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Monday, March 19, 2018
Are the Trump Tax Cuts Working and Does Anyone Care? If the tax cuts actually did produce the sort of investment boom promised by proponents, there would be a good case for cutting the corporate tax rate. We now have good preliminary evidence that the investment boom exists only in the realm of political propaganda. Workers will not be getting any big dividends from this tax cut.
Monday, March 19, 2018Are the Trump Tax Cuts Working and Does Anyone Care? If the tax cuts actually did produce the sort of investment boom promised by proponents, there would be a good case for cutting the corporate tax rate. We now have good preliminary evidence that the investment boom exists only in the realm of political propaganda. Workers will not be getting any big dividends from this tax cut.
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Thursday, March 15, 2018
If Trump wants to get reelected, he should rethink his Federal Reserve picks Most Americans don't pay much attention to the Fed. People usually perceive its decisions about interest rates and inflation as affecting only Wall Street and big investor types. But the Fed has an enormous impact on the lives of ordinary workers. When it chooses to raise interest rates, as it has been doing for the last 15 months, it is making a conscious decision to slow the economy.
Thursday, March 15, 2018If Trump wants to get reelected, he should rethink his Federal Reserve picks Most Americans don't pay much attention to the Fed. People usually perceive its decisions about interest rates and inflation as affecting only Wall Street and big investor types. But the Fed has an enormous impact on the lives of ordinary workers. When it chooses to raise interest rates, as it has been doing for the last 15 months, it is making a conscious decision to slow the economy.
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Monday, March 12, 2018
Steel Tariffs and Doctors: A Teachable Moment? Over the last four decades our trade policy had been quite explicitly designed to put steelworkers and other manufacturing workers in direct competition with low-paid workers in the developing world. Trade deals made it as easy as possible for US corporations to locate factories in Mexico and other developing countries and import their production back into the United States.
Monday, March 12, 2018Steel Tariffs and Doctors: A Teachable Moment? Over the last four decades our trade policy had been quite explicitly designed to put steelworkers and other manufacturing workers in direct competition with low-paid workers in the developing world. Trade deals made it as easy as possible for US corporations to locate factories in Mexico and other developing countries and import their production back into the United States.
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Sunday, March 11, 2018
Down on the Farm: More Hysteria About Steel Tariffs Changes in the dollar's value have much larger impacts on the fate of agriculture. There is essentially a world price for products like wheat, corn, and soy beans. If the dollar rises in value by 10 percent against the currencies of our trading partners, then the price of these goods in dollar terms will fall by roughly 10 percent.
Sunday, March 11, 2018Down on the Farm: More Hysteria About Steel Tariffs Changes in the dollar's value have much larger impacts on the fate of agriculture. There is essentially a world price for products like wheat, corn, and soy beans. If the dollar rises in value by 10 percent against the currencies of our trading partners, then the price of these goods in dollar terms will fall by roughly 10 percent.
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Tuesday, March 6, 2018
We Know What Bad Trade Policy Looks Like. But What About Good Trade Policy? Tariffs of 25 percent and 10 percent on all steel and aluminum imports, respectively, are, as has been widely reported, likely to do more harm than good. They may help protect the minority of workers in the targeted industries, but at some cost to the majority in others.
Tuesday, March 6, 2018We Know What Bad Trade Policy Looks Like. But What About Good Trade Policy? Tariffs of 25 percent and 10 percent on all steel and aluminum imports, respectively, are, as has been widely reported, likely to do more harm than good. They may help protect the minority of workers in the targeted industries, but at some cost to the majority in others.
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Tuesday, February 27, 2018
Employer-Side Payroll Taxes: Cuomo Goes to War Against Republican Tax Plan Cuomo's plan has a $40,000 zero bracket, which means the tax is not paid on the first $40,000 in wages. He also made it voluntary so that employers could opt into this payroll tax system -- thereby saving workers money on their income taxes -- but they would not be required to go this route.
Tuesday, February 27, 2018Employer-Side Payroll Taxes: Cuomo Goes to War Against Republican Tax Plan Cuomo's plan has a $40,000 zero bracket, which means the tax is not paid on the first $40,000 in wages. He also made it voluntary so that employers could opt into this payroll tax system -- thereby saving workers money on their income taxes -- but they would not be required to go this route.
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Tuesday, February 20, 2018
A Note to Media: Don't Tell Us Republicans Care About Deficits There is one point that should be very clear by now: Republicans do not act like people who are concerned about budget deficits. Given the opportunity, they pursue policies that increase budget deficits. This is not just true in the present; it was also true when George W. Bush and Ronald Reagan were in the White House.
