- Evaluating the framing of the President’s announcement to expand income-based repayments for student loans.
- Debunking the fantasy that tax repatriation can pay to repair our nation’s highways or anything else.
- Analyzing the alleged confusion over the impact of the Great Recession.
- Trotting out a pro-work policy agenda amidst the confusion about where the economy’s headed.
- Illustrating the persistent lack of wage pressure in the job market.
- Assessing Rep. Eric Cantor’s primary loss and its potential impact on the future of the Export-Import Bank.
Music: listening to Monty Alexander — a Kingston, Jamaica born pianist with Oscar-Peterson chops and a Reggae groove in this week’s musical interlude.
Sorry to go off topic but what might be a hot question: Piketty’s protege Leslie says in the NYT
“international balance sheets each year show more liabilities than assets, as if the world is in debt to itself [because of] tax evasion. Money that, say, leaves the United States for an offshore tax shelter is recorded as a liability here, but it is listed nowhere as an asset. ..$7.6 trillion — 8 percent of the world’s personal financial wealth — is stashed in tax havens. If all of this illegally hidden money were properly recorded and taxed, global tax revenues would grow by more than $200 billion a year…if offshore assets were properly measured, Europe would be a net creditor, and American indebtedness would fall from 18 percent of GDP to 9….skews key economics statistics, it hampers officials’ ability to manage the economy or make policy”
My question, does this affect Fed money policy? Is money tighter because so much is hidden and dormant? Do they have to pump more to offset this?
I wouldn’t think so. The money’s not gone–it’s just avoiding taxes. So no reason it shouldn’t add to global “loanable funds” thus contributing to lower interest rates.