News
Wall Street Journal | U.S. Economic Growth Slows to 2.6% in Final Months of 2014
U.S. economic growth retreated to a modest pace in the final months of 2014, underscoring obstacles facing the recovery as troubles mount abroad.
Econ Comments & Analysis
Real Clear Markets | Markets React to 1930s Style Errors
For more than half a decade now, the mighty economic hopes of all of Europe have been almost totally dependent on Germany (the UK to a lesser extent). When the continent fell into recession in 2012, it was relatively mild in blended terms because Germany only slowed. That meant the ECB could focus its massive intrusions on the "periphery", the PIIGS mostly, aiming squarely at its very own banks to somehow force them to stop paying attention to national boundaries.
Wall Street Journal | China Trumps U.S. for Foreign Investment
China became the world’s top destination for foreign direct investment in 2014, edging the U.S. out of that position for the first time since 2003, according to figures released Thursday by the United Nations Conference on Trade and Development.
Blogs
Wall Street Journal | At a Glance: U.S. Fourth-Quarter GDP
U.S. gross domestic product advanced 2.6% at an annual rate in the fourth quarter, the Commerce Department said Friday.
Friday, January 30, 2015
Health Care
News
Wall Street Journal | Obama to Lay Out $215 Million Precision-Medicine Plan
President Obama is expected to detail on Friday an ambitious scientific effort to amass genetic data on one million or more Americans, with an eye toward unearthing disease causes and speeding drug discovery.
Wall Street Journal | Republicans to Block Legislative Fix to Health-Care Law
Congressional Republicans say they won’t move to preserve consumers’ health insurance tax credits if the Supreme Court strikes them down, raising the stakes in the latest legal challenge to the Affordable Care Act.
Econ Comments & Analysis
Forbes | Why Is Obamacare Such A Mess? There Was No Adult In The Room When It Passed
During the last election, I don’t believe there was a single Democratic television ad in any contested race that bragged about president Obama’s singular achievement: The Affordable Care Act – AKA Obamacare. The public doesn’t like it. The politicians who passed it aren’t defending it. So why do we have it?
Wall Street Journal | Failing Up in ObamaCare
So what does it take to ruin your reputation around Washington these days? The question comes to mind after learning that one of the capitol’s most corrupt bureaucracies has decided to hire one of its most incompetent contractors—and the answer explains a lot about accountability in government.
Wall Street Journal | Obama to Lay Out $215 Million Precision-Medicine Plan
President Obama is expected to detail on Friday an ambitious scientific effort to amass genetic data on one million or more Americans, with an eye toward unearthing disease causes and speeding drug discovery.
Wall Street Journal | Republicans to Block Legislative Fix to Health-Care Law
Congressional Republicans say they won’t move to preserve consumers’ health insurance tax credits if the Supreme Court strikes them down, raising the stakes in the latest legal challenge to the Affordable Care Act.
Econ Comments & Analysis
Forbes | Why Is Obamacare Such A Mess? There Was No Adult In The Room When It Passed
During the last election, I don’t believe there was a single Democratic television ad in any contested race that bragged about president Obama’s singular achievement: The Affordable Care Act – AKA Obamacare. The public doesn’t like it. The politicians who passed it aren’t defending it. So why do we have it?
Wall Street Journal | Failing Up in ObamaCare
So what does it take to ruin your reputation around Washington these days? The question comes to mind after learning that one of the capitol’s most corrupt bureaucracies has decided to hire one of its most incompetent contractors—and the answer explains a lot about accountability in government.
Taxes
Econ Comments & Analysis
Wall Street Journal | The Tax-Cutting Boon Sweeping the States
While the prospects for tax reform in Washington are dim, as many as 20 Republican governors are moving forward with their own pro-growth tax-relief initiatives. This is on top of the 14 states, including Florida, Michigan, Ohio and Wisconsin, whose 2014 tax cuts will take effect this year.
Wall Street Journal | The Tax-Cutting Boon Sweeping the States
While the prospects for tax reform in Washington are dim, as many as 20 Republican governors are moving forward with their own pro-growth tax-relief initiatives. This is on top of the 14 states, including Florida, Michigan, Ohio and Wisconsin, whose 2014 tax cuts will take effect this year.
Employment
News
Wall Street Journal | U.S. Labor Costs Only Inch Up in 4th Quarter
U.S. labor costs rose at a measured pace in the final three months of the year, a sign that a tightening labor market is only slowly driving up wages for most American workers.
Wall Street Journal | U.S. Labor Costs Only Inch Up in 4th Quarter
U.S. labor costs rose at a measured pace in the final three months of the year, a sign that a tightening labor market is only slowly driving up wages for most American workers.
Budget
Econ Comments & Analysis
Wells Fargo | Five Key Issues to Watch in the 114th Congress
As the 114th Congress ramps up over the coming weeks, we wanted to take a moment to point out five of the key policy issues that we will be watching in the 114th Congress.
Wells Fargo | Five Key Issues to Watch in the 114th Congress
As the 114th Congress ramps up over the coming weeks, we wanted to take a moment to point out five of the key policy issues that we will be watching in the 114th Congress.
Thursday, January 29, 2015
General Economics
News
Market Watch | Jobless claims fall to 265,000 lowest level since 2000
The number of people who applied for U.S. unemployment-insurance benefits plunged 43,000 to 265,000 in the week that ended Jan. 24, hitting the lowest tally in 14 years, according to Labor Department data released Thursday.
Econ Comments & Analysis
Forbes | Obama's Higher Education Policies Are Designed To Increase Dependence On Government
As part of his State of the Union speech, President Obama proposed a partnership of federal and state government funding to make two years of community college free for everyone. Yet, oddly, at the same time he proposed removing some of the tax advantages of 529 accounts which millions of Americans use to save for college expenses.
Market Watch | What the oldest stock market index is telling us
If cheaper oil were a net positive for the economy, one of the first places you’d expect to see it show up is the transportation sector. Yet it hasn’t: Over this same five-week period, the Dow Transports have fallen nearly 2%.
Market Watch | Some ugly truths about the bank bailouts
More than 4 million Americans lost their homes in the wake of the financial crisis, but the vast majority of lenders survived through government assistance rushed to Wall Street in the fall of 2008.
Market Watch | Lies, damned lies and Greece’s debt default
Can we stop it, please, with the Greek debt panic?
Real Clear Markets | Unemployment Sank When We Stopped Paying For It
According to the National Bureau of Economic Research, the official arbiter of US business cycles, the "great recession" ended in June 2009. But in the half decade since then, the US economy has experienced the feeblest recovery on record with real GDP growing at a rate of just 2.4%.
Blogs
Wall Street Journal | 5 Things to Watch In Friday's U.S. GDP Report
The government offers its broadest snapshot of the 2014 economy Friday with the first estimate of how much the economy grew in the final quarter.
Market Watch | Jobless claims fall to 265,000 lowest level since 2000
The number of people who applied for U.S. unemployment-insurance benefits plunged 43,000 to 265,000 in the week that ended Jan. 24, hitting the lowest tally in 14 years, according to Labor Department data released Thursday.
Econ Comments & Analysis
Forbes | Obama's Higher Education Policies Are Designed To Increase Dependence On Government
As part of his State of the Union speech, President Obama proposed a partnership of federal and state government funding to make two years of community college free for everyone. Yet, oddly, at the same time he proposed removing some of the tax advantages of 529 accounts which millions of Americans use to save for college expenses.
Market Watch | What the oldest stock market index is telling us
If cheaper oil were a net positive for the economy, one of the first places you’d expect to see it show up is the transportation sector. Yet it hasn’t: Over this same five-week period, the Dow Transports have fallen nearly 2%.
Market Watch | Some ugly truths about the bank bailouts
More than 4 million Americans lost their homes in the wake of the financial crisis, but the vast majority of lenders survived through government assistance rushed to Wall Street in the fall of 2008.
Market Watch | Lies, damned lies and Greece’s debt default
Can we stop it, please, with the Greek debt panic?
Real Clear Markets | Unemployment Sank When We Stopped Paying For It
According to the National Bureau of Economic Research, the official arbiter of US business cycles, the "great recession" ended in June 2009. But in the half decade since then, the US economy has experienced the feeblest recovery on record with real GDP growing at a rate of just 2.4%.
Blogs
Wall Street Journal | 5 Things to Watch In Friday's U.S. GDP Report
The government offers its broadest snapshot of the 2014 economy Friday with the first estimate of how much the economy grew in the final quarter.
Health Care
News
Wall Street Journal | Up to Six Million Households Facing Penalty for Skipping Health Insurance
The U.S. government estimates as many as six million households may have to pay a penalty for not having had health-insurance coverage last year as required under the Affordable Care Act, officials said Wednesday.
