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Inflation

Where Is That Inflation We've Been Waiting For?

Luis Ubiñas | Posted 10.17.2014 | Politics
Luis Ubiñas

Fear of resurgent inflation has been a defining element of U.S. economic policy over the last five years, driving federal spending reductions, personal income tax increases, and, just this month, the end of the Federal Reserve's Quantitative Easing program. But that broad-based inflation has not materialized and we are left asking why?

Recovery of the Rich, By the Rich, For the Rich -- Recession for Everyone Else

Anthony W. Orlando | Posted 10.17.2014 | Politics
Anthony W. Orlando

Officially, the recession ended five years ago. But there's something the financial newscasters don't tell you: Unless you're rich, those numbers don't apply to you.

Do Minimum Wage Increases Benefit the Middle Class?

Timothy J. Barnett | Posted 10.13.2014 | Business
Timothy J. Barnett

This is not to argue against minimum wage increases as much as to argue that this remedy must not be substituted for reforms at deeper levels.

Draghi's Desperation

Milton Ezrati | Posted 09.30.2014 | World
Milton Ezrati

The European Central Bank (ECB) faces a desperate situation. Remarkably low inflation is stealing its ability to ease the euro zone's fiscal-financial strains and, consequently, its ability to buy time for the zone's governments to implement desperately needed budgetary and economic reforms.

The Federal Reserve's Artful Compassion for Households in 'Sobering' Condition

Timothy J. Barnett | Posted 09.26.2014 | Business
Timothy J. Barnett

Glaringly absent in the Fed's policy platform is a commitment to a fair architecture for capitalism that equitably distributes the fruits of enterprise by providing incentives for ethically pricing each person's contributions to the sustainable public good.

Is The Federal Reserve Printing A Free Lunch?

Terry Burnham, Ph.D. | Posted 09.17.2014 | Business
Terry Burnham, Ph.D.

I continue to believe that this grand Keynesian experiment will end in tears. Furthermore, when it ends badly, future generations will not be able to believe our stupidity.

Argentina: Down the Tubes, Again

Steve H. Hanke | Posted 09.12.2014 | World
Steve H. Hanke

Property's worst enemy is theft: theft makes property insecure. And unless property is secure, it can't be accumulated and it is wasted. The increasing incidence of heists on grain, Argentina's most valuable export, indicates that property rights are becoming more insecure and that the economy only has one way to go: down the tubes.

The Inflation Fighters Want to Increase the Debt Burden on Our Children

Dean Baker | Posted 09.08.2014 | Business
Dean Baker

Are you worried about the government running deficits in the hundreds of billions of dollars and a debt in the trillions? If so, then you should be really angry at people calling for the Federal Reserve Board to raise interest rates.

Los Angeles Proposes A Higher Minimum Wage

Manuel Pastor | Posted 09.02.2014 | Los Angeles
Manuel Pastor

Why the muted effects on employment? Interestingly, what used to be a staple of traditional economics -- that minimum wage hikes trigger job cutbacks -- has found increasingly less evidence in the field.

The Real Financial Monster: Low Interest Rates

Terry Burnham, Ph.D. | Posted 09.04.2014 | Business
Terry Burnham, Ph.D.

The conventional wisdom: low interest rates are good for both economic growth and the stock market. Unfortunately for the conventional, the "wisdom" of low-rates-stimulate-growth omits three features.

Arguments Against Raising Minimum Wage Don't Hold Up

Peter Van Buren | Posted 08.27.2014 | Politics
Peter Van Buren

One in four U.S. employees are low-wage workers. That is 20 percent higher than in the United Kingdom, and the highest percentage among industrialized nations. So how'd that all anti-union stuff work out?

Yellen + Jackson Hole = More Growth

Harlan Green | Posted 08.25.2014 | Business
Harlan Green

The evidence is mounting, if not already there, that some higher taxation -- including a streamlining of the various tax codes that eliminates the perks -- is needed to spur continued growth. But when will the politicians finally wake up to that fact?

