News
Wall Street Journal | U.S. Corporate Profits Up Year-Over-Year for 12th Straight Quarter
U.S. corporations saw profits rise for three straight quarters and are up 3.8% from a year earlier, the Commerce Department said Tuesday.
Market Watch | Annual home-price growth slowest in two years
U.S. home prices were just about unchanged in September, as annual growth cooled to the slowest year-over-year pace in two years, moving the market closer to sustainable gains, according to data released Tuesday.
Market Watch | U.S. third-quarter growth raised to 3.9%
The economy in the second and third quarters posted its best back-to-back growth in 11 years, offering fresh evidence that the U.S. entered the final three months of the year with a good head of momentum.
Econ Comments & Analysis
Wall Street Journal | The Unsettling Mystery of Productivity
A cottage industry on Wall Street tries to forecast the Federal Reserve’s policy decisions. The Fed, in turn, bases its policy on how it thinks the economy will perform. The cottage industry, of course, knows that; so it is constantly engaged in forecasting the economy.
Washington Times | The dreaded consequences of Obamanomics
What has been the price tag for the audacious Obamanomics experiment?
Blogs
Wall Street Journal | U.S. GDP Registers Best Consecutive Quarters of Growth Since ’03
U.S. gross domestic product expanded at an average 4.25% pace over the second and third quarters this year, the best two consecutive quarters since 2003′s third and fourth quarters came in at 5.85%.
Tuesday, November 25, 2014
Health Care
News
CNN Money | Obamacare premiums: Going up unless you shop
Multiple experts have sliced and diced the Obamacare health insurance offerings for 2015, and most, if not all, have found that premiums are rising, on average. They used different criteria for measuring premium changes.
Econ Comments & Analysis
Forbes | Obamacare's Three-Legged Stool Of Deception Regarding Employer Health Plans
Anyone who has listened to the Gruber tapes has heard Prof. Gruber’s repeated references to the “three-legged stool” that forms the core of Obamacare.
CNN Money | Obamacare premiums: Going up unless you shop
Multiple experts have sliced and diced the Obamacare health insurance offerings for 2015, and most, if not all, have found that premiums are rising, on average. They used different criteria for measuring premium changes.
Econ Comments & Analysis
Forbes | Obamacare's Three-Legged Stool Of Deception Regarding Employer Health Plans
Anyone who has listened to the Gruber tapes has heard Prof. Gruber’s repeated references to the “three-legged stool” that forms the core of Obamacare.
Monetary
Econ Comments & Analysis
Market Watch | Federal Reserve relies on misleading indicators
When it decides whether and when to raise interest rates, the Federal Reserve will be watching two numbers very closely: the rates of unemployment and inflation. A sizable drop in the jobless rate from present levels would be a sign that higher rates are nigh; the same would be true if the rate of inflation should accelerate.
Market Watch | Federal Reserve relies on misleading indicators
When it decides whether and when to raise interest rates, the Federal Reserve will be watching two numbers very closely: the rates of unemployment and inflation. A sizable drop in the jobless rate from present levels would be a sign that higher rates are nigh; the same would be true if the rate of inflation should accelerate.
Taxes
Econ Comments & Analysis
Forbes | 'Fair Share?' The Typical Beneficiary Of Obama's Illegal Immigration Plan Won't Pay Net Income Taxes
On Thursday evening, President Obama unveiled his plan to offer legal status to approximately 5 million undocumented aliens.
Forbes | 'Fair Share?' The Typical Beneficiary Of Obama's Illegal Immigration Plan Won't Pay Net Income Taxes
On Thursday evening, President Obama unveiled his plan to offer legal status to approximately 5 million undocumented aliens.
Employment
Econ Comments & Analysis
Real Clear Markets | OUR Walmart Is 100% Union, 0% WMT
This Black Friday, the start of the Christmas holiday shopping season, the United Food and Commercial Workers will be leading demonstrations at 1,600 Walmarts all over the country, demanding that Walmart pay an hourly minimum wage of $15.
Forbes | Free To Choose: The Case For Right-To-Work
Emboldened by the political survival of Wisconsin Governor Scott Walker, who successfully curbed his state’s ravenous public-sector unions, conservatives across the country are looking to ride their 2014 election victory towards more labor reform.
Real Clear Markets | OUR Walmart Is 100% Union, 0% WMT
This Black Friday, the start of the Christmas holiday shopping season, the United Food and Commercial Workers will be leading demonstrations at 1,600 Walmarts all over the country, demanding that Walmart pay an hourly minimum wage of $15.
Forbes | Free To Choose: The Case For Right-To-Work
Emboldened by the political survival of Wisconsin Governor Scott Walker, who successfully curbed his state’s ravenous public-sector unions, conservatives across the country are looking to ride their 2014 election victory towards more labor reform.
Monday, November 24, 2014
General Economics
News
Wall Street Journal | What Big Economies Got Right, or Wrong, After Crisis
The divergent policy paths taken by the world’s advanced economies provide lessons for global leaders navigating difficult post-crisis environments.
Market Watch | U.S., global business confidence slumps
U.S. and global business confidence slumped in the third quarter, according to a survey of business executives released Sunday.
Market Watch | U.S. economy on course for steady growth
The economy has zigged and zagged repeatedly since exiting recession in 2009, but now it finally appears to be charting a steady course forward.
Market Watch | Economic growth moderates in October, Chicago Fed national activity index shows
Economic growth moderated in October, according to the Chicago Fed national activity index released Monday.
Wall Street Journal | What Big Economies Got Right, or Wrong, After Crisis
The divergent policy paths taken by the world’s advanced economies provide lessons for global leaders navigating difficult post-crisis environments.
Market Watch | U.S., global business confidence slumps
U.S. and global business confidence slumped in the third quarter, according to a survey of business executives released Sunday.
Market Watch | U.S. economy on course for steady growth
The economy has zigged and zagged repeatedly since exiting recession in 2009, but now it finally appears to be charting a steady course forward.
Market Watch | Economic growth moderates in October, Chicago Fed national activity index shows
Economic growth moderated in October, according to the Chicago Fed national activity index released Monday.
Monetary
Econ Comments & Analysis
Market Watch | The Fed has boxed U.S. into a tough easy-money corner
Despite the Federal Reserve ending its purchases of Treasury bonds, U.S. monetary policy remains accommodative — and will be for a long time to come.
Market Watch | The Fed has boxed U.S. into a tough easy-money corner
Despite the Federal Reserve ending its purchases of Treasury bonds, U.S. monetary policy remains accommodative — and will be for a long time to come.
Employment
News
Market Watch | North Dakota, Utah, Texas lead U.S. job growth
The fastest-growing U.S. job markets are in North Dakota, Utah and Texas, with each of these states recently posting annual gains reaching above 3%, according to government data released Friday.
Econ Comments & Analysis
Wall Street Journal | The President Is Right on Immigration
President Obama announced Thursday a temporary reprieve from deportation, and offered temporary permission to work, for several million undocumented longtime residents with close family members in the U.S. The executive order, he said, was not an amnesty and federal authorities would focus on deporting “felons, not families. Criminals, not children. Gang members, not a mom who’s working hard to provide for her kids.”
