News
Politico | Immigration debate: Tuition breaks go largely unclaimed
Fifteen states have passed laws allowing undocumented immigrants to pay in-state tuition at public colleges — a huge incentive for lower-income kids looking for a financial break.
National Journal | The White House is Copy and Pasting Its Way Through the Jobs Recovery
For the past year, the White House has used the same opening line in its official statement.
CNN Money | Chinese buyers flood U.S. housing market
Chinese buyers accounted for 18% of the $68.2 billion that foreigners spent on homes during the 12 months ended March 31, according to the National Association of Realtors.
Econ Comments & Analysis
Fortune | Why higher interest rates won't stall U.S. job growth
As long as interest rates rise on positive economic news, as opposed to bad news, the economy will continue creating jobs at a decent pace.
Washington Times | Diverting food for fuel
Aclever ActionAid U.K. video asks Londoners to sign a petition that claims “greedy people in developing nations are eating huge amounts of food that could easily be turned into biofuel to power our cars.” They refused.
AEI | Progress on housing finance reform
Taxpayers received $66 billion of good news last Monday in the form of dividends to the Treasury from Fannie Mae and Freddie Mac as part of the compensation for the bailout of the two government-sponsored enterprises (GSEs).
Blogs
Market Watch | Mortgage rates poised to jolt up again
With the government reporting surprisingly good jobs news on Friday, the 10-year Treasury yield posted a large jump, signaling that mortgage rates may see yet another jolt higher in coming days.
Monday, July 8, 2013
Health Care
Econ Comments & Analysis
WSJ | Another ObamaCare Tax That Is Bad for Your Health
On Jan. 1, manufacturers of medical devices in the U.S. were hit with a new 2.3% tax on revenue, one of the many sources of money tapped to pay for ObamaCare. This tax will likely cut into the profits of large medical-device manufacturers, a cost that will almost certainly be passed on to health-care consumers. But its effect on U.S. medical-device startups—the small companies that fuel innovation—may prove devastating.
Washington Times | The great train wreck
The delay of the employer mandate in Obamacare is designed to improve Democrats’ prospects in next year’s congressional elections, but it’s difficult to see how and it’s not promising news for everyone else. Both employers and employees can only worry about what’s coming next. They should expect it to be bad. Investments in job creation will be delayed; prudent employers will necessarily put off hiring new workers.
WSJ | ObamaCare's 'Liar' Subsidies
The White House seems to regard laws as mere suggestions, including the laws it helped to write. On the heels of last week's one-year suspension of the Affordable Care Act's employer mandate to offer insurance to workers, the Administration is now waiving a new batch of its own ObamaCare prescriptions.
CRS | Health Care Reform and Small Business
Small businesses may benefit from the ability to purchase insurance in the exchanges set up by the states or the federal government.
WSJ | Another ObamaCare Tax That Is Bad for Your Health
On Jan. 1, manufacturers of medical devices in the U.S. were hit with a new 2.3% tax on revenue, one of the many sources of money tapped to pay for ObamaCare. This tax will likely cut into the profits of large medical-device manufacturers, a cost that will almost certainly be passed on to health-care consumers. But its effect on U.S. medical-device startups—the small companies that fuel innovation—may prove devastating.
Washington Times | The great train wreck
The delay of the employer mandate in Obamacare is designed to improve Democrats’ prospects in next year’s congressional elections, but it’s difficult to see how and it’s not promising news for everyone else. Both employers and employees can only worry about what’s coming next. They should expect it to be bad. Investments in job creation will be delayed; prudent employers will necessarily put off hiring new workers.
WSJ | ObamaCare's 'Liar' Subsidies
The White House seems to regard laws as mere suggestions, including the laws it helped to write. On the heels of last week's one-year suspension of the Affordable Care Act's employer mandate to offer insurance to workers, the Administration is now waiving a new batch of its own ObamaCare prescriptions.
CRS | Health Care Reform and Small Business
Small businesses may benefit from the ability to purchase insurance in the exchanges set up by the states or the federal government.
