This new S&P study on inequality and growth is creating a bit a buzz, mostly because it’s from a firm we associate with financial markets, not inequality analysis. I found the study to be a worthy collection of the arguments that have been brought to bear on this interesting question of growth and inequality. Though… Read more
As the job market tightens, we may well see some increases in the pace of wage growth. I, and more importantly, millions of working people, certainly hope so. But predictably, pressure is building on the Federal Reserve to stomp out any such thing sooner than later, based on the fear that wage pressures will set off higher and… Read more
To assert that economists are having trouble figuring out the relationship between inflation and unemployment is like saying chefs can’t figure out what to do with salt and pepper. It’s that fundamental. Yet, we’re befuddled, and that has powerful policy implications. For example, a prominent macro economist recently suggested to me that we must have… Read more
And even if he is, given the numbers they’ve been posting, with enemies like that, who needs friends? Over at PostEverything.
Sounds obvious, I guess, but the idea gets taken too seriously. Over at PostEverything, I explore two channels by which lower corporate taxes could reach the middle on down: supply-side trickle down, and you know my views on that particular vial of fairy dust, and direct lowering of tax liability for the middle class, to… Read more