A New, New Normal For The U.S. Economy?
Mohammed El-Erian has declared that the US alone has escaped the “new normal,” a concept he coined in 2009 to predict subdued growth for the post-financial crisis economies. Now that […]
The Tax Cuts Might Not Stimulate The Economy At All
The tax cuts are not likely to boost business investment by much. But analysis from the San Francisco Fed show that fiscal stimulus during boom times is a lot less […]
Dormant Capital, An American Problem
Much of the effect of tax cuts for corporations depends on the notion that capital is scarce; it isn’t. Capital is abundant. The problem is much has accumulated at corporations […]
The Trump Economy Half A Year After The Tax Cuts
Half a year after the tax cuts the economy is on sound footing and unemployment at multi-decade lows. Proponents of the tax cuts claim they are responsible for an economic […]
Corporations Don’t Invest Enough
We’re experiencing a solid economy with low unemployment, but easy money and now fiscal stimulus are hiding underlying problems from sight. The biggest problem is perhaps disappointing business investment, which […]
Countries Are Not Companies
The US has some legitimate concerns about some trading partners, but the way it’s going about trade negotiations is deeply flawed. Large parts of the US trade team seems blissfully […]
The Great Slowdown?
There are signs that world economic growth is slowing down, although it’s not clear whether this is just a blip or the beginning of a more lasting trend. Lower growth […]
Another Own Goal?
The trade tensions between the US and China are heating up. Much of the US focus is on Chinese efforts to expand in high-tech industries in general and optical networking […]
Stock Buybacks As Economic Stimulus
One of the criticisms of the recent tax cut is that most of the corporate tax cuts are likely to go to share buybacks. Rather than trying to deny that, […]
An Overheating U.S. Economy?
Fiscal policy has thrown fire on what is already a very prolonged economic upturn. With capacity tight and structural growth restrained, there are some signs of a possible overheating of […]