News
FOX News | Bankrupt solar panel firm took stimulus money, left a toxic mess, says report
A Colorado-based solar company that got hundreds of millions of dollars in federal loan guarantees before going belly-up didn't just empty taxpayers' wallets - it left behind a toxic mess of carcinogens, broken glass and contaminated water, according to a new report.
FOX Business | Midwest Manufacuring Activity Hits March 2011 High
The Institute for Supply Management-Chicago’s gauge of manufacturing activity surged in October to 65.9 from 55.7 in September, while economists expected activity to fall to 55.
Bloomberg | Consumer Confidence in U.S. Declines to More Than One-Year Low
Consumer confidence eroded for a fifth straight week, reaching the lowest level in more than a year as pessimism about the economy chipped away at views of conditions closer to home.
CNN Money | Young and smart, but Millennials face homebuying hurdles
High debt levels and weak job prospects have made it hard for many young, educated Americans to buy homes, and that could be a drag on the housing market for years to come.
Bloomberg | U.S. Mortgage Rates at 4-Month Low Fall for Second Week
U.S. mortgage rates dropped for a second week, keeping borrowing costs at a four-month low as the Federal Reserve signaled that it would press on with its stimulus plan aimed at holding rates down.
Econ Comments & Analysis
Forbes | The Fossil Fuel Industry Must Vigorously Defend Itself Against Attacks From Environmentalists
Every day you concede the high ground to environmentalists not only means millions of dollars in projects delays, but another blow against the rights of peoples around the world to life, liberty, and the pursuit of energy.
WSJ | Progressive Government Fails
A reader remarked last week that Barack Obama is running out of human shields. With the father of ObamaCare unavailable to explain the greatest fiasco of his presidency to Congress, the American people had to settle Wednesday for his surrogate, Kathleen Sebelius.
WSJ | China's Illusory Growth Numbers
Beijing appears to be on track, yet again, to hit its official growth target. According to China's National Bureau of Statistics, gross domestic product rose 7.8% in the third quarter of 2013, well on its way toward hitting the official target of 7.5% GDP growth for the year.
Forbes | Death by Extortion: How Politicians and Crony Capitalists Are Destroying The American Dream
The explosive growth in government regulations impose huge costs on productive activities. The arbitrary way in which they are enforced causes more insidious damage.
Blogs
WSJ | Which Countries Invest the Most Money in the U.S.?
President Barack Obama and other officials are expected to announce Thursday that U.S. embassy staff, economic officials and even the White House will start closely coordinating their efforts to lure investment from key countries in order to boost sluggish job growth at home.
CATO | Keynesian Economics, Government Shutdowns, and Economic Growth
Keynesian economics is the perpetual motion machine of the left. You build a model that assumes government spending is good for the economy and you assume that there are zero costs when the government diverts money from the private sector.
Thursday, October 31, 2013
Health Care
News
National Journal | Ron Johnson Introduces 'If You Like Your Health Care, You Can Keep It Act'
In response to the growing outcry over insurance-plan cancellations, Sen. Ron Johnson, R-Wis., introduced a bill Wednesday to allow consumers to keep their current plans under Obamacare.
Yahoo Finance | How Obama Overlooked 10 Million Americans Who Could Lose Health Insurance
We may now know what the most devastating statement of Barack Obama’s presidency is going to be: “If you like it, you can keep it.”
Econ Comments & Analysis
WSJ | The President's Broken Health-Care Promises
For nearly four years, President Obama has frequently offered some variation of this promise about the Affordable Care Act: "If you like your health-care plan," as he said in a speech to the American Medical Association in June 2009, "you'll be able to keep your health-care plan, period. No one will take it away, no matter what."
Real Clear Markets | Is Obamacare a Job Killer? Yes and No
Is the Affordable Care Act (ACA), also known as Obamacare, a job killer? Along with the fate of HealthCare.gov, this question stalks the ACA.
WSJ | You Can Keep Your Health Plan*
President Obama's promise had a secret footnote. Who knew?
WSJ | One Quick Fix to Ease the Coming Doctor Shortage
Ryan Scully wanted to be a doctor from the moment he began volunteering as a paramedic and firefighter during his freshman year of college. In medical school at George Washington University, he passed all of his preclinical and clinical requirements, as well as two national licensing exams required of all medical students.
National Journal | Ron Johnson Introduces 'If You Like Your Health Care, You Can Keep It Act'
In response to the growing outcry over insurance-plan cancellations, Sen. Ron Johnson, R-Wis., introduced a bill Wednesday to allow consumers to keep their current plans under Obamacare.
Yahoo Finance | How Obama Overlooked 10 Million Americans Who Could Lose Health Insurance
We may now know what the most devastating statement of Barack Obama’s presidency is going to be: “If you like it, you can keep it.”
Econ Comments & Analysis
WSJ | The President's Broken Health-Care Promises
For nearly four years, President Obama has frequently offered some variation of this promise about the Affordable Care Act: "If you like your health-care plan," as he said in a speech to the American Medical Association in June 2009, "you'll be able to keep your health-care plan, period. No one will take it away, no matter what."
Real Clear Markets | Is Obamacare a Job Killer? Yes and No
Is the Affordable Care Act (ACA), also known as Obamacare, a job killer? Along with the fate of HealthCare.gov, this question stalks the ACA.
WSJ | You Can Keep Your Health Plan*
President Obama's promise had a secret footnote. Who knew?
WSJ | One Quick Fix to Ease the Coming Doctor Shortage
Ryan Scully wanted to be a doctor from the moment he began volunteering as a paramedic and firefighter during his freshman year of college. In medical school at George Washington University, he passed all of his preclinical and clinical requirements, as well as two national licensing exams required of all medical students.
Monetary
News
CNN Money | Federal Reserve prolongs stimulus
There's still no end in sight for the Federal Reserve's stimulus program -- known as quantitative easing -- after the central bank met this week and decided to continue buying $85 billion in bonds each month.
Bloomberg | Fed Sees Less Risk From Higher Rates While Maintaining QE
Federal Reserve policy makers signaled diminishing concern over higher borrowing costs as they maintained the pace of bond purchases and seek more evidence of sustained growth.
Bloomberg | Euro-Area Inflation Rate Falls to Four-Year Low
Euro-area inflation cooled to the slowest in almost four years in October, moving further away from the European Central Bank’s goal.
Blogs
WSJ | Three Takeaways on the Fed’s Policy Statement – December Taper Not Off the Table
The Federal Reserve emerged from its October meeting effectively in a wait-and-see mode on the economy and policy, making few substantive changes to its statement.
CNN Money | Federal Reserve prolongs stimulus
There's still no end in sight for the Federal Reserve's stimulus program -- known as quantitative easing -- after the central bank met this week and decided to continue buying $85 billion in bonds each month.
Bloomberg | Fed Sees Less Risk From Higher Rates While Maintaining QE
Federal Reserve policy makers signaled diminishing concern over higher borrowing costs as they maintained the pace of bond purchases and seek more evidence of sustained growth.
Bloomberg | Euro-Area Inflation Rate Falls to Four-Year Low
Euro-area inflation cooled to the slowest in almost four years in October, moving further away from the European Central Bank’s goal.
Blogs
WSJ | Three Takeaways on the Fed’s Policy Statement – December Taper Not Off the Table
The Federal Reserve emerged from its October meeting effectively in a wait-and-see mode on the economy and policy, making few substantive changes to its statement.
Taxes
News
CNN Money | U.S. expats cry foul over tax system
If you think filing your taxes is a pain, try talking to one of the 6 million Americans living abroad.
CNN Money | U.S. expats cry foul over tax system
If you think filing your taxes is a pain, try talking to one of the 6 million Americans living abroad.
Employment
News
Market Watch | U.S. jobless claims drop 10,000 to 340,000
The number of people who applied for U.S. unemployment benefits last week fell by 10,000 to 340,000, but initial claims are still above end-of-summer levels even though California says it has fixed computer problems that delayed thousands of claims over the past two months.
