News
CNN Money | Bank of America to pay $16.65 billion over mortgages
The latest agreement settles probes by the Justice Department and six states that accused the bank of misleading the buyers of mortgage-backed bonds about the quality of the loans. The bank admitted responsibility, but the announcement did not include criminal charges.
Bloomberg | Too Much Corn With Nowhere to Go as U.S. Sees Record Crop
From Ohio to Nebraska, thousands of field inspections this week during the Pro Farmer Midwest Crop Tour show corn output in the U.S., the world’s top producer, could be 1 percent more than a government estimate and soybeans 1.2 percent higher, according to a Bloomberg survey of crop scouts.
Econ Comments & Analysis
Forbes | Dispelling The Myth of Corporate Cash Hoarding
The reality is corporations have a little more money than usual, but it is not because they are holding back on spending or hiring.
Real Clear Markets | Narrow Market Exits Today Are Of the 2007-2008 Variety
The huge declines in dealer volumes of corporate credit, the massive and incongruent MBS selloff of last year and now the repo fails in UST are not favorable signs for liquidity under relatively benign conditions.
National Journal | Why Are Women-Owned Businesses So Small?
Women own 30 percent of privately owned businesses but generate just 11 percent of sales, according to federal statistics.
Blogs
WSJ: Real Time Economics | Homes Built for Rent Claim Smaller Share
Recent Commerce Department data show that construction of single-family homes for rental purposes is shrinking toward its long-term average market share, but that doesn’t include the entire picture.
Friday, August 22, 2014
Health Care
Econ Comments & Analysis
Washington Times | Choosing a $10 medical test over a $10,000 one
The authors found an even greater range for the 178 California hospitals that reported the charge of a lipid panel. The median California hospital charged $220 for this test with a range of $10 to $10,169. Hence the maximum charge was more than a thousand times the minimum.
Washington Times | Choosing a $10 medical test over a $10,000 one
The authors found an even greater range for the 178 California hospitals that reported the charge of a lipid panel. The median California hospital charged $220 for this test with a range of $10 to $10,169. Hence the maximum charge was more than a thousand times the minimum.
Monetary
News
Fox Business | Yellen: ‘No Simple Recipe’ for Gauging Tightening Timing
There is “no simple recipe” to determine whether the labor market has returned to normal, Yellen said in a highly anticipated speech in Jackson Hole, Wyoming, meaning the central bank will eye a slew of factors in deciding how to tighten its aggressive stimulus program.
CNN Money | Janet Yellen: Job market not recovered
The debate now is whether the job situation in America is healthy enough for the Federal Reserve to start raising interest rates, which have been at historic lows in recent years in an effort to jump start the economy. Yellen, however, said little new on Friday, and U.S. stock markets stayed flat.
Econ Comments & Analysis
WSJ | A Few Things the Fed Has Done Right
As Federal Reserve officials lay the groundwork for raising interest rates, they are doing a few things right. They need a little cheering, and a bit more courage of their convictions.
Bloomberg | Yellen Cites 19-Measure Labor Market Index: Jackson Hole Journal
Federal Reserve Chair Janet Yellen turned to a recently developed tool -- an index of 19 labor market indicators created by Fed staffers -- to help sum up her message on how monetary policy can respond to the state of the American worker: It’s complicated.
Bloomberg | Stanford’s Taylor Says U.S. Rate Rise Will Help Emerging Markets
The phasing out of the U.S. Federal Reserve’s monetary stimulus will help emerging markets by ridding them of a source of turbulence, according to Stanford University Professor John Taylor.
Blogs
Market Watch | Unemployment rate ‘thrown under the bus’ and more reactions to Yellen address
Her speech from Jackson Hole on Friday morning was read as hawkish by some and as dovish by others.
Fox Business | Yellen: ‘No Simple Recipe’ for Gauging Tightening Timing
There is “no simple recipe” to determine whether the labor market has returned to normal, Yellen said in a highly anticipated speech in Jackson Hole, Wyoming, meaning the central bank will eye a slew of factors in deciding how to tighten its aggressive stimulus program.
CNN Money | Janet Yellen: Job market not recovered
The debate now is whether the job situation in America is healthy enough for the Federal Reserve to start raising interest rates, which have been at historic lows in recent years in an effort to jump start the economy. Yellen, however, said little new on Friday, and U.S. stock markets stayed flat.
Econ Comments & Analysis
WSJ | A Few Things the Fed Has Done Right
As Federal Reserve officials lay the groundwork for raising interest rates, they are doing a few things right. They need a little cheering, and a bit more courage of their convictions.
Bloomberg | Yellen Cites 19-Measure Labor Market Index: Jackson Hole Journal
Federal Reserve Chair Janet Yellen turned to a recently developed tool -- an index of 19 labor market indicators created by Fed staffers -- to help sum up her message on how monetary policy can respond to the state of the American worker: It’s complicated.
Bloomberg | Stanford’s Taylor Says U.S. Rate Rise Will Help Emerging Markets
The phasing out of the U.S. Federal Reserve’s monetary stimulus will help emerging markets by ridding them of a source of turbulence, according to Stanford University Professor John Taylor.
Blogs
Market Watch | Unemployment rate ‘thrown under the bus’ and more reactions to Yellen address
Her speech from Jackson Hole on Friday morning was read as hawkish by some and as dovish by others.
Taxes
Econ Comments & Analysis
Daily Signal | Sugar Consumption: A Taxable Sin?
A proposal now before Congress would add a one-cent-per-teaspoon tax on sugar to discourage sugar use and help fund programs to fight obesity and diabetes. Do you favor or oppose a sugar tax like this?
Mercatus Center | Sales Taxes and Exemptions
We analyze the equilibrium relationship between the sales tax rate and the number of sales tax exemptions in each state that levies sales taxes. Our theory suggests that as tax rates rise, so do lobbying activities, and therefore the number of exemptions.
Daily Signal | Sugar Consumption: A Taxable Sin?
A proposal now before Congress would add a one-cent-per-teaspoon tax on sugar to discourage sugar use and help fund programs to fight obesity and diabetes. Do you favor or oppose a sugar tax like this?
Mercatus Center | Sales Taxes and Exemptions
We analyze the equilibrium relationship between the sales tax rate and the number of sales tax exemptions in each state that levies sales taxes. Our theory suggests that as tax rates rise, so do lobbying activities, and therefore the number of exemptions.
Employment
Econ Comments & Analysis
WSJ | Unemployed by ObamaCare
Three new Fed surveys highlight damage to the labor market.
Blogs
WSJ: Real Clear Markets | Jackson Hole Study Authors See Lost Job Market Dynamism
A study to be presented Friday at the Kansas City Fed’s conference here in Jackson Hole, Wyo., raises questions about whether U.S. labor markets are actually all that dynamic.
WSJ: Real Clear Markets | There’s Nothing ‘Natural’ About Unemployment: Fed Conference Paper
Taking aim at the economics notion that there is a “natural” rate of unemployment below which inflationary forces will spiral upward out of control, Giuseppe Bertola, economics professor at EDHEC Business School, says the state of the job market depends heavily on policy choices.
WSJ | Unemployed by ObamaCare
Three new Fed surveys highlight damage to the labor market.
Blogs
WSJ: Real Clear Markets | Jackson Hole Study Authors See Lost Job Market Dynamism
A study to be presented Friday at the Kansas City Fed’s conference here in Jackson Hole, Wyo., raises questions about whether U.S. labor markets are actually all that dynamic.
WSJ: Real Clear Markets | There’s Nothing ‘Natural’ About Unemployment: Fed Conference Paper
Taking aim at the economics notion that there is a “natural” rate of unemployment below which inflationary forces will spiral upward out of control, Giuseppe Bertola, economics professor at EDHEC Business School, says the state of the job market depends heavily on policy choices.