Monetary
News
Market Watch | More clues about Fed’s tapering plans due
Economists will be trying to figure out what it would take to get the Federal Reserve to begin to slow down the pace of its asset purchases and whether the strong June employment data was enough.
Econ Comments & Analysis
LA Times | Navigating the shift to a stingier Fed
After four years of providing trillions of dollars in cheap money to prop up the U.S. financial system and economy, the Federal Reserve has signaled that its generosity won't last forever.
the American | No, Virginia, Nothing Is Really Risk Free
The financial world confronts us with ineluctable uncertainty and risk. Its future is unknowable, not only for borrowers, lenders, and investors, but also for governments and central banks. No matter how hard anyone might try, risk cannot be made to disappear; it can only be moved around.
Blogs
Economist | Perturbing parallels
This week’s troubles in Portugal were a brutal reminder that the euro crisis has not gone away. Ten-year government bond yields went briefly above 8% as two ministers resigned and the ruling coalition frayed. Setbacks to the economy have broken the previous national consensus backing stringent austerity measures that have been forced through as part of the country’s 2011 bail-out.
Market Watch | More clues about Fed’s tapering plans due
Economists will be trying to figure out what it would take to get the Federal Reserve to begin to slow down the pace of its asset purchases and whether the strong June employment data was enough.
Econ Comments & Analysis
LA Times | Navigating the shift to a stingier Fed
After four years of providing trillions of dollars in cheap money to prop up the U.S. financial system and economy, the Federal Reserve has signaled that its generosity won't last forever.
the American | No, Virginia, Nothing Is Really Risk Free
The financial world confronts us with ineluctable uncertainty and risk. Its future is unknowable, not only for borrowers, lenders, and investors, but also for governments and central banks. No matter how hard anyone might try, risk cannot be made to disappear; it can only be moved around.
Blogs
Economist | Perturbing parallels
This week’s troubles in Portugal were a brutal reminder that the euro crisis has not gone away. Ten-year government bond yields went briefly above 8% as two ministers resigned and the ruling coalition frayed. Setbacks to the economy have broken the previous national consensus backing stringent austerity measures that have been forced through as part of the country’s 2011 bail-out.
Taxes
News
Market Watch | Dealing with the huge tax shortfall in China
Disappointing tax income figures have forced Beijing to shore up its fiscal position by dipping into government savings in the central bank, a move that will undoubtedly unsettle many bureaucrats.
Blogs
CATO | New Academic Research Confirms the ‘High Price’ of High Tax Rates
To what extent do marginal tax rates matter for individual decisions to work and invest? The answer is essential for public policy and its role in shaping economic growth.
Market Watch | Dealing with the huge tax shortfall in China
Disappointing tax income figures have forced Beijing to shore up its fiscal position by dipping into government savings in the central bank, a move that will undoubtedly unsettle many bureaucrats.
Blogs
CATO | New Academic Research Confirms the ‘High Price’ of High Tax Rates
To what extent do marginal tax rates matter for individual decisions to work and invest? The answer is essential for public policy and its role in shaping economic growth.
Employment
News
CNN Money | 650,000 defense employees start furloughs Monday
As part of the sequester, or federal spending cuts, that are currently underway, civilian defense workers will be forced to take one unpaid day off each week, leading to a 20% reduction in their pay through Sept. 21.
FOX News | US companies increasingly turning to temporary workers to fill positions
Hiring is exploding in the one corner of the U.S. economy where few want to be hired: Temporary work.
CNN Money | Veterans still fighting for survival in tough job market
The unemployment rate for veterans who served since the 9/11 attacks peaked at a troubling 15.2% in January 2011. Since then, as the economy has improved and outreach efforts have taken hold, it has fallen by more than half to 7.2%.
Econ Comments & Analysis
NY Times | Defining Prosperity Down
Friday’s employment report wasn’t bad. But given how depressed our economy remains, we really should be adding more than 300,000 jobs a month, not fewer than 200,000. As the Economic Policy Institute points out, we would need more than five years of job growth at this rate to get back to the level of unemployment that prevailed before the Great Recession.
