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

One Place Where Mankiw Makes Absolutely No Sense at All

In his Defending the One Percent paper, Greg Mankiw is rather grudgingly acknowledging rent-seeking (and -getting) in the financial industry, and the allocation of top talent to that industry. He sez: The last thing we need is for the next Steve Jobs to forgo Silicon Valley in order to join the high-frequency traders on Wall Street. […]

Wages falling

Real wages decline by Kenneth Thomas Speaking of inequality by Kenneth Thomas Wage stickiness coming unglued. And an op ed by David Cay Johnston this last week: Breaking news alert! Wages fell at the fastest rate ever recorded during the first quarter of this year, the government’s Bureau of Labor Statistics reported. Hourly wages fell 3.8 […]

The Tax Code Ain’t Nearly So Big as Often Claimed

by Linda Beale The Tax Code Ain’t Nearly So Big as Often Claimed I can’t resist pointing readers to tax professor Jim Maule’s excellent post chastising everybody–from those obviously slanted propaganda-tank tax gurus Chris Edwards (you all know him as the purported tax expert from the right-wing pseudo-libertarian Cato Institute, whose other associate, Dan Mitchell, […]

Fed Policy and Bond Yields

Update:  Charts and data after the read more. With the Fed completing a two day meeting and Bernanke holding a press conference today  it may be a good time to make a few comments about bond yields. In an open economy with a current account deficit the equilibrium interest rate is the one that attracts […]

Welfare Reform Kills

Starting in 1994, soon before the 1996 welfare reform bill (PRWORA) the state of Florida explored what was roughtly a pilot version the “Family Transition Program” (FTP).  I recall reading at the time that this was the only reformed welfare program with a hard time limit on benefits.   Importantly, Florida officials decided to conduct […]

I find it Imp – ossible to disagree with Krugman

Recently, I was pleased to note a disagreement between Paul Krugman and Dean Baker.  Finally, I hoped, a chance to prove I am not a knee jerk acolyte of Krugman.  Sadly I found I agreed with Krugman and not Baker (ouch).  But I didn’t give up hope, until yesterday. Surely, I can disagree with Krugman […]

The Eternal War

Andrew Bacevich writes: Twelve and a half years after Congress didn’t declare war on an organization of hundreds or, at most, thousands of jihadis scattered mainly across the backlands of the planet, and instead let President George W. Bush and his cohort loose to do whatever they wanted; twelve and a half years after the […]