Some years ago Paul Krugman gave perhaps the best argument against the inequality-causes-underconsumption theory of secular stagnation: the idea that rich people spend less of their income/wealth, so if wealth/income is more concentrated there’s less spending and less GDP/prosperity. (It’s curious how liberal economists are the ones who most commonly shoot down this argument. That’s […]
Brad DeLong wrote a praised piece about growth… The Honest Broker: Is Growth Getting Harder? If so, Why, and What Can We Do About It? Yes, it was an interesting piece, but I have a bit of a critique of one point concerning productivity. I see productivity as blocked by demand. But he doesn’t make […]
by Linda Beale Does Lowering Corporate Tax Rates Create Jobs? Answer is a resounding “no” For years (decades, actually), the American pro-wealthy right has argued that lowering corporate tax rates will create jobs. That is the presumed purpose behind the push by Dave Camp to enact a tax reform package with lower corporate rates, and […]
I’m rather terrified to find that Brad DeLong has replied to my recent post on this subject. I would expect greater inequality coupled with a higher propensity to save on the part of the rich to drive all asset yields down. Yet what we have seen has been a steep, prolonged fall in Treasury bond yields […]
A federal judge in the District of Columbia will hear oral arguments on Tuesday in one of several cases brought by states including Indiana and Oklahoma, along with business owners and individual consumers, who say that the law does not grant the Internal Revenue Service authority to provide tax credits or subsidies to people who […]
I watch the transformation of Paul Krugman to understand the key importance of labor share. But first, let’s start with Till Van Treeck, who writes an article titled… U.S. Current Account Deficits and German Surpluses: The Role of Income Distribution in Global Imbalances. He presents evidence that labor share and inequality are creating a large part […]
While some debate whether QE is causing low inflation… there is a practical view of low inflation from an article written by Chun Wang at Advisor Perspectives. Here are some excerpts… “A key factor allowing the Fed to maintain QE is the lack of inflation. You would think after multiple rounds of synchronized global money […]
Somewhere in the future months, one of us is going to have to eat crow here on the success of the PPACA. The Republicans, Teabaggers, Healthcare Insurance Companies, Gerrymandered Republican Districts, ALEC, Koch Bros, etc. are working their hardest to make this much needed change in how people gain coverage fail. Meanwhile healthcare insurance companies […]
That’s an enormous lowering of expectations, and a reminder to liberals about the formidable barriers to further expansion of the welfare state. The public has long been skeptical of the political system’s practical ability to do the things progressives say they want to do. A health care website that comes in months late, over budget, […]
by LaDonna Pavetti Via Jared Bernstein An excerpt from the executive summary blog post Thirty-nine states and the District of Columbia used $1.3 billion from the TANF (Temporary Assistance for Needy Families) Emergency Fund to place more than 260,000 low-income adults and youth in temporary jobs in the private and public sectors during the Great […]