Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries (and sometimes longer ones) of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number included.
This feature is published every day late afternoon New York time. For early morning review of headlines see "The Early Bird" published every dayin the early am at GEI News (membership not required for access to "The Early Bird".).
Capital Economics picks rapid US interest rate rise (Digital Look) Research firm Capital Economics has forecast faster rate hikes in the United States off the back of unemployment data. Policy rates in the US are heading for 3% by 2016, but only around 1% for the UK, it said in a note.
Senate Sends Fast-Track Free-Trade Bill to Obama for Signing (Bloomberg) The Senate sent President Barack Obama legislation granting fast-track trade-negotiation authority, a hard-fought victory intended to aid completion of an agreement with Pacific nations that is a top second-term priority. According to this article, Republicans have pledged to vote for a workers assistance bill to aid any whose jobs are lost because of trade under the TPP (Trans Pacific Partnership). There has been skepticism that the GOP would follow through on that issue. See next article.
TPP: 13 Democratic Senators Invite Republicans to Make Them Laughing Stocks and More Serious Matters (Joseph M. Firestone, New Economic Perspectives) This continues a series of articles about the congressional process and progress of fast-track legislation for trade treaties. One major focus repeated in this article concerns the issues of corporate interests usurping sovereign power through private "court systems" now embedded in trade agreements. Econintersect: It seems that the issue here is whether trade agreements are about trade or about freedom of corporations to get around sovereign laws of member nations. Previous articles in the series by Firestone posted on GEI Opinion include:
Tsipras Picks Up Baton After Euro Finance Chiefs Adjourn (Bloomberg) Greek Prime Minister Alexis Tsipras will pick up talks with creditors after euro-area finance chiefs adjourned saying a breakthrough over the terms of aid remained out of reach. A late night or all night meeting is now underway between Tsipras and creditors.
Landmark Dutch court ruling on greenhouse gas cuts could have international impact (The Globe and Mail) Hat tip to Lorne Warwick, Newsana. A district court ordered the Dutch government on Wednesday to cut greenhouse gas emissions faster than currently planned in a rare use of the legal system to curb global warming. A judge in The Hague said the state must “ensure that the Dutch emissions in the year 2020 will be at least 25% lower than those in 1990” as the Netherlands’ fair share to avert more heat waves, floods and rising sea levels.
Unlearning Economics: Power supply up, tariffs up too (Indian Express) Article says that, even as plants are idling and there is hardly any uptick in demand, the number of states that have sought a hike in power rates is steadily increasing. After some details are reviewed, the bottom line is that India has over built electrical generation capacity needed for current demand. Econintersect: The question is whether India will need the extra capacity in the future and, if it does, then what is the best policy now: pay to maintain capacity or mothball and restore capacity later?
Good Economics Meets Good Politics In Maharashtra (Swarajaya) Jalyukta Shivar Abhiyan, the ambitious irrigation scheme launched by the BJP-Shiv Sena government in Maharashtra, is proof of how meticulous planning and quality execution can impact the outcome of a government initiative.
Data from Europe (Walter Kurtz, The Daily Shot) Graphics from Kurtz show a possible new stabilization area for the euro and continuing good news from Eurozone PMI numbers.
Other Economics and Business Items of Note and Miscellanea
Lee-Rubio is, however, not a flat tax. Nor does it prioritize deeply cutting top personal income tax rates. In those two significant ways, what Rubio is offering is different than the plans being offered by some other GOP presidential candidates.
Still, the plan’s proposed top rate of 35% is six percentage points lower than the average top rate of 41% that existed during the 1983-2007 Long Boom. Oh, and it also completely eliminates investments taxes and radically transforms the corporate tax code. So pretty growthy.
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