Econ Comments & Analysis
Forbes | Obamacare's New Reality: The Informed Patient
Who’s to blame for America’s outsized health care costs? Take your pick.
Kaiser Health News | With Half of California’s Kids On Medicaid, Advocates Worry About Service
California’s Medi-Cal program has grown to cover nearly half of the state’s children, causing policymakers and child advocates to question the ability of the taxpayer-funded program to adequately serve so many poor kids.
Wall Street Journal | Up to Six Million Households Facing Penalty for Skipping Health Insurance
The U.S. government estimates as many as six million households may have to pay a penalty for not having had health-insurance coverage last year as required under the Affordable Care Act, officials said Wednesday.
Econ Comments & Analysis
Forbes | Obamacare's New Reality: The Informed Patient
Who’s to blame for America’s outsized health care costs? Take your pick.
Kaiser Health News | With Half of California’s Kids On Medicaid, Advocates Worry About Service
California’s Medi-Cal program has grown to cover nearly half of the state’s children, causing policymakers and child advocates to question the ability of the taxpayer-funded program to adequately serve so many poor kids.
Monetary
News
Market Watch | Fed statement implies a midyear hike is still a possibility
The Federal Reserve gave no sign Wednesday that it was wavering over whether to hike interest rates later this year, despite rockiness in global markets and some recent disappointing economic data.
Market Watch | Fed doesn’t say whether it tweaked inflation target
The Federal Reserve has a key decision to make that could have significant implications for its interest-rate policy this year.
Market Watch | Text of the FOMC statement on interest rates
The following is the text of the Federal Open Market Committee statement released Wednesday
Econ Comments & Analysis
Market Watch | Europe needs more than QE to bolster economic growth
Although the European Central Bank has launched a larger-than-expected program of quantitative easing (QE), even its advocates fear that it may not be enough to boost real incomes, reduce unemployment and lower governments’ debt-to-GDP ratios. They are right to be afraid.
Wall Street Journal | Fed Flags Midyear Rate Hike—Or Later
The Federal Reserve signaled it would keep short-term interest rates near zero at least until midyear, while also setting the stage for tough decisions in the coming weeks about whether it should wait even longer.
Market Watch | Fed statement implies a midyear hike is still a possibility
The Federal Reserve gave no sign Wednesday that it was wavering over whether to hike interest rates later this year, despite rockiness in global markets and some recent disappointing economic data.
Market Watch | Fed doesn’t say whether it tweaked inflation target
The Federal Reserve has a key decision to make that could have significant implications for its interest-rate policy this year.
Market Watch | Text of the FOMC statement on interest rates
The following is the text of the Federal Open Market Committee statement released Wednesday
Econ Comments & Analysis
Market Watch | Europe needs more than QE to bolster economic growth
Although the European Central Bank has launched a larger-than-expected program of quantitative easing (QE), even its advocates fear that it may not be enough to boost real incomes, reduce unemployment and lower governments’ debt-to-GDP ratios. They are right to be afraid.
Wall Street Journal | Fed Flags Midyear Rate Hike—Or Later
The Federal Reserve signaled it would keep short-term interest rates near zero at least until midyear, while also setting the stage for tough decisions in the coming weeks about whether it should wait even longer.
Employment
Econ Comments & Analysis
Wall Street Journal | How Student Debt Harms the Economy
To the growing catalog of damage caused by the decades-long run-up in the cost of higher education, we may have to add another casualty. On top of the harm high tuition and other charges are inflicting on young people, and the way their struggles are holding back today’s economy, we must add the worry that tomorrow’s economy will suffer, too.
Blogs
Wall Street Journal | Where There’s Already Faster U.S. Wage Growth
Much has been made of the stagnant wage growth so far in this expansion even as net hiring has accelerated. The Federal Reserve thinks it’s one sign that the labor market still has an excess of available workers despite the drop in the December unemployment rate to 5.6%.
Wall Street Journal | How Student Debt Harms the Economy
To the growing catalog of damage caused by the decades-long run-up in the cost of higher education, we may have to add another casualty. On top of the harm high tuition and other charges are inflicting on young people, and the way their struggles are holding back today’s economy, we must add the worry that tomorrow’s economy will suffer, too.
Blogs
Wall Street Journal | Where There’s Already Faster U.S. Wage Growth
Much has been made of the stagnant wage growth so far in this expansion even as net hiring has accelerated. The Federal Reserve thinks it’s one sign that the labor market still has an excess of available workers despite the drop in the December unemployment rate to 5.6%.
Budget
News
Market Watch | Obama to call for reversal of ‘sequester’ cuts
President Barack Obama wants to sink the “sequester.”
Market Watch | Obama to call for reversal of ‘sequester’ cuts
President Barack Obama wants to sink the “sequester.”
Wednesday, January 28, 2015
General Economics
News
Wall Street Journal | Strong Dollar Squeezes U.S. Firms
The stronger dollar is slicing sales and profits at big American companies, prompting them to put renewed emphasis on cost cutting and cramping the broader U.S. economy.
Econ Comments & Analysis
Market Watch | Obama’s Robin Hood economics won’t help the middle class
If the president really wants to help the middle class, he will stop trying to mandate equal results and concentrate instead on legislating equal opportunity.
Wall Street Journal | Greece’s Last Evasion
Whenever I think of Greece and its economy, I can’t help but recall the stool-sample story.
Wall Street Journal | How Student Debt Harms the Economy
To the growing catalog of damage caused by the decades-long run-up in the cost of higher education, we may have to add another casualty. On top of the harm high tuition and other charges are inflicting on young people, and the way their struggles are holding back today’s economy, we must add the worry that tomorrow’s economy will suffer, too.
Forbes | Have 91% of Gains During the Recovery Gone to the Top?
Forgive me for going out of order and not taking up the Economic Policy Institute’s productivity/compensation chart as promised in my inaugural column in this series. But Berkeley economist Emmanuel Saez has published the latest estimates on income concentration in the United States, extending a series he has produced with Thomas Piketty. His summary notes that the top one percent captured 91 percent of the income gains from 2009 to 2012. These kinds of figures are some of the most popular in depictions of inequality trends, but it is not at all clear that they are saying what people think they are.
Forbes | Why Is The Recovery So Slow? Too Much Regulation
The political debate over in Washington tends to be arguing, from one side at least, that it was lack of regulation that caused the Great Recession. Further, that we need more regulation in order to make everything better. And that’s certainly a possible explanation.
Blogs
Wall Street Journal | China’s Local Government Debt Could Be Source of Trouble
To understand the consequences of China’s building boom and the risks associated with its recent slowdown, you need to have some insight into the inner workings of local government finance that has helped to fund the construction of buildings, bridges and roads. A WSJ story by my colleagues Lingling Wei and Bob Davis provides insight.
Wall Street Journal | U.S. Gas Prices End Their Record-Breaking Streak of Daily Declines
For the first time in four months, gasoline is a little more expensive today than it was yesterday.
Wall Street Journal | Strong Dollar Squeezes U.S. Firms
The stronger dollar is slicing sales and profits at big American companies, prompting them to put renewed emphasis on cost cutting and cramping the broader U.S. economy.
Econ Comments & Analysis
Market Watch | Obama’s Robin Hood economics won’t help the middle class
If the president really wants to help the middle class, he will stop trying to mandate equal results and concentrate instead on legislating equal opportunity.
Wall Street Journal | Greece’s Last Evasion
Whenever I think of Greece and its economy, I can’t help but recall the stool-sample story.
Wall Street Journal | How Student Debt Harms the Economy
To the growing catalog of damage caused by the decades-long run-up in the cost of higher education, we may have to add another casualty. On top of the harm high tuition and other charges are inflicting on young people, and the way their struggles are holding back today’s economy, we must add the worry that tomorrow’s economy will suffer, too.
Forbes | Have 91% of Gains During the Recovery Gone to the Top?
Forgive me for going out of order and not taking up the Economic Policy Institute’s productivity/compensation chart as promised in my inaugural column in this series. But Berkeley economist Emmanuel Saez has published the latest estimates on income concentration in the United States, extending a series he has produced with Thomas Piketty. His summary notes that the top one percent captured 91 percent of the income gains from 2009 to 2012. These kinds of figures are some of the most popular in depictions of inequality trends, but it is not at all clear that they are saying what people think they are.
Forbes | Why Is The Recovery So Slow? Too Much Regulation
The political debate over in Washington tends to be arguing, from one side at least, that it was lack of regulation that caused the Great Recession. Further, that we need more regulation in order to make everything better. And that’s certainly a possible explanation.
