes
Econ Comments & Analysis
AEI | PPL: Exposing the flaws of the foreign tax credit
On February 20 the Supreme Court heard oral arguments in PPL v. Commissioner. The Court will decide in the next fewmonths whether a windfall tax imposed by the United Kingdom on privatized utilities in 1997 falls within the category of ‘‘income, war profits, and excess profits taxes'' that qualify for the foreign tax credit under section 901.
AEI | PPL: Exposing the flaws of the foreign tax credit
On February 20 the Supreme Court heard oral arguments in PPL v. Commissioner. The Court will decide in the next fewmonths whether a windfall tax imposed by the United Kingdom on privatized utilities in 1997 falls within the category of ‘‘income, war profits, and excess profits taxes'' that qualify for the foreign tax credit under section 901.
Employment
Blogs
Calculated Risk | Public and Private Sector Payroll Jobs: Bush and Obama
With public sector jobs down over the last several years (Federal, State and local layoffs), several readers have asked if I could update the graphs comparing public and private sector job losses (or added) for President George W. Bush's two terms (following the stock market bust), and for President Obama tenure in office so far (following the housing bust and financial crisis).
Calculated Risk | Public and Private Sector Payroll Jobs: Bush and Obama
With public sector jobs down over the last several years (Federal, State and local layoffs), several readers have asked if I could update the graphs comparing public and private sector job losses (or added) for President George W. Bush's two terms (following the stock market bust), and for President Obama tenure in office so far (following the housing bust and financial crisis).
Budget
News
Politico | Democrats ask: What debt crisis?
The two parties are miles apart on how to cut the deficit and national debt: Republicans want to slash spending even more. Democrats want to raise revenue.
National Journal | A Playbook for Undoing the Sequester
When Congress voted last week to give the FAA more flexibility with its cuts, it set off a race among other special interests to push for exemptions.
Bloomberg | Market’s $20 Trillion Yielding 1% Shows Austerity Mistaken
At a time when politicians are squeezing budgets to cut borrowing, the bond market is clamoring for more debt, pushing yields on almost $20 trillion of government securities to less than 1 percent.
Econ Comments & Analysis
CNN Money | When will the debt ceiling need to be raised?
If you enjoy the spectacle of lawmakers fruitlessly fighting over the budget, then you're in luck. Congress is expected to have even more time to chase its tail this summer before it must do something concrete -- raise the country's legal debt limit.
Blogs
Library of Economics | Budget Cuts Seem to Work
Washington Post blogger Mike Konzcal writes that we now have a test of monetary vs. fiscal policy. According to him, fiscal policy won. That is, fiscal policy is more potent and monetary policy is impotent. In fact the very data he cites show the opposite.
Politico | Democrats ask: What debt crisis?
The two parties are miles apart on how to cut the deficit and national debt: Republicans want to slash spending even more. Democrats want to raise revenue.
National Journal | A Playbook for Undoing the Sequester
When Congress voted last week to give the FAA more flexibility with its cuts, it set off a race among other special interests to push for exemptions.
Bloomberg | Market’s $20 Trillion Yielding 1% Shows Austerity Mistaken
At a time when politicians are squeezing budgets to cut borrowing, the bond market is clamoring for more debt, pushing yields on almost $20 trillion of government securities to less than 1 percent.
Econ Comments & Analysis
CNN Money | When will the debt ceiling need to be raised?
If you enjoy the spectacle of lawmakers fruitlessly fighting over the budget, then you're in luck. Congress is expected to have even more time to chase its tail this summer before it must do something concrete -- raise the country's legal debt limit.
Blogs
Library of Economics | Budget Cuts Seem to Work
Washington Post blogger Mike Konzcal writes that we now have a test of monetary vs. fiscal policy. According to him, fiscal policy won. That is, fiscal policy is more potent and monetary policy is impotent. In fact the very data he cites show the opposite.
Friday, April 26, 2013
General Economics
News
Bloomberg | Americans Spend Less on Finance as Doubt Lingers: EcoPulse
Americans are allocating a smaller share of their spending to investment-related fees since the recession, a sign they are still wary of returning to financial markets even as stocks trade near record highs.
Bloomberg | Growth in U.S. Trails Forecasts as Defense Spending Falls
The U.S. economy grew less than forecast in the first quarter as a drop in defense outlays undercut the biggest increase in consumer spending in two years.
Econ Comments & Analysis
National Journal | Two Completely Different Ways to Deal With the Upward-Mobility Crisis
Top economists from the Clinton and Bush administrations debate how to revive the economy to keep people from getting stuck.
Real Clear Markets | The Great Recession? Crisis? How About Relearning?
Despite a high level of drama in nearly every corner of the economic globe, we have yet to settle on a catchy description for this particular period in history. We have had the Great Financial Crisis, or the Great Recession, following closely behind, and directly related to, the Great Moderation (itself only a slight change from the Great Inflation). While the Great Financial Crisis continues to roll on, particularly in Europe, there are stains and elements still evident elsewhere. Looking at the bigger picture, however, all of these "Greats" could easily fall within the Great Relearning.
Washington Times | Defending U.S. intellectual property
There are few things U.S. workers value more than protecting the fruits of their labor and creativity. On Friday — World Intellectual Property Day — businesses across sectors and throughout the country celebrate American innovation, the millions of high-paying jobs it creates and the invaluable role it plays in rebuilding our economy.
National Journal | The American Dream, Downsized
The Grain Exchange Room in Milwaukee’s old Chamber of Commerce building is a dazzling display of Gilded Age opulence. Its ornate faux-marble columns soar three stories high, and an intricately carved balcony overlooks what is believed to have been the world’s first commodities-exchange trading pit.
Fortune | New home sales: Poised to double?
The trend in new home sales as a share of total is encouraging, rising steadily since year-end 2010. If new home sales return to their 1999-2005 average of 16% of total sales, this would imply ~800k new home sales, or roughly double the current 417,000 run rate.
