News
Market Watch | U.S. jobless claims fall 6,000 to 289,000 in mid-December
The number of people who applied for U.S. unemployment benefits fell by 6,000 to 289,000 in the seven days ended Dec. 13, keeping initial jobless claims at a low level typically associated with strong hiring.
Market Watch | Google is now bigger than Mother Russia’s entire market
Americans hardly had time to savor the schadenfreude of Vladimir Putin’s financial Chernobyl before North Korea managed to flip the script on the evil Yankee imperialists, it appears.
Econ Comments & Analysis
Wall Street Journal | Trade Will Lead to Freedom
President Obama’s announcement that he wants to restore diplomatic relations between the U.S. and Cuba immediately brings up the U.S. trade embargo of that country. Mr. Obama and the new Republican Congress now have a historic opportunity to lift the embargo.
Thursday, December 18, 2014
Health Care
Econ Comments & Analysis
Wall Street Journal | Time to Start Prepping ObamaCare Reforms
The Supreme Court’s decision to hear arguments in King v. Burwell next year poses an enormous danger to ObamaCare, but it also presents an urgent challenge to the law’s opponents. The outcome might result in many thousands of residents in more than half the states being unable to afford health insurance. The next Congress must be ready to respond with a consumer-oriented health reform. That means preparing now.
Wall Street Journal | Time to Start Prepping ObamaCare Reforms
The Supreme Court’s decision to hear arguments in King v. Burwell next year poses an enormous danger to ObamaCare, but it also presents an urgent challenge to the law’s opponents. The outcome might result in many thousands of residents in more than half the states being unable to afford health insurance. The next Congress must be ready to respond with a consumer-oriented health reform. That means preparing now.
Monetary
News
Wall Street Journal | Fed Sets Stage for Rate Hikes in 2015
The Federal Reserve took a delicate step toward raising short-term interest rates in 2015, but at the same time exposed its skittishness about signaling a historic move away from easy-money policies in place since the global financial crisis.
Wall Street Journal | Fed Sets Stage for Rate Hikes in 2015
The Federal Reserve took a delicate step toward raising short-term interest rates in 2015, but at the same time exposed its skittishness about signaling a historic move away from easy-money policies in place since the global financial crisis.
Employment
News
Market Watch | Jobless claims still signal strong U.S. hiring
The number of people who applied for new unemployment benefits in mid-December remained below 300,000, a level typically associated with strong hiring.
Market Watch | Jobless claims still signal strong U.S. hiring
The number of people who applied for new unemployment benefits in mid-December remained below 300,000, a level typically associated with strong hiring.
Wednesday, December 17, 2014
General Economics
News
Market Watch | U.S. consumer prices post biggest drop in six years
U.S. consumer prices fell in November by the largest amount in six years, a bonanza stemming from plunging oil prices that also boosted inflation-adjusted worker pay. The consumer price index declined by a seasonally adjusted 0.3% in November, the largest drop since December 2008.
Econ Comments & Analysis
Wall Street Journal | U.S. Economics Team Has Deep Bench in Handling Russia Crises
With Russia’s economy on the brink of collapse, the White House, Treasury Department, and Federal Reserve have a number of senior officials with deep experience to draw from, having worked closely during the Clinton administration to deal with Russia’s 1998 default.
Blogs
Wall Street Journal | Oil’s Plunge Is Pushing Mortgage Rates Down
Low oil prices may offer a hidden gift to consumers beyond the gas pump: They could also indirectly support lower mortgage rates.
Market Watch | U.S. consumer prices post biggest drop in six years
U.S. consumer prices fell in November by the largest amount in six years, a bonanza stemming from plunging oil prices that also boosted inflation-adjusted worker pay. The consumer price index declined by a seasonally adjusted 0.3% in November, the largest drop since December 2008.
Econ Comments & Analysis
Wall Street Journal | U.S. Economics Team Has Deep Bench in Handling Russia Crises
With Russia’s economy on the brink of collapse, the White House, Treasury Department, and Federal Reserve have a number of senior officials with deep experience to draw from, having worked closely during the Clinton administration to deal with Russia’s 1998 default.
Blogs
Wall Street Journal | Oil’s Plunge Is Pushing Mortgage Rates Down
Low oil prices may offer a hidden gift to consumers beyond the gas pump: They could also indirectly support lower mortgage rates.
Monetary
News
Market Watch | Now it’s the Fed’s turn to pour grease on the market fire
Traders have spent much of 2014 kvetching about a lack of volatility in the market. Well, kvetch no more. After a November snooze that saw major indexes barely budge for weeks on end, markets have suddenly become as volatile as a blotto Mel Gibson at a bar mitzvah.
Market Watch | Low-rate pledge may stay in Fed statement
Despite widespread reports to the contrary, the Federal Reserve might retain its policy-statement pledge to the market that it will wait a “considerable time” before hiking interest rates.
Market Watch | Now it’s the Fed’s turn to pour grease on the market fire
Traders have spent much of 2014 kvetching about a lack of volatility in the market. Well, kvetch no more. After a November snooze that saw major indexes barely budge for weeks on end, markets have suddenly become as volatile as a blotto Mel Gibson at a bar mitzvah.
Market Watch | Low-rate pledge may stay in Fed statement
Despite widespread reports to the contrary, the Federal Reserve might retain its policy-statement pledge to the market that it will wait a “considerable time” before hiking interest rates.