Budget
Econ Comments & Analysis
Mercatus Center | The United States’ Debt Crisis: Far from Solved
In short, the United States’ fiscal outlook has not changed. Americans will soon have to deal with the consequences of being a highly indebted nation. While economists can’t predict exactly when or how a debt crisis will manifest itself in the United States, such a crisis is inevitable if current spending trends continue.
Mercatus Center | The United States’ Debt Crisis: Far from Solved
In short, the United States’ fiscal outlook has not changed. Americans will soon have to deal with the consequences of being a highly indebted nation. While economists can’t predict exactly when or how a debt crisis will manifest itself in the United States, such a crisis is inevitable if current spending trends continue.
Thursday, August 21, 2014
General Economics
News
National Journal | Battle Over Postal-Service Cuts Looms in September
The stage is being set this month for another round of argument and angst over the future of the U.S. Postal Service when Congress returns to work in September.
Bloomberg | Family Dollar Spurns Dollar General Bid on Antitrust Concern
Family Dollar Stores Inc. (FDO) spurned a $9 billion offer from Dollar General Corp. in favor of a lower bid from Dollar Tree Inc. (DLTR), saying it was concerned the Dollar General deal wouldn’t be able to pass antitrust hurdles.
Blogs
Wall Street Journal | Did Most States Really Fall Back into Recession Since 2009? A Look Inside the Zany New GDP Numbers
Most states in the U.S. have experienced at least two consecutive quarters of economic decline in the years since the national recession ended, according to new data from the Department of Commerce.
National Journal | Battle Over Postal-Service Cuts Looms in September
The stage is being set this month for another round of argument and angst over the future of the U.S. Postal Service when Congress returns to work in September.
Bloomberg | Family Dollar Spurns Dollar General Bid on Antitrust Concern
Family Dollar Stores Inc. (FDO) spurned a $9 billion offer from Dollar General Corp. in favor of a lower bid from Dollar Tree Inc. (DLTR), saying it was concerned the Dollar General deal wouldn’t be able to pass antitrust hurdles.
Blogs
Wall Street Journal | Did Most States Really Fall Back into Recession Since 2009? A Look Inside the Zany New GDP Numbers
Most states in the U.S. have experienced at least two consecutive quarters of economic decline in the years since the national recession ended, according to new data from the Department of Commerce.
Health Care
Econ Comments & Analysis
The Washington Times | How to slow the pace of medical progress
The Americans infected with the Ebola virus appear to be improving - very welcome news, especially given the virus's death rate, which is estimated to be as high as 90 percent.
The Daily Signal | Type the Title You Want People to See
Despite the recent news that the Medicare Part A trust fund is projected to remain solvent for four more years than previously projected, it is important to understandthat Medicare’s financial status still calls for immediate reforms.
The Washington Times | How to slow the pace of medical progress
The Americans infected with the Ebola virus appear to be improving - very welcome news, especially given the virus's death rate, which is estimated to be as high as 90 percent.
The Daily Signal | Type the Title You Want People to See
Despite the recent news that the Medicare Part A trust fund is projected to remain solvent for four more years than previously projected, it is important to understandthat Medicare’s financial status still calls for immediate reforms.
Monetary
News
Bloomberg | Fed’s George Says Job Gains Signal Rates Can Rise
Federal Reserve Bank of Kansas City President Esther George said she’s encouraged by broad-based employment gains that show the world’s largest economy is strong enough to withstand higher interest rates.
Econ Comments & Analysis
Politico Magazine | Stop Depending on the Fed
America's slow average rate of economic growth is double trouble, as Federal Reserve Vice Chairman Stanley Fischer recently pointed out.
The Heritage Foundation | The Fed’s Failure as a Lender of Last Resort: What to Do About It
The Federal Reserve’s actions during the 2008 financial crisis have rekindled interest in the Fed’s role as a lender of last resort. A lender of last resort (LLR) is supposed to provide credit when funds are not available from any other source.
CNBC | Five reasons the Fed should raise rates now
Forty-seven consecutive Federal Reserve Open Market Committee meetings resulting in an overnight target rate of 0.00 percent to 0.25 percent. Sixty-seven months of short-term interest rates being at near-zero levels.
Bloomberg | Fed’s George Says Job Gains Signal Rates Can Rise
Federal Reserve Bank of Kansas City President Esther George said she’s encouraged by broad-based employment gains that show the world’s largest economy is strong enough to withstand higher interest rates.
Econ Comments & Analysis
Politico Magazine | Stop Depending on the Fed
America's slow average rate of economic growth is double trouble, as Federal Reserve Vice Chairman Stanley Fischer recently pointed out.
The Heritage Foundation | The Fed’s Failure as a Lender of Last Resort: What to Do About It
The Federal Reserve’s actions during the 2008 financial crisis have rekindled interest in the Fed’s role as a lender of last resort. A lender of last resort (LLR) is supposed to provide credit when funds are not available from any other source.
CNBC | Five reasons the Fed should raise rates now
Forty-seven consecutive Federal Reserve Open Market Committee meetings resulting in an overnight target rate of 0.00 percent to 0.25 percent. Sixty-seven months of short-term interest rates being at near-zero levels.
Taxes
News
Wall Street Journal | North Carolina Reins in Tax Incentives for Movie Companies
North Carolina is eliminating one of the nation's most extensive programs for awarding tax breaks to film companies, in a retreat from a race among states to lure Hollywood productions.
Econ Comments & Analysis
Wall Street Journal | Tax Credits Won't Lift Economic Growth
There's a policy debate among conservatives in Washington about the best way to cut taxes and reform the tax code. The supply-siders want to replicate the success of Reaganomics with lower marginal tax rates.
Wall Street Journal | North Carolina Reins in Tax Incentives for Movie Companies
North Carolina is eliminating one of the nation's most extensive programs for awarding tax breaks to film companies, in a retreat from a race among states to lure Hollywood productions.
Econ Comments & Analysis
Wall Street Journal | Tax Credits Won't Lift Economic Growth
There's a policy debate among conservatives in Washington about the best way to cut taxes and reform the tax code. The supply-siders want to replicate the success of Reaganomics with lower marginal tax rates.
Employment
News
Bloomberg | Jobless Claims in U.S. Declined More Than Forecast Last Week
Fewer Americans than forecast applied for unemployment benefits last week, a sign the U.S. job market is making progress as the world’s largest economy grows.
Econ Comments & Analysis
Wall Street Journal | Do Higher Minimum Wages Create More Jobs?
Since the release of the May jobs report, President Obama and many in the media have been crowing about new evidence allegedly showing that minimum-wage hikes stimulate job growth.
Business Week | It's Not a Skills Gap: U.S. Workers Are Overqualified, Undertrained
In the debate over why the U.S. has been so slow to emerge from the Great Recession, many have laid the blame on what’s become known as the skills gap: Despite an abundance of workers, too many simply aren’t qualified to fill the jobs available.
NBER | Skill Gaps, Skill Shortages and Skill Mismatches: Evidence for the US
Concerns that there are problems with the supply of skills, especially education-related skills, in the US labor force have exploded in recent years with a series of reports from employer-associated organizations but also from independent and even government sources making similar claims.
Blogs
Café Hayek | Reconsider That Happy Narrative About Minimum Wages
One of George Mason University’s star PhD economics students, Ms. Liya Palagashvili, along with a GMU undergrad student, Ms. Rachel Mace (who was taught recently in a GMU econ class by Liya), weigh in in tomorrow’s Wall Street Journal to debunk a happy narrative about the minimum wage.
Wall Street Journal | Why Are Jobless Claims Falling So Fast?
The number of people filing new claims for unemployment benefits fell last week to 298,000, marking the third time in the last five weeks they have fallen below the 300,000 level.
Bloomberg | Jobless Claims in U.S. Declined More Than Forecast Last Week
Fewer Americans than forecast applied for unemployment benefits last week, a sign the U.S. job market is making progress as the world’s largest economy grows.
Econ Comments & Analysis
Wall Street Journal | Do Higher Minimum Wages Create More Jobs?