Forbes | Manufacturing Jobs Just Aren't Good Middle Class Jobs Any More
I have to admit that as an outsider looking in I’ve never really quite grasped this American near mythologisation of manufacturing jobs.
AEI | An amazing chart of an amazing job-creating state; we owe a debt of gratitude to ‘Saudi Texas’ and the shale boom
The chart above shows a most amazing economic phenomenon: Since December 2007 when the Great Recession started, Texas civilian employment has increased by 12.4% and by more than 1.36 million jobs, from just over 11 million jobs in December 2007 to 12.37 million in October of this year (see blue line in chart).
Market Watch | North Dakota, Utah, Texas lead U.S. job growth
The fastest-growing U.S. job markets are in North Dakota, Utah and Texas, with each of these states recently posting annual gains reaching above 3%, according to government data released Friday.
Econ Comments & Analysis
Wall Street Journal | The President Is Right on Immigration
President Obama announced Thursday a temporary reprieve from deportation, and offered temporary permission to work, for several million undocumented longtime residents with close family members in the U.S. The executive order, he said, was not an amnesty and federal authorities would focus on deporting “felons, not families. Criminals, not children. Gang members, not a mom who’s working hard to provide for her kids.”
Forbes | Manufacturing Jobs Just Aren't Good Middle Class Jobs Any More
I have to admit that as an outsider looking in I’ve never really quite grasped this American near mythologisation of manufacturing jobs.
AEI | An amazing chart of an amazing job-creating state; we owe a debt of gratitude to ‘Saudi Texas’ and the shale boom
The chart above shows a most amazing economic phenomenon: Since December 2007 when the Great Recession started, Texas civilian employment has increased by 12.4% and by more than 1.36 million jobs, from just over 11 million jobs in December 2007 to 12.37 million in October of this year (see blue line in chart).
Friday, November 21, 2014
General Economics
News
Market Watch | Consumer prices flat in October as gas tumbles
Plunging gasoline prices offset increases in housing, medical care and airline fares to keep the cost of living for U.S. consumers unchanged in October.
CNN Money | America's part-time economy
The West Coast isn't a dreamy place for many workers. Millions of Americans are languishing there in part-time jobs with no other options.
Econ Comments & Analysis
Wall Street Journal | How the ‘Reserve’ Dollar Harms America
For more than three decades we have called attention on this page to what we called the “reserve-currency curse.” Since some politicians and economists have recently insisted that the dollar’s official role as the world’s reserve currency is instead a great blessing, it is time to revisit the issue.
Market Watch | Consumer prices flat in October as gas tumbles
Plunging gasoline prices offset increases in housing, medical care and airline fares to keep the cost of living for U.S. consumers unchanged in October.
CNN Money | America's part-time economy
The West Coast isn't a dreamy place for many workers. Millions of Americans are languishing there in part-time jobs with no other options.
Econ Comments & Analysis
Wall Street Journal | How the ‘Reserve’ Dollar Harms America
For more than three decades we have called attention on this page to what we called the “reserve-currency curse.” Since some politicians and economists have recently insisted that the dollar’s official role as the world’s reserve currency is instead a great blessing, it is time to revisit the issue.
Health Care
News
CNN Money | Big jump in Medicaid spending after Obamacare
Spending on the health insurance program for the poor is projected to hit $460.5 billion, according to a new report by the National Association of State Budget Officers. This will make it the largest state expenditure at 26%, beating out education, transportation and corrections.
CNN Money | Big jump in Medicaid spending after Obamacare
Spending on the health insurance program for the poor is projected to hit $460.5 billion, according to a new report by the National Association of State Budget Officers. This will make it the largest state expenditure at 26%, beating out education, transportation and corrections.
Monetary
News
Market Watch | Fed’s Bullard says central bank ‘boxed in’ to June hike
Broad expectations the Federal Reserve will start raising short-term interest rates next summer are being driven not so much by economic considerations as they are by quirks in how the U.S. central bank conducts its policy meetings, and that’s a bad thing, a top Fed official said Thursday.
CNN Money | The Fed is worried about the stock market
The Federal Reserve is not supposed to care about the stock market. It only has two official mandates: make sure enough Americans are working and ensure prices of consumer goods stay relatively stable.
Econ Comments & Analysis
Market Watch | The man who called the last stock crash is already blaming the Fed for the next
This time around, Peter Schiff, the chief executive officer of Euro Pacific Capital who memorably predicted the collapse of the housing market in 2008 and the global financial crisis of 2010, is speaking out against the Federal Reserve, which, he claims, has inflated the prices of stocks and bonds with its ultraloose, unconventional monetary policies.
Market Watch | Fed’s Bullard says central bank ‘boxed in’ to June hike
Broad expectations the Federal Reserve will start raising short-term interest rates next summer are being driven not so much by economic considerations as they are by quirks in how the U.S. central bank conducts its policy meetings, and that’s a bad thing, a top Fed official said Thursday.
CNN Money | The Fed is worried about the stock market
The Federal Reserve is not supposed to care about the stock market. It only has two official mandates: make sure enough Americans are working and ensure prices of consumer goods stay relatively stable.
Econ Comments & Analysis
Market Watch | The man who called the last stock crash is already blaming the Fed for the next
This time around, Peter Schiff, the chief executive officer of Euro Pacific Capital who memorably predicted the collapse of the housing market in 2008 and the global financial crisis of 2010, is speaking out against the Federal Reserve, which, he claims, has inflated the prices of stocks and bonds with its ultraloose, unconventional monetary policies.
Taxes
Econ Comments & Analysis
Wall Street Journal | Tax Competition Works for Europe
It seems to have come as a great shock to many in the European Parliament that Luxembourg may have encouraged multinational companies to domicile there to pay lower taxes.
AEI | Yikes. Here’s just how high the corporate tax rate is in the US
The Tax Foundation recently came out with a compilation of charts on “Business in America” that look at US economic growth, labor force, corporate tax rates and more. Here are three charts that illustrate just how high the US corporate tax rate is compared to other countries.
Wall Street Journal | Tax Competition Works for Europe
It seems to have come as a great shock to many in the European Parliament that Luxembourg may have encouraged multinational companies to domicile there to pay lower taxes.
AEI | Yikes. Here’s just how high the corporate tax rate is in the US
The Tax Foundation recently came out with a compilation of charts on “Business in America” that look at US economic growth, labor force, corporate tax rates and more. Here are three charts that illustrate just how high the US corporate tax rate is compared to other countries.
Employment
News
Forbes | How Obama's Illegal Immigrant Amnesty Will Affect Labor Markets
President Obama announced something of an amnesty plan Thursday night for illegal immigrants with children who are citizens or green card holders. Estimates vary, but this will probably affect around 4 to 5 million illegal immigrants. Politically many are arguing this policy is an extreme move, but economically the impact on labor markets won’t be huge.
Market Watch | Here’s what Obama didn’t tell you on economics of immigration
As President Barack Obama on Thursday laid out his new immigration policy in a prime-time address, here’s what neither he nor his detractors are saying about the economics of the issue.
Wall Street Journal | Obama’s Immigration Plan Seen Affecting Wages, Job Moves
President Barack Obama ’s move to offer legal-worker status to several million undocumented immigrants will send unpredictable ripples through the U.S. economy, prompting many to seek higher-paying jobs and heightening competition for positions in a number of sectors, economists say.
