Monday, November 10, 2014

General Economics

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.