General Economic News
Holiday spirit hinges on taxes, jobless benefits
Economists urge lame-duck Congress to tread carefully
Economic Policy? More Listen to Conservatives
The Republican takeover of the House has energized scholars and researchers whose views on taxes, regulation and the proper scope of government fell out of favor after Democrats swept control of Congress in 2006 and took the White House two years later.
Senate Passes Sweeping Law on Food Safety
The Senate passed a sweeping overhaul of the nation’s food safety system on Tuesday, after tainted eggs, peanut butter and spinach sickened thousands of people in the last few years and led major food makers to join consumer advocates in demanding stronger government oversight.
Euro Zone Members as U.S. States
Ireland is a small economy. How small? Its total output is roughly that of the state of Connecticut. But its troubles threaten to spread to other European economies, some small (like Portugal) and some sizeable (like Spain.)
What Austrian economics is – and what it is not
Austrian economics is a set of analytical propositions, not a set of policy conclusions or settled interpretations of history.
Productivity in U.S. Rises More Than Previously Estimated
The productivity of U.S. workers rebounded more in the third quarter than previously estimated, showing companies were focused on controlling costs.
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Health Care News
Deficit reduction plan would tax health insurance
No more tax breaks for employee health insurance plans, according to Bowles-Simpson deficit plan.
What happened in 1980?
Something, for sure; this is expenditures on health as a percentage of gdp:
Senate blocks repeal of health care provision
The Senate has rejected efforts to repeal a tax provision that helps pay for President Barack Obama's new health care law. The provision requires nearly 40 million U.S. businesses to start filing tax forms in 2012 for every vendor that sells them more than $600 in goods.
HHS cost rules put states in middle
With pressure mounting from lobbyists for insurance agents, state regulators are scrambling to decide whether they want to apply for exemptions from the new federal rules stating how much insurers must spend on medical costs.
House Approves One-Month Medicare 'Doc Fix'
The legislation postpones a 23 percent cut in doctors' pay scheduled to take effect Wednesday. The short-term package extends the 2.2 percent increase in Medicare reimbursement Congress approved in June through December and buys time for lawmakers to work out a longer-term fix.
Not Enough Doctors? Too Many? Why States, Not Washington, Must Solve the Problem
The states are far better equipped than the federal government to address increasingly complex and serious health care workforce issues. But by enacting the Patient Protection and Affordable Care Act of 2010, Congress swells the costs and role of the federal government, while ignoring the critical role that states can—and should—play as a consequence of their existing oversight of key workforce areas.
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Tax News
Mortgage Tax Break in Crosshairs
The chairmen, who head the National Commission on Fiscal Responsibility and Reform, told reporters Tuesday they would delay a final vote on their package until Friday, because they wanted to give the group's 16 other members more time to study their recommendations.
State Tax Revenue Continues Rebound, Grows 3.9% In 3Q
Tax collections increased 3.9% in the third quarter compared to a year earlier, based on data from 48 states, the report said; 42 of them showed gains in overall tax revenue.
The Dead Enders
Even after their defeat, Democrats keep insisting on a tax increase.
Ugly Tax Bill Is Washington As Usual
Americans may have voted for change in November, but for now it is business as usual in Washington. Just take a look at the messy tax legislation that is working its way through Congress under the euphemism of a ‘tax-extenders' bill.
Why the Spending Stimulus Failed
New economic research shows why lower tax rates do far more to spur growth.
Keep the Cuts, Cut the Breaks
A better approach would be to keep all the cuts, but only on the condition that we pay for them by junking the tax breaks that corrode our economy.
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Monetary News
Fed's Bernanke worries slow economy limiting job growth
The economy isn't growing fast enough to significantly reduce unemployment and low consumer confidence remains a barrier to a faster recovery, Federal Reserve Chairman Ben Bernanke said.
Is This the End of the Money-Printing Era?
If monetary stimulus ends and we start recognizing losses rather than trying to roll them forward, we can lay the foundation for a new era of prosperity.
Volcker Says Dollar's Role in Danger as U.S. Influence Declines
Former Federal Reserve Chairman Paul Volcker, who is chairman of President Barack Obama’s Economic Recovery Advisory Board, said the U.S. dollar is in danger of losing its role as a global benchmark currency.
The market is falling! The market is falling! And it has a long way down to go.
Real prosperity doesn't come from printing new money, and as long as the Fed thinks it does, it just delays the inevitable crash.
A Mono Mandate for the Fed?
If the Fed's mandate were different, monetary policy today might well be the same. That is, with inflation now below its target, the Fed could be pursuing QE2 even if it were operating under the proposed mono mandate.
QE2: Beware the Perils of Its Success
The Fed's plan is like a prescription that comes with a list of side effects that are often worse than the disease it was supposed to cure. Unintended consequences could include stagflation and higher interest rates.
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Employment News
Millions may lose jobless benefits as holidays loom
Extended unemployment benefits for nearly 2 million Americans begin to run out Wednesday, cutting off a steady stream of income and guaranteeing a dismal holiday season for people already struggling with bills they cannot pay.
Delta Air Lines is Hiring 1,000 New Flight Attendants; More Than 100,000 Applied
Delta Air Lines is having what might possibly be the most-popular job search in a long time: More than 100,000 people have applied for just 1,000 openings as flight attendants.
Private-sector job growth biggest in 3 years
Payrolls among private employers rose by 93,000 in November, the 10th consecutive month of increases, payroll processor ADP said in its report.
Don't Freeze Federal Pay. Cut It.
Improving Obama's wishy-washy plan to hurt some workers without helping others.
Initial unemployment claims: Lowest since July 2008
The government's weekly jobs report brought a bit of good news Wednesday, as the number of Americans filing for their first week of unemployment benefits sunk to its lowest level in more than two years.
FOMC members sour on growth, unemployment
The Federal Reserve’s governors and regional presidents have grown more sour on growth and unemployment, with some saying it could take more than six years for the jobless rate to return to normal levels, according to a summary of projections released Tuesday.
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Budget News
States face $41 billion in budget gaps
The start of the 2012 fiscal year is still seven months away for most states, but the gaps are already appearing.
After Meeting, Obama and Republicans Hopeful About a Deal on Bush Tax Cuts
On Tuesday, according to people in the room, both sides engaged in the kind of cross-party dealmaking that seems to have faded away in today's Washington.
Debt panel's plan would cut $4 trillion
Called "The Moment of Truth," the report is an amended version of a plan put out three weeks ago by the panel's co-chairmen, Erskine Bowles and Alan Simpson.
Commission's final deficit report preserves controversial spending cuts; panel to vote Friday on whether to endorse plan
The leaders of President Obama's fiscal commission released a final report Wednesday that is full of political dynamite, recommending sharp cuts in military spending, a higher retirement age and reforms that could cost the average taxpayer an extra $1,700 a year.
Europe Debt Fears Pile Pressure on Spain, Others
The yields on Spain's 10-year bonds jumped as high as 5.7 percent — a euro-era record difference of 3.05 percentage points against the benchmark German 10-year bond — before easing to 5.5 percent on the close.
New CR Ready, But Earmarks Handicap Endgame
The current CR expires Friday, and Congress must pass an extension before then to provide additional time for lawmakers to decide how to wrap up fiscal year 2011 spending; extend the 2001 and 2003 tax cuts, which expire at the end of the year; and extend unemployment insurance benefits, which begin to expire today.
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