CNN Money | High-skilled immigration fixes are just a band-aid
As expected, the bulk of the address was related to unauthorized immigrants. But he promised to make it "easier and faster" for high-skilled immigrants, graduates and entrepreneurs to work in the U.S. after graduation.
Econ Comments & Analysis
CNN Money | Part-time jobs put millions in poverty or close to it
They are unable to get full-time work and the benefits and stability that come with it. It's a constant struggle for these families and a worrying sign for America's recovery.
Forbes | How Obama's Illegal Immigrant Amnesty Will Affect Labor Markets
President Obama announced something of an amnesty plan Thursday night for illegal immigrants with children who are citizens or green card holders. Estimates vary, but this will probably affect around 4 to 5 million illegal immigrants. Politically many are arguing this policy is an extreme move, but economically the impact on labor markets won’t be huge.
Market Watch | Here’s what Obama didn’t tell you on economics of immigration
As President Barack Obama on Thursday laid out his new immigration policy in a prime-time address, here’s what neither he nor his detractors are saying about the economics of the issue.
Wall Street Journal | Obama’s Immigration Plan Seen Affecting Wages, Job Moves
President Barack Obama ’s move to offer legal-worker status to several million undocumented immigrants will send unpredictable ripples through the U.S. economy, prompting many to seek higher-paying jobs and heightening competition for positions in a number of sectors, economists say.
CNN Money | High-skilled immigration fixes are just a band-aid
As expected, the bulk of the address was related to unauthorized immigrants. But he promised to make it "easier and faster" for high-skilled immigrants, graduates and entrepreneurs to work in the U.S. after graduation.
Econ Comments & Analysis
CNN Money | Part-time jobs put millions in poverty or close to it
They are unable to get full-time work and the benefits and stability that come with it. It's a constant struggle for these families and a worrying sign for America's recovery.
Budget
Econ Comments & Analysis
AEI | The right choice for CBO director: Doug Elmendorf
Greg Mankiw recently recommended that congressional Republicans reappoint Doug Elmendorf as director of the Congressional Budget Office. I wholeheartedly agree.
AEI | The right choice for CBO director: Doug Elmendorf
Greg Mankiw recently recommended that congressional Republicans reappoint Doug Elmendorf as director of the Congressional Budget Office. I wholeheartedly agree.
Thursday, November 20, 2014
General Economics
News
Wall Street Journal | U.S. Consumer Prices Unchanged in October
U.S. consumer prices held steady last month, the latest sign of weak inflation at home amid soft energy prices and slow growth abroad.
Wall Street Journal | Jobless Claims Fall in Latest Sign of Improving Labor Market
Initial claims for unemployment benefits decreased by 2,000 to a seasonally adjusted 291,000 in the week ended Nov. 15, the Labor Department said Thursday. That was slightly above the 283,000 claims forecast by economists surveyed by The Wall Street Journal.
Econ Comments & Analysis
Wall Street Journal | What the Inequality Warriors Really Want
Progressives decry inequality as the world’s most pressing economic problem. In its name, they urge much greater income and wealth taxation, especially of the reviled top 1% of earners, along with more government spending and controls—higher minimum wages, “living” wages, comparable worth directives, CEO pay caps, etc.
Market Watch | U.S. still in early stage of growth cycle, Goldman economist says
With the U.S. having added 200,000 jobs each month for the last nine, it’s worth asking just how much juice is left in the current economic recovery.
Alhambra Investment Partners | Crude and Credit Warn Of The Elongated Cycle Double Peak
Next to Japan’s “unexpected” re-acquaintance with recession, the most serious indication of global economic distress has to be oil prices. And where commentary turned to “explaining” Japanese recession as related to a small attempt at fiscal discipline rather than the more debilitating flirtation with intentional debasement, convention surrounding the precipitous plunge in crude is desperately trying to direct toward “supply.”
Wall Street Journal | U.S. Consumer Prices Unchanged in October
U.S. consumer prices held steady last month, the latest sign of weak inflation at home amid soft energy prices and slow growth abroad.
Wall Street Journal | Jobless Claims Fall in Latest Sign of Improving Labor Market
Initial claims for unemployment benefits decreased by 2,000 to a seasonally adjusted 291,000 in the week ended Nov. 15, the Labor Department said Thursday. That was slightly above the 283,000 claims forecast by economists surveyed by The Wall Street Journal.
Econ Comments & Analysis
Wall Street Journal | What the Inequality Warriors Really Want
Progressives decry inequality as the world’s most pressing economic problem. In its name, they urge much greater income and wealth taxation, especially of the reviled top 1% of earners, along with more government spending and controls—higher minimum wages, “living” wages, comparable worth directives, CEO pay caps, etc.
Market Watch | U.S. still in early stage of growth cycle, Goldman economist says
With the U.S. having added 200,000 jobs each month for the last nine, it’s worth asking just how much juice is left in the current economic recovery.
Alhambra Investment Partners | Crude and Credit Warn Of The Elongated Cycle Double Peak
Next to Japan’s “unexpected” re-acquaintance with recession, the most serious indication of global economic distress has to be oil prices. And where commentary turned to “explaining” Japanese recession as related to a small attempt at fiscal discipline rather than the more debilitating flirtation with intentional debasement, convention surrounding the precipitous plunge in crude is desperately trying to direct toward “supply.”
Health Care
Econ Comments & Analysis
Market Watch | Why Healthcare.gov still needs to be fixed
A year after Healthcare.gov’s messy launch, the government-run Web marketplace for health insurance is working smoothly. Rightly, the no-drama launch of Healthcare.gov 2.0’s open-enrollment season this week has drawn little notice; if we put people on the moon, our government can run an e-commerce site. Problem is, the public has a right to expect one even better than this new version.
Market Watch | Why Healthcare.gov still needs to be fixed
A year after Healthcare.gov’s messy launch, the government-run Web marketplace for health insurance is working smoothly. Rightly, the no-drama launch of Healthcare.gov 2.0’s open-enrollment season this week has drawn little notice; if we put people on the moon, our government can run an e-commerce site. Problem is, the public has a right to expect one even better than this new version.
Monetary
News
Wall Street Journal | With Wary Eye on Global Tumult, Fed Opted to Stay on Policy Path for Now
Federal Reserve officials meeting last month said they felt the U.S. recovery was on strong enough footing to withstand gathering external threats to growth and stuck to their plan to gradually unwind nearly six years of easy-money policies.
Market Watch | Minutes show determined, hawkish Fed
Federal Reserve officials seem determined to get on with the business at hand of raising short-term interest rates next year, brushing aside concerns about low inflation and weak global growth.
Bloomberg View | Fed and Markets More Co-Dependent Than Ever
The minutes of the Federal Open Markets Committee, the Federal Reserve's policy-making body, are often of interest for specific insights and technical details.
Wall Street Journal | With Wary Eye on Global Tumult, Fed Opted to Stay on Policy Path for Now
Federal Reserve officials meeting last month said they felt the U.S. recovery was on strong enough footing to withstand gathering external threats to growth and stuck to their plan to gradually unwind nearly six years of easy-money policies.