Blogs
Wall Street Journal | China’s Local Government Debt Could Be Source of Trouble
To understand the consequences of China’s building boom and the risks associated with its recent slowdown, you need to have some insight into the inner workings of local government finance that has helped to fund the construction of buildings, bridges and roads. A WSJ story by my colleagues Lingling Wei and Bob Davis provides insight.
Wall Street Journal | U.S. Gas Prices End Their Record-Breaking Streak of Daily Declines
For the first time in four months, gasoline is a little more expensive today than it was yesterday.
Health Care
Econ Comments & Analysis
Forbes | The Congressional Budget Office's Rose-Colored, Short-Sighted View of Obamacare Spending
Last summer, my colleague Devon Herrick accused the Center for Medicare & Medicaid Services (CMS) of looking at Medicare’s solvency through rose-colored glasses. Well, CMS has passed those shiny spectacles to another government agency.
Forbes | The Congressional Budget Office's Rose-Colored, Short-Sighted View of Obamacare Spending
Last summer, my colleague Devon Herrick accused the Center for Medicare & Medicaid Services (CMS) of looking at Medicare’s solvency through rose-colored glasses. Well, CMS has passed those shiny spectacles to another government agency.
Monetary
Econ Comments & Analysis
Wall Street Journal | Type the Title You Want People to See
Janet Yellen ’s job is about to get harder after a relatively easy first year as Federal Reserve chairwoman.
Telegraph | Sadly for all our futures, cheap money is here to stay. Just get used to it
When will interest rates rise again? Will they indeed ever rise again? According to the one-time American baseball player Yogi Berra, it is tough to make predictions, especially about the future. The idea that nominal rates will remain pegged at close to zero for all eternity is, of course, nonsense; nobody sensible would ever make such a forecast.
Bloomberg View | The What and the Why in Fed's Next Moves
As the Federal Open Market Committee concludes its first two-daypolicy meeting of 2015 today, Federal Reserve officials have been weighing a complicated tug of war between domestic and international economic considerations. They are also aware of the uncertainties associated with Europe’s increasingly fluid political and geopolitical situation. As such, look for them to stand pat, pushing any major policy signaling to their next meeting, in mid-March.
Blogs
Wall Street Journal | What to Watch at This Week’s Fed Meeting
The Federal Reserve’s policy meeting Tuesday and Wednesday is likely to yield at most marginal changes to the central bank’s economic assessment and policy signals, with officials await more economic data before deciding when to raise interest rates.
Wall Street Journal | Type the Title You Want People to See
Janet Yellen ’s job is about to get harder after a relatively easy first year as Federal Reserve chairwoman.
Telegraph | Sadly for all our futures, cheap money is here to stay. Just get used to it
When will interest rates rise again? Will they indeed ever rise again? According to the one-time American baseball player Yogi Berra, it is tough to make predictions, especially about the future. The idea that nominal rates will remain pegged at close to zero for all eternity is, of course, nonsense; nobody sensible would ever make such a forecast.
Bloomberg View | The What and the Why in Fed's Next Moves
As the Federal Open Market Committee concludes its first two-daypolicy meeting of 2015 today, Federal Reserve officials have been weighing a complicated tug of war between domestic and international economic considerations. They are also aware of the uncertainties associated with Europe’s increasingly fluid political and geopolitical situation. As such, look for them to stand pat, pushing any major policy signaling to their next meeting, in mid-March.
Blogs
Wall Street Journal | What to Watch at This Week’s Fed Meeting
The Federal Reserve’s policy meeting Tuesday and Wednesday is likely to yield at most marginal changes to the central bank’s economic assessment and policy signals, with officials await more economic data before deciding when to raise interest rates.
Tuesday, January 27, 2015
General Economics
News
Market Watch | Orders for durable goods sink in December
Orders for durable goods declined sharply in December, raising questions about whether businesses are really ready to ramp up investment in 2015.
Market Watch | U.S. home prices edge 0.2% lower in November: Case-Shiller
U.S. house prices edged back by 0.2% in November, to lower the year-on-year advance to 4.3%, according to the S&P/Case-Shiller 20-city composite released Tuesday.
Market Watch | Consumer confidence index jumps to seven-year high of 102.9
Consumer confidence jumped in January to the best reading since August 2007, according to the latest reading from the Conference Board. The consumer-confidence index rose to 102.9 from 93.1 in December, above the MarketWatch-compiled economist forecast of 96.9.
Market Watch | New-home sales jump 11.6% to 481,000 annual rate in December
Sales of new single-family homes rose sharply in December, helping sales for the year to show a modest increase from 2013, the Commerce Department reported Tuesday. Sales of new single-family homes jumped 11.6% in December to a seasonally adjusted annual rate of 481,000.
Econ Comments & Analysis
Real Clear Markets | If the president really wants to help the middle class, he will stop trying to mandate equal results and concentrate instead on legislating equal opportunity.
In his recent State of the Union speech, President Obama extolled the virtues of "middle class economics," as a means of spurring economic growth and creating a more inclusive economy. Just what this entails is unclear, but President Obama says this "means helping folks afford child care, college, health care, a home, retirement, and my budget will address each of these issues, lowering the taxes of working families and putting thousands of dollars back into their pockets each year." On closer examination, the policy agenda the president is laying out is a tired mix of class warfare, new taxes, and more government spending.
Market Watch | The right way to help the middle class
If the president really wants to help the middle class, he will stop trying to mandate equal results and concentrate instead on legislating equal opportunity.
The Daily Beast | Making Free Trade Sexy
A true free trade agenda should be the cornerstone of any “middle class economics” platform. Open international markets lower domestic prices for consumers, increase export opportunities for small and big business alike, and induce formerly-protected manufacturers to improve and compete on a global stage. But we shouldn’t expect Obama to embrace the benefits of free trade just yet.
Washington Times | Obama’s illusory economic recovery
The big news from this week's State of the Union address is that the economic "crisis is over." Apparently, we've been rescued from a second Great Depression and everything this president has done to fix the economy has worked.
Wall Street Journal | A Modest Uptick in American Economic Freedom
A steep, seven-year decline in U.S. economic freedom has come to an end, according to the 2015 Index of Economic Freedom, published Tuesday by the Heritage Foundation and The Wall Street Journal. The U.S. score in the index experienced a particularly large drop in 2009-10, pushing this country out of the “free” category and into the “mostly free” category. A slight 0.7-point uptick this year has allowed the U.S. to retain its 12th-place ranking.
Blogs
Wall Street Journal | Behind the CBO’s Forecast: Visions of the 3rd Longest Expansion in U.S. History
The Congressional Budget Office predicts the government’s deficits will shrink in 2015 and again in 2016. As a share of the economy, it will fall to 2.5% and remain there through 2017 before beginning to rise again with the aging of the population.
Market Watch | Orders for durable goods sink in December
Orders for durable goods declined sharply in December, raising questions about whether businesses are really ready to ramp up investment in 2015.
Market Watch | U.S. home prices edge 0.2% lower in November: Case-Shiller
U.S. house prices edged back by 0.2% in November, to lower the year-on-year advance to 4.3%, according to the S&P/Case-Shiller 20-city composite released Tuesday.
Market Watch | Consumer confidence index jumps to seven-year high of 102.9
Consumer confidence jumped in January to the best reading since August 2007, according to the latest reading from the Conference Board. The consumer-confidence index rose to 102.9 from 93.1 in December, above the MarketWatch-compiled economist forecast of 96.9.
Market Watch | New-home sales jump 11.6% to 481,000 annual rate in December
Sales of new single-family homes rose sharply in December, helping sales for the year to show a modest increase from 2013, the Commerce Department reported Tuesday. Sales of new single-family homes jumped 11.6% in December to a seasonally adjusted annual rate of 481,000.
Econ Comments & Analysis
Real Clear Markets | If the president really wants to help the middle class, he will stop trying to mandate equal results and concentrate instead on legislating equal opportunity.
In his recent State of the Union speech, President Obama extolled the virtues of "middle class economics," as a means of spurring economic growth and creating a more inclusive economy. Just what this entails is unclear, but President Obama says this "means helping folks afford child care, college, health care, a home, retirement, and my budget will address each of these issues, lowering the taxes of working families and putting thousands of dollars back into their pockets each year." On closer examination, the policy agenda the president is laying out is a tired mix of class warfare, new taxes, and more government spending.
Market Watch | The right way to help the middle class
If the president really wants to help the middle class, he will stop trying to mandate equal results and concentrate instead on legislating equal opportunity.
The Daily Beast | Making Free Trade Sexy
A true free trade agenda should be the cornerstone of any “middle class economics” platform. Open international markets lower domestic prices for consumers, increase export opportunities for small and big business alike, and induce formerly-protected manufacturers to improve and compete on a global stage. But we shouldn’t expect Obama to embrace the benefits of free trade just yet.
