Category Archives: Economy

Will Another $50 Billion Stimulus Kick-Start Our Economy?

Jobs.  Jobs.  Jobs.  It’s at the top of all the headlines this week.  It’s the number one story and it’s being debated coast-to-coast.  President Obama is proposing another $50 Billion stimulus package for roads, runways, and railways to boost our economy - in other words – to create jobs by building our transportation infrastructure.  The president [...]
Also posted in America's Future, Double-Dip Recession, Economic Growth, Jobs, Taxes, Unemployment | Comments closed

Why Is Unemployment So High This Labor Day?

Unemployment is in the news again.  In a detailed op-ed piece in The Wall Street Journal this week, Robert Barro shows why he believes unemployment would be significantly lower if unemployment benefits had not been extended from the standard 26 weeks to 99 weeks.  His calculations indicate that unemployment might be under 7% right now if [...]
Also posted in Jobs, Unemployment | Comments closed

Is Inflation Starting to Hit America?

It seems as if inflation has been relatively tame these last few years.  However, with increased big government spending come mounting deficits and unsustainable debt levels.  One way to deal with reckless spending, large deficits, and high debt is to monetize those problems with inflation.  New big government programs with massive new regulations, mandates, costs, [...]
Also posted in Depression, Double-Dip Recession, Food Industry, Inflation | Comments closed

High Unemployment, Empty Storefronts, For Sale Signs – When Will We Recover?

Driving around town the signs are obvious.  “For Sale” signs that sit for months on poorly kept lawns.  Empty storefronts with empty parking lots that painfully remind us of a few years ago when times seemed better.  Plus, we hear about high unemployment all the time – 9.5% nationally, 14.2% in Nevada, 13.2% in Michigan, and 12.3% in California [...]
Also posted in America's Future, Double-Dip Recession, Economic Growth, Financial Sector Regulation, Health Care System, Jobs, Taxes, Uncategorized, Unemployment | Comments closed

Why Do Higher Tax Rates Often Lead to Lower Tax Revenues?

It’s really counter-intuitive.  But, raising tax rates, leads to lower tax revenues for the government and lower economic growth for the economy.  Well-known economist Arthur Laffer reminds readers of this fact in an article in The Wall Street Journal this week.  The article includes lots of data for the skeptics too.  If you get a [...]
Also posted in Double-Dip Recession, Economic Growth, Jobs, Taxes, Unemployment | Comments closed

Should Jobless Benefits Be Extended for the Eighth Time?

An editorial in The Wall Street Journal this week discusses the proposal to extend jobless benefits for the eighth time since the recession started.  This extension would mean the unemployed can collect benefits for up to 99 weeks, nearly two years.  Is this a good idea from an economics point of view?  Is this compassion?  Or, are [...]
Also posted in America's Future, Depression, Double-Dip Recession, Economic Growth, Jobs, Taxes | Comments closed

Economic Optimism Down – 17 Month Low – Why?

SPECIAL BLOG POSTING Investor’s Business Daily reported this week that economic optimism is down to a 17 month low, according to the IBD/TIPP Economic Optimism Index.  Separately, small business confidence is also declining with a lower sales outlook, according to the National Federation of Independent Business.  Why has economic optimism declined?  Are these results unexpected?  Let’s [...]
Also posted in America's Future, Double-Dip Recession, Jobs, Taxes, Unemployment | Comments closed

Low Interest Rates – Who Wins? Who Loses?

In The Wall Street Journal this week, an op-ed piece deals with the Federal Reserve’s policy of near-zero interest rates, presumably to help our very anemic and faltering economic recovery.  Are we really in an economic recovery?  Or, are we on the edge of a double-dip recession?  Or worse yet, are we entering a depression [...]
Also posted in Depression, Double-Dip Recession, Financial Sector Regulation, Interest Rates | Comments closed

Vagueness Impedes Economic Growth – Why?

Writing in The Wall Street Journal this week, Daniel Henninger suggests a “void-for-vagueness doctrine” for Congress.  What does he mean by “vagueness?”  And, why is this suggestion so very important for economic growth?  Let’s talk about it now. The impetus for The Wall Street Journal column was the recent Supreme Court decision that found that the [...]
Also posted in America's Future, Economic Growth, Financial Sector Regulation, Health Care System, Rule of Law | Comments closed

Are We Entering a Depression?

Economist Paul Krugman in an op-ed column in The New York Times online edition indicates that he is fearful that we are now in the early stages of a depression, possibly the third depression in our history.  Krugman also appears to believe that the cause will be government policy mistakes.  Specifically, he sees the need for [...]
Also posted in America's Future, Depression, Jobs, Taxes | Comments closed