Market Watch | Minutes show determined, hawkish Fed
Federal Reserve officials seem determined to get on with the business at hand of raising short-term interest rates next year, brushing aside concerns about low inflation and weak global growth.
Bloomberg View | Fed and Markets More Co-Dependent Than Ever
The minutes of the Federal Open Markets Committee, the Federal Reserve's policy-making body, are often of interest for specific insights and technical details.
Taxes
Econ Comments & Analysis
National Review | The 2014 Tax Revolt
As they whistle past the post-election graveyard, Democrats have found a new tune: Voters may have rejected their candidates for everything from U.S. Senate to dogcatcher, but they really still agree with them on the issues.
National Review | The 2014 Tax Revolt
As they whistle past the post-election graveyard, Democrats have found a new tune: Voters may have rejected their candidates for everything from U.S. Senate to dogcatcher, but they really still agree with them on the issues.
Employment
Econ Comments & Analysis
Market Watch | Here’s what Obama won’t tell you on economics of immigration
The fear from those concerned about it is simple enough: an increase in the pool of labor will drive down wages of those already here. The pro-immigration angle takes that argument on its head: that increased pool of lower-wage workers will allow companies to act more productively, which over the longer term, will drive up wages for everyone.
Market Watch | Here’s what Obama won’t tell you on economics of immigration
The fear from those concerned about it is simple enough: an increase in the pool of labor will drive down wages of those already here. The pro-immigration angle takes that argument on its head: that increased pool of lower-wage workers will allow companies to act more productively, which over the longer term, will drive up wages for everyone.
Budget
Econ Comments & Analysis
Investors.com | States In Danger As Pension Underfunding Of $4.7 Trillion Threatens Their Fiscal Health
Voters in the midterm elections gave Republicans control of 31 governorships and 23 state legislatures, the most since 1929. A big reason for the GOP's sudden popularity: Many states face fiscal disaster.
Investors.com | States In Danger As Pension Underfunding Of $4.7 Trillion Threatens Their Fiscal Health
Voters in the midterm elections gave Republicans control of 31 governorships and 23 state legislatures, the most since 1929. A big reason for the GOP's sudden popularity: Many states face fiscal disaster.
Wednesday, November 19, 2014
General Economics
News
Wall Street Journal | U.S. Housing Starts Down 2.8% on Multifamily Drop
Builders started construction on more single-family homes in October, but the gain wasn’t enough to offset a big drop in multifamily properties.
Wall Street Journal | U.S. Home-Builder Confidence Rose in November
A gauge of home-builder sentiment climbed in November, a hopeful signal for the U.S. housing recovery as it struggles to find its footing.
Econ Comments & Analysis
Forbes | The United States Is A Lot More Equal Than You Think
This is an interesting little observation from Mark Perry. That the United States is actually a great deal more equal that we generally get told it is. And it leads in to a further interesting question: how equal should a country be? There’s also one more point that we can make as well. Which is that even these figures underestimate how equal the country is after the full effects of government.
Wall Street Journal | U.S. Housing Starts Down 2.8% on Multifamily Drop
Builders started construction on more single-family homes in October, but the gain wasn’t enough to offset a big drop in multifamily properties.
Wall Street Journal | U.S. Home-Builder Confidence Rose in November
A gauge of home-builder sentiment climbed in November, a hopeful signal for the U.S. housing recovery as it struggles to find its footing.
Econ Comments & Analysis
Forbes | The United States Is A Lot More Equal Than You Think
This is an interesting little observation from Mark Perry. That the United States is actually a great deal more equal that we generally get told it is. And it leads in to a further interesting question: how equal should a country be? There’s also one more point that we can make as well. Which is that even these figures underestimate how equal the country is after the full effects of government.
Health Care
News
Market Watch | Why Obamacare won’t stop the health-care cost crisis
President Barack Obama has said it over and over again: Health-care inflation has gone down every year since the Affordable Care Act passed in 2010.
Econ Comments & Analysis
Investors.com | How Obamacare Turned Insurers Into Big Gov't Lovers
The New York Times this week reports that ObamaCare has made strange bedfellows between the insurance industry and the federal government.
Market Watch | Why Obamacare won’t stop the health-care cost crisis
President Barack Obama has said it over and over again: Health-care inflation has gone down every year since the Affordable Care Act passed in 2010.
Econ Comments & Analysis
Investors.com | How Obamacare Turned Insurers Into Big Gov't Lovers
The New York Times this week reports that ObamaCare has made strange bedfellows between the insurance industry and the federal government.
Monetary
News
Market Watch | How to read Fed’s stiff upper lip on inflation
Last month’s Federal Reserve policy statement seemed hawkish, in no small part because the U.S. central bank didn’t flinch in the face of growing concern about persistently low inflation.
Econ Comments & Analysis
Forbes | A "Rules-Based" Monetary System Means a Fixed-Value System
There’s a fair amount of talk these days about “rules-based” monetary systems, in no small part because, as Volcker notes, the absence of rules has tended to cause a lot of chaos and destruction.
Blogs
Wall Street Journal | Fed Coming Under Pressure From Both Left and Right
When Republicans won control of the Senate earlier this month, it looked like the Federal Reserve was about to become a target of newly empowered conservatives in Congress. The Republican Party has been critical of the Fed’s monetary policy decisions and its performance as a financial supervisor and is pushing for more formal scrutiny of the central bank.
Market Watch | How to read Fed’s stiff upper lip on inflation
Last month’s Federal Reserve policy statement seemed hawkish, in no small part because the U.S. central bank didn’t flinch in the face of growing concern about persistently low inflation.
Econ Comments & Analysis
Forbes | A "Rules-Based" Monetary System Means a Fixed-Value System
There’s a fair amount of talk these days about “rules-based” monetary systems, in no small part because, as Volcker notes, the absence of rules has tended to cause a lot of chaos and destruction.
Blogs
Wall Street Journal | Fed Coming Under Pressure From Both Left and Right
When Republicans won control of the Senate earlier this month, it looked like the Federal Reserve was about to become a target of newly empowered conservatives in Congress. The Republican Party has been critical of the Fed’s monetary policy decisions and its performance as a financial supervisor and is pushing for more formal scrutiny of the central bank.
Taxes
Econ Comments & Analysis
Daily Signal | How Hiking Taxes Is Working Out for Japan (Hint: Not Great)
Japan is suffering another economic free fall. Following a second quarter GDP decline of an annualized 7.3 percent, this last quarter the economy in Tokyo sank again by another 1.6 percent. The land of the rising sun is looking a lot like the land of the setting sun. There are lessons here for U.S. policymakers if they are paying attention.
Daily Signal | How Hiking Taxes Is Working Out for Japan (Hint: Not Great)
Japan is suffering another economic free fall. Following a second quarter GDP decline of an annualized 7.3 percent, this last quarter the economy in Tokyo sank again by another 1.6 percent. The land of the rising sun is looking a lot like the land of the setting sun. There are lessons here for U.S. policymakers if they are paying attention.
