Why is it that economics is a Teflon discipline, seemingly unable to admit or recognize its errors? Economic policies in the US and most advanced economies are to a significant degree devised by economists. They also serve as policy advocates, and are regularly quoted in the business and political media and contribute regularly to op-ed […]
Read more...Princeton economics professor Alan Blinder’s article in today’s New York Times provides a useful summary of a new book by a Princeton colleague, Larry Bartels, which finds consistent differences in economic performance and income inequality trends between Democratic and Republican administrations. From the New York Times: Many Americans know that there are characteristic policy differences […]
Read more...This program to assist overextended homeowners has only just begun, so it is way to early to say whether it will succeed, but it is an improved version of Dean Baker’s “own to rent” idea. Note that one of the elements, having a new bank buy the original lender out at the 70% of mortgage […]
Read more...Ken Funnell at Bank Lawyer’s Blog tells us that Ohio is about to put legislation into effect that will kill payday lending: The new Ohio law would limit borrowers to four short-term loans a year and cap annual interest rates at 28 percent. The bill also would limit loan amounts to $500 per loan, or […]
Read more...An odd set of voices is beginning to question the wisdom of America’s extraordinarily generous subsidies to homeowners. Paul Krugman once remarked that American like to consume houses, while the French prefer to consume vacations, but we shouldn’t overlook the role of incentives in those choices. At the Milken Institute Global Conference, a true disciple […]
Read more...Martin Wolf takes a discursive route to make a fairly straightforward observation: no matter how the US deals with its debt hangover, the consequences are likely to be contractionary. But a rapid move to a sustainable savings rate (6%? 10%?) would produce tremendous dislocations. Hence, the public sector will throw sand in the gears, which […]
Read more...Belying the claim that (until recently) the economy was in good shape, the use of food stamps is rising and will hit an all time high this year. Admittedly, that is absolute numbers with underlying demographic growth. The percentage of people using this income supplement was highest in relative terms in 1994, when the parts […]
Read more...If this microfinance venture by Grameen Bank is as successful as I hope it will be, it will be an indictment of US banks who provide only very high priced products to the lower income and poor, and then justify it by claiming that they offer a useful service. They of course prey on the […]
Read more...Offhshoring, the practice of companies sending work overseas (whether to their own operations located in other countries or to foreign outsourcing companies) has become the new worry of the white collar class. The business media regularly reports on software development, legal research, and Wall Street grunt work being sent to India. And it seems that […]
Read more...The proponents of a “living wage” in the US have argued that setting minimum wages at a level that leaves full time workers at below subsistence level is bad policy, both economically and socially. While opponents argue that increasing pay for the lowest earners will reduce the number of jobs, elasticity of demand isn’t all […]
Read more...A good article by Clive Crook of the Financial Times discusses the improving fortunes of unions in America. Crook looks at some of the indicators their rising influence (key sign: fawning Democratic hopefuls) and how they can aid as well as impede economic activity. Even though Crook’s piece is helpful, he somehow seems wide of […]
Read more...Harvard’s Dani Rodrik in a recent post questioned the role of labor market rigidities (such as restrictions on firings and generous unemployment) in Europe’s higher unemployment. (As an aside, readers will know even that factoid is disputed. Barry Ritholtz has argued that if we calculated unemployment the same way Europeans did, the rates wouldn’t be […]
Read more...Our colleague Susan Webber of Aurora Advisors has a new article, “Fit vs. Fitness,” in the current issue of The Conference Board Review. The editors were initially skeptical that anything new could be said on the subject of the glass ceiling, but this article persuaded them otherwise. We hope you’ll agree. She draws on personal […]
Read more...Height is influenced by the quality of nutrition in childhood and as a result, in many societies, it has also been a class indicator. One example: Winston Churchill, who as a Liberal Party member and Home Secretary, was instrumental in the passage of minimum wages and the Liberal Reforms, which among other things, provided for […]
Read more...Although this is a bit off topic for this blog, I find Paul Krugman’s op-ed pieces on health care to be among his best work. He manages to cover a good deal of ground in a confined space, and convey useful data without losing generalist readers. Although he never mentions Michael Moore, Krugman’s piece, “The […]
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