Share |

Finance

Government Can't Spend Money to Save Money

Whenever I hear that nonsensical view that secular stagnation is a story about inadequate aggregate demand, I'm reminded of an economist friend, who puts an immediate end to any discussion of such a concept with his stock response. "Insufficient demand?" What, everybody has everything he or she wants?" I rest my case.

Read more...
Trade Agreement Will Accomplish Nothing if Ports Aren’t Open

Currently, employment at ports is governed by the National Labor Relations Act, while employment at airlines and railroads is overseen by the Railway Labor Act. Labor disruptions at the ports are allowed under the NLRA, but not under the RLA without government permission after a long period of mediation. It’s time to give ports the same protections as railroads and airlines.

Read more...
Problems With Piketty

In every era, government itself has been and remains the primary source (crime being the other) of unjust negative-sum actions, yet Piketty wants to vastly increase the power of government to control the distribution of wealth. This is Capital’s message. I do not buy it. 

Read more...
New Purple Line Study Fails Economics 101

The new Purple Line study has no economically reliable content. It uses the wrong economic concepts of measuring the value of a public project.  It uses survey rather than actual data.  Its survey technique is not representative of Maryland’s population.  The conclusions it reaches defy economic logic.  The state of Maryland and the federal government cannot reasonable rely on this study for any purpose.

Read more...
Technology Brings Behavioral Solutions to Americans' Financia

Americans are not saving enough. This is problematic because there are limited options for people who run into short-term financial problems, and government-funded retirement programs are on an unsustainable path. While there may seem to be no hope to better prepare Americans for their future financial needs, the findings of behavioral economists hint at one way out of America's savings crisis.

Read more...
401kcalculator.org

The March employment report brought to a close a disappointing quarter for the U.S. economy.  With only 126,000 new jobs created last month, gains since January totaled 591,000.  That’s a decent number, but down noticeably from the increase of 973,000 during the final three months of 2014.  

Read more...
No, Low Long-Term Rates Won't Counter Fed Actions

Alan Greenspan called it a conundrum: the refusal of long-term interest rates to ratchet higher as the Federal Reserve raised the overnight benchmark rate from 1 percent in June 2004 to 5.25 percent June 2006. Ben Bernanke, Greenspan's successor as Fed chief, identified the cause: a global savings glut.

Read more...
America Strives to Exceed  French Capital Gains Tax Rates

A new report by the non-partisan Tax Foundation shows that America has higher capital gains tax rates than other industrialized countries. Nevertheless, President Obama is pushing Congress to raise taxes on capital gains still further. America’s tax treatment of capital gains already raises the cost of capital and reduces investment, and raising rates would create more disincentives to business investment and growth. 

Read more...
A Better Pathway for the Fed

The economy is growing, labor markets have improved dramatically, and inflation is forecast to return to two percent over the intermediate term. However, the Fed still expresses extreme caution about normalizing monetary policy, citing myriad concerns, ranging from sluggish wage growth and low inflation to foreign economic and political risks, which might delay the date at which interest rates finally lift off their zero lower bound. This creates the potential for an erosion of the FOMC’s credibility and suggests the Fed lacks a clear strategy for getting monetary policy back on track.

Read more...
Rules for the Fed to Live By

Should the Federal Reserve conduct monetary policy using a monetary policy rule? This question, a classic one in economics, was raised again during Chair Janet Yellen’s recent Congressional testimony and has become the subject of intense debate since then.

Read more...

e21 Projects & Partnerships