Employment
News
Daily Signal | Only 6 Out of 10 Americans Eligible to Work Are Actually Working
First, the good news. The economy is unmistakably regaining some of its mojo. We picked up another 214,000 jobs in October, according to the Labor Department, and with revisions from previous months, the number was closer to 250,000. Now THAT’S more like it.
Blogs
Wall Street Journal | Most Young Americans Unsure or Glum on Job Prospects, Fed Survey Says
The last U.S. recession made it harder for young workers to find stable, full-time work, leaving most of them either pessimistic or uncertain about their future employment prospects, according to a Federal Reserve survey published Tuesday.
Daily Signal | Only 6 Out of 10 Americans Eligible to Work Are Actually Working
First, the good news. The economy is unmistakably regaining some of its mojo. We picked up another 214,000 jobs in October, according to the Labor Department, and with revisions from previous months, the number was closer to 250,000. Now THAT’S more like it.
Blogs
Wall Street Journal | Most Young Americans Unsure or Glum on Job Prospects, Fed Survey Says
The last U.S. recession made it harder for young workers to find stable, full-time work, leaving most of them either pessimistic or uncertain about their future employment prospects, according to a Federal Reserve survey published Tuesday.
Budget
Econ Comments & Analysis
Mercatus Center | Working Around the Budget Process: Will We See More Supplemental Funding With the New Congress?
The Obama administration recently sent a request to Congress for an additional $11.7 billion in additional funding for fiscal year 2015 to combat the Ebola virus and Islamic extremists in the Middle East.
Mercatus Center | Working Around the Budget Process: Will We See More Supplemental Funding With the New Congress?
The Obama administration recently sent a request to Congress for an additional $11.7 billion in additional funding for fiscal year 2015 to combat the Ebola virus and Islamic extremists in the Middle East.
Tuesday, November 18, 2014
General Economics
News
Wall Street Journal | U.S. October Industrial Production Slips 0.1%
U.S. industrial production slipped in October, a sign domestic economic growth could slow further in the final months of 2014.
Wall Street Journal | Producer Prices Rise 0.2% in October
The producer-price index for final demand, which measures changes in the prices firms receive for their goods and services, increased a seasonally adjusted 0.2% in October from a month earlier, the Labor Department said Tuesday.
Econ Comments & Analysis
Forbes | Why Japan's Economy Is In A Ditch -- And What Must Be Done To Pull It Out
“Japan Falls into Recession” is the lead headline in today’s business news, as the world’s third-largest economy shrank in the third quarter. The previous quarter had also seen the economy contract, but that downturn was spun as a temporary reaction to the government’s 60% increase in the national sales tax last spring. Temporary it was not.
Wall Street Journal | U.S. October Industrial Production Slips 0.1%
U.S. industrial production slipped in October, a sign domestic economic growth could slow further in the final months of 2014.
Wall Street Journal | Producer Prices Rise 0.2% in October
The producer-price index for final demand, which measures changes in the prices firms receive for their goods and services, increased a seasonally adjusted 0.2% in October from a month earlier, the Labor Department said Tuesday.
Econ Comments & Analysis
Forbes | Why Japan's Economy Is In A Ditch -- And What Must Be Done To Pull It Out
“Japan Falls into Recession” is the lead headline in today’s business news, as the world’s third-largest economy shrank in the third quarter. The previous quarter had also seen the economy contract, but that downturn was spun as a temporary reaction to the government’s 60% increase in the national sales tax last spring. Temporary it was not.
Health Care
News
CNN Money | Americans don't like Obamacare, even if enrollees do
A record number of Americans are giving Obamacare two thumbs down, even though enrollees like it and plan to renew their insurance coverage.
Econ Comments & Analysis
Washington Times | The stupidity of "experts"
The only surprising thing about Obamacare architect Jonathan Gruber's revelations that the legislation was based on a series of lies and voter stupidity was that Mr. Gruber was so stupid to think that no one would see that videos of him saying so.
CNN Money | Americans don't like Obamacare, even if enrollees do
A record number of Americans are giving Obamacare two thumbs down, even though enrollees like it and plan to renew their insurance coverage.
Econ Comments & Analysis
Washington Times | The stupidity of "experts"
The only surprising thing about Obamacare architect Jonathan Gruber's revelations that the legislation was based on a series of lies and voter stupidity was that Mr. Gruber was so stupid to think that no one would see that videos of him saying so.
Monetary
Blogs
Wall Street Journal | Capital Controls May Make Economic Sense, Minneapolis Fed Paper Says
Countries may at times find it useful to restrict rapid capital flows because the short-term benefits of these large investments may be outweighed by an eventual drag from a stronger currency and more expensive exports, according to two economists at theFederal Reserve Bank of Minneapolis.
Wall Street Journal | Yellen Is Getting the Fiscal Policy Bernanke Asked For
Developed economy central banks have been trying for years to counteract the contractionary effects of tight fiscal policy that emerged in the aftermath of the 2008 financial crisis.
Wall Street Journal | Capital Controls May Make Economic Sense, Minneapolis Fed Paper Says
Countries may at times find it useful to restrict rapid capital flows because the short-term benefits of these large investments may be outweighed by an eventual drag from a stronger currency and more expensive exports, according to two economists at theFederal Reserve Bank of Minneapolis.
Wall Street Journal | Yellen Is Getting the Fiscal Policy Bernanke Asked For
Developed economy central banks have been trying for years to counteract the contractionary effects of tight fiscal policy that emerged in the aftermath of the 2008 financial crisis.
Taxes
Econ Comments & Analysis
Forbes | Proper Staffing And Reform Of JCT, CBO Is An IQ Test For The Republican Party
The Congressional Budget Office (CBO) and Joint Committee on Taxation (JCT) are congressional bureaucracies that wield tremendous power on Capitol Hill because of their role as fiscal scorekeepers and referees.
Forbes | Proper Staffing And Reform Of JCT, CBO Is An IQ Test For The Republican Party
The Congressional Budget Office (CBO) and Joint Committee on Taxation (JCT) are congressional bureaucracies that wield tremendous power on Capitol Hill because of their role as fiscal scorekeepers and referees.
Employment
News
Real Clear Markets | Obama's War On Working Women
Now that the midterm elections are over, the Department of Labor is getting ready to release new proposed rules on overtime pay. These rules will fulfill President Obama'spromise to raise the salary level at which employers are required to pay overtime. In March, at the White House, the President said, "Overtime is a pretty simple idea: If you have to work more, you should get paid more."
Market Watch | Why long-term unemployed should not be ignored
Most people who have been out of work a long time still want a job and they should not be ignored when assessing the health of the U.S. labor market, a study says.
Blogs
Wall Street Journal | Long-Term Unemployment a Sign of Slack, NY Fed Economists Say
The long-term unemployed are just as much a part of the U.S. workforce as those jobless for shorter spells, and should not be discounted as policy makers try to assess much unused capacity remains, New York Fed economists write in a new blog post.
Real Clear Markets | Obama's War On Working Women
Now that the midterm elections are over, the Department of Labor is getting ready to release new proposed rules on overtime pay. These rules will fulfill President Obama'spromise to raise the salary level at which employers are required to pay overtime. In March, at the White House, the President said, "Overtime is a pretty simple idea: If you have to work more, you should get paid more."