AEI | 10 lessons from Cyprus
By destroying Cyprus's bank-centric business model and by imposing severe austerity on the country within a euro straitjacket, the International Monetary Fund-European Union bailout package for Cyprus is likely to lead to the literal collapse of the Cypriot economy over the next year and to Cyprus's exit from the euro.
Blogs
Neighborhood Effects | Freedom in the 50 States and Migration
In last month’s publication of Freedom in the 50 States, Will Ruger and Jason Sorens point to net domestic migration as an indicator that Americans demonstrate their preferences for more libertarian states by where they choose to live.
Bloomberg | Americans Spend Less on Finance as Doubt Lingers: EcoPulse
Americans are allocating a smaller share of their spending to investment-related fees since the recession, a sign they are still wary of returning to financial markets even as stocks trade near record highs.
Bloomberg | Growth in U.S. Trails Forecasts as Defense Spending Falls
The U.S. economy grew less than forecast in the first quarter as a drop in defense outlays undercut the biggest increase in consumer spending in two years.
Econ Comments & Analysis
National Journal | Two Completely Different Ways to Deal With the Upward-Mobility Crisis
Top economists from the Clinton and Bush administrations debate how to revive the economy to keep people from getting stuck.
Real Clear Markets | The Great Recession? Crisis? How About Relearning?
Despite a high level of drama in nearly every corner of the economic globe, we have yet to settle on a catchy description for this particular period in history. We have had the Great Financial Crisis, or the Great Recession, following closely behind, and directly related to, the Great Moderation (itself only a slight change from the Great Inflation). While the Great Financial Crisis continues to roll on, particularly in Europe, there are stains and elements still evident elsewhere. Looking at the bigger picture, however, all of these "Greats" could easily fall within the Great Relearning.
Washington Times | Defending U.S. intellectual property
There are few things U.S. workers value more than protecting the fruits of their labor and creativity. On Friday — World Intellectual Property Day — businesses across sectors and throughout the country celebrate American innovation, the millions of high-paying jobs it creates and the invaluable role it plays in rebuilding our economy.
National Journal | The American Dream, Downsized
The Grain Exchange Room in Milwaukee’s old Chamber of Commerce building is a dazzling display of Gilded Age opulence. Its ornate faux-marble columns soar three stories high, and an intricately carved balcony overlooks what is believed to have been the world’s first commodities-exchange trading pit.
Fortune | New home sales: Poised to double?
The trend in new home sales as a share of total is encouraging, rising steadily since year-end 2010. If new home sales return to their 1999-2005 average of 16% of total sales, this would imply ~800k new home sales, or roughly double the current 417,000 run rate.
AEI | 10 lessons from Cyprus
By destroying Cyprus's bank-centric business model and by imposing severe austerity on the country within a euro straitjacket, the International Monetary Fund-European Union bailout package for Cyprus is likely to lead to the literal collapse of the Cypriot economy over the next year and to Cyprus's exit from the euro.
Blogs
Neighborhood Effects | Freedom in the 50 States and Migration
In last month’s publication of Freedom in the 50 States, Will Ruger and Jason Sorens point to net domestic migration as an indicator that Americans demonstrate their preferences for more libertarian states by where they choose to live.
Health Care
News
Roll Call | Health Insurance Anxiety on Capitol Hill
Lawmakers and congressional staff members are concerned about whether the federal government will continue to pay part of their premiums as they move to buying insurance through the exchanges next year.
CNN Money | Millions can't afford to go to the doctor
Some 80 million people, around 43% of America's working-age adults, didn't go to the doctor or access other medical services last year because of the cost, according to the Commonwealth Fund's Biennial Health Insurance Survey, released Friday. That's up from 75 million people two years ago and 63 million in 2003.
Econ Comments & Analysis
Washington Times | Retreat on Obamacare
One of the Republican promises in the 1994 congressional campaign, included in the “Contract With America,” was to force Congress to live under the laws it imposes on everyone else. The Congressional Accountability Act followed, eliminating a number of major exemptions in the hope that lawmakers would be less likely to enact burdensome laws if they were personally affronted by them.
Roll Call | Health Insurance Anxiety on Capitol Hill
Lawmakers and congressional staff members are concerned about whether the federal government will continue to pay part of their premiums as they move to buying insurance through the exchanges next year.
CNN Money | Millions can't afford to go to the doctor
Some 80 million people, around 43% of America's working-age adults, didn't go to the doctor or access other medical services last year because of the cost, according to the Commonwealth Fund's Biennial Health Insurance Survey, released Friday. That's up from 75 million people two years ago and 63 million in 2003.
Econ Comments & Analysis
Washington Times | Retreat on Obamacare
One of the Republican promises in the 1994 congressional campaign, included in the “Contract With America,” was to force Congress to live under the laws it imposes on everyone else. The Congressional Accountability Act followed, eliminating a number of major exemptions in the hope that lawmakers would be less likely to enact burdensome laws if they were personally affronted by them.
Monetary
News
Bloomberg | Bank of Japan Sees Inflation Nearing Target in 2015: Economy
The Bank of Japan maintained its unprecedented plan to boost money supply at a policy meeting today, and predicted inflation will almost match its target in two years even after a report highlighted deflation’s grip.
CNBC | More Money Printing? Here's How It Could Happen
While talk around Federal Reserve policy has focused on tapering off its easing measures, a weakening economy likely will keep the central bank in the game and could even lead to more aggressive measures.
Blogs
Library of Economics | In the Land of Interest on Reserves the Interest Rate is an Instrument
Since 2008 U.S. banks have been able to earn interest on their reserves: This pins down a minimum interest rate that banks can earn: They never lend for less than that amount. For decades longer, U.S. banks have been able to borrow funds from the Federal Reserve's discount window: This pins down a maximum interest rate at which banks will borrow (plus or minus some details).
