News
CNN Money | The wealthy haven't recovered from the Great Recession (but they're doing way better than you)
The top 1% of America's earners saw their average income rise by 11% during the economic recovery, but hold the Dom Perignon.
Bloomberg | Factories in New York Area Expanded in March for Second Month
Manufacturing in the New York region expanded for a second month in March and industry managers grew more optimistic about the future, indicating the area’s factories are rebounding.
CNN Money | Solar power has record year despite bankruptcies
It was a record year for solar installations in the United States in 2012, boosting an industry still struggling with consolidation and bankruptcies.
Market Watch | U.S. industrial output up 0.7% in February
Industrial production rebounded in February after a weak report in the prior month on the back of stronger manufacturing and utility production, the Federal Reserve said Friday.
Econ Comments & Analysis
Washington Times | The ethanol bubble
When the price of a commodity rises to stratospheric heights for no apparent reason, it’s likely hysterical speculation. Only the government could come up with a bubble in a commodity that’s merely speculative. This week, the going price for a “renewable identification number” hit a high of $1.10, which is up 3,500 percent from the 3 cents it would have fetched just a few months ago.
Washington Times | Remedial economics for Democrats
President Obama and the Democrats still don’t get it. They laid down their budget markers this week, seeking to impose nearly $1 trillion in new taxes on an economy that’s still struggling to get back on its feet.
NY Times | Hidden Numbers Make Banks Even Bigger
Under American accounting rules, banks that trade a lot of derivatives can keep literally trillions of dollars in assets and liabilities off their balance sheets. Since 2009, they have at least been required to make disclosures about how large those amounts are, but the disclosures leave out some things and — amazingly enough — in some cases do not seem to add up.
Mercatus | Deficit Spending Displaces Private Economic Growth
The case for budget balance begins with economic growth. A number of studies have now found that nations with high debt—typically defined as debt in excess of 90 percent of GDP—tend to grow more slowly.
Heritage Foundation | Energy Efficiency, Not Efficiency Mandates
In order to compel American businesses and consumers to act in a manner that suits the federal government, various federal agencies have created mandates and energy-efficiency programs for vehicles, homes, manufacturing processes, appliances, and more since the 1970s.
Friday, March 15, 2013
Health Care
News
National Journal | Chickening Out on Medicare
Both parties agree that the program is unsustainable without deep cuts. But once again, neither is willing to show the way.
WSJ | Employers Blast Fees From New Health Law
Employers are bracing for a little-noticed fee in the federal health-care law that will charge them $63 for each person they insure next year, one of the clearest cost increases companies face when the law takes full effect.
Econ Comments & Analysis
WSJ | The Doctor Won't See You Now. He's Clocked Out
Big government likes big providers. That's why ObamaCare is gradually making the local doctor-owned medical practice a relic. In the not too distant future, most physicians will be hourly wage earners, likely employed by a hospital chain.
National Journal | Chickening Out on Medicare
Both parties agree that the program is unsustainable without deep cuts. But once again, neither is willing to show the way.
WSJ | Employers Blast Fees From New Health Law
Employers are bracing for a little-noticed fee in the federal health-care law that will charge them $63 for each person they insure next year, one of the clearest cost increases companies face when the law takes full effect.
Econ Comments & Analysis
WSJ | The Doctor Won't See You Now. He's Clocked Out
Big government likes big providers. That's why ObamaCare is gradually making the local doctor-owned medical practice a relic. In the not too distant future, most physicians will be hourly wage earners, likely employed by a hospital chain.
Monetary
News
FOX Business | Fed Expected to Hold Steady on Stimulus Despite Debate Over Risks
Federal Reserve officials will spend much of a meeting next week debating the potential risks from the central bank's stimulus plan, but Chairman Ben Bernanke has already signaled he believes the costs of inaction are even greater.
Bloomberg | Consumer Prices in U.S. Increase on Jump in Gasoline Cost
The cost of living in the U.S. rose more than projected in February due to the biggest jump in gasoline prices in more than three years. The retreat in fuel expenses this month signals inflation will hover around the Federal Reserve’s goal.
Econ Comments & Analysis
Forbes | If Alan Greenspan Wants To 'End The Fed', Times Must Be Changing
For a long time, gold standard advocates in the United States have had differing viewpoints about whether a new gold standard system might take place with existing institutions, such as the Federal Reserve, or whether it would take place with new institutions, and the Federal Reserve would in effect be disbanded or rendered irrelevant.
Fortune | Fed approves capital plans from 16 of 18 big banks
The Federal Reserve approved the capital plans of 16 of the nation's 18 largest banks on Thursday as part of the final leg of their required stress tests.