Since the release of the May jobs report, President Obama and many in the media have been crowing about new evidence allegedly showing that minimum-wage hikes stimulate job growth.
Business Week | It's Not a Skills Gap: U.S. Workers Are Overqualified, Undertrained
In the debate over why the U.S. has been so slow to emerge from the Great Recession, many have laid the blame on what’s become known as the skills gap: Despite an abundance of workers, too many simply aren’t qualified to fill the jobs available.
NBER | Skill Gaps, Skill Shortages and Skill Mismatches: Evidence for the US
Concerns that there are problems with the supply of skills, especially education-related skills, in the US labor force have exploded in recent years with a series of reports from employer-associated organizations but also from independent and even government sources making similar claims.
Blogs
Café Hayek | Reconsider That Happy Narrative About Minimum Wages
One of George Mason University’s star PhD economics students, Ms. Liya Palagashvili, along with a GMU undergrad student, Ms. Rachel Mace (who was taught recently in a GMU econ class by Liya), weigh in in tomorrow’s Wall Street Journal to debunk a happy narrative about the minimum wage.
Wall Street Journal | Why Are Jobless Claims Falling So Fast?
The number of people filing new claims for unemployment benefits fell last week to 298,000, marking the third time in the last five weeks they have fallen below the 300,000 level.
Budget
Econ Comments & Analysis
Bloomberg View | European Austerity Is a Myth
Just as France's and Italy's poor economic results prompt the leaders of the euro area's second and third biggest economies to step up their fight against fiscal austerity, it might be appropriate to ask whether they even know what that is.
Bloomberg View | European Austerity Is a Myth
Just as France's and Italy's poor economic results prompt the leaders of the euro area's second and third biggest economies to step up their fight against fiscal austerity, it might be appropriate to ask whether they even know what that is.
Tuesday, August 19, 2014
General Economics
News
Fox News | Power plant regs spur new union rebellion for Obama administration
The Obama administration is facing another union rebellion over its environmental policies, this time over the EPA’s proposed rules for limiting power plant emissions.
Bloomberg | Home Construction Rebounds in U.S. as Inflation Eases: Economy
Home construction rebounded in July and the cost of living rose at a slower pace, showing a strengthening U.S. economy has yet to generate a sustained pickup in inflation.
Econ Comments & Analysis
Washington Times | When regulators break their own rules
A major function of most regulatory agencies is to keep those in the private sector honest and from abusing power. Yet we know that those in government often abuse the power that has been entrusted to them.
Wall Street Journal | Liberals for Social Security Insolvency
On July 15 the Congressional Budget Office rolled out updated projections that show a precipitous decline in Social Security's solvency. The program's 75-year deficit has nearly quadrupled since 2008, and the trust fund's exhaustion date has moved forward by nearly 20 years.
Real Clear Markets | America Has a Retirement Spending Problem
Achieving a secure retirement is a complex endeavor. Working-age households are charged with saving the right amount to enable a similar standard of living in retirement as that enjoyed during their working years.
Bloomberg | Only Rich Know Wage Gains With No Raises for U.S Workers
Call it the no-raises recovery: Five years of economic expansion have done almost nothing to boost paychecks for typical American workers while the rich have gotten richer.
Investors.com | Wheels Are Coming Off California's Ballyhooed Comeback
Stop the music. All the merriment over the California recovery may have been a bit premature.
Fox News | Power plant regs spur new union rebellion for Obama administration
The Obama administration is facing another union rebellion over its environmental policies, this time over the EPA’s proposed rules for limiting power plant emissions.
Bloomberg | Home Construction Rebounds in U.S. as Inflation Eases: Economy
Home construction rebounded in July and the cost of living rose at a slower pace, showing a strengthening U.S. economy has yet to generate a sustained pickup in inflation.
Econ Comments & Analysis
Washington Times | When regulators break their own rules
A major function of most regulatory agencies is to keep those in the private sector honest and from abusing power. Yet we know that those in government often abuse the power that has been entrusted to them.
Wall Street Journal | Liberals for Social Security Insolvency
On July 15 the Congressional Budget Office rolled out updated projections that show a precipitous decline in Social Security's solvency. The program's 75-year deficit has nearly quadrupled since 2008, and the trust fund's exhaustion date has moved forward by nearly 20 years.
Real Clear Markets | America Has a Retirement Spending Problem
Achieving a secure retirement is a complex endeavor. Working-age households are charged with saving the right amount to enable a similar standard of living in retirement as that enjoyed during their working years.
Bloomberg | Only Rich Know Wage Gains With No Raises for U.S Workers
Call it the no-raises recovery: Five years of economic expansion have done almost nothing to boost paychecks for typical American workers while the rich have gotten richer.
Investors.com | Wheels Are Coming Off California's Ballyhooed Comeback
Stop the music. All the merriment over the California recovery may have been a bit premature.
Health Care
News
CNN Money | Hospitals in battle to pay people's Obamacare premiums
Low-income consumers struggling to pay their Obamacare premiums may soon be able to get help from their local hospital or United Way.
CNN Money | Hospitals in battle to pay people's Obamacare premiums
Low-income consumers struggling to pay their Obamacare premiums may soon be able to get help from their local hospital or United Way.
Monetary
News
Fox Business | Consumer Prices Tick Higher in July
U.S. consumer prices barely rose in July as declining energy costs partially offset increases in food and rents, which could give the Federal Reserve ammunition to keep interest rates low for a while.
Blogs
Wall Street Journal | Grand Central: Fed’s Exit Strategy Quietly Taking Shape As September Meeting Approaches
Federal Reserve officials have been making progress on developing a blueprint for the mechanics of future interest rate increases, a project that has occupied much of the agenda of their past three policy meetings. This puts officials in a position to make some decisions on “how” they will raise interest rates– as opposed “when”– by their September meeting.
Market Watch | Fed says SEC money-market rule could spark, not reduce, runs
A new Securities and Exchange Commission rule designed to reduce runs in the money-market mutual-fund industry could instead spark them, the New York Federal Reserve said Monday.
Fox Business | Consumer Prices Tick Higher in July
U.S. consumer prices barely rose in July as declining energy costs partially offset increases in food and rents, which could give the Federal Reserve ammunition to keep interest rates low for a while.
Blogs
Wall Street Journal | Grand Central: Fed’s Exit Strategy Quietly Taking Shape As September Meeting Approaches
Federal Reserve officials have been making progress on developing a blueprint for the mechanics of future interest rate increases, a project that has occupied much of the agenda of their past three policy meetings. This puts officials in a position to make some decisions on “how” they will raise interest rates– as opposed “when”– by their September meeting.
Market Watch | Fed says SEC money-market rule could spark, not reduce, runs
A new Securities and Exchange Commission rule designed to reduce runs in the money-market mutual-fund industry could instead spark them, the New York Federal Reserve said Monday.
Taxes
Econ Comments & Analysis
Wall Street Journal | Beltway 'Strip' Club
Not content with the highest corporate tax rate in the industrialized world, President Obama and Sen. Chuck Schumer (D., N.Y.) seem determined to make the U.S. even less hospitable to business. Both are developing plans to make it more expensive for multinational companies to invest in America.
Mercatus Center | Cutting Taxes is Patriotic
Several states cut a wide variety of taxes this summer. Indiana and Rhode Island, for example, cut the conventional corporate tax. Idaho, meanwhile, took an unconventional route by cutting sales taxes on software purchased through “the cloud.” When revenues are on the rise, some states choose to lower taxes, while others prefer to spend the tax windfall. Both moves could be wrong.
NBER | Corporate Taxes and Capital Structure: A Long-Term Historical Perspective
We study the relation between leverage and corporate tax rates using an extensive data set constructed from all corporate income tax returns filed with the IRS from 1926 to 2009. This data set includes financial statement data from millions of private and public corporations of all sizes.