Bloomberg | Bank of Japan Sees Inflation Nearing Target in 2015: Economy
The Bank of Japan maintained its unprecedented plan to boost money supply at a policy meeting today, and predicted inflation will almost match its target in two years even after a report highlighted deflation’s grip.
CNBC | More Money Printing? Here's How It Could Happen
While talk around Federal Reserve policy has focused on tapering off its easing measures, a weakening economy likely will keep the central bank in the game and could even lead to more aggressive measures.
Blogs
Library of Economics | In the Land of Interest on Reserves the Interest Rate is an Instrument
Since 2008 U.S. banks have been able to earn interest on their reserves: This pins down a minimum interest rate that banks can earn: They never lend for less than that amount. For decades longer, U.S. banks have been able to borrow funds from the Federal Reserve's discount window: This pins down a maximum interest rate at which banks will borrow (plus or minus some details).
Taxes
News
Bloomberg | Online Sales-Tax Measure Advances in U.S. Senate
The U.S. Senate delayed until May 6 a final vote on a bill that would let states collect taxes on Internet and catalog sales.
Econ Comments & Analysis
Daily Beast | The Real Problem With the Internet Sales Tax
This will be your second post today on the problem of collecting sales taxes on Internet transactions, because after I wrote the first post, it became clear to me that most people who are writing about it do not understand why this is onerous for small business. I mean, sure, hey, there's all these different rates, but that's what software is for!
Forbes | America's Economy Cannot Afford Its Nosebleed Corporate Income Tax
For years, economists have been debating the question, “Who pays the corporate income tax?” Their assumption is that, if the federal government collects a dollar of corporate income tax, then that dollar is “paid” via some combination of lower returns to capital and reduced wages for workers, adding up to a dollar.
Bloomberg | Online Sales-Tax Measure Advances in U.S. Senate
The U.S. Senate delayed until May 6 a final vote on a bill that would let states collect taxes on Internet and catalog sales.
Econ Comments & Analysis
Daily Beast | The Real Problem With the Internet Sales Tax
This will be your second post today on the problem of collecting sales taxes on Internet transactions, because after I wrote the first post, it became clear to me that most people who are writing about it do not understand why this is onerous for small business. I mean, sure, hey, there's all these different rates, but that's what software is for!
Forbes | America's Economy Cannot Afford Its Nosebleed Corporate Income Tax
For years, economists have been debating the question, “Who pays the corporate income tax?” Their assumption is that, if the federal government collects a dollar of corporate income tax, then that dollar is “paid” via some combination of lower returns to capital and reduced wages for workers, adding up to a dollar.
Employment
Econ Comments & Analysis
Washington Times | Rebounding job market showing steady improvement
The number of Americans filing for unemployment benefits fell by 16,000 workers to the second lowest level in more than five years during the week that ended April 20, according to the U.S. Department of Labor.
Blogs
WSJ | Vital Signs Chart: Low Level of Jobless Claims
Jobless claims are at their second-lowest level in five years. The number of Americans filing new claims for unemployment benefits fell 16,000 last week to a seasonally adjusted 339,000.
Washington Times | Rebounding job market showing steady improvement
The number of Americans filing for unemployment benefits fell by 16,000 workers to the second lowest level in more than five years during the week that ended April 20, according to the U.S. Department of Labor.
Blogs
WSJ | Vital Signs Chart: Low Level of Jobless Claims
Jobless claims are at their second-lowest level in five years. The number of Americans filing new claims for unemployment benefits fell 16,000 last week to a seasonally adjusted 339,000.
Budget
News
Bloomberg | Spain Says Deficit Target Must Wait 2 More Years Amid Slump
Spanish Prime Minister Mariano Rajoy sought a two-year extension to meet European Union deficit rules, as he lowered his growth forecast and predicted little relief from a record 27 percent unemployment rate.
Econ Comments & Analysis
NY Times | Debt, Growth and the Austerity Debate
In May 2010, we published an academic paper, “Growth in a Time of Debt.” Its main finding, drawing on data from 44 countries over 200 years, was that in both rich and developing countries, high levels of government debt — specifically, gross public debt equaling 90 percent or more of the nation’s annual economic output — was associated with notably lower rates of growth.
Bloomberg | Spain Says Deficit Target Must Wait 2 More Years Amid Slump
Spanish Prime Minister Mariano Rajoy sought a two-year extension to meet European Union deficit rules, as he lowered his growth forecast and predicted little relief from a record 27 percent unemployment rate.
Econ Comments & Analysis
NY Times | Debt, Growth and the Austerity Debate
In May 2010, we published an academic paper, “Growth in a Time of Debt.” Its main finding, drawing on data from 44 countries over 200 years, was that in both rich and developing countries, high levels of government debt — specifically, gross public debt equaling 90 percent or more of the nation’s annual economic output — was associated with notably lower rates of growth.
Thursday, April 25, 2013
General Economics
News
CNN Money | Automakers are getting crushed in Europe
Europe's deteriorating economy is wreaking havoc on global automakers, as car sales across the continent have sunk to their lowest level since the mid-1990s.
Econ Comments & Analysis
NY Times | Canada’s Oil Minister, Unmuzzled
The last time your friendly scribe sought an interview with Joe Oliver, Canada’s minister of natural resources, he was turned down flat. It was February last year.
Bloomberg | Obama Wants to Make Sure You Don’t Retire Rich
A bullet point on Page 18 of President Barack Obama’s 2014 budget sounds ominous: “Prohibit Individuals from Accumulating Over $3 Million in Tax-Preferred Retirement Accounts.” That it appears in a section titled “Strengthening the Middle Class” is odd since such a proposal would seem to undermine the goal.
Politico | Conservatives’ grand opportunity on energy
It’s rough when your campaign photo has you pictured in outdated eyeglasses, but you’ve already printed hundreds of signs. What do you do? You can’t throw away the signs. And you can’t update your glasses. So you just keep wearing those outdated frames for the current cycle — and your children cringe.