Yellen Warns That The Job Market Is Still Not Great

Reuters | Posted 08.22.2014 | Business

By Howard Schneider JACKSON HOLE, Wyo., Aug 22 (Reuters) - U.S. labor markets remain hampered by the effects of the Great Recession and the Federal...

Where Is the Inflation?

Harlan Green | Posted 10.22.2014 | Business
Harlan Green

It's a pity more of those "inflationistas," who cry wolf at the slightest hint of rising prices, haven't visited the FDR Memorial where some of his most telling words are engraved, such as: "The test of our progress is not whether we add more to the abundance of those who have much, it is whether we provide enough for those who have too little."

Here's How Much $100 Is Worth In Each City

The Huffington Post | Kevin Short | Posted 08.20.2014 | Business

$100 goes a lot further in Austin than it does in San Francisco. A new map, created by nonprofit research organization Tax Foundation using data fr...

Africa: The Good, the Bad and the Ugly

Steve H. Hanke | Posted 10.15.2014 | Politics
Steve H. Hanke

Last week, President Obama hosted the U.S.-Africa Leaders Summit in Washington, D.C. He welcomed over 40 African heads of state and their outsized entourages to what was a festive affair.

Is the Era of Big Ideas Over?

Tom Silva | Posted 10.14.2014 | Media
Tom Silva

Literally, big ideas don't stand a chance in our media environment. According to a study by the University of California, San Diego, the amount of info we receive on our mobile devices and at homes everyday takes about 15 hours to consume.

War, Liberalism, Trust in Government: The Many Casualties of LBJ's Gulf of Tonkin Resolution

Leonard Steinhorn | Posted 10.04.2014 | Politics
Leonard Steinhorn

The Johnson administration was looking for a pretext to escalate the war. "We don't know what happened," National Security Adviser Walter W. Rostow told the president after Congress passed the resolution, "but it had the desired result."

Bacon Prices Just Hit An All-Time High

The Huffington Post | Joe Satran | Posted 08.04.2014 | Business

The price of bacon keeps getting heftier. According to the Bureau of Labor Statistics, the average price of a pound of bacon in American cities ros...

Hey Kids: Keep the Noise Down! (GDP Version)

Jared Bernstein | Posted 09.29.2014 | Politics
Jared Bernstein

What happened in this recovery is that we settled into trend growth before we bounced back and repaired the damage. That's why the job market in particular has taken so long to recover.

The Tradeoff Between Inflation and Unemployment: What We Don't Know Can Hurt Us

Jared Bernstein | Posted 09.27.2014 | Business
Jared Bernstein

To assert that economists are having trouble figuring out the relationship between inflation and unemployment is like saying chefs can't figure out what to do with salt and pepper. It's that fundamental. Yet, we're befuddled, and that has powerful policy implications.

How To Fix Venezuela's Troubled Exchange Rate

Mark Weisbrot | Posted 07.24.2014 | World
Mark Weisbrot

Once the black market differential is big enough, it also increases the incentive for corruption; unlike selling cocaine, you don't even need risk to leaving this world in a hail of bullets if you can get access to official dollars at 6.3 Bf and sell them for 72 on the black market.

What Your Chipotle Burrito Is Trying To Tell You About The Economy

The Huffington Post | Mark Gongloff | Posted 07.22.2014 | Business

Have you recently eaten a Chipotle burrito in front of the TV while binge-watching one of your shows on Netflix? Maybe? Probably? If so, then you, my ...

Latvia, the Country Prof. Krugman Loves to Hate, Wins 1st Prize

Steve H. Hanke | Posted 09.17.2014 | World
Steve H. Hanke

Latvia, a country Paul Krugman loves to hate, takes the prize for the least miserable of the former Soviet Union countries in this sub-ranking.

We Need Some Inflation!

Harlan Green | Posted 09.07.2014 | Business
Harlan Green

Maybe raising the Fed's inflation target would encourage more demand and rising incomes, or are we as traumatized by the 1970s era of stagflation as the German's were in the 1920s?