Market Watch | Why long-term unemployed should not be ignored
Most people who have been out of work a long time still want a job and they should not be ignored when assessing the health of the U.S. labor market, a study says.
Blogs
Wall Street Journal | Long-Term Unemployment a Sign of Slack, NY Fed Economists Say
The long-term unemployed are just as much a part of the U.S. workforce as those jobless for shorter spells, and should not be discounted as policy makers try to assess much unused capacity remains, New York Fed economists write in a new blog post.
Budget
News
CNN Money | The push to keep Washington's impartial budget wonk
His analysis has sometimes ticked off the right or irritated the left. And it's ruffled the White House occasionally too.
CNN Money | The push to keep Washington's impartial budget wonk
His analysis has sometimes ticked off the right or irritated the left. And it's ruffled the White House occasionally too.
Monday, November 17, 2014
General Economics
News
Wall Street Journal | Japan Falls Into Recession
Japan’s economy shrank for a second quarter in a row, after a sales-tax increase took the steam out of Prime Minister Shinzo Abe ’s bid to turn Japan into a global model of revival.
Wall Street Journal | Obama Looks to Jump-Start Export Push
The Obama administration will fall well short of its goal of doubling exports in five years. But it is hoping to secure a longer-run victory on the trade front with sweeping new agreements in the next two years.
Market Watch | Industrial production falls unexpected 0.1% in October
Industrial production fell a seasonally adjusted 0.1% in October, the second drop in the last three months, the Federal Reserve said Monday. The decline was unexpected.
Wall Street Journal | Japan Falls Into Recession
Japan’s economy shrank for a second quarter in a row, after a sales-tax increase took the steam out of Prime Minister Shinzo Abe ’s bid to turn Japan into a global model of revival.
Wall Street Journal | Obama Looks to Jump-Start Export Push
The Obama administration will fall well short of its goal of doubling exports in five years. But it is hoping to secure a longer-run victory on the trade front with sweeping new agreements in the next two years.
Market Watch | Industrial production falls unexpected 0.1% in October
Industrial production fell a seasonally adjusted 0.1% in October, the second drop in the last three months, the Federal Reserve said Monday. The decline was unexpected.
Health Care
News
CNN Money | Obamacare 2.0 kicks off with few hitches
Obamacare 2.0 opened for enrollment early Saturday morning with less fanfare and fewer glitches than a year ago. I was able to easily create an account and, aside from some consumers having trouble remembering passwords and confirming their identities, saw few reports of any major problems. Last year, the site crashed almost immediately.
CNN Money | Obamacare 2.0 kicks off with few hitches
Obamacare 2.0 opened for enrollment early Saturday morning with less fanfare and fewer glitches than a year ago. I was able to easily create an account and, aside from some consumers having trouble remembering passwords and confirming their identities, saw few reports of any major problems. Last year, the site crashed almost immediately.
Monetary
News
Market Watch | Fed's Powell suggests mid-2015 time for first rate hike
The first rate hike will likely come in 2015 perhaps around mid-year, said Federal Reserve Governor Jerome Powell on Monday.
Market Watch | Fed meeting with major banks, regulators to develop Libor alternative
The Federal Reserve said Monday it is meeting with representatives from 15 banks as well as U.S. and foreign regulators to discuss the process for developing risk-free reference rate alternatives to the current London Interbank Offered Rate for use in derivative contracts.
Market Watch | Fed's Powell suggests mid-2015 time for first rate hike
The first rate hike will likely come in 2015 perhaps around mid-year, said Federal Reserve Governor Jerome Powell on Monday.
Market Watch | Fed meeting with major banks, regulators to develop Libor alternative
The Federal Reserve said Monday it is meeting with representatives from 15 banks as well as U.S. and foreign regulators to discuss the process for developing risk-free reference rate alternatives to the current London Interbank Offered Rate for use in derivative contracts.
Taxes
Blogs
AEI | The GOP really needs to rethink its approach to tax cuts
My friend Steve Moore, Heritage Foundation chief economist and former Wall Street Journal writer, doesn’t like the conservative idea of cutting the tax burden and increasing take-home pay of American parents by expanding the child tax credit.
AEI | The GOP really needs to rethink its approach to tax cuts
My friend Steve Moore, Heritage Foundation chief economist and former Wall Street Journal writer, doesn’t like the conservative idea of cutting the tax burden and increasing take-home pay of American parents by expanding the child tax credit.
Employment
News
Market Watch | A majority of Americans make less than $20 per hour
According to data compiled by Goldman Sachs, most American workers earn below $20 per hour. Goldman Sachs economists David Mericle and Chris Mischaikow crunched Labor Department data that is used to generate the monthly jobs report that the market closely watches, in particular from the survey of employers.
Econ Comments & Analysis
Forbes | What Republicans Can Do About Stagnating Wages
The 2014 midterms were a referendum on the left’s economic agenda. Republicans were handed the House and Senate in a historic landslide. Exit polls showed voters’ biggest concern was the economy, which has sputtered after six years of big government policies. Now, it’s the right’s turn.
Market Watch | A majority of Americans make less than $20 per hour
According to data compiled by Goldman Sachs, most American workers earn below $20 per hour. Goldman Sachs economists David Mericle and Chris Mischaikow crunched Labor Department data that is used to generate the monthly jobs report that the market closely watches, in particular from the survey of employers.
Econ Comments & Analysis
Forbes | What Republicans Can Do About Stagnating Wages
The 2014 midterms were a referendum on the left’s economic agenda. Republicans were handed the House and Senate in a historic landslide. Exit polls showed voters’ biggest concern was the economy, which has sputtered after six years of big government policies. Now, it’s the right’s turn.
Friday, November 14, 2014
General Economics
News
Fox Business | Strong Dollar, Weak Oil Lead Import Prices Lower
U.S. import prices fell in September by the most in more than two years as the cost of petroleum products declined and a strong dollar made it cheaper for Americans to buy goods from abroad.
Market Watch | U.S. business inventories climb 0.3% in September
Business inventories rose 0.3% in September to a seasonally adjusted $1.76 trillion, the Commerce Department said Friday.
Market Watch | Consumer sentiment highest since mid-2007: reports
The preliminary November reading on the University of Michigan/Thomson Reuters consumer-sentiment index rose to 89.4-- the highest level since July 2007 -- from a final October reading of 86.9, according to reports on data released Friday.
Market Watch | U.S. retail sales snap back in October
Sales at U.S. retailers rose in October, snapping back from the first decline in eight months, as plunging gasoline prices gave consumers more money to spend on other goods and services.
Market Watch | U.S. import prices drop 1.3% in October
The prices paid for imported goods fell 1.3% in October, the Labor Department said Friday.
Econ Comments & Analysis
AEI | Are rich Americans just a bunch of rent-seeking suits? Piketty says so. But he might be wrong
It matters, I think, if the rich are mostly getting richer because (a) technology and globalization enables more value creation or (b) they’re able to somehow manipulate the system.
Blogs
Wall Street Journal | Americans Save on Gas, Spend at Restaurants in October
U.S. consumers are spending more at restaurants as gasoline prices fall. Department stores, not so much.
Fox Business | Strong Dollar, Weak Oil Lead Import Prices Lower
U.S. import prices fell in September by the most in more than two years as the cost of petroleum products declined and a strong dollar made it cheaper for Americans to buy goods from abroad.
