Must-Read: Noah Smith: Growth Fantasy of Tax Cuts and Small Government

Must-Read: Noah Smith: Growth Fantasy of Tax Cuts and Small Government: "Jeb Bush says that if he's elected president he wants to get us to sustained gross domestic product growth of 4 percent a year... ...I'm highly skeptical, and I'm far from the only one. But there are some true believers... John Cochrane, for example, has a long list of structural reforms that he thinks will do the trick. Now some of these are probably good ideas, and some are probably bad. But... belief that... More >

Must-Read: Paul Krugman: Fire Phasers

Must-Read: Paul Krugman: Fire Phasers: "Jeb Bush doesn’t just want Americans to work more hours; he also wants to ‘phase out’ Medicare.... ...Fact-checking organizations please note, by the way. The next time Democrats say that Republicans want to destroy Medicare, and Republicans start screaming that this is a lie, remember that when talking to their own people like Jeb themselves call what they’re proposing a plan to, yes, end Medicare.... The original idea... was that Medicare... a single-payer system of government insurance... could not act... More >

Must-Read: Michael Derby: Dallas Fed Struggles to Fill Fisher’s Big Shoes

Must-Read: Richard Fisher became President of the Federal Reserve Bank of Dallas in April 2005. He spent ten years as a regional bank President. I cannot think of a single case in which he was pulling the Federal Reserve Open Market Committee toward a more correct assessment of the current economic situation and of the major risks to it. And I cannot think of an episode in which, after events had proved his views of major risks erroneous, he ever marked his beliefs to market... More >

Must-Read: Jaume Ventura and Hans-Joachim Voth: Debt Miracle

Must-Read: The process of creating a market--especially as delicate and complicated a market as a market for debt and equity investments in relatively large-scale enterprises--is not a straightforward process. Here Venture and Voth argue that the spillovers from the creation of the "technology" of a debt marketplace were enormous, as only after the government had dug the channels through which debt would flow for its own war-fighting purposes could first canal companies, then manufacturing companies, and then railroad companies take advantage of them. Jaume Ventura... More >

Must-Watch: Alan Krueger: Labor Force Participation

Must-Read: Really, really bad news for the American economy. Alan Krueger concludes that we are now near "full employment" in a monetary policy-Federal Reserve-inflation sense. The implications? The implications are: that the failure of the government and the Federal Reserve to more aggressively boost recovery has turned what was excess cyclical non-employment into structural non-employment, that essentially none of the drop in production relative to the pre-2008 trend can or will be recouped without noticeably higher inflation. Alan Krueger: Labor Force Participation: Via Mark Thoma.... More >

Must-Read: Steven Greenhouse: Jeb Bush ‘Should Be Embarrassed’ by His Overtime Pay Claims

Must-Read: Steven Greenhouse: Jeb Bush 'Should Be Embarrassed' by His Overtime Pay Claims: "Jeb Bush... said Barack Obama’s proposal to expand overtime pay... ...would result in “less overtime pay” and “less wages earned”.... Daniel Hamermesh, a University of Texas labor economist, said: “He’s just 100% wrong,” adding that “there will be more overtime pay and more total earnings” and “there’s a huge amount of evidence employers will use more workers”.... Indeed, a Goldman Sachs study estimated that employers would hire 120,000 more workers in response... More >

Worth Attending If in Town: Bernie Sanders: Conference on the Greek Debt Crisis

Worth Attending If in Town: Bernie Sanders: Conference on the Greek Debt Crisis: Rm 902 Hart Senate Office Building. 2:30 PM, Thursday July 30th... ...Participants: U.S. Sen. Bernie Sanders. Joseph Stiglitz, Senior fellow and chief economist at Roosevelt Institute. James Galbraith, University of Texas. Jacob Funk Kirkegaard, Peterson Institute for International Economics. Stephanie Kelton, University of Missouri – Kansas City

Must-Read: Paul Krugman: The Euroskeptic Vindication

Must-Read: Paul Krugman: The Euroskeptic Vindication: "Conventional Hicks/Keynes macroeconomics--whether or not you dress it up in New Keynesian algebra--has performed very well... ...Anti-Keynesians keep making more or less desperate efforts to refute this proposition, usually by taking something I said out of context and pretending that something that happened for one year somewhere or other is contrary to what the Evil One claimed. But the overall shape of events has been very Keynesian, and very much at odds with alternative stories. And at this point... More >

Must-Read: Harold Pollack, Bill Gardner, and Timothy Jost: Valuing Medicaid

Must-Read: I had always thought that we had a mixed economy and the social safety net in large part to counter and correct the market's judgment as to who deserved to have resources used for their benefit. And I had always thought that this was an obvious and well-understood part of benefit-cost analysis. Have I in fact been wrong? Is this not well-understood? Do the younger economists--the kids these days!--Really think that the rights function for assessing societal well-being roughly multiplies each person's utility by... More >

Must-Read: Ezra Klein: On Paul Krugman’s Theory of Hipsters

Must-Read: Ezra Klein: On Paul Krugman's theory of hipsters: "Krugman suggests that hipsters are signaling a rejection of the workaday bourgeois world by flouting conventional dress codes... ...I think the truth is closer to the opposite: They're signaling a mastery of the workaday bourgeois world by flouting conventional dress codes. You can find a gentler version of this in Silicon Valley, where hackers proved their skills so valuable that they won the right to dress however they wanted. Eventually, shorts and sandals became something weirdly... More >