Washington Times | Obama’s illusory economic recovery
The big news from this week's State of the Union address is that the economic "crisis is over." Apparently, we've been rescued from a second Great Depression and everything this president has done to fix the economy has worked.
Wall Street Journal | A Modest Uptick in American Economic Freedom
A steep, seven-year decline in U.S. economic freedom has come to an end, according to the 2015 Index of Economic Freedom, published Tuesday by the Heritage Foundation and The Wall Street Journal. The U.S. score in the index experienced a particularly large drop in 2009-10, pushing this country out of the “free” category and into the “mostly free” category. A slight 0.7-point uptick this year has allowed the U.S. to retain its 12th-place ranking.
Blogs
Wall Street Journal | Behind the CBO’s Forecast: Visions of the 3rd Longest Expansion in U.S. History
The Congressional Budget Office predicts the government’s deficits will shrink in 2015 and again in 2016. As a share of the economy, it will fall to 2.5% and remain there through 2017 before beginning to rise again with the aging of the population.
Monetary
Econ Comments & Analysis
Market Watch | The lemmings of QE
Predictably, the European Central Bank has joined the world’s other major monetary authorities in the greatest experiment in the history of central banking.
Market Watch | The lemmings of QE
Predictably, the European Central Bank has joined the world’s other major monetary authorities in the greatest experiment in the history of central banking.
Employment
Econ Comments & Analysis
Wall Street Journal | When Workers Choose
No Administration in decades has favored organized labor like President Obama ’s, yet union membership keeps declining, as it did again last year according to Friday’s annual report from the U.S. Bureau of Labor Statistics. The story seems to be that when given a choice, many union members would rather not pay for the privilege.
Wall Street Journal | Solving the Puzzle of Stagnant Wages
The elation over wage increases in private business reported in last month’s job report has been replaced by disappointment. The Bureau of Labor Statistics reported on Jan. 16 that average hourly earnings fell five cents in December, eating up most of the six-cent increase in November. Between 2010 and 2014, the average real wage fell 1.1%, a poor showing after rising 3.4% between 2006 and 2010. What accounts for this performance?
Wall Street Journal | When Workers Choose
No Administration in decades has favored organized labor like President Obama ’s, yet union membership keeps declining, as it did again last year according to Friday’s annual report from the U.S. Bureau of Labor Statistics. The story seems to be that when given a choice, many union members would rather not pay for the privilege.
Wall Street Journal | Solving the Puzzle of Stagnant Wages
The elation over wage increases in private business reported in last month’s job report has been replaced by disappointment. The Bureau of Labor Statistics reported on Jan. 16 that average hourly earnings fell five cents in December, eating up most of the six-cent increase in November. Between 2010 and 2014, the average real wage fell 1.1%, a poor showing after rising 3.4% between 2006 and 2010. What accounts for this performance?
Budget
News
Wall Street Journal | CBO: Deficit to Narrow, Then Widen in ’18
Existing budget restraints and stronger economic growth will chip away at the federal deficit into 2017 before the gap begins to widen again, the Congressional Budget Office said, providing ammunition for both parties ahead of the White House’s first budget proposal to the Republican-controlled Congress.
Econ Comments & Analysis
CBO | The Budget and Economic Outlook: 2015 to 2025
The federal budget deficit, which has fallen sharply during the past few years, is projected to hold steady relative to the size of the economy through 2018. Beyond that point, however, the gap between spending and revenues is projected to grow, further increasing federal debt relative to the size of the economy—which is already historically high.
Blogs
Wall Street Journal | You Ask, We Answer: Why Is the Debt Rising Faster Than the Deficit?
Last year, the federal government’s deficit was the smallest since 2007. Doesn’t $3 trillion in revenue and $3.5 trillion in spending represent a government that’s out of control? Isn’t the deficit only okay because the Federal Reserve has pinned interest rates so low? What will happen when rates go back to normal? How can the total national debt rise faster than the deficit?
Wall Street Journal | CBO: Deficit to Narrow, Then Widen in ’18
Existing budget restraints and stronger economic growth will chip away at the federal deficit into 2017 before the gap begins to widen again, the Congressional Budget Office said, providing ammunition for both parties ahead of the White House’s first budget proposal to the Republican-controlled Congress.
Econ Comments & Analysis
CBO | The Budget and Economic Outlook: 2015 to 2025
The federal budget deficit, which has fallen sharply during the past few years, is projected to hold steady relative to the size of the economy through 2018. Beyond that point, however, the gap between spending and revenues is projected to grow, further increasing federal debt relative to the size of the economy—which is already historically high.
Blogs
Wall Street Journal | You Ask, We Answer: Why Is the Debt Rising Faster Than the Deficit?
Last year, the federal government’s deficit was the smallest since 2007. Doesn’t $3 trillion in revenue and $3.5 trillion in spending represent a government that’s out of control? Isn’t the deficit only okay because the Federal Reserve has pinned interest rates so low? What will happen when rates go back to normal? How can the total national debt rise faster than the deficit?
Monday, January 26, 2015
General Economics
News
Market Watch | GDP, Fed meeting highlight busy week for economy
Now it’s time to find out if the U.S. economy is still a single locomotive — or an inseparable part of a larger global train that’s slowing down.
Econ Comments & Analysis
Forbes | Government Policies Caused the Financial Crisis and Made the Recession Worse
In his State of the Union address last week, President Obama argued we need government polices to build “the most competitive economy anywhere.” He’s wrong. We need the government to leave the private sector alone so that it can build the most competitive economy anywhere.
Wall Street Journal | Euro’s Big Drop Puts U.S. Economy, Federal Reserve to the Test
The European Central Bank’s launch of an aggressive program this week to buy more than €1 trillion in bonds poses important tests for the U.S. economy and the Federal Reserve.
Real Clear Markets | The U.S. Economy's Achilles Heel? The Rest of the World
President Obama has declared the economic crisis over - and for the United States, maybe it seems that way. But for most other countries, not so much. Their recoveries are faltering. The obvious question is whether the global weakness will infect the U.S. expansion. This is a crucial footnote to Obama's optimism.
Market Watch | The real reason China isn’t the world’s biggest economy
Chinese leaders have been quick to put on a brave face after the ignominy of missing their economic-growth targets for first time since 1998. But while Premier Li Keqiang was telling global leaders in Davos not to worry about the economy, back at home the head of the country’s statistics bureau was rejecting claims China was already the world’s biggest economy.
Blogs
Wall Street Journal | Most U.S. Businesses Will See a Boost From Cheap Oil, Economists Say
Most U.S. businesses will benefit from lower oil prices this year, but the cheaper energy bill also threatens to derail a recent driver of economic growth, according to a new survey of business economists.
Market Watch | GDP, Fed meeting highlight busy week for economy
Now it’s time to find out if the U.S. economy is still a single locomotive — or an inseparable part of a larger global train that’s slowing down.
Econ Comments & Analysis
Forbes | Government Policies Caused the Financial Crisis and Made the Recession Worse
In his State of the Union address last week, President Obama argued we need government polices to build “the most competitive economy anywhere.” He’s wrong. We need the government to leave the private sector alone so that it can build the most competitive economy anywhere.
Wall Street Journal | Euro’s Big Drop Puts U.S. Economy, Federal Reserve to the Test
The European Central Bank’s launch of an aggressive program this week to buy more than €1 trillion in bonds poses important tests for the U.S. economy and the Federal Reserve.
Real Clear Markets | The U.S. Economy's Achilles Heel? The Rest of the World
President Obama has declared the economic crisis over - and for the United States, maybe it seems that way. But for most other countries, not so much. Their recoveries are faltering. The obvious question is whether the global weakness will infect the U.S. expansion. This is a crucial footnote to Obama's optimism.
Market Watch | The real reason China isn’t the world’s biggest economy
Chinese leaders have been quick to put on a brave face after the ignominy of missing their economic-growth targets for first time since 1998. But while Premier Li Keqiang was telling global leaders in Davos not to worry about the economy, back at home the head of the country’s statistics bureau was rejecting claims China was already the world’s biggest economy.
Blogs
Wall Street Journal | Most U.S. Businesses Will See a Boost From Cheap Oil, Economists Say
Most U.S. businesses will benefit from lower oil prices this year, but the cheaper energy bill also threatens to derail a recent driver of economic growth, according to a new survey of business economists.
Health Care
Econ Comments & Analysis
Forbes | Obamacare's Medicaid Expansion Is Nothing to Brag About
At the end of last year, the Obama administration boasted that almost 10 million people had enrolled in Medicaid since Obamacare went into effect. “This is great news,” an administration official exclaimed.
