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

Book review

by Tom aka Rusty Rustbelt Book Review: So I got to spend most of Saturday evening and Sunday morning in the emergency department of the local hospital, once again proving to my wife that men are stupid. Not to waste time I took Alan Blinder’s new book with me. After the Music Stopped is a […]

An addendum to McD’s budget advice

An NPR article and a Marketplace piece, which feature Milwaukee fast-food workers, highlight a hidden issue among low-wage jobs — many have such random work schedules, they can’t even get a second job to supplement their income. A new NELP report highlights   “Taking the Low Road: How the Federal Government Promotes Poverty-Wage Jobs Through its […]

Paul Krugman on verge of an illumination

Today Paul Krugman wrote a piece (and a blog post) about China’s high level of investment in the face of low domestic consumption. It is obvious to me that he is making headway in understanding the importance of low labor share of income. Remember low labor share means high capital share. Capital income is dedicated […]

Real GDP has an appointment to keep with Effective Demand

The subject of potential real GDP is important. As Paul Krugman had a post entitled, “Potential Mistakes”. Today Dean Baker had a post entitled, “GDP Growth Remains Below Potential Growth”. Paul Krugman said, “It is important to have an idea of how much the economy could and should be producing, and also of how low […]

Elizabeth Warren and Glass Steagall

Via Truthout 21st centurty Glass Steagall Act You need to know this. Senator Elizabeth Warren wants to make banking boring again. Yesterday, the freshman senator introduced the 21st Century Glass Steagall Act, which would break up the big banks, and rebuild the wall between traditional banking and Wall Street gambling. In a statement, Senator Warren said, […]

Oil Prices

The last few weeks oil prices have been moving higher and few analysts seem to understand the full story. If there is any commodity that trades at a one world price it is oil.  So the recent weakness in West Texas Intermediate ( WTI)  is very unusual and stems from temporary bottlenecks.  Over the last […]

Chart for the day: Growing on Imports

by Rebecca Wilder Chart for the day: Growing on Imports Or should I say barely contracting on imports. In the traditional sense, growth in imports does not make a whole lot of sense. Normal economies import and export things, such that statistical agencies subtract the dollar amount of things that are made in other economies but […]

Follow up to yesterday’s post: Euro area consumption and Investment in Q2 2013

by Rebecca Wilder  Follow up to yesterday’s post: Euro area consumption and Investment in Q2 2013 Yesterday I illustrated the unsustainable accounting growth engine of imports occurring in the euro area (EA). Today I’ll present more of a forward looking analysis on private domestic demand within the euro area: consumption and investment. If current levels of […]