Taxes
Econ Comments & Analysis
Investors.com | Laffer Curve at 40: Why It Still Matters for Tax Rates
At a Washington, D.C., dinner some 40 years ago that has taken on a life of its own, the late Jude Wanniski, Don Rumsfeld, Dick Cheney and I discussed the topic du jour: President Ford's proposed 5% tax surcharge, which was the centerpiece of the dead-on-arrival Whip Inflation Now (i.e. WIN) program.
Investors.com | Laffer Curve at 40: Why It Still Matters for Tax Rates
At a Washington, D.C., dinner some 40 years ago that has taken on a life of its own, the late Jude Wanniski, Don Rumsfeld, Dick Cheney and I discussed the topic du jour: President Ford's proposed 5% tax surcharge, which was the centerpiece of the dead-on-arrival Whip Inflation Now (i.e. WIN) program.
Budget
News
Market Watch | Current-account deficit rises slightly to $100.3 billion in third quarter
The U.S. current account deficit widened slightly to $100.3 billion in the third quarter from a revised $98.4 billion in the prior period, preliminary figures show.
Market Watch | Current-account deficit rises slightly to $100.3 billion in third quarter
The U.S. current account deficit widened slightly to $100.3 billion in the third quarter from a revised $98.4 billion in the prior period, preliminary figures show.
Tuesday, December 16, 2014
General Economics
News
Market Watch | U.S. housing starts decline 1.6% in November
Construction started on new U.S. homes declined 1.6% in November, led down by single-family homes, signaling some market shakiness, according to government data released Tuesday.
Econ Comments & Analysis
Wall Street Journal | The Reagan-Clinton Template for Success
After his re-election to become the next majority leader of the Senate, Mitch McConnell’s first words were not about his or his party’s wins but rather about America’s winning formula. Recalling that the nation’s legacy of strong economic growth has long coexisted with a tradition of divided government, Sen. McConnell suggested that the new Congress should try to replicate the bipartisan achievements of Ronald Reagan and Bill Clinton that delivered the most prosperous times in the past half-century.
Market Watch | U.S. housing starts decline 1.6% in November
Construction started on new U.S. homes declined 1.6% in November, led down by single-family homes, signaling some market shakiness, according to government data released Tuesday.
Econ Comments & Analysis
Wall Street Journal | The Reagan-Clinton Template for Success
After his re-election to become the next majority leader of the Senate, Mitch McConnell’s first words were not about his or his party’s wins but rather about America’s winning formula. Recalling that the nation’s legacy of strong economic growth has long coexisted with a tradition of divided government, Sen. McConnell suggested that the new Congress should try to replicate the bipartisan achievements of Ronald Reagan and Bill Clinton that delivered the most prosperous times in the past half-century.
Health Care
News
Wall Street Journal | A Lull Before the ObamaCare Rate Storm
Americans visiting Healthcare.gov to purchase 2015 health-insurance plans are finding a nice surprise: Average premiums for the cheap “bronze” plans have increased only by 3.4% and premiums for the middle-of-the-road “silver” plans are rising by 5.8%, according to the American Action Forum. Where are the double-digit premium increases that so many predicted? Check back around this time in 2016. That’s when you’ll see the real spikes.
Econ Comments & Analysis
Market Watch | How Obamacare helped Wall Street
In a era in which Washington has sold out its constituents with the regularity of a presidential golf outing, what happened last week was a double-eagle.
Wall Street Journal | A Lull Before the ObamaCare Rate Storm
Americans visiting Healthcare.gov to purchase 2015 health-insurance plans are finding a nice surprise: Average premiums for the cheap “bronze” plans have increased only by 3.4% and premiums for the middle-of-the-road “silver” plans are rising by 5.8%, according to the American Action Forum. Where are the double-digit premium increases that so many predicted? Check back around this time in 2016. That’s when you’ll see the real spikes.
Econ Comments & Analysis
Market Watch | How Obamacare helped Wall Street
In a era in which Washington has sold out its constituents with the regularity of a presidential golf outing, what happened last week was a double-eagle.
Monetary
Econ Comments & Analysis
Market Watch | The chasm between the market and the Fed might be bridged in 2015
Federal Reserve officials and financial markets have wildly divergent views on the pace of the upcoming rate hikes for some time, with central bankers assuming a steeper path than traders.
Market Watch | The chasm between the market and the Fed might be bridged in 2015
Federal Reserve officials and financial markets have wildly divergent views on the pace of the upcoming rate hikes for some time, with central bankers assuming a steeper path than traders.
Taxes
Econ Comments & Analysis
Bloomberg Businessweek | Why Raising Taxes Won't Fix Global Inequality
Last week, the Organization for Economic Cooperation and Development issued areport on inequality and economic growth. The OECD, based in Paris, is the official think tank for rich countries. Its analysis concluded that the income gap between the poor and the middle class contributes to declining economic growth. The United Kingdom and the United States lost 6 percentage points to 9 percentage points of gross domestic product growth over the last two decades because of rising inequality, the report suggested.