Mercatus | Job Growth Trend for 2013 Starting to Improve, But Labor Market Problems Remain
The U.S. economy added 195,000 jobs in the month of June, according to the Bureau of Labor Statistics, a positive sign with monthly job gains for 2013 now averaging approximately 202,000, compared with 183,000 per month in 2012.
CNN Money | 650,000 defense employees start furloughs Monday
As part of the sequester, or federal spending cuts, that are currently underway, civilian defense workers will be forced to take one unpaid day off each week, leading to a 20% reduction in their pay through Sept. 21.
FOX News | US companies increasingly turning to temporary workers to fill positions
Hiring is exploding in the one corner of the U.S. economy where few want to be hired: Temporary work.
CNN Money | Veterans still fighting for survival in tough job market
The unemployment rate for veterans who served since the 9/11 attacks peaked at a troubling 15.2% in January 2011. Since then, as the economy has improved and outreach efforts have taken hold, it has fallen by more than half to 7.2%.
Econ Comments & Analysis
NY Times | Defining Prosperity Down
Friday’s employment report wasn’t bad. But given how depressed our economy remains, we really should be adding more than 300,000 jobs a month, not fewer than 200,000. As the Economic Policy Institute points out, we would need more than five years of job growth at this rate to get back to the level of unemployment that prevailed before the Great Recession.
Mercatus | Job Growth Trend for 2013 Starting to Improve, But Labor Market Problems Remain
The U.S. economy added 195,000 jobs in the month of June, according to the Bureau of Labor Statistics, a positive sign with monthly job gains for 2013 now averaging approximately 202,000, compared with 183,000 per month in 2012.
Budget
News
Politico | Scrambling for student loan rate fix
The rate for new subsidized loans shot up from 3.4 percent to 6.8 percent on July 1 after divisions among Senate Democrats made finding a solution untenable. Now with the bright lights of the immigration bill off the upper chamber, student loan rates take center stage.
Bloomberg | Losing $317 Billion Makes U.S. Debt Safer for Mizuho to HSBC
The biggest investors in Asia and Europe are keeping their money in Treasuries even after the steepest two-month loss for the securities erased $317 billion of market value.
Market Watch | IMF takes another swipe at U.S. budget cuts
The sequester cuts made in the U.S. federal budget were "inappropriate", as they are likely to stifle, rather than support, economic recovery, the head of the International Monetary Fund Christine Lagarde has said Sunday.
Econ Comments & Analysis
Forbes | Student Loan Debt: Now For The Really Bad News
At this point readers are well aware of the numbers behind student loan debt. As the cost of a college degree has risen, total debt has soared; $1 trillion the latest number.
Real Clear Markets | The Keynesian Fallacy Of 'Unspent' Money
Keynesians act as if money saved is money vanished. In reality, money saved is money lent and spent.
Politico | Scrambling for student loan rate fix
The rate for new subsidized loans shot up from 3.4 percent to 6.8 percent on July 1 after divisions among Senate Democrats made finding a solution untenable. Now with the bright lights of the immigration bill off the upper chamber, student loan rates take center stage.
Bloomberg | Losing $317 Billion Makes U.S. Debt Safer for Mizuho to HSBC
The biggest investors in Asia and Europe are keeping their money in Treasuries even after the steepest two-month loss for the securities erased $317 billion of market value.
Market Watch | IMF takes another swipe at U.S. budget cuts
The sequester cuts made in the U.S. federal budget were "inappropriate", as they are likely to stifle, rather than support, economic recovery, the head of the International Monetary Fund Christine Lagarde has said Sunday.
Econ Comments & Analysis
Forbes | Student Loan Debt: Now For The Really Bad News
At this point readers are well aware of the numbers behind student loan debt. As the cost of a college degree has risen, total debt has soared; $1 trillion the latest number.
Real Clear Markets | The Keynesian Fallacy Of 'Unspent' Money
Keynesians act as if money saved is money vanished. In reality, money saved is money lent and spent.
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