Forbes | Under Obamacare, Will America Keep Winning The War On Cancer?
There are a number of explanations for this success. The most important appears to be the reduction in smoking in the population. Lung cancer is still very deadly. However, because fewer people are diagnosed, the death rate from lung cancer has dropped dramatically since the early 1990s for men and turned around for women starting about 2005.
Forbes | Obamacare's Medicaid Expansion Is Nothing to Brag About
At the end of last year, the Obama administration boasted that almost 10 million people had enrolled in Medicaid since Obamacare went into effect. “This is great news,” an administration official exclaimed.
Forbes | Under Obamacare, Will America Keep Winning The War On Cancer?
There are a number of explanations for this success. The most important appears to be the reduction in smoking in the population. Lung cancer is still very deadly. However, because fewer people are diagnosed, the death rate from lung cancer has dropped dramatically since the early 1990s for men and turned around for women starting about 2005.
Monetary
Econ Comments & Analysis
Telegraph | What happens after shock and awe of QE subsides?
The result of the Greek general election has the potential to threaten the euro. And the result of last Thursday’s meeting of the European Central Bank, namely the unleashing of a massive programme of government bond-buying, has the potential to save the euro. But will it succeed?
Market Watch | Doubts grow about mid-year rate hike, but Fed won’t express any
While there are growing doubts among economists that the Federal Reserve will make their first hike in short-term interest rates in June, don’t look for the U.S. central bank to give any hints that it may hold stay a little while longer than expected.
Blogs
Wall Street Journal | Fed Board Quiet In Run Up To Meeting
The run up to this week’s Federal Reserve policy meeting has been notable for the nearly total silence of the five Washington-based board governors. Since their December meeting, they have not uttered a single public word about the economy or monetary policy. The only governor to speak publicly at all, Jerome Powell, spoke about market issues.
Telegraph | What happens after shock and awe of QE subsides?
The result of the Greek general election has the potential to threaten the euro. And the result of last Thursday’s meeting of the European Central Bank, namely the unleashing of a massive programme of government bond-buying, has the potential to save the euro. But will it succeed?
Market Watch | Doubts grow about mid-year rate hike, but Fed won’t express any
While there are growing doubts among economists that the Federal Reserve will make their first hike in short-term interest rates in June, don’t look for the U.S. central bank to give any hints that it may hold stay a little while longer than expected.
Blogs
Wall Street Journal | Fed Board Quiet In Run Up To Meeting
The run up to this week’s Federal Reserve policy meeting has been notable for the nearly total silence of the five Washington-based board governors. Since their December meeting, they have not uttered a single public word about the economy or monetary policy. The only governor to speak publicly at all, Jerome Powell, spoke about market issues.
Taxes
Econ Comments & Analysis
Forbes | Estate Taxes Are Indeed Immoral
Michael Tomasky wrote a severely misguidedcolumn for The Daily Beast this week in which he not only argued in favor of wealth and estate taxes, but even declared such taxes moral. He advanced four arguments to support this position: that heirs don’t deserve great wealth, that society helped make such achievements possible and therefore deserves a share of the wealthy’s riches, that wealth taxes do not reduce incentives to entrepreneurship, and that the estate tax only applies to a tiny number of people. Let me rebut each of these arguments in turn.
Forbes | How President Obama Can Get His Big Bank Tax Without Congress
I know that it’s traditional around here to decry any method of extracting more money from the economy for the wastrels in Washington to squander but I have to admit that I take the basic idea that President Obama has proposed, a tax on the liabilities of the biggest banks, to be a good idea.
Forbes | Estate Taxes Are Indeed Immoral
Michael Tomasky wrote a severely misguidedcolumn for The Daily Beast this week in which he not only argued in favor of wealth and estate taxes, but even declared such taxes moral. He advanced four arguments to support this position: that heirs don’t deserve great wealth, that society helped make such achievements possible and therefore deserves a share of the wealthy’s riches, that wealth taxes do not reduce incentives to entrepreneurship, and that the estate tax only applies to a tiny number of people. Let me rebut each of these arguments in turn.
Forbes | How President Obama Can Get His Big Bank Tax Without Congress
I know that it’s traditional around here to decry any method of extracting more money from the economy for the wastrels in Washington to squander but I have to admit that I take the basic idea that President Obama has proposed, a tax on the liabilities of the biggest banks, to be a good idea.
Budget
Econ Comments & Analysis
Investors.com | Free Spending In Washington In A Time of Frugality
Federal Spending: Given half-trillion-dollar deficits, this is supposed to be an era of belt-tightening for governmental agencies. But you wouldn't know it from the fat-and-happy spending by some of them.
Investors.com | Free Spending In Washington In A Time of Frugality
Federal Spending: Given half-trillion-dollar deficits, this is supposed to be an era of belt-tightening for governmental agencies. But you wouldn't know it from the fat-and-happy spending by some of them.
Friday, January 23, 2015
General Economics
News
Market Watch | Existing-home sales saw first drop since 2010 last year
Data released Friday showed that existing home sales dipped in 2014, the first decline since 2010, despite low mortgage rates and other factors that should have helped the market.
Econ Comments & Analysis
Market Watch | Europe moves further apart after central bank’s decision
Thursday was a momentous day for the European Central Bank.
Bloomber View | Cheap Gas Won't Stick Around
Raise that thermostat and fire up the SUV: West Texas Intermediate crude is hovering around $45 a barrel, and the Costco near my house is currently vending gasoline for under $2 a gallon. But don't start pricing Hummers just yet, because we don't know how long this will last.
Wall Street Journal | As Gasoline Heads Toward $2, the Benefits Start to Trickle Down
Gas prices appear headed below a nationwide average of $2 a gallon in coming days, one of the swiftest declines on record and one that is beginning to ripple through the U.S. economy in ways both familiar and unpredictable.
Wall Street Journal | Lawrence Summers Says U.S. Faces Challenges in Restoring Growth
The U.S. economy still faces serious challenges in restoring robust long-term growth despite the recent pickup in economic activity, former Treasury Secretary Lawrence Summers said.
Blogs
Wall Street Journal | The End of the Suburbs and Four Other American Migration Myths
Lyman Stone, a migration researcher at George Washington University’s Elliot School of International Affairs and an economist at the Agriculture Department, is writing about the state of American migration.
Market Watch | Existing-home sales saw first drop since 2010 last year
Data released Friday showed that existing home sales dipped in 2014, the first decline since 2010, despite low mortgage rates and other factors that should have helped the market.
Econ Comments & Analysis
Market Watch | Europe moves further apart after central bank’s decision
Thursday was a momentous day for the European Central Bank.
Bloomber View | Cheap Gas Won't Stick Around
Raise that thermostat and fire up the SUV: West Texas Intermediate crude is hovering around $45 a barrel, and the Costco near my house is currently vending gasoline for under $2 a gallon. But don't start pricing Hummers just yet, because we don't know how long this will last.
Wall Street Journal | As Gasoline Heads Toward $2, the Benefits Start to Trickle Down
Gas prices appear headed below a nationwide average of $2 a gallon in coming days, one of the swiftest declines on record and one that is beginning to ripple through the U.S. economy in ways both familiar and unpredictable.
Wall Street Journal | Lawrence Summers Says U.S. Faces Challenges in Restoring Growth
The U.S. economy still faces serious challenges in restoring robust long-term growth despite the recent pickup in economic activity, former Treasury Secretary Lawrence Summers said.
Blogs
Wall Street Journal | The End of the Suburbs and Four Other American Migration Myths
Lyman Stone, a migration researcher at George Washington University’s Elliot School of International Affairs and an economist at the Agriculture Department, is writing about the state of American migration.
Monetary
News
Wall Street Journal | Aggressive ECB Stimulus Ushers In New Era for Europe
The European Central Bank ushered in a new era by launching an aggressive bond-buying program Thursday, shifting pressure to Europe’s political leaders to restore prosperity in one of the global economy’s biggest trouble spots.
Econ Comments & Analysis
Real Clear Markets | Zero Rates Signal Total Economic Disarray, Not 'Stimulus'
In November 2011, "inflation" in the EU was measured at 3.3%, while it was a touch lower for the defined "Euro area." Thus began both an age of great monetary experimentation and no appreciable effects on the one measure intended to "benefit" the most from it all. The ECB has engaged literally trillions in "stimulus" of almost every form imaginable, from buying covered bonds (instruments where banks own their own liabilities) to traditional interest rate maneuvers to simple and dramatic flooding the zone with LTRO's. And in that time, through all of it, the inflation rate in Europe has moved practically in a straight line lower, unalterable has been its trajectory no matter how much monetary officials claim power and authority.
