Economic Policy Challenges Facing California's Next Governor
via Hoover Institution
Hoover Institution economists have just written a new paper describing a number of significant economic problems within California and how to fix them.
The Empty Seduction of Socialism
Charles Calomiris, E21
The overarching message of “The Opportunity Cost of Socialism”—a study recently released by the President’s Council of Economic Advisers (CEA)—is that the advocacy of socialism cannot reasonably be based on policy preferences; its attraction has always been grounded in a combination of wishful thinking and ignorance. For example, the new CEA study shows that the socialist approach to “single payer” health care advocated by many on the left would cost much more and deliver much less, resulting in the significant worsening of mortality and morbidity, not just higher taxes and reduced economic growth. Read more here....
John Tamny, RealClearPolitics & Forbes, and author of The End of Work and Who Needs the Fed? explains that the Fed is not a rate-setter, it's a rate-follower. It can't create an economy. Investors have known for a year or to that [rate increases] were coming. Draghi’s gloomy remark about the federal budget. The Fed is “large and powerful” —and relevant—because the US economy is the largest in the world. Mexico and Yemen and Nigeria have central banks, which we don’t talk about. Yemen is a war-torn, failed economy; it cannot be rescued by central bankers with unlimited spending. Banks lend to each other with overnight rates. . . . Why did we ever take the Fed so seriously?
China can’t afford to lose war on debt
BY CHRIS TAYLOR
Beijing knows ‘there is no bailout too big to avoid a crisis,’ which would bring down the ruling Communist Party government
Finding a quick fix for China’s economic and financial ills
BY GORDON WATTS
PBOC Governor Yi Gang has had to fight ‘fires’ on numerous fronts in his first eight months in the job
The Fed Has Not “Gone Crazy” as Trump Claims
Peter Ireland, E21
President Trump criticized the Federal Reserve again last week, singling out the central bank as the “biggest threat” to his administration’s success. Earlier, he accused the Fed of having “gone crazy” by raising interest rates too quickly. Many long-time Fed watchers were taken aback by these candid remarks, since previous Presidents have deliberately refrained from commenting on the Fed’s policy actions. Read more here....
How Does Economics Help Us Make Better Policy? Here Are Four Examples
quoting Thomas Sowell via Forbes
Economics: it’s the study of human action and its unintended consequences, and I think it teaches us a lot about wise Christian stewardship and compassionate, prudent public policy. Here are four examples I recently shared with students in a colleague’s class at Samford University.
The Robust Economy Has Hidden The Next Crisis
quoting Raghuram Rajan via The Washington Post
In the United States, recovery from the financial crisis a decade ago has continued on as one of the longest economic expansions in American history. Unemployment is at a 50-year low. Fueled by this momentum, while ignoring the intense political disruptions of the past two years, the stock market soared to new heights — until the big plunge this week following an earlier slide in February.
EXAMINING THE SELF-MADE MAN: BEZOS, TRUMP & AEI ECONOMISTS EXAMINE WAGE GROWTH, LABOR MARKETS AND MORE
Facts and falsehoods about the US labor market: A long-read Q&A
James Pethokoukis | AEIdeas
Moody’s Analytics economist Adam Ozimek joins James Pethokoukis to talk unemployment, wage growth, and all things economic policy.
THE ATTRIBUTES OF A SUSTAINABLE, GLOBAL ORDER IN MACRO FINANCE & US ECONOMY HAS MORE ROOM TO GROW PAST 4% GDP
The Fed’s monetary policy: Just follow the yellow brick road?
Paul H. Kupiec | AEIdeas
Tight labor markets, low real interest rates, and large federal budget deficits are a textbook recipe for inflation, and yet inflationary expectations remain contained. What makes Chairman Jerome Powell think he can sustain the current expansion while maintaining historically low unemployment and a low and stable inflation rate? Join AEI on Friday when a panel of experts will discuss these and other issues related to Federal Reserve monetary policy.
What Worries Me About The U.S. Economy
by Raghuram Rajan via The Washington Post
The U.S. economy certainly appears as if it is in an ideal place: unemployment is at its lowest in nearly half a century, and the number of people voluntarily leaving jobs to find new ones, an indicator of their confidence in the economy, is at a 20-year high. Economic growth this year is likely to be around 3 percent, more than what most economists think the economy is capable of in the medium term. Inflation is moderate.
An authority on Civil-Military Relations; Southwest Asian Political Economy, and Pentagon Acquisition Reform .
KEYNES VS. HAYEK RAP
KEYNES VS. HAYEK RAP ROUND 2