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America needs more spectrum now

By Peter RoffSanta Cruz Sentinel

For us tail-end baby boomers, it’s probably true our view of what life might be like now was influenced by the “Back to the Future” series. Watching ‘Doc’ Brown and Marty travel just a few decades forward in time to a place where the Cubbies won the World Series, hoverboards were ubiquitous, and sneakers laced themselves seemed so wonderfully realistic we believed it was possible.

To be sure, some of the things depicted in “Back to the Future II” did come to pass. The Cubs did win a World Series – though not in the year predicted in the film. And technology has brought about other changes that, while not exactly like what was seen on screen, come close enough for government work that filmmakers Bob Zemeckis and Stephen Spielberg deserve a pat on the back for the visionary insight into how things might be.

One thing they got wrong was the whole business of flying cars. In the movie, they seemed to be standard transportation. In reality, they are just as tethered to the nation’s highways and byways as ever, with most of the innovations going toward fuel economy and alternative power plants. The idea of the airborne vehicle just never got off the ground.

Innovation, especially in the wireless sector, makes up for some of the disappointment. Surprisingly though, the intersection of communications technology and the automotive industry has not developed in the way people thought it might 20 years ago. That’s when the Federal Communications Commission established technology-specific rules for what it called “Dedicated Short Range Communications” in the 5.9 GHz band, reserving the space to allow cars, as it was put at the time, “to talk to one another” and to develop safety-related technologies.

A worthwhile effort to be sure, but other than a few heavily subsidized pilot projects that seem to hold little promise, there hasn’t been much movement toward the original vision, especially in the area of auto safety. At the same time, automakers have used other parts of the spectrum not reserved for these purposes to produce tremendous advances popular with consumers (like radar) and are using non-spectrum dependent tech like lidar, sensors, and cameras. Moreover, new auto communications technologies like CV2X want to access the 5.9 GHz band but can’t under the current rules that allow only for the original DSRC.

FCC Chairman Ajit Pai, who deserves great credit for keeping adaptations to the Internet from being slowed by bureaucratic impulses, is poised to break the logjam. Rather than allow for the 5.9 GHz band to continue to go unused, he’s apparently ready to engage in rulemaking that would carve off the lower end of the band for additional wireless broadband use, while preserving the upper reaches for future automotive safety needs.

Putting new Wi-Fi in 45 MHz of the 5.9 GHz band will create the country’s first contiguous 160 MHz channel, something that is critical to the deployment of next-generation Wi-Fi 6, which is expected to bring gigabit and high-capacity Wi-Fi to American consumers. The unlicensed spectrum available in this area can be used to support 5G deployment. Cisco reportedly expects 71 percent of 5G mobile data will be offloaded to Wi-Fi by 2022 – meaning current unlicensed spectrum resources will be insufficient to keep up with the changes.

It’s an excellent compromise, one that leaves the door open to future developments while recognizing the need for new broadband spectrum that exists today. In the two decades since the DSRC allocation, Wi-Fi has become a core communications technology relied upon in homes, businesses, factories, airports, and hospitals across the globe. It contributes more than $525 billion to the U.S. economy on an annual basis.
It’s earned the opportunity to expand even further.


European Union Slaps ‘New Kind Of Yellow Star On Jewish-Made Products’

A survey of 2,504 French adults found that 69 percent of respondents would not buy products labeled ‘made in Israel.’

By Melissa Langsam BraunsteinThe Federalist

Europe’s highest court isn’t exactly telling everybody to boycott Israeli food and wine. But they’re doing their darnedest to ensure Europeans don’t buy them.

For anyone who missed the news, the Court of Justice of the European Union (CJEU) ruled last week that food and wine produced by Jewish Israelis beyond the Green Line must be explicitly marked: “‘Israeli settlement’ or equivalent needs to be added, in brackets, for example. Therefore, expressions such as ‘product from the Golan Heights (Israeli settlement)’ or ‘product from the West Bank (Israeli settlement)’ could be used.”