Wall Street Journal | Aggressive ECB Stimulus Ushers In New Era for Europe
The European Central Bank ushered in a new era by launching an aggressive bond-buying program Thursday, shifting pressure to Europe’s political leaders to restore prosperity in one of the global economy’s biggest trouble spots.
Econ Comments & Analysis
Real Clear Markets | Zero Rates Signal Total Economic Disarray, Not 'Stimulus'
In November 2011, "inflation" in the EU was measured at 3.3%, while it was a touch lower for the defined "Euro area." Thus began both an age of great monetary experimentation and no appreciable effects on the one measure intended to "benefit" the most from it all. The ECB has engaged literally trillions in "stimulus" of almost every form imaginable, from buying covered bonds (instruments where banks own their own liabilities) to traditional interest rate maneuvers to simple and dramatic flooding the zone with LTRO's. And in that time, through all of it, the inflation rate in Europe has moved practically in a straight line lower, unalterable has been its trajectory no matter how much monetary officials claim power and authority.
Employment
Econ Comments & Analysis
Market Watch | Public-sector workers five times more likely to be part of a union
Public-sector employees are more than five times more likely to be part of a union than their private-sector counterparts, according to the latest data released Friday.
Market Watch | Public-sector workers five times more likely to be part of a union
Public-sector employees are more than five times more likely to be part of a union than their private-sector counterparts, according to the latest data released Friday.
Thursday, January 22, 2015
General Economics
News
Market Watch | U.S. jobless claims fall 10,000 to 307,000
The number of people who applied for U.S. unemployment benefits in mid-January fell by 10,000 but remained above the key 300,000 mark for the third straight week, the first time that's happened since July. Initial jobless claims declined to 307,000 in the seven days ended Jan. 10 from a revised 317,000 in the prior week, the Labor Department said Thursday.
Market Watch | U.S. home prices grew 0.8% in November, FHFA says
U.S. house prices rose a seasonally adjusted 0.8% in November, according to the Federal Housing Finance Agency house price index released Thursday.
Wall Street Journal | ECB Announces Stimulus Plan
The European Central Bank said Thursday it will purchase eurozone countries’ government bonds, a landmark decision aimed at combating stagnation and ultralow inflation in a region that has emerged as a top risk to the global economic recovery.
Econ Comments & Analysis
New York Times | Day After President’s Speech, Some Doubts Linger Over Nation’s Recovery
As a web developer benefiting from an 8 percent pay raise, Brad McLaughlin is looking good economically. He and his girlfriend are spending more money on natural groceries, ski weekends in Colorado’s mountains and vacations to England and Austin, Tex. Not that he credits President Obama for any of it.
Market Watch | The winners from Draghi’s QE? America and Britain
Waiting for Godot seems like just a few minutes by comparison. The markets have been expecting the European Central Bank to launch its own version of quantitative easing since the dinosaurs roamed the earth — or at least since 2011, when it became clear the eurozone was going to need something to lift its struggling economies off the rocks.
Wall Street Journal | Now He’s After Middle-Class Savers
President Obama is pitching his new tax plan as a way to help the middle class at the expense of the rich. But middle-class savers are bound to notice if he achieves two of the White House’s stated goals—to “roll back” tax benefits of 529 college savings plans and “repeal tax incentives going forward” for Coverdell Education Savings Accounts.
Forbes | The President's Middle-Class Economics
In his 2015 State of the Union address, President Obama laid out his vision for how to help the middle-class, dubbing it middle-class economics. His plan includes tax increases of $320 billion to pay for around $200 billion in new or expanded tax credits. Unfortunately, his policy prescriptions would continue years of slow economic growth and flat incomes for the middle-class.
Blogs
Wall Street Journal | Why Should Americans Care About European Central Bank Policy Moves?
What happens in Frankfurt stays in Frankfurt, nicht? Not exactly, when it comes to the U.S. economy.
Wall Street Journal | How China’s Slowdown Could Drag Down the Global Economy
China’s economic growth is slowing to its lowest pace in more than two decades as it reaches the limits of its credit-fueled, export-led expansion and tries to avoid a hard landing.
Market Watch | U.S. jobless claims fall 10,000 to 307,000
The number of people who applied for U.S. unemployment benefits in mid-January fell by 10,000 but remained above the key 300,000 mark for the third straight week, the first time that's happened since July. Initial jobless claims declined to 307,000 in the seven days ended Jan. 10 from a revised 317,000 in the prior week, the Labor Department said Thursday.
Market Watch | U.S. home prices grew 0.8% in November, FHFA says
U.S. house prices rose a seasonally adjusted 0.8% in November, according to the Federal Housing Finance Agency house price index released Thursday.
Wall Street Journal | ECB Announces Stimulus Plan
The European Central Bank said Thursday it will purchase eurozone countries’ government bonds, a landmark decision aimed at combating stagnation and ultralow inflation in a region that has emerged as a top risk to the global economic recovery.
Econ Comments & Analysis
New York Times | Day After President’s Speech, Some Doubts Linger Over Nation’s Recovery
As a web developer benefiting from an 8 percent pay raise, Brad McLaughlin is looking good economically. He and his girlfriend are spending more money on natural groceries, ski weekends in Colorado’s mountains and vacations to England and Austin, Tex. Not that he credits President Obama for any of it.
Market Watch | The winners from Draghi’s QE? America and Britain
Waiting for Godot seems like just a few minutes by comparison. The markets have been expecting the European Central Bank to launch its own version of quantitative easing since the dinosaurs roamed the earth — or at least since 2011, when it became clear the eurozone was going to need something to lift its struggling economies off the rocks.
Wall Street Journal | Now He’s After Middle-Class Savers
President Obama is pitching his new tax plan as a way to help the middle class at the expense of the rich. But middle-class savers are bound to notice if he achieves two of the White House’s stated goals—to “roll back” tax benefits of 529 college savings plans and “repeal tax incentives going forward” for Coverdell Education Savings Accounts.
Forbes | The President's Middle-Class Economics
In his 2015 State of the Union address, President Obama laid out his vision for how to help the middle-class, dubbing it middle-class economics. His plan includes tax increases of $320 billion to pay for around $200 billion in new or expanded tax credits. Unfortunately, his policy prescriptions would continue years of slow economic growth and flat incomes for the middle-class.
Blogs
Wall Street Journal | Why Should Americans Care About European Central Bank Policy Moves?
What happens in Frankfurt stays in Frankfurt, nicht? Not exactly, when it comes to the U.S. economy.
Wall Street Journal | How China’s Slowdown Could Drag Down the Global Economy
China’s economic growth is slowing to its lowest pace in more than two decades as it reaches the limits of its credit-fueled, export-led expansion and tries to avoid a hard landing.
Health Care
Econ Comments & Analysis
Meratus Center | From Fortress to Frontier: How Innovation Can Save Health Care
Despite the fierce debate over health care policy, the political Left and Right are more alike than they realize. Both have spent decades pursuing policies that obstruct health care’s capacity to save lives, ease suffering, and cut costs.
Daily Signal | Medicare Reform Hearings: Making a Bipartisan Case for Common Sense
Medicare doctors face a 21 percent pay cut this year because a complex formula called the Sustainable Growth Rate (SGR), a feature of current law, requires the drastic cut. Repealing that formula to pay physicians would add hundreds of billions of dollars to the nation’s deficits, which is why the House Energy and Commerce Committee is holding two days of hearings on new ways to reform Medicare physician payment while improving Medicare and controlling its costs.
Meratus Center | From Fortress to Frontier: How Innovation Can Save Health Care
Despite the fierce debate over health care policy, the political Left and Right are more alike than they realize. Both have spent decades pursuing policies that obstruct health care’s capacity to save lives, ease suffering, and cut costs.
Daily Signal | Medicare Reform Hearings: Making a Bipartisan Case for Common Sense
Medicare doctors face a 21 percent pay cut this year because a complex formula called the Sustainable Growth Rate (SGR), a feature of current law, requires the drastic cut. Repealing that formula to pay physicians would add hundreds of billions of dollars to the nation’s deficits, which is why the House Energy and Commerce Committee is holding two days of hearings on new ways to reform Medicare physician payment while improving Medicare and controlling its costs.
Monetary
Econ Comments & Analysis
Market Watch | Why the ECB’s QE won’t delay Fed rate increases
Investors are beginning to bet that the Federal Reserve will lose its nerve and postpone the increase in interest rates that the central bank has hinted would come sometime this summer. They’re going to lose that bet because the strong dollar isn’t signaling weakness in the U.S. economy, but strength.
Market Watch | As central banks surprise, Fed may have to throw in the towel
The surprises coming out of the Swiss National Bank, the European Central Bank, the Bank of England and the Bank of Canada spell tectonic shifts occurring in the global economy that inevitably will hit these shores.