National Journal | Being In the Middle Class Means Worrying About Falling Behind
Americans still believe they can reach for the stars, but they are increasingly fearful they are standing on a trapdoor as they try.
NBER | How Elastic Are Preferences for Redistribution? Evidence from Randomized Survey Experiments
This paper analyzes the effects of information about inequality and taxes on preferences for redistribution using randomized online surveys on Amazon Mechanical Turk (mTurk).
Blogs
WSJ | Why Housing Won’t Save the U.S. Economy
New home sales during the first quarter stood at their highest level for any first quarter since 2008, boosting hopes that housing could help power the economy through a painfully slow recovery.
Heritage Foundation | Time to Rethink Federal Highway Trust Fund Spending
The Highway Trust Fund (HTF), which funds most surface interstate transportation programs, from roads to bridges, faces insolvency in a few short years. In a House Budget Hearing today, one witness—Robert Poole of the Reason Foundation—offered lawmakers a near-term solution akin to what The Heritage Foundation has proposed: Recommit HTF revenue to funding highway and bridge programs only.
CNN Money | Automakers are getting crushed in Europe
Europe's deteriorating economy is wreaking havoc on global automakers, as car sales across the continent have sunk to their lowest level since the mid-1990s.
Econ Comments & Analysis
NY Times | Canada’s Oil Minister, Unmuzzled
The last time your friendly scribe sought an interview with Joe Oliver, Canada’s minister of natural resources, he was turned down flat. It was February last year.
Bloomberg | Obama Wants to Make Sure You Don’t Retire Rich
A bullet point on Page 18 of President Barack Obama’s 2014 budget sounds ominous: “Prohibit Individuals from Accumulating Over $3 Million in Tax-Preferred Retirement Accounts.” That it appears in a section titled “Strengthening the Middle Class” is odd since such a proposal would seem to undermine the goal.
Politico | Conservatives’ grand opportunity on energy
It’s rough when your campaign photo has you pictured in outdated eyeglasses, but you’ve already printed hundreds of signs. What do you do? You can’t throw away the signs. And you can’t update your glasses. So you just keep wearing those outdated frames for the current cycle — and your children cringe.
National Journal | Being In the Middle Class Means Worrying About Falling Behind
Americans still believe they can reach for the stars, but they are increasingly fearful they are standing on a trapdoor as they try.
NBER | How Elastic Are Preferences for Redistribution? Evidence from Randomized Survey Experiments
This paper analyzes the effects of information about inequality and taxes on preferences for redistribution using randomized online surveys on Amazon Mechanical Turk (mTurk).
Blogs
WSJ | Why Housing Won’t Save the U.S. Economy
New home sales during the first quarter stood at their highest level for any first quarter since 2008, boosting hopes that housing could help power the economy through a painfully slow recovery.
Heritage Foundation | Time to Rethink Federal Highway Trust Fund Spending
The Highway Trust Fund (HTF), which funds most surface interstate transportation programs, from roads to bridges, faces insolvency in a few short years. In a House Budget Hearing today, one witness—Robert Poole of the Reason Foundation—offered lawmakers a near-term solution akin to what The Heritage Foundation has proposed: Recommit HTF revenue to funding highway and bridge programs only.
Health Care
News
Politico | Lawmakers, aides may get Obamacare exemption
Congressional leaders in both parties are engaged in high-level, confidential talks about exempting lawmakers and Capitol Hill aides from the insurance exchanges they are mandated to join as part of President Barack Obama’s health care overhaul, sources in both parties said.
Econ Comments & Analysis
Washington Times | Obamacare off the rails
Sen. Max Baucus, who as chairman of the Finance Committee guided Obamacare down the tracks in the U.S. Senate, is changing his tune now that he’s about to retreat into Montana to hide in placid retirement. He sees “a huge train wreck coming down” with the implementation of President Obama’s health care takeover. Now he tells us.
CNN Money | Doctor: 'I gave up on health care in America'
In late 2010, Dr. Grady Snyder saw the writing on the wall. He was burned out, his revenue was shrinking and it was getting too expensive to run his rural practice in Pueblo, Colo.
Blogs
Heritage Foundtaion | 10 Myths About the Obamacare Medicaid Expansion
As Obamacare’s Medicaid expansion is being debated in the states, many myths are being perpetuated by its advocates. Here, Heritage provides the research to debunk such myths
Politico | Lawmakers, aides may get Obamacare exemption
Congressional leaders in both parties are engaged in high-level, confidential talks about exempting lawmakers and Capitol Hill aides from the insurance exchanges they are mandated to join as part of President Barack Obama’s health care overhaul, sources in both parties said.
Econ Comments & Analysis
Washington Times | Obamacare off the rails
Sen. Max Baucus, who as chairman of the Finance Committee guided Obamacare down the tracks in the U.S. Senate, is changing his tune now that he’s about to retreat into Montana to hide in placid retirement. He sees “a huge train wreck coming down” with the implementation of President Obama’s health care takeover. Now he tells us.
CNN Money | Doctor: 'I gave up on health care in America'
In late 2010, Dr. Grady Snyder saw the writing on the wall. He was burned out, his revenue was shrinking and it was getting too expensive to run his rural practice in Pueblo, Colo.
Blogs
Heritage Foundtaion | 10 Myths About the Obamacare Medicaid Expansion
As Obamacare’s Medicaid expansion is being debated in the states, many myths are being perpetuated by its advocates. Here, Heritage provides the research to debunk such myths
Monetary
News
CNBC | Possible Fed Successor Has Admirers and Foes
In July 1996, the Federal Reserve broke the metronomic routine of its closed-door policy-making meetings to hold an unusual debate. The Fed's powerful chairman, Alan Greenspan, saw a chance for the first time in decades to drive annual inflation all the way down to zero, achieving the price stability he had long regarded as the central bank's primary mission.
