News
Bloomberg | Consumer Confidence in U.S. Unexpectedly Declined in May
Consumer confidence unexpectedly fell in May from a nine-month high, showing Americans are being shaken by rising grocery bills and elevated fuel costs.
FOX Business | Housing Starts Up Sharply; Permits Highest Since 2008
U.S. housing starts jumped in April and building permits hit their highest level in nearly six years, offering hope that the troubled housing market could be stabilizing.
WSJ | U.S. Hits GM With Maximum Penalty for Ignition-Switch Defect
General Motors Co. will pay a $35 million fine and admit to violations of federal vehicle safety laws as part of a deal to settle a U.S. investigation of the auto maker's delayed recalls of 2.6 million vehicles world-wide equipped with faulty ignition switches.
Econ Comments & Analysis
WSJ | More Detroits Are on the Way
The most significant step taken after New York City's near-bankruptcy in 1975 was to curb creative-accounting practices. How was that accomplished? Through a state requirement that the city balance its budget in accordance with generally accepted accounting principles. The city has not had a fiscal crisis since.
Real Clear Markets | Without True Price Signals, Finance Lacks Meaning
When you criticize the current state of economic affairs, there is a tendency to make generalizations for the sake of expedience. That is, of course, true of nearly everything we do and think about, but it can lead to misunderstanding that actually decays your argument. In the context of the current monetary regime, quarrelling vehemently about the state of financial relationships in the US and elsewhere captures not just basic policy but also its structure and operation.
Mercatus | The Political Economy of State-Provided Targeted Benefits
Competing for businesses by offering companies targeted benefits is a popular policy among the governments of American states. Targeted benefits come in many forms, including business tax credits for investments, property tax abatements, and reductions in the sales tax paid by the recipient businesses. Policymakers sometimes establish “enterprise zones” to facilitate these benefits, granting them to companies that hire people and invest in the zones.
Blogs
WSJ | Spring Thaw? The State of Housing in Five Charts
Friday’s report on housing starts didn’t provide overwhelming evidence that the housing sector is recovering after a cold winter, but neither did it provide conclusive evidence that a stall was growing worse. Here’s a look at some key points from the report.
CATO | More Infrastructure? Cut Business Taxes
Infrastructure is in the news as policymakers face a deadline to pass a new highway bill. President Obama visited the Tappan Zee Bridge yesterday and said that “rebuilding America … shouldn’t be a partisan issue,” and then cast blame on the Republicans.