Bloomberg Businessweek | Why Raising Taxes Won't Fix Global Inequality
Last week, the Organization for Economic Cooperation and Development issued areport on inequality and economic growth. The OECD, based in Paris, is the official think tank for rich countries. Its analysis concluded that the income gap between the poor and the middle class contributes to declining economic growth. The United Kingdom and the United States lost 6 percentage points to 9 percentage points of gross domestic product growth over the last two decades because of rising inequality, the report suggested.
Employment
Econ Comments & Analysis
Real Clear Markets | Union Elections Make Cuba's Seem Fair
Where in the world do authorities decide who is eligible to vote after the vote is counted, and then discard the ballots of voters who are deemed ineligible? Plus, these authorities limit free speech before the election. Not Cuba. Not Russia. The answer, sadly, is the United States of America, at least with respect to union elections.
Real Clear Markets | Union Elections Make Cuba's Seem Fair
Where in the world do authorities decide who is eligible to vote after the vote is counted, and then discard the ballots of voters who are deemed ineligible? Plus, these authorities limit free speech before the election. Not Cuba. Not Russia. The answer, sadly, is the United States of America, at least with respect to union elections.
Budget
Econ Comments & Analysis
Market Watch | Budget battle is likely to heat up next year
Congress last week barely managed to approve a funding bill negotiated by a bipartisan group of lawmakers, working under spending guidelines set by each party’s budget gurus.
Market Watch | Budget battle is likely to heat up next year
Congress last week barely managed to approve a funding bill negotiated by a bipartisan group of lawmakers, working under spending guidelines set by each party’s budget gurus.
Monday, December 15, 2014
General Economic
News
Market Watch | Industrial production surges in November
Thanks to strong consumer goods and utilities output, industrial production in November rose by the largest percentage since May 2010, according to data released by the Federal Reserve on Monday.
Econ Comments & Analysis
Forbes | Keynesian Confusion Is The Christmas 'Re-Gift' That Keeps On Giving
It’s probably magnified in modern times owing to a still sluggish economy, but this time every year disciples of John Maynard Keynes ‘re-gift’ us with their annual confusion regarding consumption. One would think Keynes’ disciples would come up with something new, but they’re consistent in their embrace of spending over saving.
Real Clear Markets | Why Emerging Markets Are the Best Place For Protecting Your Retirement Funds
There's no doubt what the received wisdom is these days. All year the financial press has been echoing the theme that emerging markets are toast. The Fed, we're told will shortly be initiating a period of monetary tightening and rising rates. This, we are told, will suction vast quantities of capital out of the global economic periphery towards the havens of the developed world. The dollar will soar in value and emerging market currencies will plummet. Tough economic times will drive global investors towards ‘safety'.
Wells Fargo | Weekly Economic & Financial Commentary
Wall Street Journal | How Cheap Oil Complicates Investing
For most Americans, this year’s sudden collapse of oil prices appears to be unqualified good news. Oil prices have dropped 45% since June, amid surging output from U.S. shale fields, strong Saudi Arabian production and weak demand from Asia and elsewhere. They dropped 12.2% just last week, closing Friday at $57.81 a barrel. Analysts at Credit Suisseand other banks say it will take years before oil prices return to $100-a-barrel levels.
Market Watch | Industrial production surges in November
Thanks to strong consumer goods and utilities output, industrial production in November rose by the largest percentage since May 2010, according to data released by the Federal Reserve on Monday.
Econ Comments & Analysis
Forbes | Keynesian Confusion Is The Christmas 'Re-Gift' That Keeps On Giving
It’s probably magnified in modern times owing to a still sluggish economy, but this time every year disciples of John Maynard Keynes ‘re-gift’ us with their annual confusion regarding consumption. One would think Keynes’ disciples would come up with something new, but they’re consistent in their embrace of spending over saving.
Real Clear Markets | Why Emerging Markets Are the Best Place For Protecting Your Retirement Funds
There's no doubt what the received wisdom is these days. All year the financial press has been echoing the theme that emerging markets are toast. The Fed, we're told will shortly be initiating a period of monetary tightening and rising rates. This, we are told, will suction vast quantities of capital out of the global economic periphery towards the havens of the developed world. The dollar will soar in value and emerging market currencies will plummet. Tough economic times will drive global investors towards ‘safety'.
Wells Fargo | Weekly Economic & Financial Commentary
Wall Street Journal | How Cheap Oil Complicates Investing
For most Americans, this year’s sudden collapse of oil prices appears to be unqualified good news. Oil prices have dropped 45% since June, amid surging output from U.S. shale fields, strong Saudi Arabian production and weak demand from Asia and elsewhere. They dropped 12.2% just last week, closing Friday at $57.81 a barrel. Analysts at Credit Suisseand other banks say it will take years before oil prices return to $100-a-barrel levels.
Monetary
News
Wall Street Journal | Fed Likely to Stare Down Oil-Price Drop
Much has changed in the U.S. economy since Federal Reserve officials last issued their economic projections, in September. Oil prices have fallen by more than one-third, the dollar has climbed 5.3% against a broad basket of currencies and about 800,000 more Americans have found jobs.
Wall Street Journal | Fed Likely to Stare Down Oil-Price Drop
Much has changed in the U.S. economy since Federal Reserve officials last issued their economic projections, in September. Oil prices have fallen by more than one-third, the dollar has climbed 5.3% against a broad basket of currencies and about 800,000 more Americans have found jobs.
