US growth his hitting constraints from labor productivity and labor force growth. Big tax cuts will do little to solve these constraints. The US could do much better by embracing the artificial intelligence revolution, and it is already well placed to benefit from this. But the dislocation of labor AI will produce could very well […]
Entries Tagged as 'Economic Policy'
June 2nd, 2017 · Comments Off on Only The White Heat Of Technology Can Revive Growth
April 29th, 2017 · Comments Off on Will Trump Be The Next Ronald Reagan?
Can Trump do a Reagan? We have to wait for further details of his tax plan and see what survives Congress. However, we have to point out that there are some important historical differences which makes a repeat of the Reagan years much less likely. And this is even if you believe that tax cuts […]
April 29th, 2017 · Comments Off on The Limits Of Free Money
Investors have been much more savvy about how economies behave under excess savings than many policy makers and observers. While investors piled on and made a killing, many policy makers have overly worried about the risks of accelerating inflation and the state of public finances. That doesn’t mean the near free money that a savings […]
April 29th, 2017 · Comments Off on Boom Time For Liberals
The existence of excess savings over investment produces an economy that works differently. It basically enables the public sector to increase spending for free. This is most visible in the deleveraging stage after the burst of an asset bubble, where policy vice becomes virtue and public releveraging needs to compensate private deleveraging. But some of […]
April 6th, 2017 · Comments Off on A Curious Economic Riddle
From most of its economic data post financial crisis one would be inclined to think Belgium is a peripheral Southern European eurozone economy. The Dutch economy on the other hand is one of the most competitive in the world. Yet for most of the post-financial crisis period, the Belgium economy performed considerably better on growth, […]
January 2nd, 2017 · Comments Off on Trump Vs. China, Round One
Since China is considerably more dependent upon the US market, at first sight, it looks like the US is in a strong position versus China to deal with trade frictions. However, there is an obvious way China can hit back on any US-imposed import tariffs, stop defending its currency and let it float. In the […]
December 1st, 2016 · Comments Off on Build It And They Will Come
November 19th, 2016 · Comments Off on A Fiscal Trump Blitz!
June 19th, 2016 · Comments Off on The U.S. Needs A Supply Revolution
An increased regulatory burden is often blamed for the slowdown of US growth and decreasing economic dynamism. Much of this is simply the result of an increasing complexity of modern economic life. However, that doesn’t mean there are no problems with regulation, especially where they seem to favor large incumbents in markets who use the […]
May 16th, 2016 · Comments Off on The Stimulus Debate Still Rages, 5 Years On
Tags: Fiscal policy