News
Pew Research | U.S.-China Relations: Key Data Points from Pew Research
American public opinion has shifted in favor of getting tougher with China when it comes to economic and trade policy.
Bloomberg | Moody’s Cuts Chicago Rating Amid Crime, Pension Liability
Mounting pension liabilities have cost Chicago another cut in its credit standing as Moody’s Investors Service reduced the general-obligation debt rating for the nation’s third-largest city by three steps to A3, citing a $36 billion retirement-fund deficit and “unrelenting public safety demands” on the budget.
CNN Money | Falling oil prices could spark global turmoil
Falling oil prices can have a lot of benefits. They put money into consumers' pockets. They cut trade deficits. They make it cheaper for businesses to sell stuff.
Bloomberg | Consumer Comfort in U.S. Declines After Reaching Five-Year High
Consumer sentiment declined last week from a five-year high as Americans grew more pessimistic about the prospects for the world’s largest economy.
WSJ | Strong Earnings, Buyback Plans Boost Morgan Stanley
Morgan Stanley posted better-than-expected second-quarter earnings Thursday despite a volatile interest-rate environment, and surprised investors by announcing plans to repurchase its stock for the first time since the financial crisis.
Econ Comments & Analysis
AEI | FHA Watch, July 2013 (Vol. 2, No. 7)
Earlier this month, House Financial Services Committee Chairman Jeb Hensarling (R-TX), along with subcommittee chairs Scott Garrett (R-NJ), Randy Neugebauer (R-TX), and Shelley Moore Capito (R-WV), unveiled the Protecting American Taxpayers and Homeowners (PATH) Act of 2013. Title II encompasses the most significant and common-sense Federal Housing Administration (FHA) reform legislation in memory.
WSJ | Welcome to the Global Middle-Class Surge
The mass uprisings this summer in Egypt, Turkey and Brazil are powerful reminders that the middle classes drive history. What remains unclear, however, is where they are driving it.
AEI | This is not Thomas Jefferson's economy
The U.S. economy bears little resemblance to the Jeffersonian ideal populists on both left and right sometimes appear to strive towards: a nation of small businesses owned by Midwestern families, ideally headed by yeoman farmers. This has all kinds of implications.
Blogs
WSJ | Americans Split on Capitalism’s Success
That’s one finding from a report released Thursday by the Public Religion Research Institute and Brookings Institution that studied how Americans feel about faith, values and the economy.
Library of Economics | Gintis on the Evolution of Private Property
Herb Gintis' "The Evolution of Private Property" (Journal of Economic Behavior and Organization, 2007) is one of the most fascinating articles I've read in years. (ungated draft) I'm slightly jealous because I've planned to write a similar piece for a decade, but Gintis did a much better job than I would have done.
Neighborhood Effects | The Economics of Regulation Part 1: A New Study Shows That Regulatory Accumulation Hurts the Economy
In June, John Dawson and John Seater, economists at Appalachian State University and North Carolina State University, respectively, published a potentially important study (ungated version here) in the Journal of Economic Growth that shows the effects of regulatory accumulation on the US economy.
Thursday, July 18, 2013
Health Care
News
Politico | Obamacare backers cheer N.Y.’s falling rates
Buoyed by news that premiums are poised to fall 50 percent or more for individuals next year, health law supporters trumpeted the state’s announcement — first reported by The New York Times — as proof that the health law is goosing competition and driving down costs for consumers.
Econ Comments & Analysis
Politico | Obamacare provision’s timely delay
Any successful business leader will tell you the importance of listening to customers, gathering their input and suggestions and always putting them first. That lesson was not lost on the Obama administration earlier this month when it correctly decided to push back the implementation of the Affordable Care Act’s employer responsibility provision — the employer mandate — until 2015.
Washington Times | The great Obamacare swindle
In less than three months, Obamacare’s federal health insurance exchange will open and with it the flood of subsidies begins. The administration is clearly worried about how this grand scheme is going to come together, and it should be. The Department of Health and Human Services on Monday officially eliminated the anti-fraud provisions so that anyone can certify himself as “needy” and get the freebies.
Blogs
Heritage Foundation | The Obama Administration’s Fuzzy Premium Math
President Obama is scheduled to make an address talking about Obamacare this morning. He’s expected to claim that Obamacare is working to lower premiums. There’s only one problem with that claim: His math doesn’t add up.
Politico | Obamacare backers cheer N.Y.’s falling rates
Buoyed by news that premiums are poised to fall 50 percent or more for individuals next year, health law supporters trumpeted the state’s announcement — first reported by The New York Times — as proof that the health law is goosing competition and driving down costs for consumers.
Econ Comments & Analysis
Politico | Obamacare provision’s timely delay
Any successful business leader will tell you the importance of listening to customers, gathering their input and suggestions and always putting them first. That lesson was not lost on the Obama administration earlier this month when it correctly decided to push back the implementation of the Affordable Care Act’s employer responsibility provision — the employer mandate — until 2015.
