10 | December | 2012

Wednesday, June 19, 2013

Do Great Britain’s economic troubles prove austerity doesn’t work?

James Pethokoukis | December 10, 2012, 4:45 pm

The New Yorker’s John Cassidy argues the United Kingdom has provided a natural experiment disproving the “efficacy of austerity economics.” His proof: Last week, George Osborne, the chancellor of the Exchequer, conceded that growth has been slower and debt higher … read more >

Economics, Pethokoukis

Do big banks make economic sense?

James Pethokoukis | December 10, 2012, 3:47 pm

Economist Simon Johnson thinks the Fed’s Daniel Tarullo is hinting the central bank may cap bank size. By all means, read Johnson’s Bloomberg column on the topic. But in the piece, he also mentions a speech by the Bank of … read more >

Image credit: Mind on fire (Flickr) (CC BY-SA 2.0)

Economics

Government employment: Discriminating employers or complaining employees?

Andrew Biggs | December 10, 2012, 3:32 pm

A friend points me to the November 30 episode of the American Federation of Government Employees’ paid radio show “Inside Government,” in which AFGE Policy Director Jacqueline Simon argues that one big difference between federal employment and the private sector is the lack of pay discrimination. read more >

Economics

If you must raise taxes …

James Pethokoukis | December 10, 2012, 2:13 pm

President Obama is surrounded by plenty of smart economists. And plenty more are just a phone call away. Is no one telling him that he is trying to raise taxes in the worst possible way? I have frequently written why … read more >

Carpe Diem

Holiday videos

Mark J. Perry | December 10, 2012, 2:07 pm

1. Deck the Halls with Macro Follies, produced and directed by John Papola of “Fear the Boom and Bust” fame. 2. “Crony Chronicles: Miracle on Wall Street,” from ChronyChronicles.org, the “cronyism resource,” and the group that brought you “When … read more >

Image credit: Bisongirl (Flickr) (CC BY 2.0)

Economics, Entitlements, Taxes and Spending

The problem is spending, not revenues

Nick Schulz | December 10, 2012, 1:52 pm

The Federal Reserve Bank of St. Louis published an excellent paper offering a longer-run perspective on the US debt/deficit problem. The entire paper is worth reading, but I’d highlight three observations that are relevant for the current moment: “a marked … read more >

Image credit: World Economic Forum (Flickr) (CC BY-SA 2.0)

Economics, Foreign and Defense Policy, Europe and Russia, International economy

A rude reminder from Italy

Desmond Lachman | December 10, 2012, 1:32 pm

Just as European officials were again reassuring us that the worst of the Euro crisis was behind us, reality has again intruded to shatter any such illusion, for Mario Monti’s surprise announcement over the weekend that he would dissolve his … read more >

Economics, Pethokoukis

More evidence that the EU’s tax hike austerity is failing

James Pethokoukis | December 10, 2012, 1:02 pm

Wolfgang Munchau in the FT: The deterioration in Italy’s debt sustainability will become much clearer next year, as we get more statistical evidence of the calamitous effect of austerity. The effects are already being felt before the 2013 budget kicks in. … read more >

Carpe Diem

Cartoon of the day

Mark J. Perry | December 10, 2012, 12:18 pm

From Henry Payne.

Economics, Entitlements

Welfare programs that do more harm than good

Arthur C. Brooks | December 10, 2012, 11:28 am

In Sunday’s New York Times, columnist Nick Kristof has an important piece that I recommend, discussing how America’s social safety net has become in too many instances a net that entraps people rather than catches them when they fall: “This … read more >