Antonio Fatas debates Paul Krugman. Fatas noted that there is limited evidence that using the Euro is correlated with extreme economic distress. Krugman argued roughly that there is a strong theoretical presumption that the Euro is the work of the devil. Fatas praised Krugman’s unshrill analysis and then chose to debate his basic claim. This […]

Yves Smith writes: So bad economic times increase income disparity even among the young, and that will also make it even harder for them to contend with debt. I’ll return to this topic, because I think this recitation isn’t adequate to convey how the pieces are being put in place to put bigger and bigger […]

So the cobra equation has made me re-evaluate the dynamics of the effective demand limit. The main reason is that the graph of the Cobra equation shows that capital utilization decreases as employment increases at the effective demand limit. I was assuming that as employment increased, the utilization of capital would also increase. That was […]

Here is an interview from the Real News Network with one of the founders of the Basic Income initiative in Switzerland, Enno Schmidt. The initiative would guarantee a basic income of $2800 per month for every adult. That may seem like a lot from the perspective of the United States, but it is enough to […]

by Mike Kimel California v. Red States, What Causes Growth, and the Great Stagnation Lately there has been a small cottage industry of California v. Texas comparisons, with California getting the apparent short end of the stick.  Heavily regulated, high tax, big gubmint California is the past, and free wheeling low tax small government Texas […]

I can not help but wonder if Friedman takes delight in the predicament of the Young and Baby Boomers as he writes about Druckenmiller excursions on to college campuses . I envision  a bit of Schadenfreude as evidenced by his choice of titles for his latest column. October 15, 2013, Tom Friedman writes in the […]

One thing that several people have requested (including Mrs. Rdan) is more easily read material more accessible to non-finance readers, or with our AB audience also people well versed in finance and macro, without dumbing down the issues into ideas that have no context nor links to what actually happens in the world.   We […]

I just want to pass along a great show by the Renegade Economist, which is its pilot show in the United Kingdom. If we only had a show like this in the United States.

Damon Silvers appears to have his wheels on correctly answering two CNN talking heads on their version of Social Security. Kelly Evans: “Of course people want to make sure that our citizens are taken care of. But that’s almost not the point.” (It’s not?) Evans proceeds to assail Silvers and the AFL-CIO for refusing to […]

This post continues the exploration into the Cobra equation, which measures the profitability of utilizing labor and capital as a function of labor share. Now it looks as though the Cobra equation is implying a natural rate of unemployment. The simplified Cobra equation is now… Measure of profitability in the aggregate = (x + y) […]