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

The Right cuts food stamps to pass corporate farm welfare–where’s the sense in that?

by Linda Beale The Right cuts food stamps to pass corporate farm welfare–where’s the sense in that? The House has its priorities firmly in mind.  Those priorities involve making sure that the wealthy people and corporations keep their wealth while any and all possible cuts to any welfare or “entitlement” programs are made. All you […]

Mark Thoma, cyclical unemployment & insufficient effective demand

Mark Thoma, professor at the University of Oregon,, posted an article about why labor markets are struggling, “What is driving changes in the job market?” at CBS Money watch. He basically says that the labor market problems are cyclical, which means a Keynesian demand-deficient unemployment. There isn’t enough demand to allow unemployment to fall more […]

EITC refund withheld in student loan default

Jared Bernstein writes about the EITC today (Earned Income Tax Credit), which is a program to help lift people out of poverty when they fall into low-paying jobs. I just want to add another wrinkle to the story. When a student defaults on their student loans, which is something that will happen more and more […]

Are Government Bonds Net Poverty ?

Some economists seem to argue that expansionary fiscal policy is both completely ineffective and will place the burden of debt on our children. Yes I am arguing with a straw man (it is time for the two minutes Chait). Straw economist argues two things. First there is Ricardian equivalence so temporary tax cuts do not […]

Is Obamacare “Medicaid for the Middle Class?” –A Muddled Argument

Is Obamacare “Medicaid for the Middle Class?” –A Muddled Argument by Maggie Mahar Yet another catchy phrase, “Medicaid for the middle class,” is popping up in conservative propaganda. What are Obamacare’s opponents trying to say? Those who have latched onto this catchphrase make two very different arguments. The arguments actually contradict each other, but they […]

OBAMACARE,THE SEQUESTER and part time employment

It is time to get serious. There are widespread claims that firms are cutting  hours worked and converting full time jobs into part time jobs because of Obama-care. So what does the data say.  Below is a table of unpublished data from the Bureau of Labor Statistics (BLS) of part time employment by private and […]

High-Frequency Traders are Eating Investors’ Brains. For Free!

It can be tough to articulate a cogent argument against high-frequency trading in the context of highly liquid, efficiently functioning securities markets, but I think Rajiv Sethi has done so (riffing off Michael Lewis’s typically scathing and revealing article on Goldman’s recent bad behavior). In brief, in my words: 1. Value investors are trying to buy shares in […]