Bloomberg | Central Banks Load Up on Equities
Central banks, guardians of the world’s $11 trillion in foreign-exchange reserves, are buying stocks in record amounts as falling bond yields push even risk- averse investors toward equities.
Econ Comments & Analysis
WSJ | Suddenly, Banks Are Victims
Standard & Poor's on Tuesday asked a federal judge to dismiss a $5 billion fraud lawsuit filed by the Justice Department. The judge ought to grant S&P's motion for many reasons, not least because otherwise no one will be able to sort Washington's list of victims and villains.
CNBC | Possible Fed Successor Has Admirers and Foes
In July 1996, the Federal Reserve broke the metronomic routine of its closed-door policy-making meetings to hold an unusual debate. The Fed's powerful chairman, Alan Greenspan, saw a chance for the first time in decades to drive annual inflation all the way down to zero, achieving the price stability he had long regarded as the central bank's primary mission.
Bloomberg | Central Banks Load Up on Equities
Central banks, guardians of the world’s $11 trillion in foreign-exchange reserves, are buying stocks in record amounts as falling bond yields push even risk- averse investors toward equities.
Econ Comments & Analysis
WSJ | Suddenly, Banks Are Victims
Standard & Poor's on Tuesday asked a federal judge to dismiss a $5 billion fraud lawsuit filed by the Justice Department. The judge ought to grant S&P's motion for many reasons, not least because otherwise no one will be able to sort Washington's list of victims and villains.
Taxes
Econ Comments & Analysis
Barrons | A Revolting Development
In the 1920s, Will Rogers found one point in favor of the government's finances: "It's a good thing we don't get all the government we pay for," he told audiences whose wealthiest members paid only a few cents on the dollar. In the modern day, of course, Americans of all walks of life pay a lot more and get a lot more government than they pay for.
Blogs
Heritage Foundation | Internet Sales Tax: Your Online Shopping Could Cost More
Think buying your favorite products online is a good deal? You could face higher costs for online shopping if Congress approves a new sales tax bill that is making its way through the Senate. The bill, dubbed the Marketplace Fairness Act, would allow states to force out-of-state retailers to collect taxes for them.
Barrons | A Revolting Development
In the 1920s, Will Rogers found one point in favor of the government's finances: "It's a good thing we don't get all the government we pay for," he told audiences whose wealthiest members paid only a few cents on the dollar. In the modern day, of course, Americans of all walks of life pay a lot more and get a lot more government than they pay for.
Blogs
Heritage Foundation | Internet Sales Tax: Your Online Shopping Could Cost More
Think buying your favorite products online is a good deal? You could face higher costs for online shopping if Congress approves a new sales tax bill that is making its way through the Senate. The bill, dubbed the Marketplace Fairness Act, would allow states to force out-of-state retailers to collect taxes for them.
Employment
News
CNN Money | Jobless claims fall, point to improving job market
Amid a slew of gloomy economic news, here's a bright spot: Claims for unemployment benefits fell more than expected last week, pointing to slight improvement in the job market.
CNN Money | Unemployment misery deepens in Spain and Greece
The eurozone debt crisis extracted a heavy price in Spain and Greece to start the year as labor markets in both countries continued to shed jobs.
Washington Post | States with the biggest changes in jobless aid applications, and some reasons, at a glance
Weekly U.S. unemployment benefit applications fell 16,000 to a seasonally adjusted 339,000, the second-lowest level in more than five years. The decline suggests companies are laying off fewer workers and may step up hiring.
Blogs
Library of Economics | The Federal Pay Scale: Inflated Yet Compressed
Back in 2010, USA Today and other popular media loudly declared that federal employees were grossly overpaid. Famed economist Peter Orszag swiftly denied this allegation on behalf of the Obama administration.
WSJ | High-Skilled Guest Workers Lower U.S. Wages, Study Finds
As Congress debates whether to grant more visas to high-skilled workers, a new study says contends that the influx leads to lower American wages.
CNN Money | Jobless claims fall, point to improving job market
Amid a slew of gloomy economic news, here's a bright spot: Claims for unemployment benefits fell more than expected last week, pointing to slight improvement in the job market.
CNN Money | Unemployment misery deepens in Spain and Greece
The eurozone debt crisis extracted a heavy price in Spain and Greece to start the year as labor markets in both countries continued to shed jobs.
Washington Post | States with the biggest changes in jobless aid applications, and some reasons, at a glance
Weekly U.S. unemployment benefit applications fell 16,000 to a seasonally adjusted 339,000, the second-lowest level in more than five years. The decline suggests companies are laying off fewer workers and may step up hiring.
Blogs
Library of Economics | The Federal Pay Scale: Inflated Yet Compressed
Back in 2010, USA Today and other popular media loudly declared that federal employees were grossly overpaid. Famed economist Peter Orszag swiftly denied this allegation on behalf of the Obama administration.
WSJ | High-Skilled Guest Workers Lower U.S. Wages, Study Finds
As Congress debates whether to grant more visas to high-skilled workers, a new study says contends that the influx leads to lower American wages.
Budget
Econ Comments & Analysis
Washington Post | The Reinhart/Rogoff brawl
An insistent question of our time is, how much government debt is too much. Is there some debt level that becomes crushing as opposed to merely costly? The controversy over research by economists Carmen Reinhart and Kenneth Rogoff shows how explosive the issue is.
Daily Caller | New Simpson-Bowles plan a needed wake-up call
Last week, Erskine Bowles and Alan Simpson, co-chairs of the Moment of Truth Project, released a new budget plan, titled “A Bipartisan Path Forward to Securing America’s Future.”
Heritage Foundation | The Unknown Cost of Federal Student Loans
As Congress again considers preventing the interest rate on federal student loans from doubling, the cost to taxpayers should be a central issue. However, the federal government’s accounting practices systematically understate the cost of student loans by failing to account for market risk.