Eugene Kontorovich, director of the Center for International Law in the Middle East at George Mason University Scalia Law School, considers the new labels “a new kind of Yellow Star on Jewish-made products.” He told The Federalist that the CJEU’s labeling requirements “are not geographic—they are not about where something was made but by whom.” Kontorovich added, “They’re not even pretending that the rules they’re applying to Israel are the rules they’re applying to the rest of the world.”

Readers may recall that when the court’s advocate general suggested such labeling earlier this year, his reasoning was that consumers needed “neutral and objective information.” But this outcome is neither neutral nor objective. As Marc Greendorfer, president of Zachor Legal Institute, which battles Israel boycotts, emailed, “That the court contravened established principles of international law to wrongly stipulate the status of the disputed areas (as occupied) exposes the fact that this ruling was about taking sides in a political dispute.”

“Labels are not the place to engage in political debate,” Brooke Goldstein, executive director of the Lawfare Project, which participated in this case, told The Federalist.Indeed, product labeling is supposed to be about health and safety. Labels also help consumers shop “ethically” or “responsibly.” But if a consumer factors politics into those decisions and wants to avoid Israeli goods, why is it so important to specify where in Israel those goods are produced?

According to a 2017 poll conducted by Opinion Way for the Lawfare Project, a survey of 2,504 French adults found that 69 percent of respondents would not buy products labeled “made in Israel.” That number rose to 75 percent if labels read “West Bank, Israeli colony/settlement.” So more detailed labeling would clearly shift some shoppers’ habits, but those figures are already startlingly high.

While the CJEU may not be declaring a boycott with this ruling— after all, it remains legal to import Israeli goods — they are nudging consumers in that direction. Even the U.S. State Department, which typically avoids criticizing allies, expressed “deep concern,” calling “the circumstances surrounding the labeling requirement . . . suggestive of anti-Israel bias.” They also rightly noted that “this requirement serves only to encourage, facilitate, and promote boycotts, divestments, and sanctions (BDS) against Israel,” a movement Germany’s own parliament considers antisemitic, and even Nazi-like.

This decision is not focused on informing consumers about unconscionable behavior across the globe (e.g., the Chinese government’s treatment of Uyghurs) or highlighting the world’s many disputed territories (see: Western Sahara, Cyprus, and Crimea for starters). It is about ostracizing the world’s only Jewish nation and unilaterally redrawing Israel’s borders via economic pressure.

The aforementioned French survey underscores just how widespread popular prejudice against Israel is in France, long home to Europe’s largest Jewish community. Rather than calm that prejudice, the CJEU panders to it, inflames it, and now embeds it in law. So it won’t be surprising if antagonism to Israel keeps rising in France and the rest of Europe. Stigmatizing Israel now has the gloss of official, legal respectability.

The whole episode is offensive. Consider, this long-awaited decision was scheduled for release on November 12. The U.S. Holocaust Memorial Museum reminds us that date is significant, as “just 2 days after the end of Kristallnacht [in 1938], the Nazi government issued the Decree on the Elimination of the Jews from Economic Life. Banned from owning shops or selling any kind of good or service, most Jews lost their livelihoods entirely.”

Further, by establishing a unique standard for Israel, this decision fits the internationally accepted definition of antisemitism, cited in the United Nations’ recent report on global antisemitism. So it’s rich for the European Commission to tell Fox News, “Any suggestion that indication of origin on products coming from Israeli settlements in the occupied Palestinian territory or in the occupied Golan has anything to do with targeting Jews or anti-Semitism is unacceptable. The EU stands strongly and unequivocally against any form of anti-Semitism.”

Check out that loaded word choice. Then consider that such critiques are fair game. The EU does not stand unequivocally against antisemitism. There are bright spots, like Austria’s second largest city banning support for BDS. However, European Jews are acutely aware that antisemitism is widespread and dangerous.

EU officials like Michael O’Flaherty, director of the European Union’s Fundamental Rights Agency, know that in spite of the many reported antisemitic crimes across the EU, 80 percent remain uncounted. “As one person asked [O’Flaherty], ‘Why would I report antisemitism to an antisemite?’” Over in Britain, which has not quite left the EU, nearly half of British Jews have said they “would ‘seriously consider’ emigrating if [Labour Party leader Jeremy] Corbyn is elected prime minister [in December].”