Wall Street Journal | Beltway 'Strip' Club
Not content with the highest corporate tax rate in the industrialized world, President Obama and Sen. Chuck Schumer (D., N.Y.) seem determined to make the U.S. even less hospitable to business. Both are developing plans to make it more expensive for multinational companies to invest in America.
Mercatus Center | Cutting Taxes is Patriotic
Several states cut a wide variety of taxes this summer. Indiana and Rhode Island, for example, cut the conventional corporate tax. Idaho, meanwhile, took an unconventional route by cutting sales taxes on software purchased through “the cloud.” When revenues are on the rise, some states choose to lower taxes, while others prefer to spend the tax windfall. Both moves could be wrong.
NBER | Corporate Taxes and Capital Structure: A Long-Term Historical Perspective
We study the relation between leverage and corporate tax rates using an extensive data set constructed from all corporate income tax returns filed with the IRS from 1926 to 2009. This data set includes financial statement data from millions of private and public corporations of all sizes.
Employment
Blogs
Wall Street Journal | Utah Emerges as Job Creation Engine, Giving Chase to North Dakota
The employment boom in the West isn’t confined to energy-rich North Dakota.
Wall Street Journal | Blame Employers, Not Workers, for Any Skills Gap, Economist Says
Ever since the the recession, job openings have far outpaced the number of people being hired. A common refrain from employers is that workers lack proper training and education for the available jobs–in other words, that a “skills gap” is to blame.
Wall Street Journal | Utah Emerges as Job Creation Engine, Giving Chase to North Dakota
The employment boom in the West isn’t confined to energy-rich North Dakota.
Wall Street Journal | Blame Employers, Not Workers, for Any Skills Gap, Economist Says
Ever since the the recession, job openings have far outpaced the number of people being hired. A common refrain from employers is that workers lack proper training and education for the available jobs–in other words, that a “skills gap” is to blame.
Budget
News
The Daily Signal | Governor Grapples With Budget Shortfall, Won’t Give Up on Obamacare Medicaid Expansion
Virginia’s bleak financial outlook just got gloomier. Gov. Terry McAuliffe told members of the General Assembly that Virginia is projected to take in $2.4 billion less than it’s budgeted to spend during a three-year period.
The Daily Signal | Governor Grapples With Budget Shortfall, Won’t Give Up on Obamacare Medicaid Expansion
Virginia’s bleak financial outlook just got gloomier. Gov. Terry McAuliffe told members of the General Assembly that Virginia is projected to take in $2.4 billion less than it’s budgeted to spend during a three-year period.
Monday, August 18, 2014
General Economics
News
Politico | Exclusive: White House meets with big biz on immigration
Obama was initially expected to focus only on slowing deportations of potentially millions of undocumented immigrants and altering federal enforcement policies. Now top aides are talking with leaders in big companies like Cisco, Intel and Accenture, hoping to add more changes that would get them on board.
CNN Money | Dollar General outbids Dollar Tree for Family Dollar
The low-price retailer war is heating up: Dollar General made an all-cash bid of nearly $10 billion for Family Dollar, topping a deal Dollar Tree made last month.
Bloomberg | Homebuilder Confidence in U.S. Increases to Seven-Month High
Confidence among U.S. homebuilders rose in August to the highest level in seven months, showing the industry is making more headway after weakness earlier this year.
WSJ | U.S. Farmers Are Up to Their Ears in Corn
The U.S. Agriculture Department projected last week that production will exceed 14 billion bushels, topping last year's historic harvest.
Econ Comments & Analysis
CNN Money | Does the $100 bill need to go?
Nearly 80% of the $1.3 trillion currency in circulation is in the form of $100 bills, Rogoff wrote in a paper earlier this year. The sheer number is far more than anything that can be traced to legal use in the U.S. economy. In other words, the U.S. "Benjamin" is a favorite of criminals.
Forbes | The Closing Of The Austrian School's Economic Mind
What doesn’t even rate serious debate is the strange migration of certain Austrians to Keynesian “deposit banks” that the markets would so clearly reject, not to mention the obsession of this grand school of thought with using the state to abolish “fractural reserve banking.”
WSJ | A Better Way Up From Poverty
The country's problems are urgent and real, but they aren't insurmountable. When I visit our big cities and small communities, I see the signs of a great American comeback in the making. If we focus on solutions and give voters a meaningful choice, then I know we can get this done.
Real Clear Markets | Prosperity Won't Cure All Global Ills
The world arena is simply not the place we imagined it would become. But we should recognize that it is no panacea and that we should rethink its realistic possibilities and limits. In this post-euphoric time, we cannot afford to believe in utopias.
Washington Times | Secular stagnation is a cover-up
Amazingly, the architects of this colossal policy failure are the same people who promised they would rebuild the U.S. economy “for the long term,” as Mr. Obama put it in 2009. But they’re now blaming the stagnant economy on structural problems beyond their control. Oh, we get it. Consumers and businesses are wrong because they didn’t adhere to Keynesian economic models.
Market Watch | 5 reasons why the housing market won’t crash
I’m not naïve, so I won’t claim we will never see another housing crisis again. But given the latest indicators, I think it is highly unlikely there could be another crash in the next year or two.
Politico | Exclusive: White House meets with big biz on immigration
Obama was initially expected to focus only on slowing deportations of potentially millions of undocumented immigrants and altering federal enforcement policies. Now top aides are talking with leaders in big companies like Cisco, Intel and Accenture, hoping to add more changes that would get them on board.
CNN Money | Dollar General outbids Dollar Tree for Family Dollar
The low-price retailer war is heating up: Dollar General made an all-cash bid of nearly $10 billion for Family Dollar, topping a deal Dollar Tree made last month.
Bloomberg | Homebuilder Confidence in U.S. Increases to Seven-Month High
Confidence among U.S. homebuilders rose in August to the highest level in seven months, showing the industry is making more headway after weakness earlier this year.
WSJ | U.S. Farmers Are Up to Their Ears in Corn
The U.S. Agriculture Department projected last week that production will exceed 14 billion bushels, topping last year's historic harvest.
Econ Comments & Analysis
CNN Money | Does the $100 bill need to go?
Nearly 80% of the $1.3 trillion currency in circulation is in the form of $100 bills, Rogoff wrote in a paper earlier this year. The sheer number is far more than anything that can be traced to legal use in the U.S. economy. In other words, the U.S. "Benjamin" is a favorite of criminals.
Forbes | The Closing Of The Austrian School's Economic Mind
What doesn’t even rate serious debate is the strange migration of certain Austrians to Keynesian “deposit banks” that the markets would so clearly reject, not to mention the obsession of this grand school of thought with using the state to abolish “fractural reserve banking.”
WSJ | A Better Way Up From Poverty
The country's problems are urgent and real, but they aren't insurmountable. When I visit our big cities and small communities, I see the signs of a great American comeback in the making. If we focus on solutions and give voters a meaningful choice, then I know we can get this done.
Real Clear Markets | Prosperity Won't Cure All Global Ills
The world arena is simply not the place we imagined it would become. But we should recognize that it is no panacea and that we should rethink its realistic possibilities and limits. In this post-euphoric time, we cannot afford to believe in utopias.
Washington Times | Secular stagnation is a cover-up
Amazingly, the architects of this colossal policy failure are the same people who promised they would rebuild the U.S. economy “for the long term,” as Mr. Obama put it in 2009. But they’re now blaming the stagnant economy on structural problems beyond their control. Oh, we get it. Consumers and businesses are wrong because they didn’t adhere to Keynesian economic models.
Market Watch | 5 reasons why the housing market won’t crash
I’m not naïve, so I won’t claim we will never see another housing crisis again. But given the latest indicators, I think it is highly unlikely there could be another crash in the next year or two.
Health Care
News
CNN Money | Hospital network hacked, 4.5 million records stolen
Community Health Systems, which operates 206 hospitals across the United States, announced on Monday that hackers recently broke into its computers and stole data on 4.5 million patients.
CNN Money | Hospital network hacked, 4.5 million records stolen
Community Health Systems, which operates 206 hospitals across the United States, announced on Monday that hackers recently broke into its computers and stole data on 4.5 million patients.
