Tag Archive: Economics

The CBO Thorn in Obama’s Side

Fresh off their recent report on Obamacare that predicted a decline in the workforce of 2.5 million (partially as a result of employer cutbacks, mostly as a result of people leaving jobs due to high effective marginal rates), the CBO today issued a report on the effect of raising the minimum wage.

Raising the U.S. minimum wage would lead to the loss of about half a million jobs by late 2016 but lift almost a

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The State of Inequality

Rumors are that the President’s taxpayer-funded political speech State of the Union Address will focus on rising income and wealth inequality in the United States. As with almost everything this Administration does, I think this is misguided.

First, at least part of the problem of inequality is social. Poor people are much more likely to get divorced, much more likely to have children out of wedlock, much more likely to drop out of high school, … Read more

Geithner vs. S&P


Former U.S. Treasury Secretary Timothy Geithner angrily warned the chairman of Standard & Poor’s parent that the rating agency would be held accountable for its 2011 decision to strip the United States of its coveted “triple-A” rating, a new court filing shows.

Harold McGraw, the chairman of McGraw-Hill Financial Inc , made the statement in a declaration filed by S&P on Monday, as it defends against the government’s $5 billion fraud lawsuit over

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One Day, We Will Wish We Were Canada

I know the Left likes to mock the Heritage Foundation’s Economic Freedom Index as some of Koch Brothers-libertarian-Rush Limbaugh-neocon conspiracy garbage. But, as I’ve argued before, if you want to start looking at the countries that are doing well economically, it’s a good place to start. Almost every country at the top of the rankings is doing well; almost every country toward the bottom is doing poorly. Over the years that Heritage has been tracking … Read more

A Living Wage! … But Not For You

Liberal pundits and advocates are constantly talking about a “living wage”. The last few years have a been a constant drumbeat about how we need to raise the minimum wage, with some now advocating that Obama should just bypass Congress and do it by executive fiat. It’s even gotten to the point where America’s Dumbest Intellectual deceitfully disputes the basic economic consensus that increasing the minimum wage increases unemployment.

(That last part is not complicated. … Read more

Numbers and Narrative

Two economic numbers have come out in the last few days. The first was that the economy grew at an “unexpected” 2.8% rate in the third quarter. The second was that October jobs came in at 204,000, which is almost … not unhealthy? 60,000 jobs were added to previous months. U-6 was up a bit but is still several point down from its peak and labor force participation continues to fall.

Caveat time: even … Read more

Another Month, Another Stagnation

Jobs again:

Job growth was less than expected in August as the U.S. economy added 169,000 positions, raising questions over whether the Federal Reserve will begin a pullback on its historically easy monetary policy.
The Bureau of Labor Statistics also said the unemployment rate dropped to 7.3 percent, its lowest since December 2008, but due primarily to fewer Americans in the labor force.

A more encompassing rate that counts the underemployed and those who

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Why the President’s College Plan Won’t Work

I’ve been thinking about the President’s recently announced plan to change the federal student loan program. Something about it bothered me and it took Alex’s post below to finally crystallize my objections.

It won’t work. Even if it works, it won’t work. It won’t work because Barack Obama, oddly enough for a Harvard man, misunderstands the nature of higher education and, not oddly at all for a Democrat, misunderstands the nature of the problem with … Read more

HuffPo Economic

HuffPo put out an article the other day claiming that doubling the wages of McDonalds employees would cause the Big Mac to cost just 68 cents more (the original article seems to have gone down the memory hole; see below).

Of course, being idiots, they ignored several basic economic problems. For one, McDonald’s managers won’t pay the same number of people $15 an hour to flip burgers: they’ll find ways to cut back on staff. … Read more

You Can’t Peddle Prosperity

Ilya Somin makes a great point on the Detroit bankruptcy:

Detroit’s sixty year decline, culminating in its recent bankruptcy, has many causes. But one that should not be ignored is the city’s extensive use of eminent domain to transfer property to politically influential private interests. For many years, Detroit aggressively used eminent domain to promote “economic development” and “urban renewal.” The most notorious example was the 1981 Poletown case, in which some 4000 people lost

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