Market Watch | U.S. jobless claims drop 10,000 to 340,000
The number of people who applied for U.S. unemployment benefits last week fell by 10,000 to 340,000, but initial claims are still above end-of-summer levels even though California says it has fixed computer problems that delayed thousands of claims over the past two months.
Budget
News
Politico | Obama administration touts new deficit numbers
Administration officials reported on Wednesday that the deficit has fallen to half of what it was when President Barack Obama took office — touting the numbers as congressional budget negotiations begin amid Republican criticism of Democrats’ stewardship of the government’s finances.
National Journal | Budget Conference: A Committee of Two?
It's supposed to be a committee of 29 separate voices from the House and Senate. But the early signals from the inaugural meeting of the bipartisan House and Senate budget conference are that it may operate more like a committee of two: Rep. Paul Ryan and Sen. Patty Murray.
Econ Comments & Analysis
Washington Times | The cruelty of not cutting
Democrats insist that every dollar in the $3.8 trillion annual budget is precious and well spent — all waste has been eliminated by sequestration. “The cupboard is bare,” House Minority Leader Nancy Pelosi said recently on CNN’s “State of the Union.” “There’s no more cuts to make. … We cannot have cuts just for the sake of cuts.” Republicans and the facts suggest otherwise.
Blogs
WSJ | Asia’s Rising Debt Brings Back Memories of 2007
With debt levels rising across Asia in an era of easy money, many observers have asked if the region is facing a repeat of the 1997 Asian financial crisis.
Politico | Obama administration touts new deficit numbers
Administration officials reported on Wednesday that the deficit has fallen to half of what it was when President Barack Obama took office — touting the numbers as congressional budget negotiations begin amid Republican criticism of Democrats’ stewardship of the government’s finances.
National Journal | Budget Conference: A Committee of Two?
It's supposed to be a committee of 29 separate voices from the House and Senate. But the early signals from the inaugural meeting of the bipartisan House and Senate budget conference are that it may operate more like a committee of two: Rep. Paul Ryan and Sen. Patty Murray.
Econ Comments & Analysis
Washington Times | The cruelty of not cutting
Democrats insist that every dollar in the $3.8 trillion annual budget is precious and well spent — all waste has been eliminated by sequestration. “The cupboard is bare,” House Minority Leader Nancy Pelosi said recently on CNN’s “State of the Union.” “There’s no more cuts to make. … We cannot have cuts just for the sake of cuts.” Republicans and the facts suggest otherwise.
Blogs
WSJ | Asia’s Rising Debt Brings Back Memories of 2007
With debt levels rising across Asia in an era of easy money, many observers have asked if the region is facing a repeat of the 1997 Asian financial crisis.
Wednesday, October 30, 2013
General Economics
News
Bloomberg | PricewaterhouseCoopers Agrees to Purchase Booz
PricewaterhouseCoopers LLP, the closely held accounting firm, agreed to acquire consultant Booz & Co. to expand its advisory business.
Bloomberg | Retirees Replaced by Lower Paid Weigh on U.S. Growth: Economy
Retired Ford Motor Co. worker Tony Fransetta scrimps on every expense after earning about a third of his previous pay since leaving the auto company in 1990.
Econ Comments & Analysis
Real Clear Markets | Stumping Patent Trolls Is The Path To Innovation
At a time when gridlock in Washington has been at an all-time high, there is one high-profile issue where Democrats and Republicans are quickly coming together: defeating "patent trolling," which is a growing area of litigation abuse vexing America's high-tech economy.
Real Clear Markets | Calm Before The Gathering Storm In Europe
Despite the present calm in European financial markets, all is far from well in the Eurozone's political economy. Yet, true to form, European policymakers are showing no sign of taking advantage of this calm to adopt those measures that might place the Euro on a surer footing for the day when global financial conditions are no longer as favorable as they are right now.
CBO | H.R. 2767, Protecting American Taxpayers and Homeowners Act of 2013
H.R. 2767 would require the Federal Housing Finance Agency (FHFA) to repeal the charters of Fannie Mae and Freddie Mac and end the operations of those firms five years after enactment of the bill (and subject to certain conditions). Thus, after 2018, those two government-sponsored enterprises (GSEs) would cease to guarantee new mortgages.
Bloomberg | PricewaterhouseCoopers Agrees to Purchase Booz
PricewaterhouseCoopers LLP, the closely held accounting firm, agreed to acquire consultant Booz & Co. to expand its advisory business.
Bloomberg | Retirees Replaced by Lower Paid Weigh on U.S. Growth: Economy
Retired Ford Motor Co. worker Tony Fransetta scrimps on every expense after earning about a third of his previous pay since leaving the auto company in 1990.
Econ Comments & Analysis
Real Clear Markets | Stumping Patent Trolls Is The Path To Innovation
At a time when gridlock in Washington has been at an all-time high, there is one high-profile issue where Democrats and Republicans are quickly coming together: defeating "patent trolling," which is a growing area of litigation abuse vexing America's high-tech economy.
Real Clear Markets | Calm Before The Gathering Storm In Europe
Despite the present calm in European financial markets, all is far from well in the Eurozone's political economy. Yet, true to form, European policymakers are showing no sign of taking advantage of this calm to adopt those measures that might place the Euro on a surer footing for the day when global financial conditions are no longer as favorable as they are right now.
CBO | H.R. 2767, Protecting American Taxpayers and Homeowners Act of 2013
H.R. 2767 would require the Federal Housing Finance Agency (FHFA) to repeal the charters of Fannie Mae and Freddie Mac and end the operations of those firms five years after enactment of the bill (and subject to certain conditions). Thus, after 2018, those two government-sponsored enterprises (GSEs) would cease to guarantee new mortgages.
Health Care
News
CNN Money | Obamacare deadlines clarified
Listen up, procrastinators: March 31 is now the only date to circle on your Obamacare calendar.
National Journal | Sebelius to Congress: 'Hold Me Accountable' for Health Care Website
In her long-awaited remarks on the Affordable Care Act website's rocky rollout, Sebelius apologized to the millions of uninsured Americans who encountered numerous error messages while trying to sign up for health plans through HealthCare.Gov.
Econ Comments & Analysis
WSJ | The ObamaCare Awakening
For all of the Affordable Care Act's technical problems, at least one part is working on schedule. The law is systematically dismantling the individual insurance market, as its architects intended from the start.
WSJ | The Outrage Arrives
The White House has issued a clarification. When the president said if you like your insurance plan you can keep it, what he meant was you can keep it if he likes it.
NBER | The Impact of Medicaid on Labor Force Activity and Program Participation: Evidence from the Oregon Health Insurance Experiment
In 2008, a group of uninsured low-income adults in Oregon was selected by lottery for the chance to apply for Medicaid.
CNN Money | Obamacare deadlines clarified
Listen up, procrastinators: March 31 is now the only date to circle on your Obamacare calendar.
National Journal | Sebelius to Congress: 'Hold Me Accountable' for Health Care Website
In her long-awaited remarks on the Affordable Care Act website's rocky rollout, Sebelius apologized to the millions of uninsured Americans who encountered numerous error messages while trying to sign up for health plans through HealthCare.Gov.
Econ Comments & Analysis
WSJ | The ObamaCare Awakening
For all of the Affordable Care Act's technical problems, at least one part is working on schedule. The law is systematically dismantling the individual insurance market, as its architects intended from the start.
WSJ | The Outrage Arrives
The White House has issued a clarification. When the president said if you like your insurance plan you can keep it, what he meant was you can keep it if he likes it.
NBER | The Impact of Medicaid on Labor Force Activity and Program Participation: Evidence from the Oregon Health Insurance Experiment
In 2008, a group of uninsured low-income adults in Oregon was selected by lottery for the chance to apply for Medicaid.