Forbes | Lower Inflation: Another Chance For Government Mistakes
World inflation is falling, along with oil prices. This shouldn’t have caught financial markets by surprise, since private-sector credit growth remains very slow.
Wall Street Journal | The World’s Monetary Dead End
Central banks in the U.S., Japan and Europe are trapped in a loop. They are fully invested in the theory that zero rates and bond buying are stimulative and add to inflation, yet growth, inflation and median incomes keep going down.
Market Watch | Why the ECB’s QE won’t delay Fed rate increases
Investors are beginning to bet that the Federal Reserve will lose its nerve and postpone the increase in interest rates that the central bank has hinted would come sometime this summer. They’re going to lose that bet because the strong dollar isn’t signaling weakness in the U.S. economy, but strength.
Market Watch | As central banks surprise, Fed may have to throw in the towel
The surprises coming out of the Swiss National Bank, the European Central Bank, the Bank of England and the Bank of Canada spell tectonic shifts occurring in the global economy that inevitably will hit these shores.
Forbes | Lower Inflation: Another Chance For Government Mistakes
World inflation is falling, along with oil prices. This shouldn’t have caught financial markets by surprise, since private-sector credit growth remains very slow.
Wall Street Journal | The World’s Monetary Dead End
Central banks in the U.S., Japan and Europe are trapped in a loop. They are fully invested in the theory that zero rates and bond buying are stimulative and add to inflation, yet growth, inflation and median incomes keep going down.
Taxes
Econ Comments & Analysis
Forbes | Don't Tax The Rich To Benefit The Middle Class, Help The Poor Instead
In his State of the Union Speech, President Obama called for tax increases on the rich in order to pass out goodies to the middle class. In particular, he wants to raise capital gains taxes on the rich and use the money to provide tax breaks to middle class families with two working parents, for those with child care expenses, and for those paying for college. Not only are his proposed freebies all bad ideas, he is spending the money on the wrong group.
Forbes | Obama's 529 College Savings Plan Tax Hike Is An Assault On The American Dream
It’s pretty clear that the Obama White House and their allies on The Left just don’t get it when it comes to their proposed tax hike on 529 college savings plans.
Forbes | The IRS Has Too Many Responsibilities
Last week, IRS Commissioner John Koskinen said at a news conference that the IRS may need to use furloughs in order to handle its budget issues. A well-functioning revenue service is necessary for an effective government, so it is worthwhile to consider the facts of the situation, and what they mean.
Daily Signal | How Obama’s New Tax Plan Discriminates Against Stay-at-Home Parents
President Obama’s new tax plan, which he discussed in part in the State of the Union, lays out new proposals that he claims would help low- and middle-income families. These included a new tax credit program for dual-earner families and an expansion of the Earned Income Tax Credit (EITC) program for single, childless adults. He also proposed a substantial increase to the child care tax credit.
Forbes | Don't Tax The Rich To Benefit The Middle Class, Help The Poor Instead
In his State of the Union Speech, President Obama called for tax increases on the rich in order to pass out goodies to the middle class. In particular, he wants to raise capital gains taxes on the rich and use the money to provide tax breaks to middle class families with two working parents, for those with child care expenses, and for those paying for college. Not only are his proposed freebies all bad ideas, he is spending the money on the wrong group.
Forbes | Obama's 529 College Savings Plan Tax Hike Is An Assault On The American Dream
It’s pretty clear that the Obama White House and their allies on The Left just don’t get it when it comes to their proposed tax hike on 529 college savings plans.
Forbes | The IRS Has Too Many Responsibilities
Last week, IRS Commissioner John Koskinen said at a news conference that the IRS may need to use furloughs in order to handle its budget issues. A well-functioning revenue service is necessary for an effective government, so it is worthwhile to consider the facts of the situation, and what they mean.
Daily Signal | How Obama’s New Tax Plan Discriminates Against Stay-at-Home Parents
President Obama’s new tax plan, which he discussed in part in the State of the Union, lays out new proposals that he claims would help low- and middle-income families. These included a new tax credit program for dual-earner families and an expansion of the Earned Income Tax Credit (EITC) program for single, childless adults. He also proposed a substantial increase to the child care tax credit.
Employment
News
Bloomberg | More Americans Than Forecast Filed Jobless Claims Last Week
More Americans than forecast filed applications for unemployment benefitslast week, a sign of lingering holiday turnover.
Market Watch | Jobless claims above 300,000 for third straight week for first time since July
The number of people who sought new U.S. unemployment benefits in mid-January fell by 10,000, but the level of applicants remained above 300,000 for the third straight week for the first time since July in what’s likely a reflection of post-holiday layoffs.
Econ Comments & Analysis
Telegraph | Barack Obama is shattering the competiveness of the US economy
If it wasn’t for the fact the speaker was clean shaven, didn’t have long straggly hair, and didn’t tell any lewd jokes, it could have been Russell Brand delivering the State of the Union address to Congress this week.
Blogs
Wall Street Journal | World Economy Needs 280 Million Jobs in Next Five Years, ILO Says
The world economy will need to generate nearly 280 million new jobs between now and the end of 2019 to make up ground lost during the last recession and ensure new labor market entrants can find work, the International Labor Organization said in a new report.
Bloomberg | More Americans Than Forecast Filed Jobless Claims Last Week
More Americans than forecast filed applications for unemployment benefitslast week, a sign of lingering holiday turnover.
Market Watch | Jobless claims above 300,000 for third straight week for first time since July
The number of people who sought new U.S. unemployment benefits in mid-January fell by 10,000, but the level of applicants remained above 300,000 for the third straight week for the first time since July in what’s likely a reflection of post-holiday layoffs.
Econ Comments & Analysis
Telegraph | Barack Obama is shattering the competiveness of the US economy
If it wasn’t for the fact the speaker was clean shaven, didn’t have long straggly hair, and didn’t tell any lewd jokes, it could have been Russell Brand delivering the State of the Union address to Congress this week.
Blogs
Wall Street Journal | World Economy Needs 280 Million Jobs in Next Five Years, ILO Says
The world economy will need to generate nearly 280 million new jobs between now and the end of 2019 to make up ground lost during the last recession and ensure new labor market entrants can find work, the International Labor Organization said in a new report.
Wednesday, January 21, 2015
General Economics
News
Market Watch | Housing starts rise to highest annual tally in seven years
The pace of construction started on new U.S. homes rose last month to cap the strongest year in seven, according to government data released Wednesday.
Wall Street Journal | Dollar’s Rise Squeezes U.S. Firms
The stronger dollar is often presented as an optical problem for U.S. companies—it makes their overseas sales look smaller. But it can do a lot of real damage, too.
Econ Comments & Analysis
Market Watch | The crisis of the middle class and American power
When I wrote about the crisis of unemployment in Europe, I received a great deal of feedback. Europeans agreed that this is the core problem while Americans argued that the United States has the same problem, asserting that U.S. unemployment is twice as high as the government’s official unemployment rate.
Market Watch | Swiss move is small preview of what would happen in euro breakup
Since the European sovereign-debt crisis erupted in 2009, everyone has wondered what would happen if a country left the eurozone. At first, the debate focused on crisis countries — Greece, or maybe Portugal, Spain, or Italy. Then there was a rather hypothetical discussion of what would happen if strong surplus countries — say, Finland or Germany — left.
Investors.com | The Real Obama Economy: A Subpar Recovery Drags on
Obamanomics: It's fair to say humility isn't one of the president's virtues, and so it's no shock he took a bow for his self-declared status as savior of the American economy in his State of the Union address. He shouldn't have.
Economics21.org | Ignoring the Yield Curve May Be Dangerous to Your Health
Economists clearly have too much time on their hands. "Fed watcher" is no longer part of the job description now that the Federal Reserve provides guidance on what it plans to do. A reliance on econometric models has taken some of the thought process out of forecasting. And blogging has supplanted the need for real-time economic analysis.
Market Watch | How the stock market reacts to State of the Union speeches
Gerald Ford wasn’t known as a particularly great communicator. But whatever his reputation for awkwardness, each of Ford’s three State of the Union addresses to the nation was rewarded by the stock market the following day, according to data compiled by the WSJ Market Data Group going back to 1961.
Blogs
Forbes | In State Of The Union President Celebrates Acceleration Of Economic Growth And Proposes Policies To Slow It
In his State of the Union speech, President Obama bragged about the rate of economic growth over the past year, the fact that the unemployment rate is at the low point for his presidency, and even about low gas prices. The fascinating thing is that within minutes of his reveling in this economic good news, he began proposing ways to bring this economic acceleration to a halt.