Real Clear Markets | Monetarism Is the Dog Feverishly Chasing Its Own Tail
Back in November 2005, the Federal Reserve quietly announced that it would discontinue collecting data and publishing the M3 monetary aggregate series. It set off a bit of backlash in quarters where monetary aggregates have heavy meaning, largely because the M3 series was the broadest measure of the 'money' supply for the US dollar. Contained in that series was the opaque world of large time deposits, institutional money market funds, repurchase agreements, and eurodollars.
Blogs
Economist | Fearing the worst
Runaway inflation can only limit the government's ability to distribute real resources to the extent that it destroys the economy's ability to generate real resources. That is, if the power of the penionser lobby is so extraordinarily great that it can bring America to destroy itself with hyperinflation, then hyperinflation won't necessarily end pensioners' ability to extract benefits from the rest of us.
Library of Economics | If There's No Inflation, Why are Prices Up So Much?
Price hikes for a particular item here or there don't qualify as inflation. If one thing gets more expensive but something else gets cheaper, that's what economists call a relative price change.
FOX Business | Fed Expected to Hold Steady on Stimulus Despite Debate Over Risks
Federal Reserve officials will spend much of a meeting next week debating the potential risks from the central bank's stimulus plan, but Chairman Ben Bernanke has already signaled he believes the costs of inaction are even greater.
Bloomberg | Consumer Prices in U.S. Increase on Jump in Gasoline Cost
The cost of living in the U.S. rose more than projected in February due to the biggest jump in gasoline prices in more than three years. The retreat in fuel expenses this month signals inflation will hover around the Federal Reserve’s goal.
Econ Comments & Analysis
Forbes | If Alan Greenspan Wants To 'End The Fed', Times Must Be Changing
For a long time, gold standard advocates in the United States have had differing viewpoints about whether a new gold standard system might take place with existing institutions, such as the Federal Reserve, or whether it would take place with new institutions, and the Federal Reserve would in effect be disbanded or rendered irrelevant.
Fortune | Fed approves capital plans from 16 of 18 big banks
The Federal Reserve approved the capital plans of 16 of the nation's 18 largest banks on Thursday as part of the final leg of their required stress tests.
Real Clear Markets | Monetarism Is the Dog Feverishly Chasing Its Own Tail
Back in November 2005, the Federal Reserve quietly announced that it would discontinue collecting data and publishing the M3 monetary aggregate series. It set off a bit of backlash in quarters where monetary aggregates have heavy meaning, largely because the M3 series was the broadest measure of the 'money' supply for the US dollar. Contained in that series was the opaque world of large time deposits, institutional money market funds, repurchase agreements, and eurodollars.
Blogs
Economist | Fearing the worst
Runaway inflation can only limit the government's ability to distribute real resources to the extent that it destroys the economy's ability to generate real resources. That is, if the power of the penionser lobby is so extraordinarily great that it can bring America to destroy itself with hyperinflation, then hyperinflation won't necessarily end pensioners' ability to extract benefits from the rest of us.
Library of Economics | If There's No Inflation, Why are Prices Up So Much?
Price hikes for a particular item here or there don't qualify as inflation. If one thing gets more expensive but something else gets cheaper, that's what economists call a relative price change.
Taxes
News
Market Watch | Bankrupt countries are coming after investors
These are difficult times to be a tax manager at a major multinational. Everywhere you go you are assailed for not paying enough tax.
Market Watch | Bankrupt countries are coming after investors
These are difficult times to be a tax manager at a major multinational. Everywhere you go you are assailed for not paying enough tax.
Employment
Econ Comments & Analysis
Politico | Staff empowerment is key to manager success
If you are a congressional staff director for 14 years, as I was, you will have a lot of opportunities to learn from your mistakes. It is better, though, to learn from the experiences of other managers and from books on best management practices. To the sound advice you can obtain this way, I would add the following suggestions:
Blogs
WSJ | Layoffs Drop, but Hiring Still Languishes
The number of workers being laid off is steadily declining. The Labor Department said Thursday that new filings for jobless benefits last week unexpectedly dropped 10,000 to 332,000, the fourth drop in five weeks. The four-week moving average, which smooths out volatility, is at its lowest level in five years.
Politico | Staff empowerment is key to manager success
If you are a congressional staff director for 14 years, as I was, you will have a lot of opportunities to learn from your mistakes. It is better, though, to learn from the experiences of other managers and from books on best management practices. To the sound advice you can obtain this way, I would add the following suggestions:
Blogs
WSJ | Layoffs Drop, but Hiring Still Languishes
The number of workers being laid off is steadily declining. The Labor Department said Thursday that new filings for jobless benefits last week unexpectedly dropped 10,000 to 332,000, the fourth drop in five weeks. The four-week moving average, which smooths out volatility, is at its lowest level in five years.
