News
Politico | Standard and Poor's chief John Chambers: Default worse than 2008
Standard and Poor’s chief John Chambers warned Wednesday that failing to raise the debt ceiling and defaulting on the debt could be worse than the 2008 economic collapse.
Bloomberg | Cities Fixing Budgets Prove Haven Amid U.S. Impasse: Muni Credit
Municipal bonds are rallying the most in six months against federal debt, showing how bolstered local-government budgets are making city and state borrowings a haven from political turmoil over a possible U.S. default.
WSJ | Fiscal Uncertainty Chips Away at U.S. Prestige
As the world's pre-eminent economic power, the U.S. has been the cornerstone of the global financial system since World War II. Now, observers say that prestige may have been badly dented by Washington's latest display of fiscal dysfunction, limiting the U.S.'s ability to get things done abroad.
Econ Comments & Analysis
Forbes | The Obamacare Rollout Debacle Is A Hayekian 'Teaching Moment'
The necessity of re-learning fundamental truths at regular intervals should not surprise beings whose moral history begins with succumbing to the false temptation of the serpent before the Tree of Knowledge that “ye shall be as gods.” The debacle of the rollout of Obamacare is yet another moment for re-learning the fundamental truth about how little we know about what we think we can control.
NY Times | Chastening the Giant Banks
From the Gordon Gekko 1980s until the mortgage meltdown in 2007-8, the financial industry came to dominate the world economy. On this extraordinary and sometimes terrifying ride, banks reaped incredible profits while management and staff received generous salaries and lush bonuses.
Real Clear Markets | U.S. Farm Policy Amounts To $80 Billion For Rich People
Alice doesn't just live in Wonderland anymore; she seems to be everywhere. On ABC, in numerous op ed columns (along with the entire Corleone family in one case), and even hiding out in multiple DC monuments. She has also, apparently, invaded many Congressional offices.
Washington Times | Food-stamp looting
A computer-software glitch over the weekend briefly removed spending limits from certain food-stamp debit cards, setting off a run on supermarkets in several states. The incident provides a glimpse at what society looks like when it becomes dependent on the government just to eat.
Politico | America’s role in the world
President Barack Obama’s reluctance to intervene in Syria has occasioned yet another round of soul-searching on America’s role in the world. His reflective speech at the U.N. General Assembly has led commentators to wonder whether the United States remains willing to play its traditional and indispensable role in maintaining world order.
WSJ | A Carbon Reckoning
The Obama Administration's Environmental Protection Agency has spent the last few years stretching its legal authority, and now it will have to defend its actions before the Supreme Court. On Tuesday, the Justices agreed to review how far the agency can go in regulating greenhouse gases under the Clean Air Act.
Wednesday, October 16, 2013
Health Care
News
National Journal | Relax, GOP! You've Already Wounded Obamacare
Republicans are having a bad month, but they should cheer up. Sure, conservative lawmakers have flamed out in dozens of attempts to defund, delay, repeal and pick off pieces of the Affordable Care Act, and the GOP has taken the brunt of voter outrage over the shutdown precipitated by that crusade. Yet with a big assist from its governors, the party has already done damage to Obamacare in numerous, possibly profound ways.
Econ Comments & Analysis
NBER | Bargaining in the Shadow of a Giant: Medicare's Influence on Private Payment Systems
We analyze Medicare's influence on private payments for physicians' services. Using a large administrative change in payments for surgical procedures relative to other medical services, we find that private payments follow Medicare's lead.
Heritage Foundation | How Will You Fare in the Obamacare Exchanges?
Enrollment in Obamacare’s health insurance exchanges has proven to be a somewhat difficult process amidst technical glitches and delays. Aside from the issues associated with actually purchasing health care, once an individual gets a quote for health insurance on an exchange, is the premium higher or lower than before?
Blogs
Heritage Foundation | How Much Will Obamacare Coverage Cost?
