Dispatches (X): The Economic Impact of Governor Walker’s Plans

And Walker (Still) Plans No-Bid Sales of Power Plants, the $7.5 million worth of damages to the Capitol building becomes $347,000 (maybe), and the expanding politicization of the civil service.

Economy-wide Impacts

From Wisconsin State Journal:

Gov. Scott Walker’s plans to balance the state budget by cutting spending and public workers’ take-home pay will slow the state’s economic recovery, according to projections by a UW-Madison economist.

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Price dynamics

A dominant class of economic theories is built on the assumption that prices respond only sluggishly to new economic conditions. It’s an interesting challenge to try to reconcile that premise with what we see in the data.

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Employment Prospects for Lower Wage Workers

I spent the better part of last Friday at an Institute for Research on Poverty conference, entitled “Employment Prospects for Lower Wage Workers: Easing the Implications of a Slow Recovery Conference”. It was a tremendous learning experience for me (since I’m not a labor economist), and a chance to be reminded of the full enormity of the challenges facing policymakers, as the economy limps in a fitful recovery, with little succor from further aggregate demand stimulus measures, and threatened by supply shocks as well as incoherence in fiscal policymaking. I mentioned the conference in a post last week, but the presentations and papers are now online.

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Guest Contribution: The Macroeconomic Aftermath of the Earthquake/Tsunami in Japan

By Ilan Noy

 

Today, we’re fortunate to have Ilan Noy, Associate Professor of Economics at the University of Hawai’i, as a Guest Contributor.


In the last 14 months, we have seen a spate of very large earthquakes which began with the unprecedented devastation caused by the earthquake in Haiti (1/10/10) — the most destructive natural disaster in modern history (relative to national population), continued with the unusually strong earthquake in Chile (2/27/10), to the most recent events generated by the earthquake in Sendai, Japan.

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