Tuesday, February 20, 2018A Note to Media: Don't Tell Us Republicans Care About Deficits There is one point that should be very clear by now: Republicans do not act like people who are concerned about budget deficits. Given the opportunity, they pursue policies that increase budget deficits. This is not just true in the present; it was also true when George W. Bush and Ronald Reagan were in the White House.
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Saturday, February 17, 2018
The Washington Post's Long-Running Attack on Unions The immediate issue before the court is whether the government can sign a contract with a union that requires that everyone who benefits from union representation has to share in the cost of the representation. Under current law, companies can impose all sorts of conditions on their workers, such as wearing stupid hats, and even having insurance that comports with the boss's religious beliefs.
Saturday, February 17, 2018The Washington Post's Long-Running Attack on Unions The immediate issue before the court is whether the government can sign a contract with a union that requires that everyone who benefits from union representation has to share in the cost of the representation. Under current law, companies can impose all sorts of conditions on their workers, such as wearing stupid hats, and even having insurance that comports with the boss's religious beliefs.
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Wednesday, February 14, 2018
Jeff Bezo's Quest to Find America's Dumbest Mayor America eagerly awaits the next big event: the announcement of the winner in Jeff Bezos' contest to determine which combination of state and local governments is prepared to give him the most money to be home to Amazon's new headquarters.
Wednesday, February 14, 2018Jeff Bezo's Quest to Find America's Dumbest Mayor America eagerly awaits the next big event: the announcement of the winner in Jeff Bezos' contest to determine which combination of state and local governments is prepared to give him the most money to be home to Amazon's new headquarters.
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Thursday, February 8, 2018
Taking Issue with Paul Krugman, We're Still Not at Full Employment Labor markets can get considerably tighter before we start to see serious problems with inflation. This is an important issue because if we allow the Fed to crack down when there is still room for the economy to expand further we could be needlessly keeping millions of people from getting job and tens of millions from getting pay increases.
Thursday, February 8, 2018Taking Issue with Paul Krugman, We're Still Not at Full Employment Labor markets can get considerably tighter before we start to see serious problems with inflation. This is an important issue because if we allow the Fed to crack down when there is still room for the economy to expand further we could be needlessly keeping millions of people from getting job and tens of millions from getting pay increases.
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Tuesday, February 6, 2018
More Thoughts on the Stock Crash People who have invested heavily in the stock market have nothing to complain about. If they didn't understand that it doesn't always go up then they should keep their money in a savings account or certificates of deposit. In short, calm down. The economy is not going to collapse.
Tuesday, February 6, 2018More Thoughts on the Stock Crash People who have invested heavily in the stock market have nothing to complain about. If they didn't understand that it doesn't always go up then they should keep their money in a savings account or certificates of deposit. In short, calm down. The economy is not going to collapse.
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Monday, February 5, 2018
Donald Trump as Mr. Magoo Donald Trump will undoubtedly continue to boast about his great economy. He is right about the economy looking comparatively good, but the credit belongs to Federal Reserve Board Chair Janet Yellen and President Obama, not to Mr. Magoo in the White House.
Monday, February 5, 2018Donald Trump as Mr. Magoo Donald Trump will undoubtedly continue to boast about his great economy. He is right about the economy looking comparatively good, but the credit belongs to Federal Reserve Board Chair Janet Yellen and President Obama, not to Mr. Magoo in the White House.
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Monday, January 29, 2018
It's Still the Yellen-Obama Economy In the State of the Union address we are likely to hear Donald Trump boast about the great economy. He has a case, except he will be boasting about the economy of his fired Federal Reserve Chair Janet Yellen and President Obama, not one that he has yet been shaped by his policies.
Monday, January 29, 2018It's Still the Yellen-Obama Economy In the State of the Union address we are likely to hear Donald Trump boast about the great economy. He has a case, except he will be boasting about the economy of his fired Federal Reserve Chair Janet Yellen and President Obama, not one that he has yet been shaped by his policies.
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Tuesday, January 23, 2018
The Corporate Tax Cut Bonanza Corporate America is clearly putting on a public relations show to thank the Republicans who pushed through the tax cut. They are trying to convince people that the Republicans in Congress were doing something that was good for the country, not just rewarding big donors to their campaigns. But this is not the sort of stuff that the public should take seriously.
Tuesday, January 23, 2018The Corporate Tax Cut Bonanza Corporate America is clearly putting on a public relations show to thank the Republicans who pushed through the tax cut. They are trying to convince people that the Republicans in Congress were doing something that was good for the country, not just rewarding big donors to their campaigns. But this is not the sort of stuff that the public should take seriously.