As many Americans are losing their current health plans, they may be striking out on their own into Obamacare’s health insurance exchanges. (Or at least they will be, if the website ever starts working.)
National Journal | Relax, GOP! You've Already Wounded Obamacare
Republicans are having a bad month, but they should cheer up. Sure, conservative lawmakers have flamed out in dozens of attempts to defund, delay, repeal and pick off pieces of the Affordable Care Act, and the GOP has taken the brunt of voter outrage over the shutdown precipitated by that crusade. Yet with a big assist from its governors, the party has already done damage to Obamacare in numerous, possibly profound ways.
Econ Comments & Analysis
NBER | Bargaining in the Shadow of a Giant: Medicare's Influence on Private Payment Systems
We analyze Medicare's influence on private payments for physicians' services. Using a large administrative change in payments for surgical procedures relative to other medical services, we find that private payments follow Medicare's lead.
Heritage Foundation | How Will You Fare in the Obamacare Exchanges?
Enrollment in Obamacare’s health insurance exchanges has proven to be a somewhat difficult process amidst technical glitches and delays. Aside from the issues associated with actually purchasing health care, once an individual gets a quote for health insurance on an exchange, is the premium higher or lower than before?
Blogs
Heritage Foundation | How Much Will Obamacare Coverage Cost?
As many Americans are losing their current health plans, they may be striking out on their own into Obamacare’s health insurance exchanges. (Or at least they will be, if the website ever starts working.)
Monetary
Blogs
WSJ | How Delayed Inflation Data Mess With Social Security and More
Wednesday was supposed to bring the government’s monthly report on the consumer price index. Now it’s delayed — and next month’s report could even get ditched — due to the government shutdown, throwing a wrinkle into calculations for Social Security, Treasury securities, life insurance and other legal agreements.
WSJ | How Delayed Inflation Data Mess With Social Security and More
Wednesday was supposed to bring the government’s monthly report on the consumer price index. Now it’s delayed — and next month’s report could even get ditched — due to the government shutdown, throwing a wrinkle into calculations for Social Security, Treasury securities, life insurance and other legal agreements.
Taxes
News
Politico | Talking about the medical device tax
President Barack Obama’s Affordable Care Act contains a slew of new taxes, from a tanning salon tax to levies on health insurers, drug companies and medical devices.
Politico | Talking about the medical device tax
President Barack Obama’s Affordable Care Act contains a slew of new taxes, from a tanning salon tax to levies on health insurers, drug companies and medical devices.
Budget
News
CNN Money | Debt ceiling countdown: What happens next
Thursday, October 17, is now just hours away. And Congress still has not raised the country's debt ceiling. At this point, there's a very good chance it won't make the Thursday deadline.
Bloomberg | Treasury Bill Rates Fall on Optimism on Lifting of Debt Ceiling
Rate on Treasury bills maturing in the next six weeks fell amid optimism lawmakers are working to resolve a fiscal impasse with the U.S. approaching the deadline outlined for when the nation exhausts its borrowing capacity.
CNN Money | Punting on budget likely to lead to another stalemate
It's still not clear if lawmakers will come together this week to raise the debt ceiling and fund the government.
CNBC | Relax! Government won't run out of money Thursday
All of the grave doom-and-gloom warnings aside, the federal government is unlikely to run out of money Thursday even if the latest hopes for a budget deal don't pan out.
Econ Comments & Analysis
Washington Times | What difference does it make?
Washington politicians’ egos, penchant for nepotism and disregard for taxpayers’ money knows no bounds. For weeks leading up to the country’s second government shutdown in nearly 20 years, all America talked about, and continues to, is the nation’s spending — and the nearly $17 trillion debt problem.
Fortune | Lagarde: Debt ceiling breach 'most serious thing that could happen'
A short-term debt-ceiling fix now appears to be the most likely outcome of the prolonged political mud fight that has shut down the government for the last 15 days. But even if lawmakers do manage to pass an extension, it will do little to resolve the larger questions over U.S. economic leadership, International Monetary Fund Managing Director Christine Lagarde said Tuesday.