Monetary
News
Bloomberg | Consumer Prices in U.S. Rise as Forecast on Gain in Fuel
The consumer price index increased 0.2 percent, matching the median forecast of 86 economists surveyed by Bloomberg, after rising 0.1 percent the prior month, Labor Department data showed today in Washington. Stripping out volatile food and fuel, the so-called core measure climbed 0.1 percent for a second month, less than projected.
Econ Comments & Analysis
Fortune | Why the Fed should worry about deflation
As Federal Reserve policy makers wrap up their two-day meeting Wednesday, some have called on the central bank to do more to avoid threats of deflation.
AEI | Europe's deflation challenge
Easy global liquidity from quantitative easing in the United States has masked deflation and public debt vulnerability in the European periphery, and the European Central Bank shows little sign of pursuing policies to address these threats.
Blogs
WSJ | Fed Balance Sheet Not Seen Returning to Normal Until at Least 2019
The Federal Reserve’s balance sheet, which is fast approaching $4 trillion in total assets, won’t return to normal until sometime between mid-2019 and mid-2021, according to new projections prepared by central bank researchers.
WSJ | What to Watch for From the Fed
The Federal Reserve concludes its two-day policy meeting Wednesday, and while no policy changes are expected, officials are likely to debate what to do next and when to do it.
Bloomberg | Consumer Prices in U.S. Rise as Forecast on Gain in Fuel
The consumer price index increased 0.2 percent, matching the median forecast of 86 economists surveyed by Bloomberg, after rising 0.1 percent the prior month, Labor Department data showed today in Washington. Stripping out volatile food and fuel, the so-called core measure climbed 0.1 percent for a second month, less than projected.
Econ Comments & Analysis
Fortune | Why the Fed should worry about deflation
As Federal Reserve policy makers wrap up their two-day meeting Wednesday, some have called on the central bank to do more to avoid threats of deflation.
AEI | Europe's deflation challenge
Easy global liquidity from quantitative easing in the United States has masked deflation and public debt vulnerability in the European periphery, and the European Central Bank shows little sign of pursuing policies to address these threats.
Blogs
WSJ | Fed Balance Sheet Not Seen Returning to Normal Until at Least 2019
The Federal Reserve’s balance sheet, which is fast approaching $4 trillion in total assets, won’t return to normal until sometime between mid-2019 and mid-2021, according to new projections prepared by central bank researchers.
WSJ | What to Watch for From the Fed
The Federal Reserve concludes its two-day policy meeting Wednesday, and while no policy changes are expected, officials are likely to debate what to do next and when to do it.
Taxes
News
WSJ | White House Hints at Flexibility on Taxes
The White House has cracked open the door to a budget compromise with congressional Republicans by signaling it might not insist on raising taxes as part of a deal to replace some scheduled spending cuts, people familiar with the matter said.
Econ Comments & Analysis
Washignton Times | Income tax turns 100
In all this excitement over the Internal Revenue Service scandal, a key milestone in American history has passed with little notice. This year, the income tax turns 100, and that brings up issues of major importance.
Blogs
NY Times | A New View of the Corporate Income Tax
One of the least well-known aspects of tax policy-making is the distribution table, which is produced by the Joint Committee on Taxation, a Congressional committee, for every major tax bill. The tables show how the legislation affects taxpayers at different income levels. It is a generally understood, if unstated, rule that tax cuts should be evenly distributed in percentage terms while tax increases should primarily fall on the well to do.
Heritage Foundation | 3 Trillion Reasons Not to Raise Taxes Again
Today, a special congressional committee will meet to start hashing out what the next budget could look like—and members of this committee will face a lot of pressure to raise taxes again.
WSJ | White House Hints at Flexibility on Taxes
The White House has cracked open the door to a budget compromise with congressional Republicans by signaling it might not insist on raising taxes as part of a deal to replace some scheduled spending cuts, people familiar with the matter said.
Econ Comments & Analysis
Washignton Times | Income tax turns 100
In all this excitement over the Internal Revenue Service scandal, a key milestone in American history has passed with little notice. This year, the income tax turns 100, and that brings up issues of major importance.
Blogs
NY Times | A New View of the Corporate Income Tax
One of the least well-known aspects of tax policy-making is the distribution table, which is produced by the Joint Committee on Taxation, a Congressional committee, for every major tax bill. The tables show how the legislation affects taxpayers at different income levels. It is a generally understood, if unstated, rule that tax cuts should be evenly distributed in percentage terms while tax increases should primarily fall on the well to do.
Heritage Foundation | 3 Trillion Reasons Not to Raise Taxes Again
Today, a special congressional committee will meet to start hashing out what the next budget could look like—and members of this committee will face a lot of pressure to raise taxes again.
Employment
News
CNN Money | Private sector hiring slowest in 6 months
Private sector employers added just 130,000 jobs in October -- their lowest level of job growth since April, according to a report by payroll processor ADP. The pace of hiring has been slowing since June, but the government shutdown earlier this month appears to be a main reason for the sluggish hiring in October.
Blogs
Library of Economics | Do We Work Too Much?
A student sent me a link to this article claiming that we would be better off with a thirty-hour as opposed to forty-hour workweek. I'm sympathetic to the argument: I think a lot of us are on the wrong side of the effort-outcome Laffer Curve, and we probably would do better if we followed the old adage and worked "smarter, not harder." While it seems simple to wave a magic wand, say "make it so," and get the world we want, reality is a lot more complicated.
CNN Money | Private sector hiring slowest in 6 months
Private sector employers added just 130,000 jobs in October -- their lowest level of job growth since April, according to a report by payroll processor ADP. The pace of hiring has been slowing since June, but the government shutdown earlier this month appears to be a main reason for the sluggish hiring in October.
Blogs
Library of Economics | Do We Work Too Much?
A student sent me a link to this article claiming that we would be better off with a thirty-hour as opposed to forty-hour workweek. I'm sympathetic to the argument: I think a lot of us are on the wrong side of the effort-outcome Laffer Curve, and we probably would do better if we followed the old adage and worked "smarter, not harder." While it seems simple to wave a magic wand, say "make it so," and get the world we want, reality is a lot more complicated.
Budget
News
Politico | Setting a low bar for budget talks
Don’t expect the budget negotiating committee convening on Capitol Hill Wednesday to arrive at any sweeping resolution that tackles long-term government spending, entitlement programs or the Tax Code.
CNN Money | Aiming for more than bupkis on the budget
The 29 lawmakers chosen to negotiate a way out of another budget stalemate and government shutdown will meet officially -- and publicly -- for the first time on Wednesday.
Econ Comments & Analysis
Washington Times | Your govt. is morbidly obese
In 2010, statistics available from the Internal Revenue Service demonstrate that individuals earning $69,000 or more, which encompasses much of the middle class and everyone in upper classes, had a combined gross adjusted income of $5.1 trillion. That is an enormous sum of money, and it gives us some idea of the power of the economic engine that this nation possesses. The problem is that the federal budget was $3.5 trillion, which is almost two-thirds of that amount.
Politico | Setting a low bar for budget talks
Don’t expect the budget negotiating committee convening on Capitol Hill Wednesday to arrive at any sweeping resolution that tackles long-term government spending, entitlement programs or the Tax Code.
CNN Money | Aiming for more than bupkis on the budget
The 29 lawmakers chosen to negotiate a way out of another budget stalemate and government shutdown will meet officially -- and publicly -- for the first time on Wednesday.
Econ Comments & Analysis
Washington Times | Your govt. is morbidly obese
In 2010, statistics available from the Internal Revenue Service demonstrate that individuals earning $69,000 or more, which encompasses much of the middle class and everyone in upper classes, had a combined gross adjusted income of $5.1 trillion. That is an enormous sum of money, and it gives us some idea of the power of the economic engine that this nation possesses. The problem is that the federal budget was $3.5 trillion, which is almost two-thirds of that amount.
