Tag Archives: US/Global Economics

The August jobs report smacked of late cycle deceleration As promised, here is my abbreviated and late take on this morning’s employment report. While the additions to temporary positions (a leading indicator for jobs overall), and construction, and manufacturing jobs were welcome, this report sure looked like late cycle deceleration. The YoY% growth in jobs – a very un-noisy metric – declined again slightly: The number of people not in the labor force...

Trump Labor Policy  by Noam Scheiber via NYT: In June, Labor Secretary R. Alexander Acosta announced the withdrawal of two prominent Obama administration guidances — documents that do not change the law but indicate how a department interprets it and can influence employers. The first had clarified when a worker could be classified as an independent business operator as opposed to an employee, who is covered by protections like the minimum wage and...

Via the New York Times, William E. Forbath and Brishen Rogers write an op ed for Labor Day: A New Type of Labor Law for a New Type of Worker Labor Day was born in the late 19th century, during a time of raw fear about the path of economic development. Opportunities for decent, middle-class livelihoods seemed to be shrinking, and the “laboring classes” confronted a grim future of what many called wage slavery. Conservatives held most of the seats of power,...

I have vigorously criticized the European Community DG EcFin approach to estimating the non accelerating wage inflation rate of unemployment (NAWRU). This is a step in their estimation of output gaps, which, in turn, are used to set allowed deficits for member countries under the Stability and Growth Pact. The calculations are critically important. Marco Fioramanti and I think the DG EcFin approach (technically agreed with member governments) is not...

by David Zetland (originally published at Aguanomics) Protecting groundwater and reducing pollution in India KA writes: In developing countries which there is a constant struggle between farmers and utilities over water allocation, most of implemented policies are based on punishment. For example, quotas are assigned to each farmer and if he goes over his quota he will face a sort of a punishment. With this setup, if famers find a way not to be caught...

Let Trump Continue To Fail To Appoint People There has been much moaning and wailing and gnashing of teeth by many commentators and politicians over the failure of President Donald Trump to appoint people to fill numerous now vacant positions within the executive branch of government, with the State Department often being put forward as one of many agencies with many empty chairs in official positions.  However, the other night I heard Lawrence O’Donnell...

by David Zetland (originally published at Aguanomics) Lead poisoning, gasoline lobbies and crime Most of you have probably heard how the residents of Flint, Michigan were exposed to unhealthy levels of lead in their water (actually, any level is considered unhealthy) due to political and managerial incompetence.* Then I read this article on the “lead-poisoned generations of New Orleans,” which pointed out two things. First, there’s a very heavy...

by David Zetland (originally published at Aguanomics) So what now, America? I was going to call this post “I told you so, America,” but I want to change people’s perspectives and motivate action more than be right. First of all, let’s all agree that the flood damages to Houston were worse due to poor planning that paved wetlands and allowed the city to sprawl into flood plains. Second, subsidized flood insurance (or the lack of a requirement for...

If you have been in a 401K like I have over the decades, you know this has been helpful in reducing tax on your income. If you do not know this, you do now. The GOP is making eyes on your 401k contributions with the intent of removing the upfront deduction which lowers your taxable income. The GOP would like to go to a Roth type of 401k. Either way, I would be ok. The problem I have with this idea is it is being presented as a way to help holders of a...

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...