Monetary
News
Bloomberg | Part-Time Workers a Full-Time Headache on Yellen Radar: Economy
Federal Reserve Chair Janet Yellen has a stubborn warning light blinking on her labor market dashboard: A group of Americans larger than Washington state’s population can find only part-time work.
WSJ | The Outlook: Federal Reserve Bets Rate Rise Can Wait
Officials Say Economic Indicators and Financial Markets Aren't Pointing to Overheating.
Econ Comments & Analysis
Market Watch | Yellen to stress patience on rates at Jackson Hole
Economists expect Yellen to give a master-class explaining why she believes there is still a lot of slack in the job market. Yellen is likely to review her dashboard, a set of statistics she highlighted earlier this year.
American Enterprise Institute | The American banking system might not last until Monday
When faced by a banking system that might not last until Monday, powerful central bankers and governments will do whatever they think they need to. This can include cooking the books, ordering around private parties as governments turn to coercion, and sending good money after bad, all in the hope of bridging the crisis. In time, the crisis does pass and losses are taken. Life goes on. Memories fade.
Blogs
WSJ: Real Time Economics | When Packing for Jackson Hole, Include These Economic Reports
Before Jackson Hole gets under way, Ms. Yellen and other policy makers will have new information on housing and inflation, two topics that feed into their thinking on the economy and policy.
Bloomberg | Part-Time Workers a Full-Time Headache on Yellen Radar: Economy
Federal Reserve Chair Janet Yellen has a stubborn warning light blinking on her labor market dashboard: A group of Americans larger than Washington state’s population can find only part-time work.
WSJ | The Outlook: Federal Reserve Bets Rate Rise Can Wait
Officials Say Economic Indicators and Financial Markets Aren't Pointing to Overheating.
Econ Comments & Analysis
Market Watch | Yellen to stress patience on rates at Jackson Hole
Economists expect Yellen to give a master-class explaining why she believes there is still a lot of slack in the job market. Yellen is likely to review her dashboard, a set of statistics she highlighted earlier this year.
American Enterprise Institute | The American banking system might not last until Monday
When faced by a banking system that might not last until Monday, powerful central bankers and governments will do whatever they think they need to. This can include cooking the books, ordering around private parties as governments turn to coercion, and sending good money after bad, all in the hope of bridging the crisis. In time, the crisis does pass and losses are taken. Life goes on. Memories fade.
Blogs
WSJ: Real Time Economics | When Packing for Jackson Hole, Include These Economic Reports
Before Jackson Hole gets under way, Ms. Yellen and other policy makers will have new information on housing and inflation, two topics that feed into their thinking on the economy and policy.
Taxes
Econ Comments & Analysis
Notes On Liberty | Is Australia’s Carbon Tax Repeal Really Market Enhancing?
The best way to implement a pollution tax is as a replacement of other taxes. Taxes in income, sales, and value added impose the excess burden of higher costs and less output and employment.
Notes On Liberty | Is Australia’s Carbon Tax Repeal Really Market Enhancing?
The best way to implement a pollution tax is as a replacement of other taxes. Taxes in income, sales, and value added impose the excess burden of higher costs and less output and employment.
Employment
News
Bloomberg | Texas Led Payroll Increases in 36 U.S. States in July
Texas led the nation with a 46,600 increase in payrolls, followed by California with 27,700 more jobs, figures from the Labor Department showed today in Washington. The jobless rate increased in 30 states.
Econ Comments & Analysis
Real Clear Markets | Sorry, But a Job Isn't An Instrument for Social Justice
In the U.S. labor market today a battle is being waged over the purpose of a job. One might think the point of a job is that the employer needs tasks completed and is willing to pay someone to perform said tasks. However, a fierce challenge is being mounted to such an idea and the outcome is currently uncertain.
Bloomberg | Texas Led Payroll Increases in 36 U.S. States in July
Texas led the nation with a 46,600 increase in payrolls, followed by California with 27,700 more jobs, figures from the Labor Department showed today in Washington. The jobless rate increased in 30 states.
Econ Comments & Analysis
Real Clear Markets | Sorry, But a Job Isn't An Instrument for Social Justice
In the U.S. labor market today a battle is being waged over the purpose of a job. One might think the point of a job is that the employer needs tasks completed and is willing to pay someone to perform said tasks. However, a fierce challenge is being mounted to such an idea and the outcome is currently uncertain.
Budget
Econ Comments & Analysis
National Journal | The Lending Model That Bypasses the Bankers
Disparities in access to capital help drive inequality. For that to change, innovative new lenders have to weaken Wall Street's hold on credit.
Blogs
WSJ: Real Time Economics | How Much U.S. Debt Does China Hold? The U.S. Isn’t Sure
Until China is more transparent about its transactions, or Treasury is able to get all major financial institutions to give full reports, it’s unlikely we’ll know exactly how much China owns.
National Journal | The Lending Model That Bypasses the Bankers
Disparities in access to capital help drive inequality. For that to change, innovative new lenders have to weaken Wall Street's hold on credit.
Blogs
WSJ: Real Time Economics | How Much U.S. Debt Does China Hold? The U.S. Isn’t Sure
Until China is more transparent about its transactions, or Treasury is able to get all major financial institutions to give full reports, it’s unlikely we’ll know exactly how much China owns.
Friday, August 15, 2014
General Economics
News
Bloomberg | Consumer Sentiment in U.S. Fell in August to Nine-Month Low
The Thomson Reuters/University of Michigan preliminary sentimentindex dropped to 79.2, the lowest since November, from 81.8 in July, according to data issued today. It was lower than any economist surveyed by Bloomberg projected and represented the biggest negative surprise in a decade.
Market Watch | August Empire state index retreats from 4-yr high
The Empire State manufacturing survey retreated to 14.7 in August after hitting a four-year high of 25.6 in July, the New York Fed said Friday. Economists polled by MarketWatch had expected a 20.0 reading, in the gauge where readings above zero indicate improving conditions.
Bloomberg | Broad Gain in U.S. Factory Production Signals Strength: Economy
Factories in July were the busiest in five months as cars rolled off U.S. assembly lines at the fastest rate in 14 years and a stronger economy encouraged American companies to invest in equipment.
Econ Comments & Analysis
Forbes | Comprehensive Immigration Reform Is A Balance Of Compassion Versus Cost
With the current invasion by tens of thousands of children pushing immigration reform once again to the front of the U.S. policy agenda, many people wonder why we cannot achieve comprehensive immigration reform.
Blogs
Market Watch | Riskiest subprime auto loans coming from car companies: Fed study
The surge in subprime auto loans since the end of the recession has been most pronounced among riskier borrowers, and auto finance companies typically tied to car manufacturers are leading the parade, according to a new study released by the New York Federal Reserve Bank on Thursday.
Bloomberg | Consumer Sentiment in U.S. Fell in August to Nine-Month Low
The Thomson Reuters/University of Michigan preliminary sentimentindex dropped to 79.2, the lowest since November, from 81.8 in July, according to data issued today. It was lower than any economist surveyed by Bloomberg projected and represented the biggest negative surprise in a decade.
Market Watch | August Empire state index retreats from 4-yr high
The Empire State manufacturing survey retreated to 14.7 in August after hitting a four-year high of 25.6 in July, the New York Fed said Friday. Economists polled by MarketWatch had expected a 20.0 reading, in the gauge where readings above zero indicate improving conditions.
Bloomberg | Broad Gain in U.S. Factory Production Signals Strength: Economy
Factories in July were the busiest in five months as cars rolled off U.S. assembly lines at the fastest rate in 14 years and a stronger economy encouraged American companies to invest in equipment.
Econ Comments & Analysis
Forbes | Comprehensive Immigration Reform Is A Balance Of Compassion Versus Cost
With the current invasion by tens of thousands of children pushing immigration reform once again to the front of the U.S. policy agenda, many people wonder why we cannot achieve comprehensive immigration reform.