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Monday, January 8, 2018
Big Tax Game Hunting: Employer-Side Payroll Taxes this tax increase was explicitly designed to make it more expensive for progressive states to provide services like health care and education to their people. In this context, it's time to take the gloves off. These states absolutely should look to fight back by finding ways to avoid the tax increase.
Monday, January 8, 2018Big Tax Game Hunting: Employer-Side Payroll Taxes this tax increase was explicitly designed to make it more expensive for progressive states to provide services like health care and education to their people. In this context, it's time to take the gloves off. These states absolutely should look to fight back by finding ways to avoid the tax increase.
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Tuesday, January 2, 2018
The Trump Investment Boom: Is It Really His Fault Oil Prices Jumped by 40 Percent The investment in the mining and oil sector is almost certainly far more attributable to the rise in world oil prices than anything Trump has done in office. Oil prices collapsed in 2015 and 2016, falling from close to $100 a barrel in 2014 to a low of $32 a barrel last year. This slump led to a plunge in investment in oil and mining in 2016.
Tuesday, January 2, 2018The Trump Investment Boom: Is It Really His Fault Oil Prices Jumped by 40 Percent The investment in the mining and oil sector is almost certainly far more attributable to the rise in world oil prices than anything Trump has done in office. Oil prices collapsed in 2015 and 2016, falling from close to $100 a barrel in 2014 to a low of $32 a barrel last year. This slump led to a plunge in investment in oil and mining in 2016.
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Tuesday, January 2, 2018
Rubbing SALT in the Wounds of Republicans Fortunately, there are ways to undermine the Republican effort. An obvious one is to partially replace the state income tax with an employer side payroll tax. This can lead to a situation in which the state tax on wage income ends up being fully deductible against federal income taxes even for people who do not itemize on their tax forms.
Tuesday, January 2, 2018Rubbing SALT in the Wounds of Republicans Fortunately, there are ways to undermine the Republican effort. An obvious one is to partially replace the state income tax with an employer side payroll tax. This can lead to a situation in which the state tax on wage income ends up being fully deductible against federal income taxes even for people who do not itemize on their tax forms.
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Monday, January 1, 2018
Dumb and Dumber: Trump on Amazon and the Postal Service The loss claimed by the Citigroup study is clearly wrong and Donald Trump is wrong to be using it to attack the Postal Service, Amazon, and Jeff Bezos. On the other hand, Amazon has gotten a subsidy worth tens of billions of dollars since its creation as a result of not being required to collect sales taxes in most states for most of its existence. So people do have serious cause to complain about Amazon.
Monday, January 1, 2018Dumb and Dumber: Trump on Amazon and the Postal Service The loss claimed by the Citigroup study is clearly wrong and Donald Trump is wrong to be using it to attack the Postal Service, Amazon, and Jeff Bezos. On the other hand, Amazon has gotten a subsidy worth tens of billions of dollars since its creation as a result of not being required to collect sales taxes in most states for most of its existence. So people do have serious cause to complain about Amazon.
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Wednesday, December 27, 2017
Diverting Class Warfare Into Generational Warfare: Round LVIII We're not supposed to talk about any of the items that will hurt the living standards of our children and grandchildren. The generational warriors insist that our children's problem is their parents' Social Security and Medicare. Their argument doesn't make much sense, but you can get lots of money for saying it, and you can count on getting your stale recycled arguments printed in the nation's leading publications.
Wednesday, December 27, 2017Diverting Class Warfare Into Generational Warfare: Round LVIII We're not supposed to talk about any of the items that will hurt the living standards of our children and grandchildren. The generational warriors insist that our children's problem is their parents' Social Security and Medicare. Their argument doesn't make much sense, but you can get lots of money for saying it, and you can count on getting your stale recycled arguments printed in the nation's leading publications.
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Friday, December 22, 2017
Corporations Are Trying To Sell The GOP's Narrative On Tax Cuts The Republican lawmakers have sold the corporate portion of their tax cuts with the claim that it is actually about helping workers. Their argument is that the corporate tax cut will lead to so much growth that the increase in wages will actually be considerably larger than the tax cut itself.
Friday, December 22, 2017Corporations Are Trying To Sell The GOP's Narrative On Tax Cuts The Republican lawmakers have sold the corporate portion of their tax cuts with the claim that it is actually about helping workers. Their argument is that the corporate tax cut will lead to so much growth that the increase in wages will actually be considerably larger than the tax cut itself.
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