Budget
News
National Journal | There's New Hope for a Grand Bargain
Amid the hot air in Washington comes the whiff of compromise.
Bloomberg | Obama-Republican Budget Battle Isn’t Only Taxes and Cuts
The wrangling of President Barack Obama and congressional Republicans over the federal budget underscores a clash of core philosophies about how the economy works that supersedes any skirmish on taxes or spending cuts.
CNBC | Why the US Could Face Another Brush With Default
With the Dow Jones reaching an all-time high and the S&P 500 not far behind, markets have shrugged off the disappointment of the sequester. But Alastair Newton, senior political analyst at Nomura says that far bigger hurdles lie ahead that could potentially give the U.S. another "brush with default".
Econ Comments & Analysis
Market Watch | Lew upbeat about prospects for budget deal
Treasury Secretary Jacob Lew said Thursday there were reasons to be optimistic about the recent flurry of talks between President Barack Obama and congressional Republicans on the budget.
Investors | Ryan Shows How To Balance The Budget Without Tax Hikes
Deficits: Rep. Paul Ryan's latest budget plan shows that we can balance the budget in just a decade without any new taxes and still increase spending if we get rid of the massive cost of ObamaCare.
Reason | In Reality, Debt Matters. It Matters a Lot
No worries, America. Debt is a preoccupation of the fringe, a mere distraction for anyone interested in progress. And anyway, as President Barack Obama explained this week, "we don't have an immediate crisis in terms of debt. In fact, for the next 10 years, it's going to be in a sustainable place."
AEI | A balanced budget isn't necessary, but entitlement reform is
The federal budget deficit should be sustainable given future growth and inflation expectations, not necessarily zero, much like there is no need for corporations to be financed with equity alone.
Blogs
WSJ | Americans’ Debt Payments Hit Three-Decade Low
U.S. households spent 10.4% of their after-tax income on debt payments in the final three months of 2012 compared with 10.6% a quarter earlier, the 15th straight decrease and the lowest level since government tracking started in 1980, according to recently released Federal Reserve figures. Families’ debt obligations are well below their average since 1980 of 11.9%. If you include other payments that aren’t classified as debt — like rent and auto leases — the figure rises to 15.5%, but that’s still the lowest since 1981.
National Journal | There's New Hope for a Grand Bargain
Amid the hot air in Washington comes the whiff of compromise.
Bloomberg | Obama-Republican Budget Battle Isn’t Only Taxes and Cuts
The wrangling of President Barack Obama and congressional Republicans over the federal budget underscores a clash of core philosophies about how the economy works that supersedes any skirmish on taxes or spending cuts.
CNBC | Why the US Could Face Another Brush With Default
With the Dow Jones reaching an all-time high and the S&P 500 not far behind, markets have shrugged off the disappointment of the sequester. But Alastair Newton, senior political analyst at Nomura says that far bigger hurdles lie ahead that could potentially give the U.S. another "brush with default".
Econ Comments & Analysis
Market Watch | Lew upbeat about prospects for budget deal
Treasury Secretary Jacob Lew said Thursday there were reasons to be optimistic about the recent flurry of talks between President Barack Obama and congressional Republicans on the budget.
Investors | Ryan Shows How To Balance The Budget Without Tax Hikes
Deficits: Rep. Paul Ryan's latest budget plan shows that we can balance the budget in just a decade without any new taxes and still increase spending if we get rid of the massive cost of ObamaCare.
Reason | In Reality, Debt Matters. It Matters a Lot
No worries, America. Debt is a preoccupation of the fringe, a mere distraction for anyone interested in progress. And anyway, as President Barack Obama explained this week, "we don't have an immediate crisis in terms of debt. In fact, for the next 10 years, it's going to be in a sustainable place."
AEI | A balanced budget isn't necessary, but entitlement reform is
The federal budget deficit should be sustainable given future growth and inflation expectations, not necessarily zero, much like there is no need for corporations to be financed with equity alone.
Blogs
WSJ | Americans’ Debt Payments Hit Three-Decade Low
U.S. households spent 10.4% of their after-tax income on debt payments in the final three months of 2012 compared with 10.6% a quarter earlier, the 15th straight decrease and the lowest level since government tracking started in 1980, according to recently released Federal Reserve figures. Families’ debt obligations are well below their average since 1980 of 11.9%. If you include other payments that aren’t classified as debt — like rent and auto leases — the figure rises to 15.5%, but that’s still the lowest since 1981.
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