Seventy-four years after the Holocaust’s end, the EU is no haven for Jews. Nor is it a particularly reliable friend to Israel. Calling the decision “disgraceful,” Sen. Ted Cruz (R-TX) told The Federalist, “This labeling singles out Jews who live in communities where Europeans don’t think they should be allowed to live and identifies them for boycotts. It is reminiscent of the darkest moments in Europe’s history.”

Indeed, the CJEU may have forgotten, but world Jewry hasn’t. We also know that discrimination and other harms that start with Jews never end with us. So whether or not the timing was coincidental, Secretary of State Mike Pompeo’s announcing a reversal of Obama-era policy regarding Israel’s settlements certainly looks fortuitous, because this fight is far from over.


From Woke to Broke

Column: The political contradictions of progressivism

By Matthew ContinettiThe Washington Free Beacon

“The fact is there is no more money. Period,” says Chicago mayor Lori Lightfoot.

She’s talking about the teachers’ strike that has paralyzed her city’s public schools—enrollment 360,000—for the past week. The public employee union is demanding more: more money for salaries (only eight states pay teachers more than Illinois), more support staff (Illinois ranks first in spending on administrators), more teachers per student. Their cause has attracted national attention. Elizabeth Warren joined the picket line.

Which is ironic. Lightfoot is not some stingy Republican. Nor is she a centrist Democrat like her predecessor Rahm Emanuel. She’s as progressive as you can get. But she now finds herself in the same position as many of her political brethren: facing criticism for failing to reconcile the contradictions in the left’s agenda.

Lightfoot has discovered that there is no limit to the appetite of the constituencies generated by government spending. She has learned that the special interests bargaining for higher benefits also desire policies that make such benefits unattainable. I hope she’s taking notes.

Chicago Public Schools has run a deficit for the past seven years. Why? Pensions granted to earlier generations of teachers are expensive. And the cost is growing. A quarter of the school budget is devoted to benefits—money that can’t be spent on classrooms, facilities, and instruction. Expect that number to rise as America goes gray and the bill comes due for the promises we made to ourselves.

The federal government can put Social Security and Medicare on the credit card for as long as demand for U.S. Treasuries is high. States and municipalities don’t have that luxury. There is an upper bound to what even the most progressive mayors and governors can grant the lobbies that mobilize voters for their campaigns. But it’s a glass ceiling. Public sector unions are eager to break it.

Nor does being woke protect you. It’s impossible to appease fully the groups fighting to claim resources and honor. They often won’t take yes for an answer. GM might tout to investors the fact that it is “leading in gender equality.” That didn’t stop the UAW from striking.

Public policy inspired by the ethic of social justice inflames the tension between progressive leaders and the voting public. Andrew Cuomo might sympathize with Mayor Lightfoot. His fealty to environmental groups has backed him into a corner. Banning fracking and canceling pipelines hasn’t just denied New York revenues, jobs, and lower energy bills. It also led energy supplier National Grid to cancel gas hookups in Long Island. Cuomo had to retaliate before the company restored service. Want to be a progressive? Claim credit for resolving a crisis of your own making after threatening to unleash state power on private actors responding to price signals. Cuomo makes it look easy.

Gavin Newsom also has been struggling to reduce the conflict between the imperatives of the new progressivism and the quality of life of everyday people. He has his hands full. Rising numbers of homeless have led to a breakdown of public order in areas of Los Angeles and San Francisco. Land-use regulations have restricted the supply of housing, leading to high prices and shortages, and Newsom’s answer is statewide rent control that will make things worse. California’s budget depends so heavily on revenues from the wealthy that it might not recover from another out-migration like the one the state experienced after a 2012 tax hike.

