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.
You think the Bush tax cuts were tilted toward the wealthy? Well, get a load of this blog by my CBPP colleague Chuck Marr re the proposed Pawlenty cuts. “Specifically, in 2013 the Pawlenty plan would give people in the top one-tenth of 1 percent on the income scale (i.e., people with incomes above $2.7… Read more
We were having a decent discussion on the Larry Kudlow show tonight when Larry and Ron Kruszewski had to go all taxes and regulations on me. I’ve always thought that neither the logic nor evidence provided much support for that claim, especially compared to…oh, I don’t know…the worst demand slump since the Great Depression! When… Read more