Blogs
Market Watch | Riskiest subprime auto loans coming from car companies: Fed study
The surge in subprime auto loans since the end of the recession has been most pronounced among riskier borrowers, and auto finance companies typically tied to car manufacturers are leading the parade, according to a new study released by the New York Federal Reserve Bank on Thursday.
Health Care
Econ Comments & Analysis
National Journal | Keeping Obamacare Premiums In Context - Health Care Edge
When we're trying to get a handle on Obamacare premiums, there are enough metrics and enough outliers to help both sides of the Obamacare debate paint the picture they want to see.
National Journal | Keeping Obamacare Premiums In Context - Health Care Edge
When we're trying to get a handle on Obamacare premiums, there are enough metrics and enough outliers to help both sides of the Obamacare debate paint the picture they want to see.
Monetary
News
Bloomberg | Wholesale Prices in U.S. Rise at Slower Pace as Fuel Drops
Wholesale prices in the U.S. rose at a slower pace in July as fuel costs dropped by the most in eight months.
The Fiscal Times | Farmers and Consumers Seeing Spike in Food Prices
It seems consumers and farmers both have a lot to complain about this year.
Econ Comments & Analysis
Heritage Foundation | Quantitative Easing, The Fed’s Balance Sheet, and Central Bank Insolvency
More than five years after the 2008 financial crisis, the Federal Reserve’s role is still the subject of much debate. One source of controversy has been the extent to which the Fed allocated credit directly to possibly insolvent institutions. Critics argue that the Fed should have allowed insolvent firms to restructure through bankruptcy and should have provided credit only to sound banks on a short-term basis.
Real Clear Markets | More Evidence That the Federal Reserve Is Superfluous
While the Federal Reserve is most notable for its role in monetary policy, the autonomous Fed plays an active role in regulating banking institutions. When not beefing up its balance sheet through quantitative easing, the Fed is quietly seeking to expand its scope of operations, especially in the area of electronic payments networks.
New York Times | Why a Rule on Loan Losses Could Squeeze Credit
No bank loses money on every loan, at least not if it is going to stay in business.
Blogs
Wall Street Journal | Bullard: Fed Getting Close to Policy Goals
Falling unemployment and rising inflation are bringing the Federal Reserve closer to its goals more rapidly than policy makers had foreseen, and may justify raising interest rates as early as the end of the first quarter of 2015, St. Louis Fed President James Bullard said Thursday.
Bloomberg | Wholesale Prices in U.S. Rise at Slower Pace as Fuel Drops
Wholesale prices in the U.S. rose at a slower pace in July as fuel costs dropped by the most in eight months.
The Fiscal Times | Farmers and Consumers Seeing Spike in Food Prices
It seems consumers and farmers both have a lot to complain about this year.
Econ Comments & Analysis
Heritage Foundation | Quantitative Easing, The Fed’s Balance Sheet, and Central Bank Insolvency
More than five years after the 2008 financial crisis, the Federal Reserve’s role is still the subject of much debate. One source of controversy has been the extent to which the Fed allocated credit directly to possibly insolvent institutions. Critics argue that the Fed should have allowed insolvent firms to restructure through bankruptcy and should have provided credit only to sound banks on a short-term basis.
Real Clear Markets | More Evidence That the Federal Reserve Is Superfluous
While the Federal Reserve is most notable for its role in monetary policy, the autonomous Fed plays an active role in regulating banking institutions. When not beefing up its balance sheet through quantitative easing, the Fed is quietly seeking to expand its scope of operations, especially in the area of electronic payments networks.
New York Times | Why a Rule on Loan Losses Could Squeeze Credit
No bank loses money on every loan, at least not if it is going to stay in business.
Blogs
Wall Street Journal | Bullard: Fed Getting Close to Policy Goals
Falling unemployment and rising inflation are bringing the Federal Reserve closer to its goals more rapidly than policy makers had foreseen, and may justify raising interest rates as early as the end of the first quarter of 2015, St. Louis Fed President James Bullard said Thursday.
Taxes
News
Fox Business | The IRS Has a Tax Cheat Sheet for Small Business Owners
Taxes are a big deal—especially for small business owners. The IRS can end up taking more than 50% of your Schedule C profit in ordinary income taxes and self-employment taxes. After all, the highest tax bracket is now 39.6% and the self-employment tax is 15.3%.
Econ Comments & Analysis
The Washington Times | EDITORIAL: Testing the limits of ‘sin’ and making it pay
Sin has never been more popular, and its popularity is greatest among government economists who never tire of figuring out how to make it pay.
CNBC | Democrats don't want to solve tax-inversion issue
President Barack Obama made clear that corporate inversions are on his target list last week. Through what the president brands as an "economically unpatriotic tax loophole," firms use cross-border transactions to reduce their tax burden substantially by re-domiciling outside the United States.
Heritage Foundation | Yes, Low-Tax States Are Out-Competing High Tax States
First, an apology. In a July 2 article in this newspaper [Investors Business Daily] I erred in citing Bureau of Labor Statistics numbers comparing the superior job creation performance of no-income-tax Texas and Florida with the two states with the highest income-tax rates, California and New York.
Fox Business | The IRS Has a Tax Cheat Sheet for Small Business Owners
Taxes are a big deal—especially for small business owners. The IRS can end up taking more than 50% of your Schedule C profit in ordinary income taxes and self-employment taxes. After all, the highest tax bracket is now 39.6% and the self-employment tax is 15.3%.
Econ Comments & Analysis
The Washington Times | EDITORIAL: Testing the limits of ‘sin’ and making it pay
Sin has never been more popular, and its popularity is greatest among government economists who never tire of figuring out how to make it pay.
CNBC | Democrats don't want to solve tax-inversion issue
President Barack Obama made clear that corporate inversions are on his target list last week. Through what the president brands as an "economically unpatriotic tax loophole," firms use cross-border transactions to reduce their tax burden substantially by re-domiciling outside the United States.
Heritage Foundation | Yes, Low-Tax States Are Out-Competing High Tax States
First, an apology. In a July 2 article in this newspaper [Investors Business Daily] I erred in citing Bureau of Labor Statistics numbers comparing the superior job creation performance of no-income-tax Texas and Florida with the two states with the highest income-tax rates, California and New York.
Employment
News
The Daily Signal | A Little Cafe That Sparked a Big Minimum Wage Debate
With its waitress and single cook, its retro-style booths with pale green cushions and its stainless steel wrap-around countertop, the Oasis Cafe could be any local diner in any town in the Midwest.
The Daily Signal | A Little Cafe That Sparked a Big Minimum Wage Debate
With its waitress and single cook, its retro-style booths with pale green cushions and its stainless steel wrap-around countertop, the Oasis Cafe could be any local diner in any town in the Midwest.
Budget
News
Bloomberg | U.S. Investment Outflow Hits Record as China Cuts Holdings
The U.S. posted a record cross-border investment outflow in June asChina and Japan reduced their holdings of Treasuries and private investors abroad sold bonds and notes.
Econ Comments & Analysis
Congressional Budget Office | Sequestration Update Report: August 2014
By law, the Congressional Budget Office (CBO) is required to issue a report by August 15 of each year that provides estimates of the caps on discretionary budget authority in effect for each fiscal year through 2021. Minor adjustments to the caps for 2014 have been made since CBO’s previous report on the topic, which was published in January 2014.
Bloomberg | U.S. Investment Outflow Hits Record as China Cuts Holdings
The U.S. posted a record cross-border investment outflow in June asChina and Japan reduced their holdings of Treasuries and private investors abroad sold bonds and notes.
Econ Comments & Analysis
Congressional Budget Office | Sequestration Update Report: August 2014
By law, the Congressional Budget Office (CBO) is required to issue a report by August 15 of each year that provides estimates of the caps on discretionary budget authority in effect for each fiscal year through 2021. Minor adjustments to the caps for 2014 have been made since CBO’s previous report on the topic, which was published in January 2014.