Taxes
News
Market Watch | Here are the tax breaks in danger if Congress doesn’t act
The year is quickly winding down for the current Congress. And unless lawmakers hurry, the Senate won’t pass a House-approved bill that would renew 56 expired tax breaks for individuals and businesses. The House passed its bill — which would renew the breaks for the 2014 tax year — on Dec. 3. At stake are deductions for state and local sales taxes; a credit for business research and development; and incentives for biodiesel fuel, among other breaks.
Market Watch | Here are the tax breaks in danger if Congress doesn’t act
The year is quickly winding down for the current Congress. And unless lawmakers hurry, the Senate won’t pass a House-approved bill that would renew 56 expired tax breaks for individuals and businesses. The House passed its bill — which would renew the breaks for the 2014 tax year — on Dec. 3. At stake are deductions for state and local sales taxes; a credit for business research and development; and incentives for biodiesel fuel, among other breaks.
Employment
Econ Comments & Analysis
Washington Post | The devalued American worker
Midway through the last game of the 2013 Carolina League season, after he’d swept peanut shells and mopped soda off the concourse, Ed Green lumbered upstairs to the box seats to dump the garbage.
Washington Post | The devalued American worker
Midway through the last game of the 2013 Carolina League season, after he’d swept peanut shells and mopped soda off the concourse, Ed Green lumbered upstairs to the box seats to dump the garbage.
Budget
Econ Comments & Analysis
Forbes | Don't Get Used To Shrinking Deficits
The federal deficit is shrinking, which should be good news for all who care about the budget. The deficit is expected to decline to $469 billion in 2015, according to the Congressional Budget Office. This is below the historical average of the last forty years, and significantly below the trillion dollar deficits incurred each year from 2008 to 2011.
Forbes | Don't Get Used To Shrinking Deficits
The federal deficit is shrinking, which should be good news for all who care about the budget. The deficit is expected to decline to $469 billion in 2015, according to the Congressional Budget Office. This is below the historical average of the last forty years, and significantly below the trillion dollar deficits incurred each year from 2008 to 2011.
Thursday, December 4, 2014
General Economics
News
Market Watch | U.S. jobless claims decline 17,000 to 297,000
The number of people who applied for U.S. unemployment benefits fell by 17,000 last week to 297,000, returning initial claims to levels consistent with a steadily improving labor market after a surprising spike in the prior week.
Econ Comments & Analysis
Real Clear Markets | Happy Holidays From the Saudis and Shale Oil
http://www.realclearmarkets.com/articles/2014/12/04/happy_holidays_from_the_saudis_and_shale_oil_101415.html
Blogs
Wall Street Journal | Housing Forecasts for 2015: Resurgent Home Building and Restrained Optimism
With the door closing on 2014, economists are starting to tout their housing forecasts for next year. Count Realtor.com chief economist Jonathan Smoke among the more conservative optimists.
Market Watch | U.S. jobless claims decline 17,000 to 297,000
The number of people who applied for U.S. unemployment benefits fell by 17,000 last week to 297,000, returning initial claims to levels consistent with a steadily improving labor market after a surprising spike in the prior week.
Econ Comments & Analysis
Real Clear Markets | Happy Holidays From the Saudis and Shale Oil
http://www.realclearmarkets.com/articles/2014/12/04/happy_holidays_from_the_saudis_and_shale_oil_101415.html
Blogs
Wall Street Journal | Housing Forecasts for 2015: Resurgent Home Building and Restrained Optimism
With the door closing on 2014, economists are starting to tout their housing forecasts for next year. Count Realtor.com chief economist Jonathan Smoke among the more conservative optimists.
Health Care
News
Wall Street Journal | More Cost of Health Care Shifts to Consumers
Americans increasingly have to dig into their own pockets to pay for medical care, a shift that is helping to curb the growth in health spending by employers and the government.
Wall Street Journal | More Cost of Health Care Shifts to Consumers
Americans increasingly have to dig into their own pockets to pay for medical care, a shift that is helping to curb the growth in health spending by employers and the government.
Monetary
News
Market Watch | Fed’s Fisher wants to revisit borrowing-cost plans
Federal Reserve Bank of Dallas President Richard Fisher said Wednesday he’d like the U.S. central bank to revisit its recently revised plans for raising borrowing costs in way that could help ease conditions in the bond market.
Market Watch | Fed’s Fisher wants to revisit borrowing-cost plans
Federal Reserve Bank of Dallas President Richard Fisher said Wednesday he’d like the U.S. central bank to revisit its recently revised plans for raising borrowing costs in way that could help ease conditions in the bond market.
Taxes
Econ Comments & Analysis
USA Today | Grover Norquist: Most 'extenders' are good policy
The idea that taxpayers have to "pay for" tax reductions implies a Brezhnev Doctrine for the size of government: Total taxation can never go down, only up. Taxpayers reject that claim on our lives by the state.
USA Today | Grover Norquist: Most 'extenders' are good policy
The idea that taxpayers have to "pay for" tax reductions implies a Brezhnev Doctrine for the size of government: Total taxation can never go down, only up. Taxpayers reject that claim on our lives by the state.
Budget
News
Market Watch | Republican leaders push spending plan over concerns from right
House Republican leaders pushed ahead Wednesday with a plan to avoid a budget showdown next week by funding the government well into 2015, banking on the prospect of help from Democrats to outweigh conservative opposition.
