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

Previewing Blinder and Watson (2015)

by Mike Kimel Previewing Blinder and Watson (2015) Via James Hamilton at Econbrowser, I read about this paper by Blinder and Watson. From their abstract: The U.S. economy has performed better when the President of the United States is a Democrat rather than a Republican, almost regardless of how one measures performance. For many measures, including […]

Real Businessmen Respond to Quantity Signals, Not Price Signals

Update:  “Lord Keynes” provides a great explication of Kaldor’s theoretical work on this subject. Back in the day when I was running a high-tech conference company, we had a favorite (and actually rather cruel) interview question: “What’s the best price for a conference?” There was only one right answer: “The price that makes us the most money.” […]

Trading the gdp away…2008

Stormy wrote in 2008 a narrative for the last few decades on trade…still relevent: Trade means jobs; trade brings money into plants; trade surpluses ripple through the economy, providing not only wealth to employers and employees alike but also moneys into public coffers. Consider it “outside money” flowing into a town, county, state, or country. […]

Inflation expections, income expectations & financial repression

The Federal Reserve Bank of San Francisco published a letter titled, Consumer Inflation Views in Three Countries, written by Bharat Trehan and Maura Lynch. The letter explores inflation expectations among consumers in the UK, US and Japan. Basically the story is that inflation expectations by consumers are tied to the level of oil prices and […]

“Businesses Hire When They are Swamped with Demand, Not When They Have High Profits”

Mike Sankowski has been banging his spoon on the high chair about this forever. And rightly so. Repeat after Mike. And keep repeating it to anyone who will listen. The “higher-corporate-profits = jobs” meme is perhaps the most pernicious falsehood in political economics. How Business Owners Think For almost ten years I was co-founder and […]

Pictures of the Trans Pacific Partnership and to Giroux’s biggest lie: Capitalism is Democracy

HENRY GIROUX: Oh, I mean, I think that’s the biggest lie of all actually. The biggest lie of all is that capitalism is democracy. We have no way of understanding democracy outside of the market, just as we have no understanding of how to understand freedom outside of market values. I learned about two maps […]