Relevant and even prescient commentary on news, politics and the economy.

O.K., let’s just think about this budget thing for a while, Part I

To be sure, the U.S. government deficit is shocking; but it’s not anymore shocking than the recession through which we have all lived. Tax receipts plummeted (see the second chart from this post) and spending on cyclical social programs (like unemployment benefits) is surging. This adds up to an exponentially rising budget deficit, and thus […]

Numerical Illiteracy

Robert Waldmann Jonathan Chait has a very good article on Paul Ryan in The New Republic. In it he displays striking confusion on simple arithmetic. It’s worth keeping in mind that the current tax system in this country is only very slightly progressive. State and local taxes are regressive, federal taxes are somewhat progressive, and […]

Perfect Babies and C-Section Complaints

Tom aka Rusty Rustbelt Perfect Babies and C-Section Complaints Some issues are like spring flowers, always returning. The “too many C-Sections” debate is recurring again, raising issues of cost and clinical judgment (some women want sections for cosmetic reasons). Problem is, Americans expect perfect babies, and if babies are not perfect it is time to […]

Geithner and EU regulation of derivatives

“Mr Geithner warns that US hedge funds, private equity groups and banks could be discriminated against if proposals to restrict the access of EU investors to funds based outside the 27-country bloc are included in the final law.” Geithner Warns of Rift Over Regulation as declared over this: “Germany and France on Wednesday called on […]

Extending temporary tax breaks passed

by Linda Beale JCT scoring of Obama budget; Senate vote on extending temporary tax breaks Harry Reid’s office announced that the final vote on the “American Workers, State, and Business Relief Act of 2010 (HR 4213), which will extend $31 billion in temporary tax breaks will take place on Wednesday Mar 10 (at the request […]

The Chicago School–why does anybody still listen to it

by Linda Beale The Chicago School–why does anybody still listen to it?I have frequently written here about the problems of “freshwater” economics–the school personified by Milt Friedman and the extremist “free market” ideology that views government as the enemy, the “markets” as always right, and any public role in economic development as “socialism”. As I’ve […]