Pacific Gas & Electric is a case study in the progressive self-own. The state-regulated utility spent years deferring maintenance while it invested in renewable energy and promoted the ideology of diversity, equity, and inclusion. Among the consequences of its neglect were terrible wildfires that devastated communities. The ensuing legal bills drove PG&E into bankruptcy. It says it’s been forced to engage in “de-energization”: purposeful mass blackouts to prevent further damage and legal action. In early October more than two million people were left in the dark. No house, no power, no prospects—welcome to the California Republic.

The contradictions of progressivism generate crises of affordability and governance. But the political class suffers few consequences. Chicago, New York, and California remain Democratic strongholds. What scattered opposition exists is internal to the political machine. On rare occasions parts of the coalition splinter from the whole and are able to defeat radical measures. Think of Bill de Blasio’s stalled plans to cancel entrance exams for New York City’s magnet schools. For the most part, though, the Democrats’ hold on power continues. It’s one monopoly progressives don’t seem to mind.

Are the voters in these communities merely complacent? Are they so content with the patchwork of benefits and status the jerry-rigged welfare state provides that they tolerate dysfunction? Or is the partisan alternative so appalling they won’t even consider it?

Questions worth pondering as progressives prepare to scale up their model nationwide. Who knows? One day, President Warren might be on the other side of that picket line.


Seattle’s Minimum Wage Has Been a Disaster, as the City’s Own Study Confirms

How Seattle provides a practical example of minimum wages leading to losses in income and employment

By Alex TabarrokFoundation for Economic Education

The Seattle Minimum Wage Study, a study supported and funded in part by the Seattle city government, is out with a new NBER paperevaluating Seattle’s minimum wage increase to $13 an hour and it finds significant disemployment effects that on net reduce the incomes of minimum wage workers. I farm this one out to Jonathan Meer on FB.

This is the official study that was commissioned several years ago by the city of Seattle to study the impacts of raising the minimum wage, in a move that I applauded at the time as an honest and transparent attempt towards self-examination of a bold policy. It is the first study of a very high city-level minimum wage, with administrative data that has much more detail than is usually available. The first wave (examining the increase to $11/hr) last year was a mixed bag, with fairly imprecise estimates.

These findings, examining another year of data and including the increase to $13/hr, are unequivocal: the policy is an unmitigated disaster. The main findings:

– The numbers of hours worked by low-wage workers fell by *3.5 million hours per quarter*. This was reflected both in thousands of job losses and reductions in hours worked by those who retained their jobs.

– The losses were so dramatic that this increase “reduced income paid to low-wage employees of single-location Seattle businesses by roughly $120 million on an annual basis.” On average, low-wage workers *lost* $125 per month. The minimum wage has always been a lousy income transfer program, but at this level you’d come out ahead just setting a hundred million dollars a year on fire. And that’s before we get into who kept vs lost their jobs.

– Estimates of the response of labor demand are substantially higher than much of the previous research, which may have been expected given how much higher (and how localized) this minimum wage is relative to previously-studied ones.

– The impacts took some time to be reflected in the level of employment, as predicted by Meer and West (2016).

– The authors are able to replicate the results of other papers that find no impact on the restaurant industry with their own data by imposing the same limitations that other researchers have faced. This shows that those papers’ findings were likely driven by their data limitations. This is an important thing to remember as you see knee-jerk responses coming from the usual corners.

– You may also hear that the construction of the comparison group was flawed somehow, and that’s driving the results. I believe that the research team did as good of a job as possible, trying several approaches and presenting all of their findings extensively. There is no cherry-picking here. But more importantly, without getting too deep into the econometric weeds, my sense is that, given the evolution of the Seattle economy over the past two years, these results – if anything – *understate* the extent of the job losses.

This paper not only makes numerous valuable contributions to the economics literature, but should give serious pause to minimum wage advocates. Of course, that’s not what’s happening, to the extent that the mayor of Seattle commissioned *another* study, by an advocacy group at Berkeley whose previous work on the minimum wage is so consistently one-sided that you can set your watch by it, that unsurprisingly finds no effect. They deliberately timed its release for several days before this paper came out, and I find that whole affair abhorrent. Seattle politicians are so unwilling to accept reality that they’ll undermine their own researchers and waste taxpayer dollars on what is barely a cut above propaganda.