Tuesday, October 29, 2013
General Economics
News
Bloomberg | Retail Sales in U.S. Climb Excluding Auto Dealers
Retail sales in the U.S. outside of auto dealers climbed in September, indicating households were sustaining the economic expansion before the government shutdown shook confidence.
WSJ | Unemployed Jersey Boys
One reason most states in the Northeast keep losing ground to other parts of the country is that politicians keep thinking they can suspend the basic laws of economics. This is the region with the highest tax rates, the heaviest regulatory burden and now the highest minimum wages. New York recently raised its minimum wage to $9 in 2016 from the federal rate of $7.25, and waiting in line is New Jersey.
Bloomberg | Coffee Heads for Longest Slump Since 1972 on Brazil Crop Outlook
Coffee futures headed for the worst rout in more than four decades as wet weather signaled bigger crops than forecast in Brazil, the world’s largest grower.
Econ Comments & Analysis
Daily Caller | The shale revolution is remaking our economic future
The revolution in shale drilling is transforming the U.S. from a major fuel importer to a major exporter of oil and natural gas. In fact, the Wall Street Journal recently reported that the U.S. is about to overtake Russia as the number one producer of oil and gas in the world.
WSJ | Economic Failure Causes Political Polarization
It is a common view that the shutdown, the debt-limit debacle and the repeated failure to enact entitlement and pro-growth tax reform reflect increased political polarization. I believe this gets the causality backward. Today's governance failures are closely connected to economic policy changes, particularly those growing out of the 2008 financial crisis.
Washington Times | The heavy price of regulations
The Environmental Protection Agency (EPA) recently proposed onerous new limits carbon-dioxide emissions from coal-fired power plants. The standards would prevent construction of new facilities, gradually close older ones and, eventually, affect even gas-fired units.
Politico | Seize moment on entitlement reform
With the twin debacles of a government shutdown and a debt limit showdown behind us for a mere three months, we have little time before we face the prospect of yet another manufactured meltdown in the early days of 2014. Unfortunately, Congress is currently scheduled to be in session for only a small fraction of those days, given the Thanksgiving, Christmas and New Year holiday breaks.
Bloomberg | China Can’t Talk Its Way Out of Slowing Growth
If imitation really is the greatest form of flattery, Shinzo Abe should be thrilled the Chinese are copying his “Abenomics” strategy to excite investors. The rest of the world shouldn’t be.
Washington Times | Throw the rascals out
Polls indicate that the public is so disgusted with Washington politicians of both parties that a surprisingly large proportion of the people would like to get rid of the whole lot of them.
AEI | Getting used to anemic growth
If the government shutdown really did slow the U.S. economy, it was an encumbrance on an already lethargic growth rate. New data suggest real GDP grew just 1.8 percent or so the past three months. For the year, says Goldman Sachs, it’s shaping up to be an anemic 1.6 percent.
Blogs
WSJ | Global Regulation Curbing Growth, World Bank Finds
Many emerging markets have dramatically improved their business climates in the last year, but a tangle of onerous regulations the world over is curbing much-needed growth from the private sector, the World Bank said in a new report published late Monday.
Bloomberg | Retail Sales in U.S. Climb Excluding Auto Dealers
Retail sales in the U.S. outside of auto dealers climbed in September, indicating households were sustaining the economic expansion before the government shutdown shook confidence.
WSJ | Unemployed Jersey Boys
One reason most states in the Northeast keep losing ground to other parts of the country is that politicians keep thinking they can suspend the basic laws of economics. This is the region with the highest tax rates, the heaviest regulatory burden and now the highest minimum wages. New York recently raised its minimum wage to $9 in 2016 from the federal rate of $7.25, and waiting in line is New Jersey.
Bloomberg | Coffee Heads for Longest Slump Since 1972 on Brazil Crop Outlook
Coffee futures headed for the worst rout in more than four decades as wet weather signaled bigger crops than forecast in Brazil, the world’s largest grower.
Econ Comments & Analysis
Daily Caller | The shale revolution is remaking our economic future
The revolution in shale drilling is transforming the U.S. from a major fuel importer to a major exporter of oil and natural gas. In fact, the Wall Street Journal recently reported that the U.S. is about to overtake Russia as the number one producer of oil and gas in the world.
WSJ | Economic Failure Causes Political Polarization
It is a common view that the shutdown, the debt-limit debacle and the repeated failure to enact entitlement and pro-growth tax reform reflect increased political polarization. I believe this gets the causality backward. Today's governance failures are closely connected to economic policy changes, particularly those growing out of the 2008 financial crisis.
Washington Times | The heavy price of regulations
The Environmental Protection Agency (EPA) recently proposed onerous new limits carbon-dioxide emissions from coal-fired power plants. The standards would prevent construction of new facilities, gradually close older ones and, eventually, affect even gas-fired units.
Politico | Seize moment on entitlement reform
With the twin debacles of a government shutdown and a debt limit showdown behind us for a mere three months, we have little time before we face the prospect of yet another manufactured meltdown in the early days of 2014. Unfortunately, Congress is currently scheduled to be in session for only a small fraction of those days, given the Thanksgiving, Christmas and New Year holiday breaks.
Bloomberg | China Can’t Talk Its Way Out of Slowing Growth
If imitation really is the greatest form of flattery, Shinzo Abe should be thrilled the Chinese are copying his “Abenomics” strategy to excite investors. The rest of the world shouldn’t be.
Washington Times | Throw the rascals out
Polls indicate that the public is so disgusted with Washington politicians of both parties that a surprisingly large proportion of the people would like to get rid of the whole lot of them.
AEI | Getting used to anemic growth
If the government shutdown really did slow the U.S. economy, it was an encumbrance on an already lethargic growth rate. New data suggest real GDP grew just 1.8 percent or so the past three months. For the year, says Goldman Sachs, it’s shaping up to be an anemic 1.6 percent.
Blogs
WSJ | Global Regulation Curbing Growth, World Bank Finds
Many emerging markets have dramatically improved their business climates in the last year, but a tangle of onerous regulations the world over is curbing much-needed growth from the private sector, the World Bank said in a new report published late Monday.
Health Care
News
Politico | Medicaid enrollment surges ahead of ACA sign-ups
New Medicaid enrollment is far outpacing new insurance customers under Obamacare so far, a subtle sign that the program could play a greater role in the law’s coverage expansion than first anticipated. Some people are signing up for the Medicaid expansion created by the president’s health law. Others were already eligible for their state’s current Medicaid program, but until this outreach campaign about health coverage, they had never signed up.
Econ Comments & Analysis
Real Clear Markets | Governments Face a Bigger Challenge Than Public Pensions
While many commentators have expressed concerns about the large deficits of public pension plans, few have rung the alarm about the large deficits of retiree healthcare plans (RHPs) of local governments. In fact, the funding gaps for RHPs are usually at least 20% higher than those for public pensions. For example, the Mass Taxpayers Foundation has recently reported that Massachusetts local governments - cities and towns ( not the State ) - are saddled with $15 billion in pension deficits as compared to $30 billion in RHP deficits.
Washington Times | The Affordable Care Act isn’t
That’s the question, really, as Obamacare begins taking effect, and the stories pour in from around the country: how much your premiums are going up, not if they are going up.
CBO | Raising the Age of Eligibility for Medicare to 67: An Updated Estimate of the Budgetary Effects
Medicare, one of the federal government’s largest programs, provides health care benefits primarily to elderly people. The usual age of eligibility for those benefits is 65, although certain people qualify for the program earlier.
Politico | Medicaid enrollment surges ahead of ACA sign-ups
New Medicaid enrollment is far outpacing new insurance customers under Obamacare so far, a subtle sign that the program could play a greater role in the law’s coverage expansion than first anticipated. Some people are signing up for the Medicaid expansion created by the president’s health law. Others were already eligible for their state’s current Medicaid program, but until this outreach campaign about health coverage, they had never signed up.
