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

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 […]

Sooo … Akhil Reed Amar and Neal Katyal confuse the IRS and TSA with the FBI. I mean … really, profs??

Update: Link at Scotus blog http://www.scotusblog.com/2013/06/wednesday-round-up-187/. As prosecutors, police agencies and civil libertarians consider the ruling’s implications, Justice Scalia’s stark dissent — and the fact that President Obama’s two appointees to the court so far agreed with it — makes it worthy of scrutiny, even if he was on the losing side. His argument is […]

More on Ineffective Fiscal Policy

This is a companion piece to Steve’s AB post from earlier today, where he points out the specious reasoning of  “the likes of Scott Sumner, David Beckworth, Lars Christensen, et al., claiming that fiscal austerity has obviously had no effect on GDP growth.” I wrote Sumner off a few years ago due to a highly […]

Does Steady GDP Growth “Prove” that Market Monetarists Are Right About Ineffective Fiscal Policy and Foolish Keynesianism?

You’re seeing a lot of crowing these days from the likes of Scott Sumner, David Beckworth, Lars Christensen, et al., claiming that fiscal austerity has obviously had no effect on GDP growth. “Look!” they say: “Even with the sequester and all the other government spending cuts, growth in 2013 has been the same as 2012! […]

What Reinhart and Rogoff should do now

Carmen Reinhart and Kenneth Rogoff wrote an angry open letter about how Krugman has been uncivil to them.  Krugman’s reply strikes me as being convincing even devastating. Update: My full fisking here. I want to focus on one sentence in the R&R letter   “politicians may float a citation to an academic paper if it […]

Four easy fixes for corporate taxation

Everyone “knows” that the corporate income tax is a mess. Ask any company. They pay too much in corporate income tax, face rates higher than in any other OECD country, and are just following the law when they use tax havens to keep profits eternally deferred from taxation and to perform general sleight-of-hand.   Don’t […]

How Wall Street Stole Main Street

This graph speaks volumes: Profits as a Percent of GDP: Financial Corporations vs. Nonfinancial Corporations We saw a big decline in real businesses’ profit share in the 40s, then a slower semi-steady decline through the 70s, as wages constituted a larger share of GDP. Financial corps doubled, expanding and increasing profits, but they remained small […]