Blogs
Market Watch | Republicans’ debt-limit bill advances in House
A Republican bill to pay Treasury bondholders if the U.S. hits its debt ceiling advanced in the House on Wednesday, clearing the Ways and Means Committee.
Washington Post | The Reinhart/Rogoff brawl
An insistent question of our time is, how much government debt is too much. Is there some debt level that becomes crushing as opposed to merely costly? The controversy over research by economists Carmen Reinhart and Kenneth Rogoff shows how explosive the issue is.
Daily Caller | New Simpson-Bowles plan a needed wake-up call
Last week, Erskine Bowles and Alan Simpson, co-chairs of the Moment of Truth Project, released a new budget plan, titled “A Bipartisan Path Forward to Securing America’s Future.”
Heritage Foundation | The Unknown Cost of Federal Student Loans
As Congress again considers preventing the interest rate on federal student loans from doubling, the cost to taxpayers should be a central issue. However, the federal government’s accounting practices systematically understate the cost of student loans by failing to account for market risk.
Blogs
Market Watch | Republicans’ debt-limit bill advances in House
A Republican bill to pay Treasury bondholders if the U.S. hits its debt ceiling advanced in the House on Wednesday, clearing the Ways and Means Committee.
Wednesday, April 24, 2013
General Economics
News
CNN Money | The global economy is losing steam
Recent data shows slowing growth in the United States and China, while Europe's recession is still underway. Japan has announced a massive stimulus program, but it's not likely to grow much this year either.
Bloomberg | Manufacturing in U.S. Cools as Durables Orders Slump
Demand for durable goods slumped in March by the most in seven months, adding to signs manufacturing in the U.S. cooled at the end of the first quarter.
Market Watch | German business confidence slips in April: reports
Business confidence in Germany fell more than expected in April, with the Ifo business-climate index falling to 104.4 points from 106.7 in March, data showed on Wednesday according to media reports.
Econ Comments & Analysis
Bloomberg | Housing Rebound in U.S. Hampered by Success as Costs Soar
Even as U.S. housing rebounds from its worst downturn since the 1930s, production bottlenecks are pushing up building-materials costs, land prices are rising and skilled labor ready to begin work is hard to find.
Washington Times | Tinkering, but no reform
According to the latest Rasmussen poll released on Sunday, only 33 percent of respondents favor President Obama’s plans for Social Security contained in his recent budget proposal.
WSJ | Must All Patents Last for 20 Years?
Patent controversies continue to roil the business world. In March, a federal judge slashed by nearly half the $1.05 billion in damages awarded Apple last year in its patent-infringement suit against Samsung.
AEI | FHA Watch, April 2013 (Vol. 2, No. 4)
Much misinformation exists regarding the rigor of the Federal Housing Administration’s (FHA’s) capital adequacy standards compared to the private sector.
Blogs
WSJ | Only Richest 7% Saw Wealth Gains From 2009 to 2011
Wealthy Americans took a hit when the global financial crisis sent the economy into a nosedive, yet new research shows they alone — specifically, the richest 7% — benefited as households rebuilt their wealth in the first two years of the recovery.
CNN Money | The global economy is losing steam
Recent data shows slowing growth in the United States and China, while Europe's recession is still underway. Japan has announced a massive stimulus program, but it's not likely to grow much this year either.
Bloomberg | Manufacturing in U.S. Cools as Durables Orders Slump
Demand for durable goods slumped in March by the most in seven months, adding to signs manufacturing in the U.S. cooled at the end of the first quarter.
Market Watch | German business confidence slips in April: reports
Business confidence in Germany fell more than expected in April, with the Ifo business-climate index falling to 104.4 points from 106.7 in March, data showed on Wednesday according to media reports.
Econ Comments & Analysis
Bloomberg | Housing Rebound in U.S. Hampered by Success as Costs Soar
Even as U.S. housing rebounds from its worst downturn since the 1930s, production bottlenecks are pushing up building-materials costs, land prices are rising and skilled labor ready to begin work is hard to find.
Washington Times | Tinkering, but no reform
According to the latest Rasmussen poll released on Sunday, only 33 percent of respondents favor President Obama’s plans for Social Security contained in his recent budget proposal.
WSJ | Must All Patents Last for 20 Years?
Patent controversies continue to roil the business world. In March, a federal judge slashed by nearly half the $1.05 billion in damages awarded Apple last year in its patent-infringement suit against Samsung.
AEI | FHA Watch, April 2013 (Vol. 2, No. 4)
Much misinformation exists regarding the rigor of the Federal Housing Administration’s (FHA’s) capital adequacy standards compared to the private sector.
Blogs
WSJ | Only Richest 7% Saw Wealth Gains From 2009 to 2011
Wealthy Americans took a hit when the global financial crisis sent the economy into a nosedive, yet new research shows they alone — specifically, the richest 7% — benefited as households rebuilt their wealth in the first two years of the recovery.
Health Care
News
Politico | Right turns on GOP Obamacare bill
Republican-backed legislation meant to alter a piece of Obamacare has picked up some unlikely opponents: conservatives. The Club for Growth, ForAmerica and the Heritage Foundation have come out against the bill, which the House is expected to take up later this week.
CNBC | Governments May Push Workers to Health Exchange
In a move that would capitalize on provisions under President Barack Obama's health care law but could cost the federal government millions of dollars, Washington state lawmakers have found a creative way to pass a large chunk of their health-care expenses along to Washington, D.C.—and analysts say others are likely to follow suit.
Econ Comments & Analysis
Washington Times | Bending the Pentagon’s medical costs curve
The cost of military health care has almost tripled since 2001, from $19 billion to $53 billion in 2012, and now represents one-tenth of the entire defense budget. The Congressional Budget Office estimates that health care costs for military personnel will increase to $65 billion by 2017 and $95 billion by 2030.
Politico | Right turns on GOP Obamacare bill
Republican-backed legislation meant to alter a piece of Obamacare has picked up some unlikely opponents: conservatives. The Club for Growth, ForAmerica and the Heritage Foundation have come out against the bill, which the House is expected to take up later this week.
