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By James Kwak A couple of weeks ago I posted a 6,000-word essay laying out a new economic vision for the Democratic Party. It kind of vanished into the ether, although Stephen Metcalf was kind enough to say this: Reupping. I really think this is a critical, possibly foundational, document, and I seriously urge anyone following my account to read it. https://t.co/CXRxe4OfhU — Stephen Metcalf (@Metlandia) June 16, 2017 So here it is, in 27 words: All people need a few basic things: An...

By James Kwak A couple of weeks ago I posted a 6,000-word essay laying out a new economic vision for the Democratic Party. It kind of vanished into the ether, although Stephen Metcalf was kind enough to say this: Reupping. I really think this is a critical, possibly foundational, document, and I seriously urge anyone following my account to read it. https://t.co/CXRxe4OfhU — Stephen Metcalf (@Metlandia) June 16, 2017 So here it is, in 27 words: All people need a few basic things: An...

By James Kwak A lot has been written recently about the direction of the Democratic Party. This is what I think. I have been a Democrat my entire life. Today, the Democratic Party matters more than ever because it is the only organization currently capable, at least theoretically, of preventing the Republicans from turning the United States into a fully-fledged banana republic, ruled by and for a handful of billionaire families and corporate chieftains, with a stagnant economy and...

By James Kwak A lot has been written recently about the direction of the Democratic Party. This is what I think. I have been a Democrat my entire life. Today, the Democratic Party matters more than ever because it is the only organization currently capable, at least theoretically, of preventing the Republicans from turning the United States into a fully-fledged banana republic, ruled by and for a handful of billionaire families and corporate chieftains, with a stagnant economy and...

Jörg Bibow | June 2, 2017 The Economist‘s analysis of Germany’s job market miracle of the past ten years offered in “What the German economic model can teach Emmanuel Macron” is more balanced than the usual accounts one hears in Germany itself. Germans are in love with the idea that structural reform of their labor market and persistent budgetary austerity were solely responsible for the German economy’s superior performance...

By James Kwak As banking scandals go, Wells Fargo opening millions of new accounts for existing customers so that it could pump up its cross-selling metrics for investors is about as clear-cut as it gets. It’s up there with HSBC telling its employees how to get around U.S. regulations in order to launder money for drug cartels, or traders and treasury officials at several banks conspiring to fix LIBOR. Holding Wells responsible, however, was a bit trickier. The bank agreed to restitution...

By James Kwak As banking scandals go, Wells Fargo opening millions of new accounts for existing customers so that it could pump up its cross-selling metrics for investors is about as clear-cut as it gets. It’s up there with HSBC telling its employees how to get around U.S. regulations in order to launder money for drug cartels, or traders and treasury officials at several banks conspiring to fix LIBOR. Holding Wells responsible, however, was a bit trickier. The bank agreed to restitution...

By James Kwak The Congressional Budget Office’s assessment of the Republican health care plan, as passed in the House, is out. The bottom line is that many more people will lack health coverage than under current law—23 million by 2026—even though the bill allows states to relax the essential health benefits package, which should in theory attract younger, healthier people. This is not a surprise. I just want to comment on the role of markets in all of this, which I think is not fully...

By James Kwak The Congressional Budget Office’s assessment of the Republican health care plan, as passed in the House, is out. The bottom line is that many more people will lack health coverage than under current law—23 million by 2026—even though the bill allows states to relax the essential health benefits package, which should in theory attract younger, healthier people. This is not a surprise. I just want to comment on the role of markets in all of this, which I think is not fully...

By James Kwak Public pension funds are having a tough time. On the one hand, the average funding ratio (assets as a percentage of the present value of future obligations) is below 80% because of inadequate contributions by sponsors (states and municipalities) and poor investment returns since the collapse of the technology bubble in 2000. On the other hand, because pensions responded to low returns by shifting more of their money into hedge funds and private equity funds, a...