Category Archives: deficits

But you said that more saving was a good thing

After many of us have been arguing for some time that an increase in the U.S. personal saving rate was key for promoting long-run growth and reducing the trade deficit, the American consumer finally obliged with a 0.5% drop in consumption spending in August. But analysts such as Angry Bear and Macroblog see this as an ominous development. So which is right– is more saving a good thing or a bad thing for the economy?

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The space pioneers

You have to wonder about the timing, if nothing else. Last week, Cato Institute researchers warned of a looming budget disaster if strong measures such as cutting the budget for the National Aeronautics and Space Administration in half were not taken. On Monday, NASA chief Michael Griffin unveiled a new $104 billion plan for sustained human exploration of the moon by 2018 as a preparatory step for getting people on Mars. Here’s my suggestion for how to explore space without breaking the budget.

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