Econ Comments & Analysis
Market Watch | Why the U.S.’s debt is no longer such a big deal
Shhh! Don’t tell anyone, but over the past couple of years, the U.S.’s debt burden, the big issue that swept Tea Party-led Republicans into control of the House of Representatives in 2010, has quietly improved.
Market Watch | Republican leaders push spending plan over concerns from right
House Republican leaders pushed ahead Wednesday with a plan to avoid a budget showdown next week by funding the government well into 2015, banking on the prospect of help from Democrats to outweigh conservative opposition.
Econ Comments & Analysis
Market Watch | Why the U.S.’s debt is no longer such a big deal
Shhh! Don’t tell anyone, but over the past couple of years, the U.S.’s debt burden, the big issue that swept Tea Party-led Republicans into control of the House of Representatives in 2010, has quietly improved.
Wednesday, December 3, 2014
General Economics
News
Market Watch | U.S. productivity gain in third quarter raised to 2.3% from 2%
U.S. companies and workers were more productive in the third quarter than initially reported, but labor costs fell sharply for the second straight time in a sign that wages continue to lag behind. Productivity grew at a revised 2.3% annual pace instead of 2%, newly revised government figures show.
CNN Money | Americans pour $2 billion into Cyber Monday
While brick and mortar retailers have seen declining traffic and spending this holiday season, new numbers show their online counterparts are getting a boost.
Econ Comments & Analysis
Market Watch | Stock-market correction imminent
The stock market, as measured by the Standard & Poor’s 500 Index has been on a virtual tear — gaining over 250 points since the October lows; a mere seven weeks ago.
Mercatus | The Economic Situation, December 2014
The GDP data in my first chart, above, contain some good news (view chart here). The recently received 3.9 percent second estimate for 3Q2014 real GDP growth gave two quarters hand running with the pace exceeding the long term 3.14 percent average.
Blogs
Wall Street Journal | What Black Friday and Cyber Monday Don’t Tell You About the Economy
The idea that holiday sales begin the day after Thanksgiving is no longer the case. The11% drop in early holiday shopping, estimated by the National Retail Federation, does not mean the U.S. economy is in trouble (and that’s a point the group itself makes).
Market Watch | U.S. productivity gain in third quarter raised to 2.3% from 2%
U.S. companies and workers were more productive in the third quarter than initially reported, but labor costs fell sharply for the second straight time in a sign that wages continue to lag behind. Productivity grew at a revised 2.3% annual pace instead of 2%, newly revised government figures show.
CNN Money | Americans pour $2 billion into Cyber Monday
While brick and mortar retailers have seen declining traffic and spending this holiday season, new numbers show their online counterparts are getting a boost.
Econ Comments & Analysis
Market Watch | Stock-market correction imminent
The stock market, as measured by the Standard & Poor’s 500 Index has been on a virtual tear — gaining over 250 points since the October lows; a mere seven weeks ago.
Mercatus | The Economic Situation, December 2014
The GDP data in my first chart, above, contain some good news (view chart here). The recently received 3.9 percent second estimate for 3Q2014 real GDP growth gave two quarters hand running with the pace exceeding the long term 3.14 percent average.
Blogs
Wall Street Journal | What Black Friday and Cyber Monday Don’t Tell You About the Economy
The idea that holiday sales begin the day after Thanksgiving is no longer the case. The11% drop in early holiday shopping, estimated by the National Retail Federation, does not mean the U.S. economy is in trouble (and that’s a point the group itself makes).
Health Care
News
Market Watch | Sebelius says she never met with health adviser Gruber
Kathleen Sebelius says she never met with Jonathan Gruber, the economist under fire for comments he made about the Affordable Care Act.
Daily Signal | Americans Are Spending 42 Percent More on Health Insurance Than They Did in 2007
Data on consumer spending show that spending on health insurance surged 42 percent from 2007 to 2013, according to analysis by the Wall Street Journal. The rise reflects the increasing cost of health insurance and the Affordable Care Act’s requirement that everyone buy extensive health insurance.
Market Watch | Sebelius says she never met with health adviser Gruber
Kathleen Sebelius says she never met with Jonathan Gruber, the economist under fire for comments he made about the Affordable Care Act.
Daily Signal | Americans Are Spending 42 Percent More on Health Insurance Than They Did in 2007
Data on consumer spending show that spending on health insurance surged 42 percent from 2007 to 2013, according to analysis by the Wall Street Journal. The rise reflects the increasing cost of health insurance and the Affordable Care Act’s requirement that everyone buy extensive health insurance.
Monetary
News
Wall Street Journal | Fed’s Fischer: Decisions on Rates Remain Data-Driven
Federal Reserve Vice Chairman Stanley Fischer on Tuesday said the timing of the first increase in interest rates remains dependent on broader economic data.
Wall Street Journal | Fed’s Fischer: Decisions on Rates Remain Data-Driven
Federal Reserve Vice Chairman Stanley Fischer on Tuesday said the timing of the first increase in interest rates remains dependent on broader economic data.
Employment
News
Market Watch | Workers more productive, but paychecks lag
U.S. companies and workers were more productive in the third quarter than initially reported, but labor costs fell sharply for the second straight time in a sign that wages continue to lag behind.
Market Watch | Private-sector hiring slowest in three months, ADP says
Private-sector hiring declined in November to the slowest pace in three months, but maintained an encouraging trend of adding at least 200,000 jobs, according to data released Wednesday.
Econ Comments & Analysis
Fox Business | U.S. Private Sector Adds 208,000 Jobs in November
U.S. private employers added 208,000 jobs in November, falling short of economists' expectations, a report by a payrolls processor showed on Wednesday.
Market Watch | Workers more productive, but paychecks lag
U.S. companies and workers were more productive in the third quarter than initially reported, but labor costs fell sharply for the second straight time in a sign that wages continue to lag behind.
Market Watch | Private-sector hiring slowest in three months, ADP says
Private-sector hiring declined in November to the slowest pace in three months, but maintained an encouraging trend of adding at least 200,000 jobs, according to data released Wednesday.
Econ Comments & Analysis
Fox Business | U.S. Private Sector Adds 208,000 Jobs in November
U.S. private employers added 208,000 jobs in November, falling short of economists' expectations, a report by a payrolls processor showed on Wednesday.
Budget
News
Market Watch | Congress poised to reinstate some tax breaks
Congress looks set to avert a clash over tax policy with a temporary patch to reinstate dozens of tax breaks that expired earlier this year.
Econ Comments & Analysis
New York Times | Uncertainty in Washington Poses Long List of Economic Perils
As House Republicans mull another round of fiscal brinkmanship with President Obama, a dark cloud is threatening to return to otherwise clearing economic skies: fiscal and political uncertainty.
Daily Signal | Conservatives Push Short-Term Funding to Block Obama on Illegal Immigrants
Breaking with House Republican leaders, conservatives are pressing for a short-term plan to fund the government while blocking President Obama’s move to grant legal status to millions of illegal immigrants.
Mercatus | Government Spending Is a Bipartisan Problem: The Rise in Total Per Capita Mandatory, Discretionary, and Net Interest Spending
Since policymakers continue to put political considerations ahead of controlling spending, it’s worth looking at the ways the federal spending burden has risen. To do this, I separate federal outlays into three major categories: discretionary, mandatory, and net interest spending.
Market Watch | Congress poised to reinstate some tax breaks
Congress looks set to avert a clash over tax policy with a temporary patch to reinstate dozens of tax breaks that expired earlier this year.
Econ Comments & Analysis
New York Times | Uncertainty in Washington Poses Long List of Economic Perils
As House Republicans mull another round of fiscal brinkmanship with President Obama, a dark cloud is threatening to return to otherwise clearing economic skies: fiscal and political uncertainty.
Daily Signal | Conservatives Push Short-Term Funding to Block Obama on Illegal Immigrants
Breaking with House Republican leaders, conservatives are pressing for a short-term plan to fund the government while blocking President Obama’s move to grant legal status to millions of illegal immigrants.
Mercatus | Government Spending Is a Bipartisan Problem: The Rise in Total Per Capita Mandatory, Discretionary, and Net Interest Spending
Since policymakers continue to put political considerations ahead of controlling spending, it’s worth looking at the ways the federal spending burden has risen. To do this, I separate federal outlays into three major categories: discretionary, mandatory, and net interest spending.
Tuesday, December 2, 2014
General Economics
News
Wall Street Journal | Basic Costs Squeeze Families
The American middle class has absorbed a steep increase in the cost of health care and other necessities as incomes have stagnated over the past half decade, a squeeze that has forced families to cut back spending on everything from clothing to restaurants.
Wall Street Journal | Lower Oil Prices Will Help Boost Global Economy, IMF’s Lagarde Says
International Monetary Fund chief Christine Lagarde on Monday said falling oil prices will help boost economies in the U.S. and across much of the globe, a net positive for a world struggling with slowing growth.
Econ Comments & Analysis
Real Clear Markets | The Obvious Reason for the Decline In Median Income
Much has been made recently of the fact that real median household income has been stagnant over the past twenty years and falling for the past seven. While there are many problems with using median household income as a measure of the economic health of the middle class, it is still important to examine what is causing this middle-income stall. A major, and overlooked, part of the answer appears to be quite simple: Americans are working less.
Wall Street Journal | Big Winners and Big Losers Among 2014’s Most Active Stocks
What makes a stock popular? A list of the 20 companies whose shares have been traded most frequently this year, as a percentage of outstanding shares, indicates that investors sit up and pay attention for a variety of reasons. And a rising price seems to be only one of them.
Fortune | Why China keeps throwing trillions in investments down the drain
There are two indisputable facts about China’s mammoth investments in its infrastructure and factories. One, they are a growth engine, accounting for roughly half of the country’s GDP increase since 2000. The other fact is that China’s investment rate, averaging 43% of GDP since 2000, is greater than any other major economy in history.
Wall Street Journal | Basic Costs Squeeze Families
The American middle class has absorbed a steep increase in the cost of health care and other necessities as incomes have stagnated over the past half decade, a squeeze that has forced families to cut back spending on everything from clothing to restaurants.
Wall Street Journal | Lower Oil Prices Will Help Boost Global Economy, IMF’s Lagarde Says
International Monetary Fund chief Christine Lagarde on Monday said falling oil prices will help boost economies in the U.S. and across much of the globe, a net positive for a world struggling with slowing growth.
Econ Comments & Analysis
Real Clear Markets | The Obvious Reason for the Decline In Median Income
Much has been made recently of the fact that real median household income has been stagnant over the past twenty years and falling for the past seven. While there are many problems with using median household income as a measure of the economic health of the middle class, it is still important to examine what is causing this middle-income stall. A major, and overlooked, part of the answer appears to be quite simple: Americans are working less.
Wall Street Journal | Big Winners and Big Losers Among 2014’s Most Active Stocks
What makes a stock popular? A list of the 20 companies whose shares have been traded most frequently this year, as a percentage of outstanding shares, indicates that investors sit up and pay attention for a variety of reasons. And a rising price seems to be only one of them.
Fortune | Why China keeps throwing trillions in investments down the drain
There are two indisputable facts about China’s mammoth investments in its infrastructure and factories. One, they are a growth engine, accounting for roughly half of the country’s GDP increase since 2000. The other fact is that China’s investment rate, averaging 43% of GDP since 2000, is greater than any other major economy in history.
Health Care
Econ Comments & Analysis
The New Yorker | Obamacare’s Inertia Problem
Obamacare has had a rough month: it's being challenged in a Supreme Court case; House Republicans are trying to undermine it with a lawsuit; and its poll numbers are terrible.
The New Yorker | Obamacare’s Inertia Problem
Obamacare has had a rough month: it's being challenged in a Supreme Court case; House Republicans are trying to undermine it with a lawsuit; and its poll numbers are terrible.
Monetary
News
Bloomberg | Central Banks Likely to Stay Easy in 2015 as Normalcy Is Elusive
The world’s central bankers could be forgiven for thinking that things are never going to get back to normal. More than six years after the financial crisis plunged the world into recession, monetary policy looks nothing like it did before those events.
Market Watch | Fed closer to getting rid of considerable time language: Fischer
The U.S. central bank was closer to getting rid of its forward guidance that interest rates would be kept close to zero for a "considerable time," said Federal Reserve Vice Chairman Stanley Fischer on Tuesday.
Bloomberg | Central Banks Likely to Stay Easy in 2015 as Normalcy Is Elusive
The world’s central bankers could be forgiven for thinking that things are never going to get back to normal. More than six years after the financial crisis plunged the world into recession, monetary policy looks nothing like it did before those events.
Market Watch | Fed closer to getting rid of considerable time language: Fischer
The U.S. central bank was closer to getting rid of its forward guidance that interest rates would be kept close to zero for a "considerable time," said Federal Reserve Vice Chairman Stanley Fischer on Tuesday.
Employment
Econ Comments & Analysis
Real Clear Markets | Do Immigrants Boost Economic Growth? Yes
The questions of how many legal immigrants should be admitted to the United States, and what level of skills these immigrants should have, are among the most divisive issues in the current U.S. domestic policy landscape. Much of the controversy that they spark can be traced to a single issue: do immigrants help or harm the economy?
Real Clear Markets | Do Immigrants Boost Economic Growth? Yes
The questions of how many legal immigrants should be admitted to the United States, and what level of skills these immigrants should have, are among the most divisive issues in the current U.S. domestic policy landscape. Much of the controversy that they spark can be traced to a single issue: do immigrants help or harm the economy?
Budget
News
Market Watch | Boehner seeks Republican support for plan to avoid government shutdown
The government won’t shut down next week if John Boehner can help it. But nor will President Barack Obama get all he wants on immigration.
Market Watch | Boehner seeks Republican support for plan to avoid government shutdown
The government won’t shut down next week if John Boehner can help it. But nor will President Barack Obama get all he wants on immigration.
Monday, December 1, 2014
General Economics
News
Wall Street Journal | Oil Slide Deepens, Ruble Crumbles
The persistent slump in oil prices continued to weigh on global markets Monday, hammering the Russian ruble in particular.
Wall Street Journal | Fresh Signs of a Global Slump Pose a Challenge to U.S.
Economic prospects are flagging across Europe, Japan and big emerging markets such as India, a turn that presents fresh challenges to the relatively robust U.S. economy at a time when the world needs a dependable growth engine.
Market Watch | Here’s what we know about the U.S. economy after a two-day data deluge
After an outpouring of at least 11 different economic indicators in just two days’ time, here’s what we know now about the U.S. economy.
Econ Comments & Analysis
Forbes | Of Course The Keynesian Model Is True; That's How We Define The Keynesian Model
Scott Sumner points us to this interesting proof that the Keynesian economic model must be true. For the Financial Times is crowing about the fact that when government spending rises then so does GDP.
Forbes | Is OPEC A Toothless Tiger?
OPEC MET THIS WEEK and decided not to cut the oil production quotas of its members. Petroleum prices took a hit. But don’t be deceived. OPEC’s impact on prices is grossly exaggerated. Speculators believed OPEC would magically pull a rabbit out of the hat. But OPEC doesn’t even have a hat, much less a rabbit.
Wall Street Journal | Oil Slide Deepens, Ruble Crumbles
The persistent slump in oil prices continued to weigh on global markets Monday, hammering the Russian ruble in particular.
Wall Street Journal | Fresh Signs of a Global Slump Pose a Challenge to U.S.
Economic prospects are flagging across Europe, Japan and big emerging markets such as India, a turn that presents fresh challenges to the relatively robust U.S. economy at a time when the world needs a dependable growth engine.
Market Watch | Here’s what we know about the U.S. economy after a two-day data deluge
After an outpouring of at least 11 different economic indicators in just two days’ time, here’s what we know now about the U.S. economy.
Econ Comments & Analysis
Forbes | Of Course The Keynesian Model Is True; That's How We Define The Keynesian Model
Scott Sumner points us to this interesting proof that the Keynesian economic model must be true. For the Financial Times is crowing about the fact that when government spending rises then so does GDP.
Forbes | Is OPEC A Toothless Tiger?
OPEC MET THIS WEEK and decided not to cut the oil production quotas of its members. Petroleum prices took a hit. But don’t be deceived. OPEC’s impact on prices is grossly exaggerated. Speculators believed OPEC would magically pull a rabbit out of the hat. But OPEC doesn’t even have a hat, much less a rabbit.
Monetary
Econ Comments & Analysis
Wall Street Journal | The Fed Needs More Than an Audit
With Republicans soon to hold majorities in the House and Senate, many commentators are speculating that the Federal Reserve will receive much more critical attention in 2015. In September, a large bipartisan majority in the House passed a bill to have the Government Accountability Office audit the Fed’s activities, including its monetary policies. The bill went nowhere thanks to Senate Majority Leader Harry Reid , but it could have significant support in next year’s Republican Senate.
Wall Street Journal | The Fed Needs More Than an Audit
With Republicans soon to hold majorities in the House and Senate, many commentators are speculating that the Federal Reserve will receive much more critical attention in 2015. In September, a large bipartisan majority in the House passed a bill to have the Government Accountability Office audit the Fed’s activities, including its monetary policies. The bill went nowhere thanks to Senate Majority Leader Harry Reid , but it could have significant support in next year’s Republican Senate.
Taxes
Econ Comments & Analysis
Forbes | The Oil Price Crashes; So Let's Raise The Gas Tax And Free Crude Exports
As you may or may not have noticed over the Thanksgiving week, the oil price has been moving downwards in a fairly sustained manner.
Forbes | The Oil Price Crashes; So Let's Raise The Gas Tax And Free Crude Exports
As you may or may not have noticed over the Thanksgiving week, the oil price has been moving downwards in a fairly sustained manner.
Employment
News
Wall Street Journal | American Manufacturing Is Alive and Well
That is something that can be lost amid the influx of imports on store shelves and steady erosion of factory jobs. With only 10% of private-sector workers employed by manufacturers, versus 25% in 1980, it seems like the sector wouldn’t provide much oomph. Yet that ignores other workers, from truck drivers to forklift operators, who aren’t employed in manufacturing but still depend on it.
Market Watch | Ho hum: U.S. likely added another 200,000 jobs in November
The economy has settled nicely into hiring grove since the early spring, adding more than 238,000 jobs a month and putting the U.S. on a path to produce the strongest employment gains in 15 years.
Econ Comments & Analysis
Forbes | Mired In College Debt, Millennials Need Better Options
As national dialogue continues about the usefulness of a traditional, 4-year college degree, data show the Millennial generation is falling behind previous ones in savings, net worth, even the ability to move out of their parents’ homes.
CNN Money | Foreign name? Expect a tougher job hunt
The Organization for Economic Co-operation and Development found that a foreign name makes the job search harder for applicants across all 17 developed countries it surveyed.
Blogs
Wall Street Journal | U.S. Losing Its Luster as World’s Top Destination for Skilled Migrants, Study Suggests
The U.S. is losing its some of its luster as the world’s top destination for skilled migrants, according to a new analysis of LinkedIn Corp. user data.
Wall Street Journal | American Manufacturing Is Alive and Well
That is something that can be lost amid the influx of imports on store shelves and steady erosion of factory jobs. With only 10% of private-sector workers employed by manufacturers, versus 25% in 1980, it seems like the sector wouldn’t provide much oomph. Yet that ignores other workers, from truck drivers to forklift operators, who aren’t employed in manufacturing but still depend on it.
Market Watch | Ho hum: U.S. likely added another 200,000 jobs in November
The economy has settled nicely into hiring grove since the early spring, adding more than 238,000 jobs a month and putting the U.S. on a path to produce the strongest employment gains in 15 years.
Econ Comments & Analysis
Forbes | Mired In College Debt, Millennials Need Better Options
As national dialogue continues about the usefulness of a traditional, 4-year college degree, data show the Millennial generation is falling behind previous ones in savings, net worth, even the ability to move out of their parents’ homes.
CNN Money | Foreign name? Expect a tougher job hunt
The Organization for Economic Co-operation and Development found that a foreign name makes the job search harder for applicants across all 17 developed countries it surveyed.
Blogs
Wall Street Journal | U.S. Losing Its Luster as World’s Top Destination for Skilled Migrants, Study Suggests
The U.S. is losing its some of its luster as the world’s top destination for skilled migrants, according to a new analysis of LinkedIn Corp. user data.
Budget
News
Market Watch | Funding deadline awaits Congress
Lawmakers returning to Capitol Hill on Monday will have less than two weeks to figure out how to keep the government funded amid an acrimonious fight between Republicans and the White House over immigration.
Market Watch | Funding deadline awaits Congress
Lawmakers returning to Capitol Hill on Monday will have less than two weeks to figure out how to keep the government funded amid an acrimonious fight between Republicans and the White House over immigration.
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