by Linda Beale Religious rights, taxes, and corporatism–whose rights are they? Part I The United States has a tradition of separation of church and state that goes back to the founding discussions that concluded that it would be inappropriate to establish a state religion because individuals should be at liberty to believe or not believe. […]
Part 1, Part 2, Part3 Yesterday I criticized Mr. Krugman for saying that savings were in excess. I said that personal savings is down, and domestic savings are not enough to cover investment such that the US has to borrow from abroad. This post will explore the relationship between domestic savings, domestic demand and the […]
From the Financial Times (pay wall I believe): Investors warn moves to curb climate change will hit fuel demand October 24, 2013 By Ed Crooks Investors managing assets worth about $3tn have written to the world’s largest oil, gas and coal companies, calling on them to prepare for a possible decline in demand for fossil […]
Mr. Krugman said yesterday that the economy is “awash in excess savings with nowhere to go”. If we are awash in excess savings, why do we borrow from foreigners? Let’s look at this equation to determine net borrowing from foreigners… Current Account deficit (net borrowing from abroad) is… (M – X) = (G – T) […]
In part #1 of this series on international flows, Norway’s trade deficit of the 1960’s was associated with foreign investment coming into their country. So the net trade deficit of the Current Account was matched by the net foreign investment surplus of the Capital and Financial Account. There is a principle in international income accounting… […]
We all make mistakes sometimes, but there is a lot of this in the news. Lifted from Robert’s Stochastic Thoughts: Dianne Barrette of Winter Haven Florida claims that instead of paying $54 a month for health insurance (no hospital coverage and a $ 50 deductible for office visits) she will have to pay $ 591 […]
by Linda Beale Carried Interest — a tax privilege for the rich whose end time has come I should have written about this long ago, but a recent “dealbook” by my former colleague Steven Davidoff, A Chance to End a Billion-Doillar Tax Break for Private Equity, New York Times (Oct. 23, 2013) reminded me of […]
The argument has been the ACA depends on a number of the young to sign up for healthcare insurance on the PPACA or at least this is what S.E. Cupp believes and suggested on This Week with George Stephanopoulis. “There’s two problems, one is the technological, sort of mechanics of this. Obamacare relies on Millennials, […]
by Linda Beale Deficit Disorder Symptoms–via Naked Capitalism/New Economic Perspectives Yves Smith over at Naked Capitalism has an insightful re-post today on the way the right in particular–and most in the media and public–talk about deficits and misunderstand the relative importance of failures to invest in physical and capital infrastructure (roads, education…) versus the relative […]