Econ Comments & Analysis
Real Clear Markets | Governments Face a Bigger Challenge Than Public Pensions
While many commentators have expressed concerns about the large deficits of public pension plans, few have rung the alarm about the large deficits of retiree healthcare plans (RHPs) of local governments. In fact, the funding gaps for RHPs are usually at least 20% higher than those for public pensions. For example, the Mass Taxpayers Foundation has recently reported that Massachusetts local governments - cities and towns ( not the State ) - are saddled with $15 billion in pension deficits as compared to $30 billion in RHP deficits.
Washington Times | The Affordable Care Act isn’t
That’s the question, really, as Obamacare begins taking effect, and the stories pour in from around the country: how much your premiums are going up, not if they are going up.
CBO | Raising the Age of Eligibility for Medicare to 67: An Updated Estimate of the Budgetary Effects
Medicare, one of the federal government’s largest programs, provides health care benefits primarily to elderly people. The usual age of eligibility for those benefits is 65, although certain people qualify for the program earlier.
Monetary
News
CNN Money | This could be the largest Fed stimulus yet
QE3 is on track to be its largest bond-buying program yet, if it follows the path predicted by Wall Street.
Econ Comments & Analysis
FOX News | Falling food costs pulled wholesale prices down 0.1 percent in September; energy costs up
A big decline in food costs helped hold down wholesale prices in September, contributing to a 0.1 percent decline, the first drop since April.
CNN Money | This could be the largest Fed stimulus yet
QE3 is on track to be its largest bond-buying program yet, if it follows the path predicted by Wall Street.
Econ Comments & Analysis
FOX News | Falling food costs pulled wholesale prices down 0.1 percent in September; energy costs up
A big decline in food costs helped hold down wholesale prices in September, contributing to a 0.1 percent decline, the first drop since April.
Taxes
News
WSJ | Weak Tax Base Hurts Renewal
Like hundreds of other American cities, this faded hub has struggled for decades as people and businesses flocked to the suburbs. The flight hollowed out the city center and pushed property values to among the lowest nationwide.
Econ Comments & Analysis
Heritage Foundation | Leave Tax Reform and Tax Increases Out of Budget Conference
The recent deal to end the government shutdown and lift the debt ceiling requires the House and Senate to convene a conference committee, where they will seek to reconcile the respective budgets each chamber passed this year. Conferees will face strong pressure to strike a “grand bargain” to lower the deficit by both cutting spending and raising taxes.
WSJ | Weak Tax Base Hurts Renewal
Like hundreds of other American cities, this faded hub has struggled for decades as people and businesses flocked to the suburbs. The flight hollowed out the city center and pushed property values to among the lowest nationwide.
Econ Comments & Analysis
Heritage Foundation | Leave Tax Reform and Tax Increases Out of Budget Conference
The recent deal to end the government shutdown and lift the debt ceiling requires the House and Senate to convene a conference committee, where they will seek to reconcile the respective budgets each chamber passed this year. Conferees will face strong pressure to strike a “grand bargain” to lower the deficit by both cutting spending and raising taxes.
Employment
Econ Comments & Analysis
WSJ | Who Really Employs Minimum-Wage Workers?
The only thing standing between minimum wage employees and a generous salary with paid time off is the greed of the large corporations they work for. That's the argument voters in SeaTac, Wash., will consider Nov. 5 when they vote on a referendum to create a $15 minimum wage—more than twice the federal minimum of $7.25.
Blogs
WSJ | Overly Easy Monetary Policy Abets Bubble Creation, Economists Contend
Inappropriately easy central bank policy often contributes to asset market bubbles that will eventually pop and cause broader economic trouble, a new paper contends.
WSJ | Who Really Employs Minimum-Wage Workers?
The only thing standing between minimum wage employees and a generous salary with paid time off is the greed of the large corporations they work for. That's the argument voters in SeaTac, Wash., will consider Nov. 5 when they vote on a referendum to create a $15 minimum wage—more than twice the federal minimum of $7.25.
Blogs
WSJ | Overly Easy Monetary Policy Abets Bubble Creation, Economists Contend
Inappropriately easy central bank policy often contributes to asset market bubbles that will eventually pop and cause broader economic trouble, a new paper contends.
Budget
News
Roll Call | The Incredible Shrinking Budget Talks
Grand bargains are out. Tax hikes are out. Short-term and stopgap solutions are very much in. That’s the reality in Washington this week, as budget conferees meet for the first time Wednesday to try to hammer out a deal.
Roll Call | The Incredible Shrinking Budget Talks
Grand bargains are out. Tax hikes are out. Short-term and stopgap solutions are very much in. That’s the reality in Washington this week, as budget conferees meet for the first time Wednesday to try to hammer out a deal.
Wednesday, October 23, 2013
General Economics
News
Politico | Does President Obama have chops to wrap up his trade deals?
Some presidents have a natural affinity for trade deals, but in the first year of his administration, President Barack Obama seemed to many observers like he couldn’t care less. He appointed a likable Dallas mayor without much experience in the field to be his trade representative and gave him very little negotiating to do.
CNN Money | How sick are Europe's banks? Wait and see
Five years since the collapse of Lehman Brothers, a lack of confidence in Europe's banks is still acting as a brake on the region's tentative recovery.
Bloomberg | Spain Ends Two-Year Recession Amid Effort to Add Jobs
Spain emerged from a two-year recession in the third quarter, strengthening Prime Minister Mariano Rajoy’s efforts to repair the nation’s finances and reduce the 26 percent jobless rate.
WSJ | College Tuition Increases Slow, but Government Aid Falls
After decades of rampant growth, the rate of tuition increases at U.S. colleges and universities has slowed for the second academic year in a row, but government aid has fallen, continuing a cycle of rising costs and debt for American students.
Econ Comments & Analysis
Investors | Lackluster Jobs Report Underscores Epic Failure Of Obamanomics
Jobs: Here we go again, another employment report showing "unexpectedly weak" job growth. Pretty soon Americans are going to figure out, as computer geeks like to say, "It's not a bug — it's a feature."
Washington Times | Tempering the allure of alternative fuels
America’s skyrocketing oil and natural-gas output is not only fueling massive and widespread economic growth, but also producing considerable hot air in policy discussions. Most dangerous are illusions of “energy independence” and “energy leverage” that ignore fundamental economic and political realities of the modern world. Blind pursuit of these twin goals is unlikely to bring the results that some claim and could, in fact, have costly unintended consequences, both at home and abroad.
Blogs
Economist | The housing wedge
The rub, I suppose, is that housing regulations are not exogenous with respect to the strength of the local economy or the generosity of the welfare state.
Market Watch | Signs of home-price slowdown in latest FHFA data
There were signs of a slowdown in the home-price data released by the Federal Housing Finance Agency on Wednesday.
WSJ | Introducing: China Econtracker 2.0
China’s economy put in a decent performance in the third quarter, with gross domestic product growing 7.8% year-to-year – the best figure of 2013 so far. So why do many economists sound so downbeat?
Politico | Does President Obama have chops to wrap up his trade deals?
Some presidents have a natural affinity for trade deals, but in the first year of his administration, President Barack Obama seemed to many observers like he couldn’t care less. He appointed a likable Dallas mayor without much experience in the field to be his trade representative and gave him very little negotiating to do.
CNN Money | How sick are Europe's banks? Wait and see
Five years since the collapse of Lehman Brothers, a lack of confidence in Europe's banks is still acting as a brake on the region's tentative recovery.
Bloomberg | Spain Ends Two-Year Recession Amid Effort to Add Jobs
Spain emerged from a two-year recession in the third quarter, strengthening Prime Minister Mariano Rajoy’s efforts to repair the nation’s finances and reduce the 26 percent jobless rate.