Washington Times | The great Obamacare swindle
In less than three months, Obamacare’s federal health insurance exchange will open and with it the flood of subsidies begins. The administration is clearly worried about how this grand scheme is going to come together, and it should be. The Department of Health and Human Services on Monday officially eliminated the anti-fraud provisions so that anyone can certify himself as “needy” and get the freebies.
Blogs
Heritage Foundation | The Obama Administration’s Fuzzy Premium Math
President Obama is scheduled to make an address talking about Obamacare this morning. He’s expected to claim that Obamacare is working to lower premiums. There’s only one problem with that claim: His math doesn’t add up.
Monetary
News
CNN Money | Big banks stage mega-cyberattack drill
Beginning at about 9 a.m. ET Thursday, the country's largest financial institutions will endure a large-scale coordinated cyberattack, the likes of which we've never seen.
Bloomberg | ECB Changes Collateral Rules as It Seeks to Boost Lending
The European Central Bank altered its collateral rules for refinancing banks and said it’s looking at ways to boost lending to small- and medium-sized enterprises.
Econ Comments & Analysis
Bloomberg | Bernanke Says Fed May Delay QE Taper If Economy Misses Forecasts
Federal Reserve Chairman Ben S. Bernanke opened the door to a delay in reducing the central bank’s bond buying program, saying it will depend on data that economists say are falling short of the Fed’s own forecasts.
Town Hall | Kevin Brady's Monetary Commission Plans To Throw Ben Bernanke's Fed a Lifeline
On July 10th Federal Reserve Board Chairman Ben Bernanke made a widely noted speech before the National Bureau of Economic Research, in Cambridge, Massachusetts: "A Century of U.S. Central Banking: Goals, Frameworks, Accountability." The immediate takeaway? Rumors of the “tapering” are widely exaggerated.
Blogs
WSJ | How Far Should Fed Go to Pop Potential Bubbles?
Federal Reserve governor Sarah Bloom Raskin, citing the recent housing boom and bust as evidence, said U.S. regulators should use a wide range of tools to combat bubbles and not rely solely on stricter capital requirements.
WSJ | Glass-Steagall Is Necessary, but the Argument for It Isn’t
I’ve made the argument before, so there’s no reason to repeat it at length here. The reality is that reinstating the Glass-Steagall Act has about as much chance of happening as the financial industry walking away from its $300 million a year in lobbying.
Marginal Revolution | The Puzzling Return of Glass-Steagall
I am puzzled by the renewed demand for the return of Glass-Steagall. I am puzzled not because Glass-Steagall might be bad policy but because it is so clearly a policy that doesn’t deal with the problems that created the financial crisis. If one had to sum the crisis up in one sentence it would be hard to do better than “a run on the shadow banking system.” - See more at: http://marginalrevolution.com/marginalrevolution/2013/07/the-puzzling-return-of-glass-steagall.html#sthash.5m1sk1jV.dpuf
CNN Money | Big banks stage mega-cyberattack drill
Beginning at about 9 a.m. ET Thursday, the country's largest financial institutions will endure a large-scale coordinated cyberattack, the likes of which we've never seen.
Bloomberg | ECB Changes Collateral Rules as It Seeks to Boost Lending
The European Central Bank altered its collateral rules for refinancing banks and said it’s looking at ways to boost lending to small- and medium-sized enterprises.
Econ Comments & Analysis
Bloomberg | Bernanke Says Fed May Delay QE Taper If Economy Misses Forecasts
Federal Reserve Chairman Ben S. Bernanke opened the door to a delay in reducing the central bank’s bond buying program, saying it will depend on data that economists say are falling short of the Fed’s own forecasts.
Town Hall | Kevin Brady's Monetary Commission Plans To Throw Ben Bernanke's Fed a Lifeline
On July 10th Federal Reserve Board Chairman Ben Bernanke made a widely noted speech before the National Bureau of Economic Research, in Cambridge, Massachusetts: "A Century of U.S. Central Banking: Goals, Frameworks, Accountability." The immediate takeaway? Rumors of the “tapering” are widely exaggerated.
Blogs
WSJ | How Far Should Fed Go to Pop Potential Bubbles?
Federal Reserve governor Sarah Bloom Raskin, citing the recent housing boom and bust as evidence, said U.S. regulators should use a wide range of tools to combat bubbles and not rely solely on stricter capital requirements.
WSJ | Glass-Steagall Is Necessary, but the Argument for It Isn’t
I’ve made the argument before, so there’s no reason to repeat it at length here. The reality is that reinstating the Glass-Steagall Act has about as much chance of happening as the financial industry walking away from its $300 million a year in lobbying.
Marginal Revolution | The Puzzling Return of Glass-Steagall
I am puzzled by the renewed demand for the return of Glass-Steagall. I am puzzled not because Glass-Steagall might be bad policy but because it is so clearly a policy that doesn’t deal with the problems that created the financial crisis. If one had to sum the crisis up in one sentence it would be hard to do better than “a run on the shadow banking system.” - See more at: http://marginalrevolution.com/marginalrevolution/2013/07/the-puzzling-return-of-glass-steagall.html#sthash.5m1sk1jV.dpuf
Taxes
News
Politico | 5 questions for tax inspector general J. Russell George
A House Oversight and Government Reform Committee hearing on the Internal Revenue Service scandal will give Democrats an opportunity to slam the Treasury inspector general, who helped fuel anger at the agency after releasing a report in May that described unfair scrutiny being applied to tea party groups.