Market Watch | Housing starts rise to highest annual tally in seven years
The pace of construction started on new U.S. homes rose last month to cap the strongest year in seven, according to government data released Wednesday.
Wall Street Journal | Dollar’s Rise Squeezes U.S. Firms
The stronger dollar is often presented as an optical problem for U.S. companies—it makes their overseas sales look smaller. But it can do a lot of real damage, too.
Econ Comments & Analysis
Market Watch | The crisis of the middle class and American power
When I wrote about the crisis of unemployment in Europe, I received a great deal of feedback. Europeans agreed that this is the core problem while Americans argued that the United States has the same problem, asserting that U.S. unemployment is twice as high as the government’s official unemployment rate.
Market Watch | Swiss move is small preview of what would happen in euro breakup
Since the European sovereign-debt crisis erupted in 2009, everyone has wondered what would happen if a country left the eurozone. At first, the debate focused on crisis countries — Greece, or maybe Portugal, Spain, or Italy. Then there was a rather hypothetical discussion of what would happen if strong surplus countries — say, Finland or Germany — left.
Investors.com | The Real Obama Economy: A Subpar Recovery Drags on
Obamanomics: It's fair to say humility isn't one of the president's virtues, and so it's no shock he took a bow for his self-declared status as savior of the American economy in his State of the Union address. He shouldn't have.
Economics21.org | Ignoring the Yield Curve May Be Dangerous to Your Health
Economists clearly have too much time on their hands. "Fed watcher" is no longer part of the job description now that the Federal Reserve provides guidance on what it plans to do. A reliance on econometric models has taken some of the thought process out of forecasting. And blogging has supplanted the need for real-time economic analysis.
Market Watch | How the stock market reacts to State of the Union speeches
Gerald Ford wasn’t known as a particularly great communicator. But whatever his reputation for awkwardness, each of Ford’s three State of the Union addresses to the nation was rewarded by the stock market the following day, according to data compiled by the WSJ Market Data Group going back to 1961.
Blogs
Forbes | In State Of The Union President Celebrates Acceleration Of Economic Growth And Proposes Policies To Slow It
In his State of the Union speech, President Obama bragged about the rate of economic growth over the past year, the fact that the unemployment rate is at the low point for his presidency, and even about low gas prices. The fascinating thing is that within minutes of his reveling in this economic good news, he began proposing ways to bring this economic acceleration to a halt.
Health Care
Econ Comments & Analysis
Real Clear Markets | One Year After the ACA, Healthcare That Is Less Affordable and Accessible
Last month the White House proudly announced that after completing the first year of Affordable Care Act (ACA) implementation the number of uninsured Americans is at historic lows-11.3% in the second quarter of 2014, down from 14.4% the year before. Over 10 million people enrolled for health insurance through Medicaid or an insurance exchange. But signing up for insurance does not equal access. Healthcare has to be available and affordable. The ACA did not achieve these goals in 2014 and 2015 will be worse.
Forbes | Medicare Part D Rebates Will Hurt More Than Help
It’s no great secret that America needs to get its fiscal house in order.
Bloomberg | Obamacare's Long-Term Prognosis
Compared to last year, Obamacare's 2015 open enrollment is a boring story -- no spectacular IT failures, no politically charged policy cancellations. And as Obamacare wends to the end of its second open-enrollment period, it would seem that we should know more about the shape of the final program. What have we learned so far?
Real Clear Markets | One Year After the ACA, Healthcare That Is Less Affordable and Accessible
Last month the White House proudly announced that after completing the first year of Affordable Care Act (ACA) implementation the number of uninsured Americans is at historic lows-11.3% in the second quarter of 2014, down from 14.4% the year before. Over 10 million people enrolled for health insurance through Medicaid or an insurance exchange. But signing up for insurance does not equal access. Healthcare has to be available and affordable. The ACA did not achieve these goals in 2014 and 2015 will be worse.
Forbes | Medicare Part D Rebates Will Hurt More Than Help
It’s no great secret that America needs to get its fiscal house in order.
Bloomberg | Obamacare's Long-Term Prognosis
Compared to last year, Obamacare's 2015 open enrollment is a boring story -- no spectacular IT failures, no politically charged policy cancellations. And as Obamacare wends to the end of its second open-enrollment period, it would seem that we should know more about the shape of the final program. What have we learned so far?
Taxes
News
Market Watch | Obama tax plan could push some banks to shrink
President Barack Obama’s tax proposal could increase costs for banks — and could even lead banks to reduce their size.
Market Watch | Treasury Secretary Lew calls for lower corporate tax rate
Treasury Secretary Jacob Lew said Wednesday that the U.S. should lower the corporate tax rate but do so by closing loopholes, in a way that is revenue neutral in both the short and long term.
Market Watch | Republicans say Obama plan imperils tax reform
Republicans say President Barack Obama’s decision to pitch tax changes for individuals in his State of the Union address — like raising capital gains taxes on the wealthy — show Obama isn’t serious about tax reform.
Econ Comments & Analysis
National Review Online | Obama’s New Tax Plan: Destructive Social Engineering
The tax proposals in President Obama’s new economic plan are significantly worse than we expected, combining several tax increases on investment with an especially destructive form of social engineering.
Washington Times | The rich pay more than their fair share
Since he first appeared on the national stage, Barack Obama has been claiming that the "rich" don't pay their "fair share" of taxes. But to the contrary, the "rich" pay far more than their "fair share", which official IRS and CBO data have shown for years, reconfirmed in new, recent reports.
The Daily Beast | Obama’s Half-Assed Tax Hike Populism
Eight years after launching his campaign, and six years after being inaugurated, President Obama is finally living up to the greatest fears of his detractors in a significant way. Tonight, he’s expected to propose a plan to tax the rich and banks more, and distribute the proceeds to those on the lower rungs of the income ladder through tax credits. But he still won’t do much to address a glaring tax loophole that exists only to help the rich get richer.
Forbes | Arguments For Higher Gas Taxes Run On Empty
IF YOU WANT TO KNOW what fuels Americans’ ire with our political class, just look at the hot new idea percolating in Washington and state capitals: Raise taxes on gasoline! Thanks to a stronger dollar and burgeoning oil inventories, gas prices have plummeted. The typical family may save $550 or more this year, money they can now spend on other necessities or things they enjoy. Winter heating bills will be lower. Should this trend last, auto and truck manufacturers will get a big break: People will buy bigger vehicles, which is where the juicy profit margins are.
Bloomberg | Avoiding Taxes Can Be Really Expensive
Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes.
Market Watch | Obama tax plan could push some banks to shrink
President Barack Obama’s tax proposal could increase costs for banks — and could even lead banks to reduce their size.
Market Watch | Treasury Secretary Lew calls for lower corporate tax rate
Treasury Secretary Jacob Lew said Wednesday that the U.S. should lower the corporate tax rate but do so by closing loopholes, in a way that is revenue neutral in both the short and long term.
Market Watch | Republicans say Obama plan imperils tax reform
Republicans say President Barack Obama’s decision to pitch tax changes for individuals in his State of the Union address — like raising capital gains taxes on the wealthy — show Obama isn’t serious about tax reform.
Econ Comments & Analysis
National Review Online | Obama’s New Tax Plan: Destructive Social Engineering
The tax proposals in President Obama’s new economic plan are significantly worse than we expected, combining several tax increases on investment with an especially destructive form of social engineering.
Washington Times | The rich pay more than their fair share
Since he first appeared on the national stage, Barack Obama has been claiming that the "rich" don't pay their "fair share" of taxes. But to the contrary, the "rich" pay far more than their "fair share", which official IRS and CBO data have shown for years, reconfirmed in new, recent reports.
The Daily Beast | Obama’s Half-Assed Tax Hike Populism
Eight years after launching his campaign, and six years after being inaugurated, President Obama is finally living up to the greatest fears of his detractors in a significant way. Tonight, he’s expected to propose a plan to tax the rich and banks more, and distribute the proceeds to those on the lower rungs of the income ladder through tax credits. But he still won’t do much to address a glaring tax loophole that exists only to help the rich get richer.
Forbes | Arguments For Higher Gas Taxes Run On Empty
IF YOU WANT TO KNOW what fuels Americans’ ire with our political class, just look at the hot new idea percolating in Washington and state capitals: Raise taxes on gasoline! Thanks to a stronger dollar and burgeoning oil inventories, gas prices have plummeted. The typical family may save $550 or more this year, money they can now spend on other necessities or things they enjoy. Winter heating bills will be lower. Should this trend last, auto and truck manufacturers will get a big break: People will buy bigger vehicles, which is where the juicy profit margins are.
Bloomberg | Avoiding Taxes Can Be Really Expensive
Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes.
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