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

Debt and Growth III

I’m going to try to make this post brief and comprehensible.  It contains no information not in an earlier post but I delete a whole lot of distracting data. The question is does the Reinhart Rogoff (hence R-R) data set on public debt and real GDP in 20 rich countries post WWII contain evidence that a […]

The rest of the dinner table deficit/debt discussion: Equity

I promise, there are numbers here, but lets have some fun first and write a screen play to set up the point. It is long, but…   “Dear, I’m getting nervous. We seem to keep adding to how much money we owe and our income hasn’t changed for the better. What can we do?”   […]

Wealth, debt, consumption…revisited

Here are reminders of Angry Bear posts and contrbutor thinking on “Wealth, debt,and consumption”. Wealth versus income Usually my articles present facts and data and try to drive down to a conclusion. This time, I’m going to drive down to a couple of questions. Income and consumption jazzbumba Part 1…spending as a fraction of net […]

Debt and Growth

Art at The New Arthurian Economics and I are looking at the relationship between debt and economic growth.  Art started with an observation of two FRED series, total credit market debt owed (TCMDO) and Gross Domestic Product (GDP,  nominal or GDPC1, inflation adjusted – take your pick.) Graph 1, from FRED, shows these data series.  […]

Debt, Recession, and That Ol’ Devil Denominator

Krugman recently presented this graph, showing household debt as a percentage of GDP. and made this comment. Second, a dramatic rise in household debt, which many of us now believe lies at the heart of our continuing depression. There are those who seem to believe that if Krugman says it, it must be wrong.   Here […]

PSA: Steve Keen at the Roosevelt in NYC tonight at 5:00/6:00

Talk is called “Neat, Plausible, and Wrong: the Deluded Discipline of Economics.” I have to quibble with the “plausible” portion: there is no possible way to rationalize contemporary Microeconomics with any reasonable conceit that the Macroeconomics produced are “first-best” or anything similar.* I doubt I’ll be there at 5:00, but certainly by 6:00. Hope to […]

Go ahead. Implement Austerity at your own peril

by Daniel Becker (This is a long post. The time for sound bite debate to the demise of learned discussion is over for we are flirting with danger.) Via a post at Financial Armageddon I learnt of a paper looking at the relationship of austerity implementation and social unrest. It is recent, dated August 2011. […]

If You Believe the Market Reacts to Information

The bad news of the day is that about $5B ($5,000,000,000) more than previously believed went to buy goods made in China, Japan, non-major South and Central American countries, and other places outside the U.S. Per the Vampire Squid (tm Matt Taibbi), this should cause a revision to Q2 US GDP from 1.3% to 0.9%. […]

I want spending, I want spending, I WANT SPENDING!

By: Daniel Becker There is some new information from Adam Hersh of Center for American Progress showing what has happened in the states that have followed the conservative economic approach (yes, talking to you Obama, DLC, Clintonites).  Keep cutting at your own risk. Here’s the thing.  Like the Wile E Coyote, we seem to have […]