Tag Archives: US/Global Economics

Trickle-down, with the emphasis on “trickle” Since the turn of the Millennium, a torrent of corporate tax cuts has resulted in a trickle of investment growth. This morning Dean Baker objects to: the argument … that reducing corporate taxes will lead to more investment and thereby greater wage growth in the future. The data from the last seventy years show there is no relationship between aggregate profits and investment. As can be seen, there is no...

Via New York Times comes this information on flood insurance, which I believe is the predominate cause of storm damage in the Houston area and beyond: Private homeowners’ policies generally cover wind damage and, in certain cases, water damage from storm surges. But for almost half a century, all other homeowners’ flood coverage has been underwritten by the National Flood Insurance Program, a federal program that itself faces financial uncertainty....

Is David Ignatius Falling For Saudi Propaganda? Washington Post columnist and occasional novelist and diplomat, David Ignatius, is one of the best informed and wisest of commentators on Middle East affairs.  Thus it is with concern that in yesterday’s Washington Post in a column titled, “A new chance for Middle East peace?” he seems to have fallen for third rate propaganda largely being pushed by the Saudi government, although also backed by the UAE...

The Military Times reports: A handful of Pentagon nominees will be waiting for Senate confirmation when the upper chamber returns in September from its summer recess, but the administration still has dozens of Defense Department positions to fill. Leaving State Department vacancies aside, I thought the Trump readiness rhetoric applied to DOD…not so much I guess.

I met Cathy in Cambridge when she spoke at MIT a few years ago. This is  re-posted from Naked Capitalism.  Cathy’s whole TED Talk can be watched after the fold. Data Scientist Cathy O’Neil: “Algorithms Are Opinions Embedded in Code” Cathy O’Neil has a PhD in mathematics from Harvard and is the author of the best seller Weapons of Math Destruction. She is also involved in Occupy Wall Street. In this TED talk, she describes how algorithms routinely...

by New Deal Democrat Free Trade, the Primrose Path, and the Blinkered Blindness of macroeconomists Here’s what I learned today: the origin of the phrase “being led down the primrose path.” It turns out that in medieval times, one meaning of the word “primrose” was the “prime,” or first or loveliest, rose.  Thus taking the primrose path was a particularly lovely journey. At least by the time of Shakespeare’s “Hamlet,” where Ophelia speaks of the “primrose...

Plan the time to take a deep breath and look at Steven Harper’s Interactive Timeline: Everything We Know About Russia and President Trump at Moyers and Company. When it comes to Donald Trump, his campaign and their dealings with Russia past and present, sometimes it’s hard to keep track of all the players without a scorecard. We have one of sorts — a deeply comprehensive timeline detailing what actually happened and what’s still happening in the...

by New Deal Democrat Industrial production: once again, the hard data fails to confirm the sof … ofertheluvofgaud This morning’s report on industrial production confirms that the economy remains on autopilot, and that’s a good thing. Overall production increased again, and the trend of rising production since spring of last year is clear: When we break it down by manufacturing (blue, left scale), mining, and utilities (red and green, right scale), we get...

Why Is The Fed Raising Interest Rates As Fast As It Is? I have a theory that at least some people at the Fed are supporting interest rate increases not because they are worried about incipient inflation that must be nipped in the bud in advance under a regime of inflation targeting, but because they are looking over the horizon and worrying about a possible recession in the not-too-distant future, and they want to be able to have interest rates high...

Real retail sales disappoints . . . the Doomers This morning’s report on July retail sales once again belies the claim that “hard data” and “soft data” are divergent.. Not only did July come in at a strong +0.6% (+0.5% ex-autos), but June was revised up as well. Given basically non-existent inflation, this means that real retail sales made two more new records for this expansion: In fact, real retail sales look like they are right in line with a...