EconoSpeak

I wish to be very precise here on this extremely important matter. President Trump has not "decertified" the JCPOA Iran nuclear deal.  Now Congress must ultimately be responsible. He has, after a lot of discussion and intervention by his national security team, failed to certify the deal.  This is not something that was part of the deal, but an epiphenomenon put in place by the US Congrees as part of a deal agreed to by former President Obama to get the deal through, a matter of every 90...

I note with some interest the debate over whether it is ethically necessary to refer to slaveholders as “enslavers” in order to convey our disapproval over their actions.  The obsessive use of the enslaving terminology in The Half Has Never Been Told (Baptist) bothered me at the time, and now I see he was part of a trend.I understand the motivation—up to a point.  Anyone who participated in the slave system had a share in the responsibility for it.  It is not anachronistic to look at it this...

The latest from the IMF is a must read for progressives even if it runs contrary to the nonsense coming out of the White House: At the global level, inequality has declined substantially over the past three decades, but within national boundaries, the picture is mixed: some countries have experienced a reduction in inequality while others, particularly advanced economies, have seen a significant increase that has, among other things, contributed to growing public backlash against...

In my last post, I questioned Kevin Hassett’s claim that transfer pricing manipulation was responsible for half of our trade deficit and asked what was the paper he referenced. We have the text of his speech: There is another important factor to consider when thinking about how these changes will affect the economy. A recent NBER working paper (Guvenen, Mataloni, Raisser and Ruhl 2017) argues that profit shifting by large multinational firms causes part of their economic activity to be...

Scott Greenberg provided a nice summary of what section 936 was and how its expiration had contributed to Puerto Rico’s economic and fiscal difficulties: beginning in 1976, section 936 of the tax code granted U.S. corporations a tax exemption from income originating from U.S. territories. In addition to section 936, the Puerto Rican corporate tax code gave significant incentives for U.S. corporations to locate subsidiaries on the island. Puerto Rican tax law allowed a subsidiary more the...

This is a Sveriges Bank Prize in Economic Science in Memory of Alfred Nobel that I should approve of unequivocally, and I do approve of it.  Dick Thaler has long been known to be on the list of likely recipients since at least when Daniel Kahneman shared it with Vernon Smith back in 2002, although I sort of thought the award just a few years ago for Robert Shiller would put Thaler's off a bit.  Nevertheless, I approve of behavioral economics, so I was mistaken not see another award being...

Mozi: scholar and activist How do we think about the obligation of social justice?  The dominant American political culture is based on individualist values: you have a right to do whatever you want, and the main problem is how to prevent you and other rights-bearing individuals from getting in each other’s way.  Without extra considerations, social justice in such a universe is a matter of taste and inclination, which is to say charity.  You offer help to others when you feel like...

Howard Gleckman does: It is true that bringing US corporate rates in line with our trading partners may reduce incentives for improper transfer pricing. But there is a flaw in Hassett’s argument: While these practices are aimed at reducing tax lability, they do not represent real economic activity. And limiting income shifting won’t significantly increase domestic employment. He was noting this presentation: Kevin Hassett, chair of President Trump’s Council of Economic Advisers, argued...

Because like the neo-fascist Lombard League of northern Italy, they are a rich region of a nation that does not want their money going to the poorer regions of that nation.  That is it. Sorry, this is not about language suppression or  anything else.  Catalalunya/Catalonia achieved autonomy on education, health, and local law enforcement a long time ago.  The only thing they lack is all that money they are sending to the rest of Spain.Yes, they will probably get to keep their money in the...

We wish to extend our thoughts and prayers to the victims of those who have died or been injured by Hurricanes Harvey, Irma,  and Maria and to their families and friends [for real, rest is satire].  Needless to say, this means that this is not the time to discuss changing current policies regarding climate change.  Our president has decided to withdraw the US from the Paris Climate Accord, the Director of the EPA has ordered removal from all agency websites of any mention of climate change...