CNBC | Governments May Push Workers to Health Exchange
In a move that would capitalize on provisions under President Barack Obama's health care law but could cost the federal government millions of dollars, Washington state lawmakers have found a creative way to pass a large chunk of their health-care expenses along to Washington, D.C.—and analysts say others are likely to follow suit.
Econ Comments & Analysis
Washington Times | Bending the Pentagon’s medical costs curve
The cost of military health care has almost tripled since 2001, from $19 billion to $53 billion in 2012, and now represents one-tenth of the entire defense budget. The Congressional Budget Office estimates that health care costs for military personnel will increase to $65 billion by 2017 and $95 billion by 2030.
Monetary
News
CNBC | Fed Still Owes Congress a Blueprint on Its Emergency Lending
After the Federal Reserve lent more than $1 trillion to big banks during the 2008 financial crisis, Congress required the central bank to devise specific ways of protecting taxpayers when doling out emergency loans to financial institutions.
Bloomberg | ECB Rate Cut Seen Next Week by Banks From Nomura to RBS
The European Central Bank will cut its key interest rate to a record low next week as the euro- region economy slumps, according to banks including Nomura International Plc, UBS AG (UBSN) and Royal Bank of Scotland Group Plc.
Econ Comments & Analysis
NBER | Are Sticky Prices Costly? Evidence From The Stock Market
We document that, after monetary policy announcements, the conditional volatility rises more for firms with stickier prices than for firms with more flexible prices.
Forbes | Now We Know Where the Inflation Went
A question has haunted the aftermath of the Great Recession: where is all the inflation? If the Federal Reserve is going to spike the money supply most massively in the context of minimal economic growth, as it has since 2008, it would seem that a severe price inflation must ensue. Yet the consumer price index has grown at merely 1.5% for the past five years.
WSJ | 'Target' Funds Vulnerable to Rate Rise
Millions of workers saving for retirement risk losing part of their nest eggs if interest rates jump. The cause for concern: target-date mutual funds, designed for investors who lack the time or expertise to balance their investment portfolios.
Blogs
Economist | How does inflation matter?
The IMF's recently published a thought-provoking analysis on changes in the apparent relationship between inflation and unemployment
CNBC | Fed Still Owes Congress a Blueprint on Its Emergency Lending
After the Federal Reserve lent more than $1 trillion to big banks during the 2008 financial crisis, Congress required the central bank to devise specific ways of protecting taxpayers when doling out emergency loans to financial institutions.
Bloomberg | ECB Rate Cut Seen Next Week by Banks From Nomura to RBS
The European Central Bank will cut its key interest rate to a record low next week as the euro- region economy slumps, according to banks including Nomura International Plc, UBS AG (UBSN) and Royal Bank of Scotland Group Plc.
Econ Comments & Analysis
NBER | Are Sticky Prices Costly? Evidence From The Stock Market
We document that, after monetary policy announcements, the conditional volatility rises more for firms with stickier prices than for firms with more flexible prices.
Forbes | Now We Know Where the Inflation Went
A question has haunted the aftermath of the Great Recession: where is all the inflation? If the Federal Reserve is going to spike the money supply most massively in the context of minimal economic growth, as it has since 2008, it would seem that a severe price inflation must ensue. Yet the consumer price index has grown at merely 1.5% for the past five years.
WSJ | 'Target' Funds Vulnerable to Rate Rise
Millions of workers saving for retirement risk losing part of their nest eggs if interest rates jump. The cause for concern: target-date mutual funds, designed for investors who lack the time or expertise to balance their investment portfolios.
Blogs
Economist | How does inflation matter?
The IMF's recently published a thought-provoking analysis on changes in the apparent relationship between inflation and unemployment
Taxes
News
CNN Money | How Obama's tax hikes would hit the rich and middle class
President Obama's 2014 budget includes tax proposals that would raise more than $800 billion over a decade. Those taking the biggest hit by far would be the very highest income households, but others down the income scale would have to pony up a little too.
Politico | Dave Camp to brief House Republicans on tax reform
House Republican leaders will launch an aggressive behind-the-scenes push this week to set up the first rewrite of the Tax Code in more than 25 years.
Econ Comments & Analysis
Fortune | Why Baucus's retirement won't make tax reform any easier
As Democratic Senator Max Baucus plans to step down, his party's leaders want to push him to meet them in the middle on corporate tax reform.
Blogs
Heritage Foundation | 9,646 Reasons to Dislike the Internet Sales Tax
The U.S. Senate is debating the so-called Marketplace Fairness Act. It’s a bill that would result in the taxation of Internet sales, driving up costs for consumers. The legislation cleared a procedural hurdle Monday and could have a floor vote by Thursday.
CNN Money | How Obama's tax hikes would hit the rich and middle class
President Obama's 2014 budget includes tax proposals that would raise more than $800 billion over a decade. Those taking the biggest hit by far would be the very highest income households, but others down the income scale would have to pony up a little too.
Politico | Dave Camp to brief House Republicans on tax reform
House Republican leaders will launch an aggressive behind-the-scenes push this week to set up the first rewrite of the Tax Code in more than 25 years.
Econ Comments & Analysis
Fortune | Why Baucus's retirement won't make tax reform any easier
As Democratic Senator Max Baucus plans to step down, his party's leaders want to push him to meet them in the middle on corporate tax reform.
Blogs
Heritage Foundation | 9,646 Reasons to Dislike the Internet Sales Tax
The U.S. Senate is debating the so-called Marketplace Fairness Act. It’s a bill that would result in the taxation of Internet sales, driving up costs for consumers. The legislation cleared a procedural hurdle Monday and could have a floor vote by Thursday.
Employment
Econ Comments & Analysis
WSJ | Immigration Reform Is Starting to Roll
It is rare in Washington for the trend lines on a controversial issue to come together as favorably as they have for immigration reform.
