According to the Congressional Budget Office (CBO) the U.S. has a cumulative output gap of $2.8 trillion so far since the recession began. That's trillion with a TR, as in a million millions. This is the core problem in the U.S. today and for the next couple years. The recession saw the economy shrink and … Continue reading The Mess We’re In – Trillions of Dollars of Missing GDP
Ok, normally I'm writing about the disastrous effects of changes in GDP. Today, though, I'm going to write about the effects of disasters on GDP. As I write this, it's mid-day on Saturday, Aug 27. Hurricane Irene has just hammered North Carolina and the Outer Banks. Irene is continuing in both it's push up the Eastern seaboard … Continue reading Hurricanes, Disasters, and GDP
As is normal practice, the BEA released the second estimate of 2nd quarter GDP growth. GDP growth was definitely even slower in 2nd quarter than previously reported. CalculatedRiskBlog tells us: From the BEA: Gross Domestic Product, Second Quarter 2011 (second estimate Real gross domestic product -- the output of goods and services produced by labor and … Continue reading GDP for 2nd Quarter Revised Downward
CalculatedRiskBlog tells us about a new major study of American workers and their retirement plans. The study is published by the Transamerica Center for Retirement Studies [note for students: the center is an excellent source of research data and analysis]. CalculatedRisks summarizes: From Rachel Ensign at the WSJ: For Many Seniors, There May Be No Retirement … Continue reading Not Retiring Is the New Retirement Plan For Many
From the Brian McFadden in the New York Times:
No wonder jobs aren't being created. The President listens closely to Jeffrey Immelt, the CEO of corporate welfare recipient large multinational General Electric about jobs policy. So what's GE doing about jobs? Bloomberg reports: General Electric Co.’s health-care unit, the world’s biggest maker of medical-imaging machines, is moving the headquarters of its 115-year-old X-ray business to … Continue reading President Obama’s Jobs Advisor Ships Jobs Overseas.
When people think about "income distribution" there's a tendency to think of it only in terms of what different people or households have available to spend. In other words, we focus on the fairness or equity of whether some households should only have a small amount of money to live off of vs. others who … Continue reading Income Distribution Does Matter. It’s Wrong Now and Stopping Growth.
Peter Dorman at Econospeak has an excellent post on the real challenges facing the U.S. today. It's the political economy that must change. It no longer serves the interests of the vast majority of Americans. We need more discussion and action at these levels> It’s the Political Economy, Stupid!, by Peter Dorman: Sometimes living in … Continue reading It’s the Political Economy That Must Change.
I'm still away on the road (which is why comments and questions in the last week have gone unanswered). However, while I'm away, here's a point made by Joseph Stiglitz at Project-Syndicate.org. John Maynard Keynes famously said that today's policy-makers are the slaves of defunct economists. Joseph says, and I agree, that today's policy makers … Continue reading A Contagion of Bad Ideas. Not Only Slaves to Defunct Economists, but Slaves to Bad Ideas.
One component of the deal to raise the debt-ceiling is a requirement that Congress vote later this year on a "Balanced Budget Amendment" to the Constitution. Is such an amendment a good idea? At first glance, the idea seems attractive to a lot of people for whom the debt and deficits are seen as the key … Continue reading Would a Balanced Budget Amendment Help or Hurt?