WSJ | College Tuition Increases Slow, but Government Aid Falls
After decades of rampant growth, the rate of tuition increases at U.S. colleges and universities has slowed for the second academic year in a row, but government aid has fallen, continuing a cycle of rising costs and debt for American students.
Econ Comments & Analysis
Investors | Lackluster Jobs Report Underscores Epic Failure Of Obamanomics
Jobs: Here we go again, another employment report showing "unexpectedly weak" job growth. Pretty soon Americans are going to figure out, as computer geeks like to say, "It's not a bug — it's a feature."
Washington Times | Tempering the allure of alternative fuels
America’s skyrocketing oil and natural-gas output is not only fueling massive and widespread economic growth, but also producing considerable hot air in policy discussions. Most dangerous are illusions of “energy independence” and “energy leverage” that ignore fundamental economic and political realities of the modern world. Blind pursuit of these twin goals is unlikely to bring the results that some claim and could, in fact, have costly unintended consequences, both at home and abroad.
Blogs
Economist | The housing wedge
The rub, I suppose, is that housing regulations are not exogenous with respect to the strength of the local economy or the generosity of the welfare state.
Market Watch | Signs of home-price slowdown in latest FHFA data
There were signs of a slowdown in the home-price data released by the Federal Housing Finance Agency on Wednesday.
WSJ | Introducing: China Econtracker 2.0
China’s economy put in a decent performance in the third quarter, with gross domestic product growing 7.8% year-to-year – the best figure of 2013 so far. So why do many economists sound so downbeat?
Health Care
News
Politico | Hill staffers a potential boon for D.C. exchange
District of Columbia insurance officials who have long worried about how many people would sign up for health coverage get a surprise bonus next month: a slew of Congress members and staffers.
National Journal | Chronically Ill Have Their Own Issues With Obamacare
Amid the frustration surrounding the rocky launch of the Affordable Care Act’s online insurance exchanges, advocacy organizations are aiming to draw attention to the fact that even if the site were running smoothly, existing information is insufficient—particularly for individuals with chronic conditions.
Econ Comments & Analysis
WSJ | ObamaCare 2016: Happy Yet?
Three years after the disastrous launch of the Affordable Care Act, most of the website troubles finally have been ironed out. People are now able to log on to the government's ACA website and to most of the state health-insurance exchanges.
NBER | How Does Retiree Health Insurance Influence Public Sector Employee Saving?
This paper utilizes a unique data file on three baseline cohorts from the Health and Retirement Study to explore how employer-provided retiree health insurance may influence net household wealth among public sector employees, where retiree healthcare benefits are still quite prevalent.
Blogs
Heritage Foundation | Proof That Obamacare Is Hurting the Economy
Today’s jobs report shows the labor market recovery remains weak—and businesses are telling the Federal Reserve one of the main reasons is Obamacare.
Politico | Hill staffers a potential boon for D.C. exchange
District of Columbia insurance officials who have long worried about how many people would sign up for health coverage get a surprise bonus next month: a slew of Congress members and staffers.
National Journal | Chronically Ill Have Their Own Issues With Obamacare
Amid the frustration surrounding the rocky launch of the Affordable Care Act’s online insurance exchanges, advocacy organizations are aiming to draw attention to the fact that even if the site were running smoothly, existing information is insufficient—particularly for individuals with chronic conditions.
Econ Comments & Analysis
WSJ | ObamaCare 2016: Happy Yet?
Three years after the disastrous launch of the Affordable Care Act, most of the website troubles finally have been ironed out. People are now able to log on to the government's ACA website and to most of the state health-insurance exchanges.
NBER | How Does Retiree Health Insurance Influence Public Sector Employee Saving?
This paper utilizes a unique data file on three baseline cohorts from the Health and Retirement Study to explore how employer-provided retiree health insurance may influence net household wealth among public sector employees, where retiree healthcare benefits are still quite prevalent.
Blogs
Heritage Foundation | Proof That Obamacare Is Hurting the Economy
Today’s jobs report shows the labor market recovery remains weak—and businesses are telling the Federal Reserve one of the main reasons is Obamacare.
Monetary
News
Bloomberg | ECB Says Bank Review to Be More Credible Than Before
The European Central Bank’s probe into the health of Europe’s banks will be more credible than previous exercises because the institution itself will have to deal with the outcome, the official overseeing the test said.
WSJ | U.S. Import Prices Up 0.2%, Driven by Fuel
Prices of goods imported into the U.S. rose slightly last month, signaling subdued inflation amid slow global economic growth. Import prices were up a seasonally adjusted 0.2% in September from a month earlier, the Labor Department said Wednesday, led by rising fuel costs. That was in line with the forecasts of economists surveyed by Dow Jones Newswires.
Bloomberg | ECB Says Bank Review to Be More Credible Than Before
The European Central Bank’s probe into the health of Europe’s banks will be more credible than previous exercises because the institution itself will have to deal with the outcome, the official overseeing the test said.
WSJ | U.S. Import Prices Up 0.2%, Driven by Fuel
Prices of goods imported into the U.S. rose slightly last month, signaling subdued inflation amid slow global economic growth. Import prices were up a seasonally adjusted 0.2% in September from a month earlier, the Labor Department said Wednesday, led by rising fuel costs. That was in line with the forecasts of economists surveyed by Dow Jones Newswires.
Taxes
News
Politico | Tax breaks could ease pain of JPMorgan deal
JPMorgan Chase has struck a tentative deal with the Justice Department to pay a record $13 billion over dodgy mortgage products — but the biggest U.S. bank may be able to slash that bill by paying Uncle Sam less in taxes.
CNN Money | IRS: Tax season delayed due to shutdown
You'll have to wait to file your taxes to Uncle Sam this year, thanks to the government shutdown.
FOX Business | Family Income Over $200K? Your Health-Reform Tax Guide
The glitch-ridden rollout of Obamacare's health insurance exchanges have been dominating headlines, but for households making more than $200,000, they probably haven't felt any direct impact of the president's signature legislation....yet.
Blogs
WSJ | Cost of Improper Earned-Income Tax Credits: $10 Billion
Improper claims for the Earned Income Tax Credit continue to cost the government more than $10 billion a year, and there’s not much more the IRS can do about the problem with existing methods, a new report said.
Politico | Tax breaks could ease pain of JPMorgan deal
JPMorgan Chase has struck a tentative deal with the Justice Department to pay a record $13 billion over dodgy mortgage products — but the biggest U.S. bank may be able to slash that bill by paying Uncle Sam less in taxes.
CNN Money | IRS: Tax season delayed due to shutdown
You'll have to wait to file your taxes to Uncle Sam this year, thanks to the government shutdown.
FOX Business | Family Income Over $200K? Your Health-Reform Tax Guide
The glitch-ridden rollout of Obamacare's health insurance exchanges have been dominating headlines, but for households making more than $200,000, they probably haven't felt any direct impact of the president's signature legislation....yet.
Blogs
WSJ | Cost of Improper Earned-Income Tax Credits: $10 Billion
Improper claims for the Earned Income Tax Credit continue to cost the government more than $10 billion a year, and there’s not much more the IRS can do about the problem with existing methods, a new report said.
Employment
News
FOX News | Almost 6 million young Americans out of school, work, study says
Other studies have shown that idle young adults are missing out on a window to build skills they will need later in life or use the knowledge they acquired in college. Without those experiences, they are less likely to command higher salaries and more likely to be an economic drain on their communities.
Econ Comments & Analysis
WSJ | 90 Million Americans Not Working
Maybe the Bureau of Labor Statistics should have skipped a month because the belated September jobs report it issued Tuesday after the government shutdown wasn't worth the wait.
Heritage Foundation | September Employment Report Sluggish Labor Market Recovery
The Bureau of Labor Statistics (BLS) reports that the sluggish recovery continued in September. Private-sector employers added just 126,000 jobs, while the unemployment rate dropped a statistically insignificant 0.1 percentage points.
