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

A study of Financial Repression, part 1… a basic model

Is there financial repression in the United States? Are some people repressed economically, while others have inordinate advantages? Is there a similarity between financial repression and falling labor share? Is financial repression something to be feared or criticized? What the heck is financial repression anyway? This post begins a 5-part series on financial repression with […]

Komments on Kilgore

by Robert Waldmann Komments on Kilgore Here are some of my usual comments on Ed Kilgore. Unlike me, he has been very interesting lately. He is clearly trying to reconcile the centrist and populist wings of the Democratic party noting that they agree on the main things (mostly that Republicans are evil nutcases). I think […]

Brad DeLong asks questions about the financial panic of 2007-2009 and our current macroeconomic predicament

by Robert Waldmann Answering Brad DeLong’s questions Brad asks: There are a large number of serious and, so far, unanswered questions about the financial panic of 2007-2009 and our current macroeconomic predicament. Among them are: 1)Why is housing investment still so far depressed below any definition of normal? 2)Why has labor-force participation collapsed so severely? […]

OH NOES! SOCIAL SECURITY IS BROKE AGAIN

by Dale Coberly OH NOES! SOCIAL SECURITY IS BROKE AGAIN AND WE’RE ALL GOING TO DIE! BECAUSE…  BECAUSE… BECAUSE WE’RE ALL GOING TO LIVE FOREVER A couple of public spirited citizens have taken some of their Own Time to warn us that Social Security is (taken from last January) “worse than you think.” They take […]

Say’s law fairy… “Build it and they will come.”

Paul Krugman, Dean Baker, Mark Thoma, (update: Jared Bernstein) and many others call for fiscal policy to boost employment and production. Their idea is to increase employment and labor’s power to bargain for better wages. The increased purchasing power of labor will resolve some problems with debt overhang too. There would be a snowball effect […]

Fed is behind the curve…

Tim Duy wrote in a post titled, Inflation, Wages and Policy… “The fact that wages are rising while unemployment remains high is probably something of a puzzle to them (the Fed), and lends credence to the stories that the labor market is currently affected by severe structural issues…” The explanation of wage growth uses structural […]

Krugman is dancing around a root cause… labor share

Paul Krugman is developing the ideas to understand one of the root causes of the economic problems. His present line of logic leads to understanding the effective demand constraint upon output. He writes… “Profits took a hit during the financial crisis, but have soared since then, and are now 60 percent above pre-crisis levels; meanwhile […]

SETTING THE RECORD STRAIGHT ON SOCIAL SECURITY

by Dale Coberly SETTING THE RECORD STRAIGHT ON SOCIAL SECURITY HOW THE “COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET” LIES TO YOU A group that calls itself “Committee For A Responsible Federal Budget” wrote what it claims to be “Setting the Record Straight on Social Security.”  The article needs to be responded to at some length, […]