Market Watch | U.S. business inventories climb 0.3% in September
Business inventories rose 0.3% in September to a seasonally adjusted $1.76 trillion, the Commerce Department said Friday.
Market Watch | Consumer sentiment highest since mid-2007: reports
The preliminary November reading on the University of Michigan/Thomson Reuters consumer-sentiment index rose to 89.4-- the highest level since July 2007 -- from a final October reading of 86.9, according to reports on data released Friday.
Market Watch | U.S. retail sales snap back in October
Sales at U.S. retailers rose in October, snapping back from the first decline in eight months, as plunging gasoline prices gave consumers more money to spend on other goods and services.
Market Watch | U.S. import prices drop 1.3% in October
The prices paid for imported goods fell 1.3% in October, the Labor Department said Friday.
Econ Comments & Analysis
AEI | Are rich Americans just a bunch of rent-seeking suits? Piketty says so. But he might be wrong
It matters, I think, if the rich are mostly getting richer because (a) technology and globalization enables more value creation or (b) they’re able to somehow manipulate the system.
Blogs
Wall Street Journal | Americans Save on Gas, Spend at Restaurants in October
U.S. consumers are spending more at restaurants as gasoline prices fall. Department stores, not so much.
Health Care
Econ Comments & Analysis
Mercatus Center | Congress Can Fix the ACA With These Three Principles
The Affordable Care Act presents the incoming Congress with substantive and political challenges. On the one hand its widely-acknowledged problems warrant repair, and the electorate has made its displeasure with it loud and clear.
Mercatus Center | Congress Can Fix the ACA With These Three Principles
The Affordable Care Act presents the incoming Congress with substantive and political challenges. On the one hand its widely-acknowledged problems warrant repair, and the electorate has made its displeasure with it loud and clear.
Monetary
News
Wall Street Journal | No Opening in Jobs Data for Higher Rates
There is no doubt the labor market is getting tighter. But it has yet to tighten to the point wages start picking up. For the Federal Reserve, that is a problem.
Blogs
Wall Street Journal | Fed’s Bullard: Job Market Gains No Longer Justify Current Fed Policy
Federal Reserve Bank of St. Louis President James Bullard said low inflation in the U.S. economy is no longer enough to justify the current rock bottom setting for short-term interest rates.
Wall Street Journal | Former Fed Chief at Odds With How Central Bank Now Makes Policy
Paul Volcker, the man who broke the back of inflation in the opening years of the 1980s, is a man at odds with what Federal Reserve policy making has become.
Wall Street Journal | No Opening in Jobs Data for Higher Rates
There is no doubt the labor market is getting tighter. But it has yet to tighten to the point wages start picking up. For the Federal Reserve, that is a problem.
Blogs
Wall Street Journal | Fed’s Bullard: Job Market Gains No Longer Justify Current Fed Policy
Federal Reserve Bank of St. Louis President James Bullard said low inflation in the U.S. economy is no longer enough to justify the current rock bottom setting for short-term interest rates.
Wall Street Journal | Former Fed Chief at Odds With How Central Bank Now Makes Policy
Paul Volcker, the man who broke the back of inflation in the opening years of the 1980s, is a man at odds with what Federal Reserve policy making has become.
Taxes
News
Bloomberg | Buffett Set to Save More Than $1 Billion on Taxes in Swap
Warren Buffett is again showing how to use the U.S. tax code to his advantage.
Econ Comments & Analysis
AEI | Will the Supreme Court get it wrong on state taxation of interstate income?
On November 12th, the Supreme Court heard oral arguments in Maryland Comptroller v. Wynne, in which a Maryland couple, Brian and Karen Wynne, contend that their state’s income tax treatment of income earned across state lines discriminates against interstate commerce.
Bloomberg | Buffett Set to Save More Than $1 Billion on Taxes in Swap
Warren Buffett is again showing how to use the U.S. tax code to his advantage.
Econ Comments & Analysis
AEI | Will the Supreme Court get it wrong on state taxation of interstate income?
On November 12th, the Supreme Court heard oral arguments in Maryland Comptroller v. Wynne, in which a Maryland couple, Brian and Karen Wynne, contend that their state’s income tax treatment of income earned across state lines discriminates against interstate commerce.
Employment
News
Pew | More and more Americans are outside the labor force entirely. Who are they?
According to the October jobs report, more than 92 million Americans — 37% of the civilian population aged 16 and over — are neither employed nor unemployed, but fall in the category of “not in the labor force.”
Market Watch | September’s job openings report was very strong
Companies are ramping up their hiring, and more workers are willing to quit, according to government data released Thursday that points to continued improvement in the jobs market.
Pew | More and more Americans are outside the labor force entirely. Who are they?
According to the October jobs report, more than 92 million Americans — 37% of the civilian population aged 16 and over — are neither employed nor unemployed, but fall in the category of “not in the labor force.”
Market Watch | September’s job openings report was very strong
Companies are ramping up their hiring, and more workers are willing to quit, according to government data released Thursday that points to continued improvement in the jobs market.
Budget
Econ Comments & Analysis
Mercatus Center | The Rise in Per Capita Federal Spending
Government debt is projected to reach 77 percent of the US gross domestic product by 2024, if not sooner.
Mercatus Center | The Rise in Per Capita Federal Spending
Government debt is projected to reach 77 percent of the US gross domestic product by 2024, if not sooner.
Monday, November 10, 2014
General Economics
News
Wall Street Journal | A Sure-Fire Way to Harm The Economy
Just as it seems the U.S. economy might be turning a corner, a little-known and seemingly benign change in accounting rules could cost millions of jobs and billions in lost economic growth. Most business owners and their employees have no idea what may be coming.
Real Clear Markets | The Hidden Facts Behind Inequality Statistics
Americans underestimate the actual levels of income and wealth inequality and believe the ideal income and wealth distributions are even more equal than what they imagine reality to be, according to research by Harvard's Michael Norton (read Jordan Weissmann's write-up of the research here). This, not particularly surprising result tells us very little as I suspect that most Americans would also underestimate the value of benefits provided to the poor in this country, the number of polar bears living in the Arctic, and many other facts that may or may not be of importance. The more interesting point is that anyone thinks this matters.
Forbes | U.S. Takes On China At APEC
“Obama is weakened at home, so he won’t be in a position to challenge China,” Shi Yinhong of Renmin University told Bloomberg, referring to the two-day Asia-Pacific Economic Cooperation summit. On Monday and Tuesday, the leaders of the 21-nation organization, celebrating its 25th anniversary this year, will meet in a sprawling purpose-built resort on the outskirts of Beijing, near the Great Wall.
Econ Comments & Analysis
Forbes | Repeal Dodd-Frank and End Too Big To Fail
The Republicans will hold a comfortable majority in the U.S. House and, at most, a 55 seat majority in the Senate for the 114th Congress. That’s not a wide enough margin to override a Presidential veto. Still, the Republicans owe it to their constituents to exercise governance.
Wall Street Journal | A Sure-Fire Way to Harm The Economy
Just as it seems the U.S. economy might be turning a corner, a little-known and seemingly benign change in accounting rules could cost millions of jobs and billions in lost economic growth. Most business owners and their employees have no idea what may be coming.