Blogs
Economist | Still sluggish
When the Federal Reserve began open-ended bond buying with newly printed money last fall, it hoped to generate forward momentum in the labour market. And as recently as August it seemed to have succeeded. But the recent data suggest a frustrating reversal of that momentum, with no clear explanation.
WSJ | Wary Employers Turn to Temp Workers
The temporary-help business notched respectable gains in September but the industry is feeling businesses’ reluctance to commit to even short-term workers.
FOX News | Almost 6 million young Americans out of school, work, study says
Other studies have shown that idle young adults are missing out on a window to build skills they will need later in life or use the knowledge they acquired in college. Without those experiences, they are less likely to command higher salaries and more likely to be an economic drain on their communities.
Econ Comments & Analysis
WSJ | 90 Million Americans Not Working
Maybe the Bureau of Labor Statistics should have skipped a month because the belated September jobs report it issued Tuesday after the government shutdown wasn't worth the wait.
Heritage Foundation | September Employment Report Sluggish Labor Market Recovery
The Bureau of Labor Statistics (BLS) reports that the sluggish recovery continued in September. Private-sector employers added just 126,000 jobs, while the unemployment rate dropped a statistically insignificant 0.1 percentage points.
Blogs
Economist | Still sluggish
When the Federal Reserve began open-ended bond buying with newly printed money last fall, it hoped to generate forward momentum in the labour market. And as recently as August it seemed to have succeeded. But the recent data suggest a frustrating reversal of that momentum, with no clear explanation.
WSJ | Wary Employers Turn to Temp Workers
The temporary-help business notched respectable gains in September but the industry is feeling businesses’ reluctance to commit to even short-term workers.
Budget
Econ Comments & Analysis
Mercatus | How Does the US Debt Position Compare with Other Countries?
This week’s charts use International Monetary Fund data to make international comparisons of the public debt burden.
Blogs
Roll Call | Hoyer Optimistic — but Cautiously So — on Budget Conference
As the first bicameral, bipartisan budget conference committee gets under way, Minority Whip Steny H. Hoyer said he had both high hopes and tempered expectations.
Heritage Foundation | Americans Want Solutions, Not Procrastination on Debt, Budget Crisis
Nearly two-thirds of Americans polled by Bloomberg answered that “it is right to require spending cuts when the debt ceiling is raised…because Congress lacks discipline on spending.” Their voices were not heard by Congress as it signed its terms of surrender.
Mercatus | How Does the US Debt Position Compare with Other Countries?
This week’s charts use International Monetary Fund data to make international comparisons of the public debt burden.
Blogs
Roll Call | Hoyer Optimistic — but Cautiously So — on Budget Conference
As the first bicameral, bipartisan budget conference committee gets under way, Minority Whip Steny H. Hoyer said he had both high hopes and tempered expectations.
Heritage Foundation | Americans Want Solutions, Not Procrastination on Debt, Budget Crisis
Nearly two-thirds of Americans polled by Bloomberg answered that “it is right to require spending cuts when the debt ceiling is raised…because Congress lacks discipline on spending.” Their voices were not heard by Congress as it signed its terms of surrender.
Tuesday, October 22, 2013
General Economics
News
Politico | U.S. carbon emissions keep falling
The U.S. energy sector’s carbon dioxide emissions fell last year to their lowest level in almost two decades, continuing a trend that has both supporters and opponents of President Barack Obama’s climate policies claiming to be vindicated.
Bloomberg | Construction Spending in U.S. Increases for Fifth Straight Month
Construction spending in the U.S. rose in August for a fifth consecutive month, propelled by the strongest outlays on homebuilding in five years.
FOX News | US existing home sales drop 1.9 percent in September due to higher mortgage rates, prices
Americans bought fewer existing homes in September than the previous month, held back by higher mortgage rates and rising prices.
CNN Money | 2 numbers that could cause another shutdown
Forget a grand bargain. Most people will be relieved if Congress can just agree on funding for fiscal year 2014, which started three weeks ago.
Bloomberg | Lockheed Forecasts Higher Profit as Net Income Rises 16%
Lockheed Martin Corp. (LMT), the biggest U.S. government contractor, raised its full-year forecast as third-quarter profit jumped 16 percent, defying Pentagon budget cuts.
Econ Comments & Analysis
WSJ | Treasury's Latest Financial Power Grab
On Friday, Prudential Financial Inc. dropped its fight against being designated as a "systemically important financial institution" by the Treasury Department's Financial Stability Oversight Council. When the oversight council in June named Prudential and AIG as " SIFIs, " it marked the first time in American history that federal government would directly regulate the solvency of state-licensed insurers as to all lines of insurance.
Washington Times | Solving the financial crisis by causing another
The House Financial Services Committee’s top Democrat, Rep. Maxine Waters, recently scolded bankers in the industry’s flagship newspaper, the American Banker. The op-ed, titled “How to prevent another financial crisis,” underscores how difficult it will be. She, like many hard-left Democrats, clings to the false narrative that insufficient regulation, greed and risky private-sector behavior caused the crisis and that Washington should continue to prop up the housing market.
Market Watch | U.S. economy faces host of big new problems
The end of the latest kerfuffle in Washington marks the beginning of new problems for the U.S. economy.
CATO | Five Lessons from the Shutdown
Greece is now suffering through a very deep recession, with record unemployment and unimaginably harsh economic conditions. To make matters worse, there’s not much light at the end of the tunnel.
Blogs
WSJ | U.S. Economic Mobility Improving Very Slowly
A new report by Opportunity Nation, a network of over 250 nonprofit, business and other organizations, analyzed 16 economic and demographic indicators and found that America’s overall “Opportunity Score” — a broad measure of economic mobility — is now 50.9, barely higher than 50 in 2012 and 49.59 in 2011.
Politico | U.S. carbon emissions keep falling
The U.S. energy sector’s carbon dioxide emissions fell last year to their lowest level in almost two decades, continuing a trend that has both supporters and opponents of President Barack Obama’s climate policies claiming to be vindicated.
Bloomberg | Construction Spending in U.S. Increases for Fifth Straight Month
Construction spending in the U.S. rose in August for a fifth consecutive month, propelled by the strongest outlays on homebuilding in five years.
FOX News | US existing home sales drop 1.9 percent in September due to higher mortgage rates, prices
Americans bought fewer existing homes in September than the previous month, held back by higher mortgage rates and rising prices.
CNN Money | 2 numbers that could cause another shutdown
Forget a grand bargain. Most people will be relieved if Congress can just agree on funding for fiscal year 2014, which started three weeks ago.
Bloomberg | Lockheed Forecasts Higher Profit as Net Income Rises 16%
Lockheed Martin Corp. (LMT), the biggest U.S. government contractor, raised its full-year forecast as third-quarter profit jumped 16 percent, defying Pentagon budget cuts.
Econ Comments & Analysis
WSJ | Treasury's Latest Financial Power Grab
On Friday, Prudential Financial Inc. dropped its fight against being designated as a "systemically important financial institution" by the Treasury Department's Financial Stability Oversight Council. When the oversight council in June named Prudential and AIG as " SIFIs, " it marked the first time in American history that federal government would directly regulate the solvency of state-licensed insurers as to all lines of insurance.
Washington Times | Solving the financial crisis by causing another
The House Financial Services Committee’s top Democrat, Rep. Maxine Waters, recently scolded bankers in the industry’s flagship newspaper, the American Banker. The op-ed, titled “How to prevent another financial crisis,” underscores how difficult it will be. She, like many hard-left Democrats, clings to the false narrative that insufficient regulation, greed and risky private-sector behavior caused the crisis and that Washington should continue to prop up the housing market.
Market Watch | U.S. economy faces host of big new problems
The end of the latest kerfuffle in Washington marks the beginning of new problems for the U.S. economy.
CATO | Five Lessons from the Shutdown
Greece is now suffering through a very deep recession, with record unemployment and unimaginably harsh economic conditions. To make matters worse, there’s not much light at the end of the tunnel.