Thursday, August 14, 2014
General Economics
News
Bloomberg | Euro-Area Pickup Stalls as Big Economies Fail to Grow
The euro area’s recovery unexpectedly stalled in the second quarter as its three biggest economies failed to grow, underlining the vulnerability of the region to weak inflation and the deepening crisis in Ukraine.
Yahoo! Finance | Why the next 3 months are the market’s worst
Call it the end of summer doldrums. According to S&P Capital IQ, since 1980 August has been among the worst of all losing months - averaging a 4.38% decline. The firm’s chief equity strategist Sam Stovall blames the drop on vacationing traders. Their absence broadens the impact of any kind of market jarring events such as we saw last week.
Bloomberg | More Money Down Adds to U.S. First-Time Buyer Blues: Economy
The challenges facing prospective buyers of the least expensive homes in the U.S. are getting harder to overcome.
Econ Comments & Analysis
Wall Street Journal | The EPA's Latest Threat to Economic Growth
In a town famous for inaction, Washington is gearing up to take action on a major policy issue. But there's a hitch: The outcome could be the most expensive regulation in the nation's history, possibly tanking the economy and costing jobs at a time when businesses, manufacturers and families are making a comeback.
Blogs
Wall Street Journal | IMF: Infrastructure Drive May Not Fuel Much Growth
Infrastructure is at the top of the agenda in the world of economic policy as officials try to rev up a nearly idling global growth engine.
Bloomberg | Euro-Area Pickup Stalls as Big Economies Fail to Grow
The euro area’s recovery unexpectedly stalled in the second quarter as its three biggest economies failed to grow, underlining the vulnerability of the region to weak inflation and the deepening crisis in Ukraine.
Yahoo! Finance | Why the next 3 months are the market’s worst
Call it the end of summer doldrums. According to S&P Capital IQ, since 1980 August has been among the worst of all losing months - averaging a 4.38% decline. The firm’s chief equity strategist Sam Stovall blames the drop on vacationing traders. Their absence broadens the impact of any kind of market jarring events such as we saw last week.
Bloomberg | More Money Down Adds to U.S. First-Time Buyer Blues: Economy
The challenges facing prospective buyers of the least expensive homes in the U.S. are getting harder to overcome.
Econ Comments & Analysis
Wall Street Journal | The EPA's Latest Threat to Economic Growth
In a town famous for inaction, Washington is gearing up to take action on a major policy issue. But there's a hitch: The outcome could be the most expensive regulation in the nation's history, possibly tanking the economy and costing jobs at a time when businesses, manufacturers and families are making a comeback.
Blogs
Wall Street Journal | IMF: Infrastructure Drive May Not Fuel Much Growth
Infrastructure is at the top of the agenda in the world of economic policy as officials try to rev up a nearly idling global growth engine.
Health Care
Econ Comments & Analysis
Wall Street Journal | Where ObamaCare Is Going
The liberal attraction to making government the sole source of health-care insurance has not abated even as the deficiencies in ObamaCare, a halfway move toward the single-payer model, have become increasingly evident. The question is whether growing signs of single-payer trouble overseas will be enough to discourage this country's flirtation with socialized medicine.
The Washington Times | Obamacare’s backdoor premium hikes
Just as President Obama's health care law hits new record unpopularity, multiple reports have surfaced of new problems that could plague Obamacare and cost Americans thousands of dollars each.
Politico Magazine | Don’t Repeal Obamacare, Transcend It
A conservative strategy that's good policy - and good politics, too.
Wall Street Journal | Where ObamaCare Is Going
The liberal attraction to making government the sole source of health-care insurance has not abated even as the deficiencies in ObamaCare, a halfway move toward the single-payer model, have become increasingly evident. The question is whether growing signs of single-payer trouble overseas will be enough to discourage this country's flirtation with socialized medicine.
The Washington Times | Obamacare’s backdoor premium hikes
Just as President Obama's health care law hits new record unpopularity, multiple reports have surfaced of new problems that could plague Obamacare and cost Americans thousands of dollars each.
Politico Magazine | Don’t Repeal Obamacare, Transcend It
A conservative strategy that's good policy - and good politics, too.
Monetary
News
Market Watch | U.S. import price index declines 0.2% in July
The prices paid for goods imported into the U.S. declined by 0.2% in July, the first drop in three months, led lower by fuel prices, the U.S.Labor Department reported Thursday.
Market Watch | U.S. import price index declines 0.2% in July
The prices paid for goods imported into the U.S. declined by 0.2% in July, the first drop in three months, led lower by fuel prices, the U.S.Labor Department reported Thursday.
Taxes
Econ Comments & Analysis
CNN Money | 7 things you absolutely must know about corporate taxes
Politicians are hopping mad because a spate of big U.S. companies are trying to escape higher tax bills by proposing mergers with foreign firms.
The Daily Signal | Why One State Is Talking Tax Cuts: ‘It Is Time to Give the Taxpayers a Pay Raise’
The Republican lieutenant governor wants the state Senate to look at tax cuts this legislative session, and the corporate franchise tax might top the list, along with a cut to the state’s income tax.
CNN Money | 7 things you absolutely must know about corporate taxes
Politicians are hopping mad because a spate of big U.S. companies are trying to escape higher tax bills by proposing mergers with foreign firms.
The Daily Signal | Why One State Is Talking Tax Cuts: ‘It Is Time to Give the Taxpayers a Pay Raise’
The Republican lieutenant governor wants the state Senate to look at tax cuts this legislative session, and the corporate franchise tax might top the list, along with a cut to the state’s income tax.
Employment
News
CNN Money | Cisco is laying off up to 8% of its employees
The IT firm -- which makes Internet switches, routers and other networking devices -- announced Wednesday it plans to lay off up to 6,000 employees in the coming months, or about 8% of its global workforce.
Bloomberg | Jobless Claims in U.S. Rise to Highest Level in Six Weeks
Applications (INJCJC) for unemployment benefits in the U.S. rose more than forecast last week, interrupting a steady decline to pre-recession lows.
Econ Comments & Analysis
The Fiscal Times | From Bellhops to Burger Flippers, Robots Look to Steal Even More Jobs
Hotel rooms for the introverts among us are an anti-social haven. Nothing beats a hot shower, followed by settling into a freshly made bed in a terrycloth robe to watch mediocre television with a glass of wine.
CNN Money | Cisco is laying off up to 8% of its employees
The IT firm -- which makes Internet switches, routers and other networking devices -- announced Wednesday it plans to lay off up to 6,000 employees in the coming months, or about 8% of its global workforce.
Bloomberg | Jobless Claims in U.S. Rise to Highest Level in Six Weeks
Applications (INJCJC) for unemployment benefits in the U.S. rose more than forecast last week, interrupting a steady decline to pre-recession lows.
Econ Comments & Analysis
The Fiscal Times | From Bellhops to Burger Flippers, Robots Look to Steal Even More Jobs
Hotel rooms for the introverts among us are an anti-social haven. Nothing beats a hot shower, followed by settling into a freshly made bed in a terrycloth robe to watch mediocre television with a glass of wine.
Budget
News
Wall Street Journal | Little Improvement Seen from China's Economic Stimulus Measures
Economic data suggested that recent stimulus measures have done little to improve two weak corners of China's economy—wariness about lending and a struggling property sector.
Econ Comments & Analysis
The Fiscal Times | Study Finds Americans Plagued by Outstanding Debt
A disturbing new study from the Urban Institute reveals that one out of every 20 American adults on file with credit reporting agencies has at least one debt that is between 30 and 180 days past dude, and that more than one in three has had a debt sent to a collections agency within the past seven years.
Wall Street Journal | Little Improvement Seen from China's Economic Stimulus Measures
Economic data suggested that recent stimulus measures have done little to improve two weak corners of China's economy—wariness about lending and a struggling property sector.
