A great graphic from The New York Times:
Month: July 2011
Students Have A Stake in The Debt-Ceiling Crisis
Any higher education students out there who think the whole Washington debate about raising the debt ceiling is just some hypothetical exercise that doesn't affect you, think again. If the debt ceiling isn't raised, then we don't know what the government will pay and what it won't pay in August and September. And Treasury isn't … Continue reading Students Have A Stake in The Debt-Ceiling Crisis
But What About National Debt-to-GDP Ratio? Not a Problem, Really
In the comments to my post on the extraordinarily weak 2nd qtr 2011 GDP numbers a reader asks for my thoughts about debt-to-GDP ratio and "how can we afford more stimulus"? Since my response will be a little long and others might be interested, I'll post it here. Reader AZLeader asks: Here are some other GDP … Continue reading But What About National Debt-to-GDP Ratio? Not a Problem, Really
Government Budget Cutting SLOWS the Economy – That’s Why It’s Called Contractionary Fiscal Policy
America's attention has been focused lately on the unnecessary debate in Congress over the debt-ceiling law. Part of the motivation (at least the vocalized motivation) for cutting the deficit and trying to limit the national debt, according to both Republicans and the President, is that supposedly government deficits are holding back the economy. They assert … Continue reading Government Budget Cutting SLOWS the Economy – That’s Why It’s Called Contractionary Fiscal Policy
The Great Recession Was Even Worse Than Thought
In yesterday's release of the 2nd quarter 2011 GDP numbers for the U.S., the BEA also revised some past numbers. This is not an unusual event. It's routine. But the news and revisions this year were disturbing and sobering. First, a little about how GDP numbers are reported. In this day and age of instant … Continue reading The Great Recession Was Even Worse Than Thought
What Happens If Debt Ceiling Is or Isn’t Raised – How It Plays Out (updated)
Yesterday I took a stab at describing what the consequences of a government default might be and I added to it here. There's basically three lessons to take away from those questions. One, nobody knows now exactly what happens, especially in financial markets. Two, it all depends on the specifics of a deal or no deal … Continue reading What Happens If Debt Ceiling Is or Isn’t Raised – How It Plays Out (updated)
GDP for 2nd Qtr: Economy In “Growth Recession” – Very Bad News
The Bureau of Economic Analysis released the "advance estimate" of 2nd Quarter 2011 GDP growth. The numbers are bad. Worse than most analysts expected. I'll let BEA explain: Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate … Continue reading GDP for 2nd Qtr: Economy In “Growth Recession” – Very Bad News
What Is Obama Waiting For?
I'm with Brad Delong and a host of others in wondering just why President Obama doesn't simply do away with this whole silly, unnecessary debate about the debt ceiling. Too much is at risk to continue this charade and silly theatrics. Brad summarizes for us: Does anybody have any doubt that any Republican President--Bush II … Continue reading What Is Obama Waiting For?
More on What Happens If Debt Ceiling Isn’t Raised
I've mentioned in many previous posts that government debt is really not like private debt. Instead government bonds are more like another type of currency or money. The key difference between government bonds and paper money is that bonds pay interest and money doesn't. That's about it. But it's a key point because government bonds, … Continue reading More on What Happens If Debt Ceiling Isn’t Raised
What Happens If Government Debt Ceiling Isn’t Raised? 2 Things That Might, 1 That Will, and 1 That Won’t
Anybody who tells you they know exactly what's going to happen if Congress doesn't raise the government debt ceiling before next week is just making it up. Reality is we don't know for sure. As Brad Delong notes (and Krugman and Nick Rowe), economists don't even have nicely worked-out theoretical models of what happens if … Continue reading What Happens If Government Debt Ceiling Isn’t Raised? 2 Things That Might, 1 That Will, and 1 That Won’t
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