Public Policy in a Zero-Growth Scenario

December 27th, 2016
in macroeconomics


-- this post authored by Enrico Perotti

Per-capita income in developed countries has stagnated, which most economists regard as a departure from the long-run trend. This column argues that zero long-term growth will be the new normal. In this zero-growth world, spending increases must always be balanced against spending reductions elsewhere or in the future, which creates a further problem: no politician could implement policy changes with such bleak outcomes.

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Third Quarter 2016 GDP Growth is Impressive

December 25th, 2016
in consumer metrics institute, gdp

by Rick Davis, Consumer Metrics Institute

In their third and final estimate of the US GDP for the third quarter of 2016, the Bureau of Economic Analysis (BEA) reported that the growth rate was +3.53%, up +0.38% from their previous estimate and up +2.11% from the prior quarter.

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USA Election Results Show The Real Divide In America Is Economic

December 25th, 2016
in aa syndication, weekly economic summary

Written by

This past week, the electoral college confirmed Donald Trump was going to be the next USA President. He did not win the majority of popular votes cast - but won the majority of electors in the system designed by the founding fathers which was intended to prevent the more populous states from dominating the election process. Much of our economic policies seemed geared towards higher population areas, and falling short in rural America.

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Bidding War: The Quantity Theory of Money and the Price Level

by Philip Pilkington

Fixing the Economists Article of the Week

I was going to run a blog on Hans Albert’s critique of the quantity theory of money but it appears that Lord Keynes has gotten there ahead of me. I just wanted to pull out one point in this short note that he raised, as it proved to be one of the most difficult I encountered when trying to formulate a general theory of pricing.

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Minimum Wage Increases by US States Fuelled Earnings Growth in Low-Wage Jobs

December 21st, 2016
in employment, macroeconomics


-- this post authored by Sandra Black, Jason Furman, Laura Giuliano, and Wilson Powell

Over the past three years, 18 states plus the District of Columbia have implemented minimum wage increases, joining ten other states that have raised their minimum wages at least once since the last Federal increase in 2009. This column examines the impact of the more recent state increases on wages, weekly earnings, and employment among workers in the low-wage leisure and hospitality Industry. A comparison with states with no minimum wage increase since 2009 suggests that the recent legislation contributed to substantial wage increases with no discernible impact on employment levels or hours worked.

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