Tag Archives: US EConomics

Some history While debating the original Post Office Act, Alexander Hamilton and others argued the post should support itself and make money for the rest of the government. Others, including George Washington and James Madison, didn’t seem to care whether it turned a profit. Jonathan Trumbull, the speaker of the House of Representatives in 1792, observed that having the post subsidize the circulation of periodicals would be “among the surest means...

We were living in Michigan when Engler and the Republican Legislature passed Right to Work Laws. The effort was meant to undercut Unions and saving costs for the Big Three automakers. Supposedly cars would be lower in costs to with the reductions reflected in prices to consumers. Never happened. Michigan reversed Right to Work Laws just recently. Michigan becomes 1st state in decades to repeal ‘right-to-work’ law, PBS NewsHour, Paula Gardner...

Who do you work for? The one-handed economist, David Zetland Economists assume that people work for themselves first, i.e., accepting payment (extrinsic motivation) to do something they would not do if they were not paid. But that “model” ignores the role of intrinsic motivation (we do what we like) which plays a role — large or small — in determining where we work, but also how much we are willing to accept to do the work (more intrinsic...

Retail sales faceplant; industrial production continues 16-month streak of weakness – by New Deal democrat Let’s take a look at two the big short leading and coincident indicators that were reported yesterday, respectively real retail sales and inducatrial production. Retail sales can be volatile monthly, and about once in a typical year they either faceplant or unexpectedly soar. Yesterday we got the facelpalnt. Retail sales declined...

Housing construction essentially stable in January  – by New Deal democrat I’m on the road, so I need to keep this brief, but fortunately I can give you the essence of this most important housing report with little difficulty. Mortgage rates have declined about 1% from their peak during the autumn, and are about equal to where they were one year ago: As a result, we should expect some improvement in the housing market from its worst...

Is investment spending “spending,” or isn’t it? Steve Roth (@ Wealth Economics) J.M. Keynes’ brief Preface to the French edition of General Theory is sometimes held up as the most concise, cogent, and coherent expression of his economic understandings. It achieves that, but in doing so it also reveals a core incoherence in that thinking. An obligatory nod here to the importance of many pieces of Keynes’ thinking, notably the rather...

Initial claims remain positive  – by New Deal democrat Initial jobless claims declined this week -8,000 to 212,000. The four week average rose 5,750 to 218,250. With the typical one-week lag, continuing claims rose 30,000 to 1.865 million: On the more important (for forecasting purposes) YoY basis, initial claims are down -1.9%. The four week average is up 5.4%. Continuing claims are up 10.3%: Initial claims indicate continued...

Dale Coberly lead-in to his discussion on Social Security is something which has been debated back and forth by politicians, those who wish to cut it, those who seek to end it, and those who have done all of the above such as Andrew Biggs. Social Security for the today’s elderly and those who will retire in the future can be fixed rather inexpensively. Dale, Bruce, and Arne etc. have argued the points extensively on Angry Bear. Dale has given me...

Andrew Biggs knows small incremental increases in SS withholding would resolve any shortfall. The plan presented by Dale Coberly is such and it was agreed up by the Social Security administration as workable. This has been a long running back and forth with Andrew Biggs whose only plan is cuts in Social Security and its demise. Dale and Bruce held a back and forth with Andrew Biggs here: Notes on Social Security Reform: Responding to Angry Bear:...

I get quite a few commentaries on healthcare and also announcements. I thought I would follow Mark Cuban’s Cost Plus Drugs site for a while. I can vouch for the lower cost drugs I use are close to what Mark’s business is citing. If anyone see one of these drugs is of a lesser cost, please check Mark Cuban’s “Cost Plus Drugs” site for accuracy. The latest . . . Homepage of Mark Cuban’s Cost Plus Drugs Mark announces Cost Plus Drugs has added...