Real Clear Markets | The Hidden Facts Behind Inequality Statistics
Americans underestimate the actual levels of income and wealth inequality and believe the ideal income and wealth distributions are even more equal than what they imagine reality to be, according to research by Harvard's Michael Norton (read Jordan Weissmann's write-up of the research here). This, not particularly surprising result tells us very little as I suspect that most Americans would also underestimate the value of benefits provided to the poor in this country, the number of polar bears living in the Arctic, and many other facts that may or may not be of importance. The more interesting point is that anyone thinks this matters.
Forbes | U.S. Takes On China At APEC
“Obama is weakened at home, so he won’t be in a position to challenge China,” Shi Yinhong of Renmin University told Bloomberg, referring to the two-day Asia-Pacific Economic Cooperation summit. On Monday and Tuesday, the leaders of the 21-nation organization, celebrating its 25th anniversary this year, will meet in a sprawling purpose-built resort on the outskirts of Beijing, near the Great Wall.
Econ Comments & Analysis
Forbes | Repeal Dodd-Frank and End Too Big To Fail
The Republicans will hold a comfortable majority in the U.S. House and, at most, a 55 seat majority in the Senate for the 114th Congress. That’s not a wide enough margin to override a Presidential veto. Still, the Republicans owe it to their constituents to exercise governance.
Monetary
News
Market Watch | With nine-month head start, Fed still may get jobless forecast wrong
Federal Reserve officials have acknowledged they have been caught by surprise by the downward trajectory of the unemployment rate.
Real Clear Markets | Did the Fed's QE Actually Help?
The Federal Reserve has ended its roughly $3.7 trillion program of bond buying, leaving in its wake a host of hard questions. Did it strengthen the economic recovery? If so, by how much? What are the long-run effects? Should it be used again? We don't have good answers.
Econ Comments & Analysis
Market Watch | The Fed and other central banks have to handle money better
Global economic policies aren’t effective enough, either to restore growth or bring inflation to a level needed to address the world’s debt problems.
Market Watch | With nine-month head start, Fed still may get jobless forecast wrong
Federal Reserve officials have acknowledged they have been caught by surprise by the downward trajectory of the unemployment rate.
Real Clear Markets | Did the Fed's QE Actually Help?
The Federal Reserve has ended its roughly $3.7 trillion program of bond buying, leaving in its wake a host of hard questions. Did it strengthen the economic recovery? If so, by how much? What are the long-run effects? Should it be used again? We don't have good answers.
Econ Comments & Analysis
Market Watch | The Fed and other central banks have to handle money better
Global economic policies aren’t effective enough, either to restore growth or bring inflation to a level needed to address the world’s debt problems.
Taxes
Econ Comments & Analysis
Forbes | The Overwhelming Case Against Capital Gains Taxation
According to the bean counters at Ernst and Young, the United States has one of the highest capital gains tax rates in the world.
Forbes | The Overwhelming Case Against Capital Gains Taxation
According to the bean counters at Ernst and Young, the United States has one of the highest capital gains tax rates in the world.
Employment
News
Market Watch | Everything but higher wages
The employment situation report, released Friday by the Bureau of Labor Statistics,tells the same story we have seen for much of 2014; the recovery has gathered steam, and job growth has accelerated, but not nearly fast enough to produce wage growth for most Americans.
Econ Comments & Analysis
Wall Street Journal | Clear Evidence on Disincentives to Work
People in government like to take credit for the drop in the unemployment rate this year. But one reason the rate dropped is because the government didn’t extend unemployment benefits.
Market Watch | Everything but higher wages
The employment situation report, released Friday by the Bureau of Labor Statistics,tells the same story we have seen for much of 2014; the recovery has gathered steam, and job growth has accelerated, but not nearly fast enough to produce wage growth for most Americans.
Econ Comments & Analysis
Wall Street Journal | Clear Evidence on Disincentives to Work
People in government like to take credit for the drop in the unemployment rate this year. But one reason the rate dropped is because the government didn’t extend unemployment benefits.
Budget
News
Wall Street Journal | Younger Generation Faces a Savings Deficit
Adults under age 35—the so-called millennial generation—currently have a savings rate of negative 2%, meaning they are burning through their assets or going into debt, according to Moody’s Analytics. That compares with a positive savings rate of about 3% for those age 35 to 44, 6% for those 45 to 54, and 13% for those 55 and older.
Wall Street Journal | Younger Generation Faces a Savings Deficit
Adults under age 35—the so-called millennial generation—currently have a savings rate of negative 2%, meaning they are burning through their assets or going into debt, according to Moody’s Analytics. That compares with a positive savings rate of about 3% for those age 35 to 44, 6% for those 45 to 54, and 13% for those 55 and older.
Friday, November 7, 2014
General Economics
News
Wall Street Journal | Jobs Report: U.S. Adds 214,000 Jobs; Unemployment Rate Falls to 5.8%
U.S. payrolls grew modestly in October but the unemployment rate fell and wages edged up, signs the labor market is strengthening.
Econ Comments & Analysis
Alhambra Investment Partners | The True State of Recovery
In the weeks leading up to the election, incumbents (mostly D’s) were heard to say that “they” created 10 million jobs over the past 55 months as if to prove the recovery was working (an unfortunate choice of wording that left a gaping hole in credibility). Simple back-of-the-envelope calculations proved that to be already deficient on its face – a monthly gain of 181k is at best lackluster.
Business Insider | UNEMPLOYMENT RATE FALLS TO 5.8%
Job gains in October were less than expected, though the unemployment rate fell to is lowest since 2008.
Real Clear Markets | It's the Economy, and They're Not Stupid
The sharp rebuke to the Obama administration delivered by the mid-term elections should not be construed as an endorsement of the GOP, which remains as unpopular as ever. Rather, as has been the case in the last few election cycles, voter revolts have hinged on continued dissatisfaction with the strength of the economy and the diminishing financial prospects of ordinary citizens.
Wall Street Journal | Jobs Report: U.S. Adds 214,000 Jobs; Unemployment Rate Falls to 5.8%
U.S. payrolls grew modestly in October but the unemployment rate fell and wages edged up, signs the labor market is strengthening.
Econ Comments & Analysis
Alhambra Investment Partners | The True State of Recovery
In the weeks leading up to the election, incumbents (mostly D’s) were heard to say that “they” created 10 million jobs over the past 55 months as if to prove the recovery was working (an unfortunate choice of wording that left a gaping hole in credibility). Simple back-of-the-envelope calculations proved that to be already deficient on its face – a monthly gain of 181k is at best lackluster.
Business Insider | UNEMPLOYMENT RATE FALLS TO 5.8%
Job gains in October were less than expected, though the unemployment rate fell to is lowest since 2008.
Real Clear Markets | It's the Economy, and They're Not Stupid
The sharp rebuke to the Obama administration delivered by the mid-term elections should not be construed as an endorsement of the GOP, which remains as unpopular as ever. Rather, as has been the case in the last few election cycles, voter revolts have hinged on continued dissatisfaction with the strength of the economy and the diminishing financial prospects of ordinary citizens.
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