Mercatus | How Much of the Government Is Actually Shut Down?
The shutdown has limited 17 percent of spending, amounting to $626 billion. This means 83 percent of projected 2014 spending of $3.6 trillion, amounting to $2.9 trillion, is unaffected and is continuing uninterrupted. Even if Congress is unable to agree on a spending bill, the government is still functioning, and many Americans who are dependent on various federal programs continue to receive funds.
AEI | If we hit the debt ceiling: Default is unlikely, recession is certain
Default hysteria has heated up as the federal government shutdown spills into its third week and October's debt deadline draws closer. The president, Treasury Secretary Jack Lew, and most Republicans agree that a debt default, not paying interest on federal debt, would be a calamity far worse than the Lehman crisis. PIMCO co-chief executive Mohamed El-Erian said as much earlier this month. But PIMCO’s other co-chief, Bill Gross, is buying treasuries. Why?
CNN Money | Debt ceiling countdown: What happens next
Thursday, October 17, is now just hours away. And Congress still has not raised the country's debt ceiling. At this point, there's a very good chance it won't make the Thursday deadline.
Bloomberg | Treasury Bill Rates Fall on Optimism on Lifting of Debt Ceiling
Rate on Treasury bills maturing in the next six weeks fell amid optimism lawmakers are working to resolve a fiscal impasse with the U.S. approaching the deadline outlined for when the nation exhausts its borrowing capacity.
CNN Money | Punting on budget likely to lead to another stalemate
It's still not clear if lawmakers will come together this week to raise the debt ceiling and fund the government.
CNBC | Relax! Government won't run out of money Thursday
All of the grave doom-and-gloom warnings aside, the federal government is unlikely to run out of money Thursday even if the latest hopes for a budget deal don't pan out.
Econ Comments & Analysis
Washington Times | What difference does it make?
Washington politicians’ egos, penchant for nepotism and disregard for taxpayers’ money knows no bounds. For weeks leading up to the country’s second government shutdown in nearly 20 years, all America talked about, and continues to, is the nation’s spending — and the nearly $17 trillion debt problem.
Fortune | Lagarde: Debt ceiling breach 'most serious thing that could happen'
A short-term debt-ceiling fix now appears to be the most likely outcome of the prolonged political mud fight that has shut down the government for the last 15 days. But even if lawmakers do manage to pass an extension, it will do little to resolve the larger questions over U.S. economic leadership, International Monetary Fund Managing Director Christine Lagarde said Tuesday.
Mercatus | How Much of the Government Is Actually Shut Down?
The shutdown has limited 17 percent of spending, amounting to $626 billion. This means 83 percent of projected 2014 spending of $3.6 trillion, amounting to $2.9 trillion, is unaffected and is continuing uninterrupted. Even if Congress is unable to agree on a spending bill, the government is still functioning, and many Americans who are dependent on various federal programs continue to receive funds.
AEI | If we hit the debt ceiling: Default is unlikely, recession is certain
Default hysteria has heated up as the federal government shutdown spills into its third week and October's debt deadline draws closer. The president, Treasury Secretary Jack Lew, and most Republicans agree that a debt default, not paying interest on federal debt, would be a calamity far worse than the Lehman crisis. PIMCO co-chief executive Mohamed El-Erian said as much earlier this month. But PIMCO’s other co-chief, Bill Gross, is buying treasuries. Why?
Tuesday, October 15, 2013
General Economics
News
Politico | 1973 Arab oil embargo shaped energy policy
James Schlesinger was sitting at his desk in the Pentagon when the Saudi oil minister’s cable arrived: “According to his Majesty King Faisal,” it read, “I am instructed to cut off all oil supplies to the Sixth Fleet in the Mediterranean and to your forces in Europe.”