I don’t envy the backlash this team is going to face for daring to present results that will be seen as heresy. I know that so many people just desperately want to believe that the minimum wage is a free lunch. It’s not. These job losses will only get worse as the minimum wage climbs higher, and this team is working on linking to demographic data to examine who the losers from this policy are. I fully expect that these losses are borne most heavily by low-income and minority households.


Hawley: How American Elites Threaten Our Common Liberty

By Madeline Osburn The Federalist

On Saturday, U.S. Sen. Josh Hawley addressed the class of 2019 at The King’s College in New York, where he called on the graduates to reject the Pelagian worldview that dominates our public way of life.

Hawley, who has also recently questioned the uses of social media and railed against Facebook for data and privacy violations, noted that Pelagius was loved by the wealthy, educated aristocrats of Rome, “because he validated their position and their power.” He called out the elites of Wall Street and Silicon Valley in his commencement address for the same Pelagian love of hierarchy enforced on Americans today.

Pelagius was a British monk and a moralist who rejected Saint Augustine’s views on sin and grace for a different view of human freedom and prosperity, in which freedom was earned. Hawley discussed how the elites of American society implement a Pelagian worldview, and ultimately threaten freedom for all humans.

A society that is divided by class, where one class has all the advantages, is a society gripped by hierarchy. It is also a society defined by elitism. Of course, our elites don’t use that word. They say their privileged position comes from merit and achievement. They point to their SAT scores and prestigious degrees. They talk about economic efficiency.

How Pelagian of them.

The truth is, the people at the top of our society have built a culture, and an economy, that work mainly for themselves. Our cultural elites look down on the plain virtues of patriotism and self-sacrifice. Things like humility and faithfulness. They celebrate self-promotion, self-discovery, self-aggrandizement. Self. Self. Self.

And then when industry shifts jobs overseas they say, well, workers should find another trade. I mean, capital must be allocated to its most efficient use.

When workers without college degrees can’t get a good job, they say, that’s their fault – they should’ve gone to college.

Now, I rather suspect – it’s just a hunch – that if globalization threatened America’s tech industry or it’s, say, banking sector, that we would hear a different tune. I slightly suspect we would hear that these industries are the lifeblood of the American economy and must be defended at all costs. And that’s just my point. The elites assume that their interests are vital, while everyone else’s can be done without. They assume their value preferences should prevail, while denigrating the loves and loyalties of the great middle of America. That’s the nature of elitism. And at the end of the day, this hierarchy, and this elitism, threaten our common liberty. For the steady erosion of working-class jobs and working-class life for millions of Americans means losing respect, it means losing their voice, it means losing their standing as citizens in this nation.

Our Pelagian public philosophy says liberty is all about choosing your own ends. That turns out to be a philosophy for the privileged and for the few. For everybody else, for those who cannot build an identity around what they buy, for those whose life is anchored in family, and home, and nation, for those who actually want to participate in our democracy, today’s Pelagianism robs them of the liberty that is rightfully theirs. And we cannot afford to let it to happen any longer. The age of Pelagius must end.


Ocasio-Cortez backs green policies that would hurt the poor and cripple our economy

By Liz Peek • Fox News

Alexandria Ocasio-Cortez promises that going green – removing all fossil fuels from our energy mix – will “establish economic, social and racial justice in the United States.”

In fact, her proposal would cripple our economy and hurt our poorest citizens.

Ms. Ocasio-Cortez has admirable passion, but needs some schooling in energy economics. The cost of renewable energy is dropping fast, but is still more expensive in many applications than traditional fossil fuels like coal or oil. That’s one reason that adoption of wind and solar power has been slow, and that many countries, including the United States, underwrite renewables with subsidies and tax credits. The International Energy Agency predicts in its 2018 report that “the share of renewables in meeting global energy demand is expected to grow by one-fifth in the next five years to reach 12.4% in 2023.” Continue reading


Elizabeth Warren’s Corporate Catastrophe

By Samuel Hammond • National Review

The ability of businesses to grow rapidly is a one of the most defining and precious features of the American economy. Amazon went from a fledgling online bookstore to an “everything store” and the second-largest employer in the United States in just two decades. Uber emerged from nowhere less than ten years ago to become a dominant transportation option in cities around the world. And earlier this month, Apple became the first U.S. public corporation to reach a $1 trillion valuation — a far cry from its sorry state in 1996, when it looked doomed to fail.