Econ Comments & Analysis
The Fiscal Times | Study Finds Americans Plagued by Outstanding Debt
A disturbing new study from the Urban Institute reveals that one out of every 20 American adults on file with credit reporting agencies has at least one debt that is between 30 and 180 days past dude, and that more than one in three has had a debt sent to a collections agency within the past seven years.
Wednesday, August 13, 2014
General Economics
News
Bloomberg | Japan’s Economy Shrinks the Most Since 2011 Quake on Tax
Japan’s economy contracted the most since the record earthquake three years ago as consumption and investment plunged after an April sales-tax increase aimed at curbing the world’s biggest debt burden.
National Journal | Atlanta's Housing Recovery Is a Tale of Two Cities
In the affluent suburb of Dunwoody, Ga., northeast of downtown Atlanta, the housing market is recovering. Only 12.3 percent of homes in Dunwoody's 30338 ZIP code are valued lower than the outstanding mortgage balance. Home prices are rising. Just a short drive south is Riverdale, a lower-income community where 80 percent of the residents are African-American. A whopping 76 percent of homes in Riverdale's 30296 ZIP code are underwater.
Bloomberg | Worst Retail Sales Showing in Six Months in Slow Start to Third Quarter
U.S. retail sales stalled in July as discounting by merchants such as Macy’s Inc. (M) failed to counter the effects of feeble wage growth.
Market Watch | U.S. business inventories rise 0.4% in June
Business inventories rose 0.4% in June to a seasonally adjusted $1.74 trillion, the U.S. Commerce Department reported Wednesday.
Econ Comments & Analysis
Washington Times | EDITORIAL: It’s not inequality, stupid
Decrying income inequality is growing more popular with the shrill voices on the left as their policy nostrums, including the stimulus that didn't stimulate, have left crippled the economy, with more than 40 million Americans looking for jobs.
CNN Money | 5 myths about buying a home
From housing bubble to foreclosure crisis to somewhere in between, the housing market has changed dramatically over the past decade -- and so have many of the rules of homebuying.
Washington Times | The patriotism of prosperity
A few weeks ago, it was quite revealing - but not surprising - to hear Treasury Secretary Jacob Lew imply that corporate America should willingly pay the highest corporate tax rates in the world as part of its "patriotic" duty.
AEI | Non-Treasury Chinese investment in the US headed to $100 billion
The American Enterprise Institute-Heritage Foundation China Global Investment Tracker follows Chinese investment all over the world. Through June 30 2014, and excluding China's gigantic holdings of American treasury bonds, the U.S. had received over $70 billion in Chinese investment. This is the most of any country, and much more could be on the way.
Blogs
Gallup Politics | Government, Economy, Immigration Are Top U.S. Problems
Americans say the government, immigration, and the economy in general are the most important problems currently facing the country.
Wall Street Journal | How Washington Would Respond to an Economic Jolt From Overseas Tensions
What could go wrong? U.S. economic policy makers have that question on their minds these days as escalating tensions in the Middle East and Eastern Europe threaten to restrain a mounting U.S. recovery.
Market Watch | Regulators propose single mortgage-backed security for Fannie and Freddie
Looking to improve liquidity and move the ball forward on housing-finance reform, the regulator of Fannie Maeand Freddie Mac is requesting comment on creating a single mortgage-backed security for the finance giants, officials said Tuesday.
Library of Economics and Liberty | Haidt and the Moral Foundations of the Welfare State
I recently asked whether accusations of excessive "selfishness" are to be understood as accusations of insufficient "altruism", or rather as accusations of insufficient "groupishness".
Bloomberg | Japan’s Economy Shrinks the Most Since 2011 Quake on Tax
Japan’s economy contracted the most since the record earthquake three years ago as consumption and investment plunged after an April sales-tax increase aimed at curbing the world’s biggest debt burden.
National Journal | Atlanta's Housing Recovery Is a Tale of Two Cities
In the affluent suburb of Dunwoody, Ga., northeast of downtown Atlanta, the housing market is recovering. Only 12.3 percent of homes in Dunwoody's 30338 ZIP code are valued lower than the outstanding mortgage balance. Home prices are rising. Just a short drive south is Riverdale, a lower-income community where 80 percent of the residents are African-American. A whopping 76 percent of homes in Riverdale's 30296 ZIP code are underwater.
Bloomberg | Worst Retail Sales Showing in Six Months in Slow Start to Third Quarter
U.S. retail sales stalled in July as discounting by merchants such as Macy’s Inc. (M) failed to counter the effects of feeble wage growth.
Market Watch | U.S. business inventories rise 0.4% in June
Business inventories rose 0.4% in June to a seasonally adjusted $1.74 trillion, the U.S. Commerce Department reported Wednesday.
Econ Comments & Analysis
Washington Times | EDITORIAL: It’s not inequality, stupid
Decrying income inequality is growing more popular with the shrill voices on the left as their policy nostrums, including the stimulus that didn't stimulate, have left crippled the economy, with more than 40 million Americans looking for jobs.
CNN Money | 5 myths about buying a home
From housing bubble to foreclosure crisis to somewhere in between, the housing market has changed dramatically over the past decade -- and so have many of the rules of homebuying.
Washington Times | The patriotism of prosperity
A few weeks ago, it was quite revealing - but not surprising - to hear Treasury Secretary Jacob Lew imply that corporate America should willingly pay the highest corporate tax rates in the world as part of its "patriotic" duty.
AEI | Non-Treasury Chinese investment in the US headed to $100 billion
The American Enterprise Institute-Heritage Foundation China Global Investment Tracker follows Chinese investment all over the world. Through June 30 2014, and excluding China's gigantic holdings of American treasury bonds, the U.S. had received over $70 billion in Chinese investment. This is the most of any country, and much more could be on the way.
Blogs
Gallup Politics | Government, Economy, Immigration Are Top U.S. Problems
Americans say the government, immigration, and the economy in general are the most important problems currently facing the country.
Wall Street Journal | How Washington Would Respond to an Economic Jolt From Overseas Tensions
What could go wrong? U.S. economic policy makers have that question on their minds these days as escalating tensions in the Middle East and Eastern Europe threaten to restrain a mounting U.S. recovery.
Market Watch | Regulators propose single mortgage-backed security for Fannie and Freddie
Looking to improve liquidity and move the ball forward on housing-finance reform, the regulator of Fannie Maeand Freddie Mac is requesting comment on creating a single mortgage-backed security for the finance giants, officials said Tuesday.
Library of Economics and Liberty | Haidt and the Moral Foundations of the Welfare State
I recently asked whether accusations of excessive "selfishness" are to be understood as accusations of insufficient "altruism", or rather as accusations of insufficient "groupishness".
Health Care
News
Investors.com | ObamaCare Enrollment Is Shrinking, Top Insurers Say
ObamaCare exchange statistics should clear up any doubt as to why the Obama Administration has been tight-lipped about enrollment since celebrating 8 million sign-ups in mid-April
Politico | Immigration status may cost people Obamacare coverage
The Centers for Medicare & Medicaid Services is sending letters this week to 310,000 people whose citizenship or immigration status is in question, saying they must send documents by Sept. 5 or they will lose their coverage at the end of the month.
National Journal | How Governors Could Become America's Health Care Czars
Courts have put more and more power in the hands of states to run health care coverage—and not in the way the Affordable Care Act intended.
Investors.com | ObamaCare Enrollment Is Shrinking, Top Insurers Say
ObamaCare exchange statistics should clear up any doubt as to why the Obama Administration has been tight-lipped about enrollment since celebrating 8 million sign-ups in mid-April
Politico | Immigration status may cost people Obamacare coverage
The Centers for Medicare & Medicaid Services is sending letters this week to 310,000 people whose citizenship or immigration status is in question, saying they must send documents by Sept. 5 or they will lose their coverage at the end of the month.
National Journal | How Governors Could Become America's Health Care Czars
Courts have put more and more power in the hands of states to run health care coverage—and not in the way the Affordable Care Act intended.
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