FOX Business | New York Manufacturing Hits Lowest Level Since May
The pace of growth in New York state's manufacturing sector slipped this month to its slowest since May, but business optimism stayed strong, a report from the New York Federal Reserve showed on Tuesday.
Econ Comments & Analysis
Real Clear Markets | The Rich Don't Care For the Poor? What a Laugh
The old joke goes: "If you can't win on the merits of your argument, attack your opponent." Thus Republicans in Congress are accused of having bad ideas without the slightest examination of their ideas, but simply based on assertion that Republicans are ignoble. Such ad hominem attacks seem to be the gist of many recent attacks on congressional Republicans in the budget battle with President Obama.
WSJ | Why OPEC No Longer Calls the Shots
Forty years ago, on Oct. 17, 1973, the world experienced its first "oil shock" as Arab exporters declared an embargo on shipments to Western countries. The OPEC embargo was prompted by America's military support for Israel, which was repelling a coordinated surprise attack by Arab countries that had begun on Oct. 6, the sacred Jewish holiday of Yom Kippur.
Washington Times | Government waste stifling growth worldwide
The International Monetary Fund announced this past week that it expects world GDP growth to be only 2.9 percent this year. This is below the 3.2 percent in 2012, which was below the 30-year average of about 3.6 percent, and far below the one-of-the-best recent four-year periods, from 2004 to 2007, when it averaged 5.1 percent. The differences may seem small, but the rate of GDP growth determines how quickly global poverty declines and real incomes rise.
CATO | The Transatlantic Trade and Investment Partnership: A Roadmap for Success
The potential upside of a comprehensive Transatlantic Trade and Investment Partnership agreement to liberalize trade, investment, and regulatory barriers between the United States and the European Union is substantial. The economic benefits are estimated to be in the range of a $125 billion annual boost to GDP on each side of the Atlantic.
Politico | 1973 Arab oil embargo shaped energy policy
James Schlesinger was sitting at his desk in the Pentagon when the Saudi oil minister’s cable arrived: “According to his Majesty King Faisal,” it read, “I am instructed to cut off all oil supplies to the Sixth Fleet in the Mediterranean and to your forces in Europe.”
FOX Business | New York Manufacturing Hits Lowest Level Since May
The pace of growth in New York state's manufacturing sector slipped this month to its slowest since May, but business optimism stayed strong, a report from the New York Federal Reserve showed on Tuesday.
Econ Comments & Analysis
Real Clear Markets | The Rich Don't Care For the Poor? What a Laugh
The old joke goes: "If you can't win on the merits of your argument, attack your opponent." Thus Republicans in Congress are accused of having bad ideas without the slightest examination of their ideas, but simply based on assertion that Republicans are ignoble. Such ad hominem attacks seem to be the gist of many recent attacks on congressional Republicans in the budget battle with President Obama.
WSJ | Why OPEC No Longer Calls the Shots
Forty years ago, on Oct. 17, 1973, the world experienced its first "oil shock" as Arab exporters declared an embargo on shipments to Western countries. The OPEC embargo was prompted by America's military support for Israel, which was repelling a coordinated surprise attack by Arab countries that had begun on Oct. 6, the sacred Jewish holiday of Yom Kippur.
Washington Times | Government waste stifling growth worldwide
The International Monetary Fund announced this past week that it expects world GDP growth to be only 2.9 percent this year. This is below the 3.2 percent in 2012, which was below the 30-year average of about 3.6 percent, and far below the one-of-the-best recent four-year periods, from 2004 to 2007, when it averaged 5.1 percent. The differences may seem small, but the rate of GDP growth determines how quickly global poverty declines and real incomes rise.
CATO | The Transatlantic Trade and Investment Partnership: A Roadmap for Success
The potential upside of a comprehensive Transatlantic Trade and Investment Partnership agreement to liberalize trade, investment, and regulatory barriers between the United States and the European Union is substantial. The economic benefits are estimated to be in the range of a $125 billion annual boost to GDP on each side of the Atlantic.
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