Blogs
Library of Economics | The Grave Evil of Unemployment
Free-market economists rarely declare, "We have to do X about unemployment." Why not? Free-market economists' standard reply is just, "We expect X to fail." Their critics, however, have a less favorable explanation: Free-market economists oppose X because free-market economists are cavalier and callous. They cavalierly deny the reality of involuntary unemployment, and callously belittle the suffering of the unemployed.
WSJ | Immigration Reform Is Starting to Roll
It is rare in Washington for the trend lines on a controversial issue to come together as favorably as they have for immigration reform.
Blogs
Library of Economics | The Grave Evil of Unemployment
Free-market economists rarely declare, "We have to do X about unemployment." Why not? Free-market economists' standard reply is just, "We expect X to fail." Their critics, however, have a less favorable explanation: Free-market economists oppose X because free-market economists are cavalier and callous. They cavalierly deny the reality of involuntary unemployment, and callously belittle the suffering of the unemployed.
Budget
News
Politico | Democrats call for regular budget order
Democrats have begun beating the drum that Republicans aren’t playing by the rules when it comes to negotiating a deal on the budget.
Econ Comments & Analysis
LA Times | Chained thinking on the federal deficit
Tying Social Security cost-of-living increases to the 'chained' CPI is a foolish way to tackle the deficit — a goal that itself has been revealed to be largely based on erroneous research.
Politico | Democrats call for regular budget order
Democrats have begun beating the drum that Republicans aren’t playing by the rules when it comes to negotiating a deal on the budget.
Econ Comments & Analysis
LA Times | Chained thinking on the federal deficit
Tying Social Security cost-of-living increases to the 'chained' CPI is a foolish way to tackle the deficit — a goal that itself has been revealed to be largely based on erroneous research.
Tuesday, April 23, 2013
General Economics
News
Market Watch | FHFA house price index climbs 0.7% in February
U.S. home prices rose 0.7% on a seasonally adjusted basis in February, the Federal Housing Finance Agency said Tuesday. In the 12 months ended in February, home prices were up 7.1%, though they are still 13.6% below the index's April 2007 peak.
Bloomberg | Euro-Area April Manufacturing, Services Contract
Euro-area services and factory output shrank for a 15th month in April as the currency bloc struggled to emerge from a recession, adding to pressure on the European Central Bank to do more to boost growth.
CNN Money | China manufacturing expansion slows
Factory activity in China grew at a slower pace in April, the latest in a series of data points indicating weakness in the world's second largest economy.
Market Watch | U.S. flash PMI signals slowdown
The U.S. flash manufacturing purchasing managers index fell to a 52.0 reading in April from 54.6 in March, Markit said Tuesday.
Econ Comments & Analysis
WSJ | Home Sales See Growing Pains
Arthur Patterson received an unusual request from a real-estate agent in February: Would he consider selling his two-bedroom townhouse in Seattle's Ballard neighborhood to a buyer ready to place an offer—even though the home wasn't on the market?
Mercatus | Liberalism and Cronyism: Two Rival Political and Economic Systems
Political and economic systems either allow exchange and resource allocation to take place through mutual agreement under a system of liberalism, or force them to take place under a system of cronyism in which some people have the power to direct the activities of others.
Heritage Foundation | Congress Should Reprioritize Highway Trust Fund Money to Improve Mobility
The federal Highway Trust Fund (HTF) faces serious funding shortfalls in fiscal year (FY) 2015 and beyond, in large part due to funding demands from an expanding array of projects other than general purpose roads.
Blogs
Neighborhood Effects | Is an economically freer society a more tolerant society?
Last week was a difficult one. It’s not clear what motivated the heinous acts in Boston but it seems safe to say that intolerance played some role. New research published by Niclas Berggrenn and Therese Nilsson in the journal Kyklos suggests one way to make the world a better, more tolerant place
Market Watch | FHFA house price index climbs 0.7% in February
U.S. home prices rose 0.7% on a seasonally adjusted basis in February, the Federal Housing Finance Agency said Tuesday. In the 12 months ended in February, home prices were up 7.1%, though they are still 13.6% below the index's April 2007 peak.
Bloomberg | Euro-Area April Manufacturing, Services Contract
Euro-area services and factory output shrank for a 15th month in April as the currency bloc struggled to emerge from a recession, adding to pressure on the European Central Bank to do more to boost growth.
CNN Money | China manufacturing expansion slows
Factory activity in China grew at a slower pace in April, the latest in a series of data points indicating weakness in the world's second largest economy.
Market Watch | U.S. flash PMI signals slowdown
The U.S. flash manufacturing purchasing managers index fell to a 52.0 reading in April from 54.6 in March, Markit said Tuesday.
Econ Comments & Analysis
WSJ | Home Sales See Growing Pains
Arthur Patterson received an unusual request from a real-estate agent in February: Would he consider selling his two-bedroom townhouse in Seattle's Ballard neighborhood to a buyer ready to place an offer—even though the home wasn't on the market?
Mercatus | Liberalism and Cronyism: Two Rival Political and Economic Systems
Political and economic systems either allow exchange and resource allocation to take place through mutual agreement under a system of liberalism, or force them to take place under a system of cronyism in which some people have the power to direct the activities of others.
Heritage Foundation | Congress Should Reprioritize Highway Trust Fund Money to Improve Mobility
The federal Highway Trust Fund (HTF) faces serious funding shortfalls in fiscal year (FY) 2015 and beyond, in large part due to funding demands from an expanding array of projects other than general purpose roads.
Blogs
Neighborhood Effects | Is an economically freer society a more tolerant society?
Last week was a difficult one. It’s not clear what motivated the heinous acts in Boston but it seems safe to say that intolerance played some role. New research published by Niclas Berggrenn and Therese Nilsson in the journal Kyklos suggests one way to make the world a better, more tolerant place
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