Econ Comments & Analysis
WSJ | A Special Tax Misery for Americans Living Abroad
Beware the sledgehammer used to crack the nut. In this case, the nut is the U.S. government's laudable goal of catching tax evaders. The sledgehammer is the overreaching effect of legislation that is alienating other countries and resulting in millions of U.S. citizens abroad being forced to either painfully reconsider their nationality, or face a lifetime of onerous bureaucracy, expense and privacy invasion.
USA Today | Arthur B. Laffer: Collect more sales taxes
Lawmakers need to come to grips with our subpar economic performance and enact reforms to jumpstart growth. Real annual economic growth between 1960 and 1999 was 3.5%. Since 2000, it has been 2.2%. As a result, we are 15% poorer than we would have been if growth had remained steady. That means more poverty and budget problems in state capitals and Washington.
NBER | No Taxation without Information: Deterrence and Self-Enforcement in the Value Added Tax
Tax evasion generates billions of dollars of losses in government revenue and creates large distortions, especially in developing countries. Claims that the VAT facilitates tax enforcement by generating paper trails on transactions between firms have contributed to widespread VAT adoption worldwide, but there is little empirical evidence about this mechanism.
Politico | 5 questions for tax inspector general J. Russell George
A House Oversight and Government Reform Committee hearing on the Internal Revenue Service scandal will give Democrats an opportunity to slam the Treasury inspector general, who helped fuel anger at the agency after releasing a report in May that described unfair scrutiny being applied to tea party groups.
Econ Comments & Analysis
WSJ | A Special Tax Misery for Americans Living Abroad
Beware the sledgehammer used to crack the nut. In this case, the nut is the U.S. government's laudable goal of catching tax evaders. The sledgehammer is the overreaching effect of legislation that is alienating other countries and resulting in millions of U.S. citizens abroad being forced to either painfully reconsider their nationality, or face a lifetime of onerous bureaucracy, expense and privacy invasion.
USA Today | Arthur B. Laffer: Collect more sales taxes
Lawmakers need to come to grips with our subpar economic performance and enact reforms to jumpstart growth. Real annual economic growth between 1960 and 1999 was 3.5%. Since 2000, it has been 2.2%. As a result, we are 15% poorer than we would have been if growth had remained steady. That means more poverty and budget problems in state capitals and Washington.
NBER | No Taxation without Information: Deterrence and Self-Enforcement in the Value Added Tax
Tax evasion generates billions of dollars of losses in government revenue and creates large distortions, especially in developing countries. Claims that the VAT facilitates tax enforcement by generating paper trails on transactions between firms have contributed to widespread VAT adoption worldwide, but there is little empirical evidence about this mechanism.
Employment
News
FOX Business | Jobless Claims Take Bigger-Than-Expected Fall
The number of Americans filing new claims for jobless benefits dropped more than expected last week to its lowest level in four months, a possible sign that hiring could pick up in July.
FOX Business | Jobless Claims Take Bigger-Than-Expected Fall
The number of Americans filing new claims for jobless benefits dropped more than expected last week to its lowest level in four months, a possible sign that hiring could pick up in July.
Budget
News
Politico | Deal reached on student loans
Key bipartisan Senate negotiators met in Majority Whip Dick Durbin’s Office late Wednesday and emerged confident that they could finally put the vexing issue behind them.
National Journal | Republicans, White House in Talks Toward Big Fiscal Deal
GOP senators and Obama's chief of staff have been meeting for weeks to set a course that might avoid a crisis when America hits its debt limit in the fall.
Econ Comments & Analysis
Mercatus | Yes, We Do Have a Debt Problem
In mid-May, the Congressional Budget Office (CBO) revised its previous estimate of the federal government’s 2013 deficit downward by 24 percent. The fiscal year (which ends on September 30) will feature red ink of merely $642 billion, down from the $1 trillion-plus of the previous four years, said the CBO. For many Democrats, this proved what they knew all along: The national debt is not a clear and present threat.
Politico | Deal reached on student loans
Key bipartisan Senate negotiators met in Majority Whip Dick Durbin’s Office late Wednesday and emerged confident that they could finally put the vexing issue behind them.
National Journal | Republicans, White House in Talks Toward Big Fiscal Deal
GOP senators and Obama's chief of staff have been meeting for weeks to set a course that might avoid a crisis when America hits its debt limit in the fall.
Econ Comments & Analysis
Mercatus | Yes, We Do Have a Debt Problem
In mid-May, the Congressional Budget Office (CBO) revised its previous estimate of the federal government’s 2013 deficit downward by 24 percent. The fiscal year (which ends on September 30) will feature red ink of merely $642 billion, down from the $1 trillion-plus of the previous four years, said the CBO. For many Democrats, this proved what they knew all along: The national debt is not a clear and present threat.
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