The Daily Economy
|
Market Distortions at Home and Abroad
The Ludwig von Mises Institute hosted its annual Austrian Economics Research Conference earlier this month. The conference brings scholars together to discuss important issues facing the U.S. and global economies. Topics ranged from history to philosophy, the economy, and the financial system. Overall the conference focused on market distortions in the economy and the financial…
|
Economy Stronger than GDP Headline Suggests
Final estimates from the Bureau of Economic Analysis show real gross domestic product rose 2.1 percent in the fourth quarter of 2016 and 1.6 percent for all of 2016. Those results hide stronger performances in key domestic segments of the economy. Domestic demand, or real final sales to private domestic purchasers, comprised of consumer spending,…
|
Automation: Taking or Changing Jobs?
On Friday, Treasury Secretary Steven Mnuchin made headlines by saying that the displacement of jobs by artificial intelligence was “not even on our radar screen … 50-100 more years” away. This drew a host of shocked responses from those who point out that AI and automation have already eliminated millions of American jobs and may…
|
President Trump Pivots from Health Care to Tax Reform
Speaker Ryan pulled the American Health Care Act after failing to rally enough support from the House Freedom Caucus. The House Freedom Caucus consists of thirty fiscally conservative Republicans. The American Health Care Act would have rolled back much of the Affordable Care Act, or Obamacare. For the time being, President Trump plans to leave…
|
AIER’s Teach-the-Teachers Initiative: Classroom Focused
Finally we have arrived at the last, or sixth, criterion for exemplary professional development workshops for teachers, which is “classroom focused.” Check my previous blogs that analyze how AIER’s Teach-the-Teachers Initiative workshops satisfy other criteria such as sustainability, intensity, collaboration, being job embedded, and data driven. The recent report, “Bridging the Gap: Paving the Pathway…
|
The American Health Care Act Would Eliminate Government Mandates
President Trump demanded that the House vote on the American Health Care Act today. It is not certain if the American Health Care Act will pass. The House Freedom Caucus, an important conservative voting bloc, is not on board. If the American Health Care Act passes it will roll back much of President Obama’s signature…
|
A Simple Improvement to College Admissions
One big concern with U.S. higher education is low graduation rates. Barely half of enrollees at four-year institutions graduate within six years. Dropping out of college is a double blow to many students: they pay the direct costs of college for the time they were enrolled without earning the degree that would increase their future earnings…
|
Are We Ever Really in Equilibrium?
One mistake made frequently by economists is to focus on the destination rather than the journey. We like setting two sides of an equation equal, solving for a variable and focusing on that neat and tidy result. But a little common sense shows that even the most canonical equation in the field, “supply equals demand,”…
|
Inflation as Mud in the Economic Water
AIER has a long history of warning against the dangers of inflation (see, for instance, founder E.C. Harwood’s 1976 book, “The Money Mirage: Luring Businessmen, Savers, and Investors to their Economic Deaths”). Most observers of the economy are likely familiar with the most well-known of these critiques, such as the transfer of wealth from savers…
|
Existing Home Sales Fall Slightly but Remain at a High Level
Existing-home sales fell 3.7 percent in February but were still 5.4 percent above year-ago levels. Sales for February came in at a seasonally-adjusted annual rate of 5.48 million, down from 5.69 million in January. The February pace is well above the post-recession low of 3.45 million in 2010, but well below the housing-bubble peak of…
|
Greenspan on Gold
In the February 2017 edition of Gold Investor, published by the World Gold Council, former Federal Reserve Chairman Alan Greenspan provided his views on gold. In his interview for Gold Investor magazine, Greenspan makes several very important observations about the economy and the role of gold. First, the risk of inflation is beginning to rise…
|
The Federal Government Comes Up Against the Debt Ceiling
In 1917 a debt limit was established for WWI Liberty Bonds. The Treasury was allowed to issue Liberty Bonds up to a limit without asking for Congressional approval. This streamlined wartime financing. In 1939, an overall debt limit was established. According to the Bipartisan Policy Center, since the debt limit was established it has been…