It’s not just the information sector. The United States is home to 64 percent of the world’s billion-dollar privately held companies and a plurality of the world’s billion-dollar startups. Known in the industry as “unicorns,” they cover industries ranging from aerospace to biotechnology, and they are the reason America remains the engine of innovation for the entire world.

Unless Elizabeth Warren gets her way. In a bill unveiled this week, the Massachusetts senator has put forward a proposal that threatens to force America’s unicorns into a corral and domesticate the American economy indefinitely.

Dubbed the “Accountable Capitalism Act,” Warren foresees Continue reading


Beware the Scent of Musk

By Peter RoffCagleCartoons

Everyone’s still talking about the dramatic tumble in the price of Facebook stock which, if the estimates are reliable, had left its founder – Mark Zuckerberg – more than $10 billion poorer than he was at the start of the month.

It’s a big loss to be sure, but not as potentially significant as the one experienced at Tesla, the electric car company founded by Elon Musk. The price Tesla stock has dropped over 21 percent since the middle of June, and could spend the rest of the summer on a roller coaster ride that leaves investors dizzy.

It not only investors who should be cautious. The U.S. government has partnered, may partner, or is thinking about partnering with Musk on projects financed by tax breaks and tax dollars. That translates to our money, and we’re right to expect Uncle Sam to take good care of it.

Continue reading


There is No Such Thing as Trickle-Down Economics

by Steven Horwitz • Foundation for Economic Education

Critics of liberalism and the market economy have made a long-standing habit of inventing terms we would never use to describe ourselves. The most common of these is “neo-liberal” or “neo-liberalism,” which appears to mean whatever the critics wish it to mean to describe ideas they don’t like. To the extent the terms have clear definitions, they certainly don’t align with the actual views of defenders of markets and liberal society.

Trickle Down

Economists have never used that term to describe their views. Another related term is “trickle-down economics.” People who argue for tax cuts, less government spending, and more freedom for people to produce and trade what they think is valuable are often accused of supporting something called “trickle-down economics.” It’s hard to pin down exactly what that term means, but it seems to be something like the following: “those free market folks believe that if you give tax cuts or subsidies to rich people, the wealth they acquire will (somehow) ‘trickle down’ to the poor.” Continue reading


D.C. Restaurants Lose Eight Jobs a Day as Wage Hikes Take Effect

by Bill McMorris • Washington Free Beacon

Restaurants in the nation’s capital experienced their worst hiring period in 15 years, fueling speculation that wage hikes are reducing employment opportunities.

Employment in the food service industry fell in Washington, D.C. even as it continued to increase in the region. Restaurants shed 1,400 jobs in the first six months of 2016, a three percent decrease and the largest loss of jobs since the 2001 recession, according to an analysis from American Enterprise Institute scholar Mark Perry.

The steep drop was isolated to D.C. Neighboring suburbs in Virginia and Maryland added nearly 3,000 jobs over the same period, a 1.6 percent increase in hiring. Continue reading


30% of Businesses Say They Would Eliminate Jobs As A Result of $15 Minimum Wage

37 percent of businesses say they would increase the price of goods

By Ali Meyer

Thirty percent of businesses said they would eliminate jobs if the minimum wage were increased to $15 an hour, according to a survey from Express Employment Professionals.

The survey asked 390 businesses in the United States and Canada what effect the increase in the minimum wage would have on their operations.

Thirty-seven percent of businesses said they would increase the price of goods, 30 percent of businesses said they would eliminate positions, and 20 percent of businesses said they would increase other wages in the company.

A majority of the businesses surveyed, 82 percent, said they do not pay the current minimum wage for some positions while 18 percent of respondents said they do.

