Bruce Bartlett jumps on the dynamic analysis bandwagon, applauding the creation of the “Division on Dynamic Analysis” at the Treasury Department. Menzie Chinn and PGL have covered the prinicpal problems with this political exercise disguised as economic analysis, so let me just add two small points to what they’ve said. First, Bartlett is quite wrong […]
The American consumer has not yet showed any sign of slowing down, despite higher interest rates and slower house price appreciation. Today’s release of January retail sales by Census reported the following: The U.S. Census Bureau announced today that advance estimates of U.S. retail and food services sales for January, adjusted for seasonal variation and […]
Maybe we should be relieved that Dick Cheney did not serve in Vietnam – especially as we see what Josh Marshall has learned: Things can get chaotic and excited when a bunch of birds (I’ll just try, as a blanket matter, not to use the jargon) come into range or rise up. But if you […]
The New Economist provides links to a piece by Michael Mandel noting his usual argument that the national income account definitions understate savings as well as a reply from Brad Setser and the Michael’s reply to Brad. As you will notice in a moment, I’m a bit biased to what Brad said so let me […]
This Knight-Ridder piece about Bush’s Health Savings Accounts raises an interesting question: do people have too many financial choices in their life already? WASHINGTON – President Bush’s proposed expansion of Health Savings Accounts depends on a premise that research shows is questionable: that Americans want more financial choices in their lives. Experts point to a […]
Kevin Drum writes: Like the creature that won’t die no matter how many bullets you put through its heart, Social Security privatization is back for an encore in President Bush’s 2007 budget proposal … The full faith and credit of the United States government is just an “empty promise.” It’s sort of like listening to […]
Mark Thoma and Andrew Samwick discuss problems with and potential solutions for the social safety net in this week’s WSJ Econoblog. They cover several important points, but following up on some posts from last week, let me highlight their discussion of the pros and cons of a single-payer health insurance system. Mark Thoma argues that […]
Credit goes to James Hamilton for what may be the best takedown of the gold bugs over at the National Review I’ve seen yet: What’s behind the ongoing run-up in gold prices? One popular interpretation is that investors fear a resurgence of U.S. inflation. But that story just doesn’t square with the facts … I […]
CNN reports: The hearing began with a sudden and sharp partisan dispute when Senate Judiciary Committee Chairman Arlen Specter ruled that Gonzales did not have to be sworn in to testify. After Democrats strongly objected and demanded a roll-call vote, Republicans prevailed and the attorney general did not testify under oath. Before one asks why […]
Stephen Dinan of the Washington Times argues that it can and it should: “There is a general agreement about the fact that citizenship in this country should not be bestowed on people who are the children of folks who come into this country illegally,” said Rep. Tom Tancredo, Colorado Republican, who is participating in the […]