When it comes to jobs and the macroeconomy, one thing you want to be worrying about right now is fiscal contraction—the fading of fiscal policies that have been helping to stimulate growth. (Oh yeah…and that debt ceiling stuff too.) There’s a good bit of it–fiscal brake pedaling–baked in the cake including the fading of the… Read more
Lots to be bummed out around these days in the political economy space, but you’ve got to feel good about this (from The Hill): “The Senate voted 73-27 Thursday to kill a major tax break that benefits the ethanol industry, handing a political win to a bipartisan group of lawmakers that call the incentive needless… Read more
The more I read about the Greek debt crisis, the more convinced I become that policy makers are looking at an insolvency problem but seeing a liquidity problem. Getting this wrong is a great way to make a bad situation both worse and more protracted. In a liquidity crunch, your banks are sitting on bad… Read more
When you criticize the Republican’s plan for Medicare privatization, their kneejerk comeback is to claim that Medicare is going bankrupt. They’ve got to break it to fix it. It’s a misleading non sequitur that should not go unchallenged. The claim was amplified recently by the Medicare Trustees report, which projects that the Medicare Hospital Insurance… Read more
Pulled from comments: “By the way, I am a small business owner (less than 50 employees), and demand for products IS the most important factor in my hiring of employees, not all this other stuff. If no one’s buying I’m not going to hire, period.” OK, it’s a small sample, but there it is.