US economy | AEIdeas

Friday, May 24, 2013

Study: Living in big cities helps college grads find better jobs

James Pethokoukis | May 20, 2013, 5:08 pm

Cities are good for economic growth. Higher density means higher worker productivity. As Ryan Avent writes in The Gated City, “Density simply facilitates interaction. Interactions translate into wealth when a population is educated and local institutions support private enterprise and … read more >

Pethokoukis, Economics, U.S. Economy

Is inequality hurting the US economic recovery?

James Pethokoukis | May 17, 2013, 10:55 am

Stock markets and corporate profits are up, wage growth anemic. So Fed Governor Sarah Bloom Raskin is wondering whether the “large and increasing amount of inequality in income and wealth” is hampering the current US economic recovery and perhaps “pose … read more >

Economics, International economy

Japan’s GDP report isn’t as great as it looks

John Makin | May 16, 2013, 11:26 am

Less noticed in Japan’s GDP report is the fact that the GDP deflator inflation measure fell at 2% SAAR, so that nominal GDP growth of just 1.5% resulted in the reported 3.5% real growth rate. Deflation remains alive and well … read more >

Carpe Diem

Chart of the day: In 2012, America had the most energy-efficient economy in US history

Mark J. Perry | April 26, 2013, 6:44 pm

The EIA released new energy data this week showing that the US had the most energy-efficient economy in history last year, based on the amount of energy consumed to produce each real dollar of Gross Domestic Product (GDP). In 2012, … read more >

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Pethokoukis

Time to reevaluate Bushonomics

James Pethokoukis | April 24, 2013, 9:38 pm

The librarians at the new George W. Bush presidential center should buy this book on Amazon: The Great Recession: Market Failure or Policy Failure by Robert Hetzel. The author, a Richmond Fed economist, persuasively argues the nasty downturn and ensuing … read more >

Pethokoukis, Economics, U.S. Economy

America’s accidental, not-so-terrible economic policy

James Pethokoukis | April 11, 2013, 12:59 pm

You could do a lot worse than an economic policy of spending austerity + monetary easing. This is just what America has been getting of late from the House GOP and the Bernanke Fed. The results? No boom, but doing … read more >

Economics

Productivity slowdown not the recession’s fault

Abby McCloskey | April 9, 2013, 9:29 am

Much can be blamed on the 2008 financial crisis: high unemployment, slow economic growth, restricted lending. Anemic productivity growth cannot. Productivity growth of US workers has been disappointingly low since 2004, averaging about 1.5% annually, well below the long-run average … read more >

Carpe Diem

The sky is falling — at the same time, the sky is the limit

Mark J. Perry | April 8, 2013, 2:08 pm

First Trust Portfolios responds to David Stockman’s “sky is falling” critique of the current economy and financial markets: The S&P 500, including reinvested dividends, is up more than 150% since March 9, 2009 (see chart above), while corporate profits have … read more >

Pethokoukis, Economics, U.S. Economy

So why is the economy gaining momentum despite all the so-called austerity?

James Pethokoukis | April 1, 2013, 12:13 pm

Barclays: “Strength in private residential construction and a gain in state and local government construction boosted our Q1 GDP tracking estimate by 0.1pp to 3.4% q/q (saar).” JPMorgan: “Nominal construction spending increased 1.2% samr in February. This was modestly stronger … read more >

Pethokoukis, Economics, U.S. Economy

Sunset in America: Is David Stockman too pessimistic about the future of the US?

James Pethokoukis | April 1, 2013, 10:22 am

If David Stockman’s op-ed in The New York Times is an accurate summation of his new book, The Great Deformation: The Corruption of Capitalism in America, then it is likely most useful as a warning of What May Be rather than … read more >