Blogs
WSJ | U.S. Economic Mobility Improving Very Slowly
A new report by Opportunity Nation, a network of over 250 nonprofit, business and other organizations, analyzed 16 economic and demographic indicators and found that America’s overall “Opportunity Score” — a broad measure of economic mobility — is now 50.9, barely higher than 50 in 2012 and 49.59 in 2011.
Health Care
News
Politico | Ohio OKs Obamacare Medicaid expansion
An obscure Ohio board has approved Obamacare’s Medicaid expansion, but a likely legal fight by furious conservatives is looming.
National Journal | Obama: ‘There’s No Sugarcoating’ the Health Care Insurance Exchange
It was a bit like an infomercial: The satisfied customers gave testimonials. The manufacturer assured viewers that the product will make life easier. And the product is great, and cleanup of any glitches will be a breeze.
Econ Comments & Analysis
Washington Times | The continuing train wreck
The Obama administration has finally conceded what everyone expected to happen, that the Obamacare rollout is a train wreck, or, as the bureaucrats put it, “has not lived up to the expectations of the American people.” President Obama tried Monday to get in front of the crisis his signature health care law has written across the front pages. “There’s no sugarcoating it,” he said at the Rose Garden photo op. “The website has been too slow.”
Politico | Ohio OKs Obamacare Medicaid expansion
An obscure Ohio board has approved Obamacare’s Medicaid expansion, but a likely legal fight by furious conservatives is looming.
National Journal | Obama: ‘There’s No Sugarcoating’ the Health Care Insurance Exchange
It was a bit like an infomercial: The satisfied customers gave testimonials. The manufacturer assured viewers that the product will make life easier. And the product is great, and cleanup of any glitches will be a breeze.
Econ Comments & Analysis
Washington Times | The continuing train wreck
The Obama administration has finally conceded what everyone expected to happen, that the Obamacare rollout is a train wreck, or, as the bureaucrats put it, “has not lived up to the expectations of the American people.” President Obama tried Monday to get in front of the crisis his signature health care law has written across the front pages. “There’s no sugarcoating it,” he said at the Rose Garden photo op. “The website has been too slow.”
Monetary
News
Politico | A chance to reshape the Federal Reserve
In the coming months, President Barack Obama will have the opportunity to make over the Federal Reserve Board of Governors and put his stamp on the U.S. central bank for years to come.
Bloomberg | Fed Got in Trouble With Transparency, Ferguson Says
Roger W. Ferguson, a former U.S. Federal Reserve vice chairman, said the Fed’s push for transparency amid quantitative easing tripped up the central bank this year.
CNBC | Alan Greenspan: ' The system is broken'
For 18½ years as Federal Reserve chairman, he was celebrated for helping drive a robust U.S. economy. Yet in the years after he stepped down in 2006, he was engulfed by accusations that he helped cause the 2008 financial crisis—the worst since the 1930s.
Politico | A chance to reshape the Federal Reserve
In the coming months, President Barack Obama will have the opportunity to make over the Federal Reserve Board of Governors and put his stamp on the U.S. central bank for years to come.
Bloomberg | Fed Got in Trouble With Transparency, Ferguson Says
Roger W. Ferguson, a former U.S. Federal Reserve vice chairman, said the Fed’s push for transparency amid quantitative easing tripped up the central bank this year.
CNBC | Alan Greenspan: ' The system is broken'
For 18½ years as Federal Reserve chairman, he was celebrated for helping drive a robust U.S. economy. Yet in the years after he stepped down in 2006, he was engulfed by accusations that he helped cause the 2008 financial crisis—the worst since the 1930s.
Taxes
News
Washington Times | IRS paid out $132 billion in bogus tax credits over last decade
The IRS paid as much as $13.6 billion in bogus claims for the Earned Income Tax Credit last year, according to a report the agency’s internal auditor released Tuesday morning.
Econ Comments & Analysis
Politico | Comprehensive tax reform now
Twenty-seven years ago today, Republicans and Democrats came together for a comprehensive tax reform package that strengthened economic growth and helped American companies compete in the global marketplace.
Fiscal Times | A Tax Reform Plan that Both Parties Can Like
Notwithstanding its entertainment value, Americas hate party politics and political gridlock. They are desperate to get our country's problems fixed. And one area that needs immediate fixing is our tax system. - See more at: http://www.thefiscaltimes.com/Columns/2013/10/20/Tax-Reform-Plan-Both-Parties-Can#sthash.5JXnzeQY.dpuf
Washington Times | IRS paid out $132 billion in bogus tax credits over last decade
The IRS paid as much as $13.6 billion in bogus claims for the Earned Income Tax Credit last year, according to a report the agency’s internal auditor released Tuesday morning.
Econ Comments & Analysis
Politico | Comprehensive tax reform now
Twenty-seven years ago today, Republicans and Democrats came together for a comprehensive tax reform package that strengthened economic growth and helped American companies compete in the global marketplace.
Fiscal Times | A Tax Reform Plan that Both Parties Can Like
Notwithstanding its entertainment value, Americas hate party politics and political gridlock. They are desperate to get our country's problems fixed. And one area that needs immediate fixing is our tax system. - See more at: http://www.thefiscaltimes.com/Columns/2013/10/20/Tax-Reform-Plan-Both-Parties-Can#sthash.5JXnzeQY.dpuf
Employment
News
CNN Money | Why young people are saying 'no' to the workforce
A job used to be the next step after a diploma. But now, young people aren't in any rush to start working.
Bloomberg | Payrolls in U.S. Rise Less Than Forecast
Employers in the U.S. added fewer workers to payrolls than projected in September, indicating the world’s largest economy had little momentum leading up to the federal government shutdown.
Econ Comments & Analysis
Real Clear Markets | America: One-Time Home of the 'Employment Miracle'
The government shutdown and the nation's near-default captured headlines, but they are unlikely to have huge consequences for the economic recovery. The current expansion has been slow but comparatively steady. It has been too sluggish to end the misery of the long-term unemployed but strong enough to add about 160,000 jobs a month since payroll employment began to rise in March 2010
Mercatus | Raising the Minimum Wage Is No Free Lunch
While the minimum wage debate usually plays out at the federal level, there is now a grassroots push across the country to raise wages beyond the federally mandated $7.25 per hour. Unfortunately, success won't guarantee a happy ending for workers.
Blogs
WSJ | Five Takeaways From September Jobs Report
U.S. employers added 148,000 jobs in September, and the unemployment rate ticked down to 7.2%, the Labor Department said Tuesday. Economists are still digesting today’s report, but here are five initial takeaways
CNN Money | Why young people are saying 'no' to the workforce
A job used to be the next step after a diploma. But now, young people aren't in any rush to start working.
Bloomberg | Payrolls in U.S. Rise Less Than Forecast
Employers in the U.S. added fewer workers to payrolls than projected in September, indicating the world’s largest economy had little momentum leading up to the federal government shutdown.
Econ Comments & Analysis
Real Clear Markets | America: One-Time Home of the 'Employment Miracle'
The government shutdown and the nation's near-default captured headlines, but they are unlikely to have huge consequences for the economic recovery. The current expansion has been slow but comparatively steady. It has been too sluggish to end the misery of the long-term unemployed but strong enough to add about 160,000 jobs a month since payroll employment began to rise in March 2010
Mercatus | Raising the Minimum Wage Is No Free Lunch
While the minimum wage debate usually plays out at the federal level, there is now a grassroots push across the country to raise wages beyond the federally mandated $7.25 per hour. Unfortunately, success won't guarantee a happy ending for workers.
Blogs
WSJ | Five Takeaways From September Jobs Report
U.S. employers added 148,000 jobs in September, and the unemployment rate ticked down to 7.2%, the Labor Department said Tuesday. Economists are still digesting today’s report, but here are five initial takeaways
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