“A $15 minimum wage has certainly become a political hot topic,” said Bob Funk, CEO of Express Employment Professionals. “There’s no doubt it makes for a good talking point, but the real question is whether it makes good economic sense.”

“While some workers will see a raise, which is good news, this survey shows that there are clear negative consequences for raising the wage to $15,” said Funk, who was also a former chairman of the Federal Reserve Bank of Kansas City. “Policymakers should always keep in mind the unintended consequences of their actions.”


The Global Slowdown Hits the U.S.

America dodged the Asian financial crisis of 1997-98, but much has changed. Today’s world economic slide is starting to hurt us.

by Ruchir Sharma     •     Wall Street Journal

globe-handsPlunging stock prices and slowing economic growth in China have raised anew the question of how much events abroad really matter to the U.S. Many of the answers are quite placid, drawing on the precedents of the 1997-98 Asian financial crisis, when there was similar concern about impacts at home, which never came. The U.S. grew at a 4.5% annual pace during those two years. For much of 2015, when U.S. growth remained steady despite volatile and weak growth in the rest of the world, the optimists said it was like 1997-98 all over again.

That may be, but the world has changed a lot in two decades. After 1998, the U.S. share of global GDP topped out at 32% but has since fallen to 24%, based on my analysis of raw data from the International Monetary Fund, while the emerging-world share bottomed out at 20% but has since doubled to nearly 40%. In that time, China has supplanted the U.S. as the largest contributor to global growth. Continue reading


A recession worse than 2008 is coming

by Michael Pento     •     CNBC

2852.EconomicRecessionThe S&P 500 has begun 2016 with its worst performance ever. This has prompted Wall Street apologists to come out in full force and try to explain why the chaos in global currencies and equities will not be a repeat of 2008. Nor do they want investors to believe this environment is commensurate with the dot-com bubble bursting. They claim the current turmoil in China is not even comparable to the 1997 Asian debt crisis.

Indeed, the unscrupulous individuals that dominate financial institutions and governments seldom predict a down-tick on Wall Street, so don’t expect them to warn of the impending global recession and market mayhem.

But a recession has occurred in the U.S. about every five years, on average, since the end of WWII; and it has been seven years since the last one — we are overdue.
Most importantly, the average market drop during the peak to trough of the last 6 recessions has been 37 percent. That would take the S&P 500 down to 1,300; if this next recession were to be just of the average variety. Continue reading


Do average folks get fair shot anymore?

We used to make sure all Americans could lead a pretty good life

by Jon Margolis     •     Pittsburgh Post Gazette

One day last winter, Tom Ashbrook and his guests on his “On Point” public radio call-in program were talking about jobs and wages when a caller from Omaha named Valerie asked a blunt but valuable question.

Half the people, Valerie said, have an IQ of less than 100. “What do we do with all the ‘dumb’ people?” she wondered.

That sounds heartless, but Valerie didn’t seem to be scorning anyone as much as sympathizing with the increasingly bleak prospects some people are facing.

Valerie’s was not an original insight. Years earlier, the late columnist Murray Kempton noted that ours was a “society which, more lavishly than any in history, has managed the care and feeding of incompetent white people.” Continue reading


FDR’s policies prolonged Depression by 7 years, UCLA economists calculate

by Meg Sullivan     •     UCLA Newsroom

2852.EconomicRecessionTwo UCLA economists say they have figured out why the Great Depression dragged on for almost 15 years, and they blame a suspect previously thought to be beyond reproach: President Franklin D. Roosevelt.

After scrutinizing Roosevelt’s record for four years, Harold L. Cole and Lee E. Ohanian conclude in a new study that New Deal policies signed into law 71 years ago thwarted economic recovery for seven long years.

“Why the Great Depression lasted so long has always been a great mystery, and because we never really knew the reason, we have always worried whether we would have another 10- to 15-year economic slump,” said Ohanian, vice chair of UCLA’s Department of Economics. “We found that a relapse isn’t likely unless lawmakers gum up a recovery with ill-conceived stimulus policies.” Continue reading


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