From an opinion piece by Sean Fieler in USAToday:
If easy money delivers what it always has throughout history — growing inflation, growing inequality and growing government — a Republican embrace of sound money will offer America a way back to prosperity and the GOP a way back to a governing majority.
1. From my (undergraduate) Economics 390 “Topics in Macro” midterm:
Consider this statement:
“Borrowing and spending by the public sector will crowd out investment and growth in the private sector.” Paul Ryan, “Path to Prosperity” (April 2012).
1.1 In a standard IS-LM model, where investment spending is given by:
(7’) I = b0 – b2i
Will higher government spending crowd out investment? Use a graph to help explain your answer.
Raise the Minimum Wage!
In the wake of New Jersey’s raise in the minimum wage,[0] it seems like a good time to re-assess the case for a nationwide increase. Back in the February State of the Union message, President Obama proposed an increase to $9.00 by the end of 2015. Figure 1 places in historical context the proposal.
Still waiting for large, economy-wide job increases from the “shale revolution”
From reader Hans, commenting on the advisability of the reductions in Supplemental Nutrition Assistance Program (SNAP) expenditures, effective today:
You ax nothing from the recipient and everything from the tax slave…
(Updated with thoughts on “The Food Stamp President”)
From CBPP (10/24):
The 2009 Recovery Act’s temporary boost in Supplemental Nutrition Assistance Program (SNAP) benefits ends on November 1, 2013, which will mean a benefit cut for each of the nearly 48 million SNAP recipients — 87 percent of whom live in households with children, seniors, or people with disabilities.
Following up on the dollar’s status as an international currency (and how threats of default are not helpful), here is what we know about the dollar’s role as a reserve currency.
Reader Anonymous (Oct 25, 7:34AM) cites approvingly a ZeroHedge “analysis” that asserts the BLS tweaked the data to make it look like there was a big shift in employment from part time to full time. Here’s the ZeroHedge graph:
Against a backdrop of people who are dismissive of data and expertise, it is refreshing to see analysts rise to the challenge of tracking the economy while the government shutdown delayed the release of critical macroeconomic data. From Jim Stock of the CEA, “Economic Activity during the Government Shutdown and Debt Brinksmanship”: