WASHINGTON-Another Labor Day is about to arrive, and once again, organized labor in the United States has little to cheer about.
Unemployment is high, union membership has fallen to 7 percent of the private sector labor force (down from 15% a quarter century earlier). Despite Democratic majorities in both houses of Congress, labor is unlikely to win passage of the Employee Free Choice Act, its heavily-lobbied bill to take away the secret ballot in elections for union representation and impose collective bargaining on employers.
And now a new problem looms for some of the larger unions. The…
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Author ArchiveCorporate profits are at all-time highs and bond rates in the Treasury market are virtually at record lows. That’s a good combination for stocks, and it helped trigger a 255 point rally in Wednesday’s trading. What’s more, a surprisingly positive read on the ISM August manufacturing report delivered a strong blow to the double-dip recession pessimism that has plagued investors for many months. We all know the facts: the economy is weak, job growth is anemic, a whiff of panic is in the air and the powers that be have little to offer in the way of solutions, except for more of the same failed policies.
Sep
01
2010
 
Book Review: Andrew Ross Sorkin’s Too Big To FailPosted by: realclearmarkets in RealClearMarketsThe financial struggles of 2008 led to myriad books on why the crack-up occurred, and many have been reviewed here. Andrew Ross Sorkin, a writer for the New York Times, approaches what happened differently. He has written a very interesting behind-the-scenes account of the people within government and finance who saw the crisis up close. When the Securities and Exchange Commission charged New Jersey with fraud last month for failing to disclose certain fiscal dealings to bond buyers, observers were quick to note that this might be the first of several actions from the agency, which has established a new, 30-person unit to pursue corruption in municipal finance. With thousands of young college graduates moving in with parents and returning Iraq War veterans facing long-term unemployment, President Obama is scrambling for cover. Monetary Policy: With the economy seemingly headed for a big slowdown or even a double-dip recession, it’s tempting to demand that the Fed print more money. The only problem is, it won’t work.
Aug
30
2010
It’s a Good Time to Index Taxes On CapitalPosted by: realclearmarkets in RealClearMarketsThe Modeled Behavior blog has been taking nominations for the 4% Club, which it describes as “An elite group of economists, pundits, and politicians” who want the Federal Reserve to raise its inflation target from 2%. Its members tend to the left side of the political spectrum, but not exclusively; one of the loudest champions of a higher inflation target is Scott Sumner, a right-of-center economics professor at Bentley University.
Aug
30
2010
1.6%: Weak GDP Does Not a Weak Economy MakePosted by: realclearmarkets in RealClearMarketsAt present there’s quite a lot to criticize President Obama about when it comes to his administration’s economic policies. But with regard to last Friday’s Gross Domestic Product (GDP) revision which allegedly points to a weakening economy, the anger should center on what a worthless number GDP is, as opposed to Obama’s admittedly limited worth as an economic strategist. The logic of the economic recovery isn’t working — or, at any rate, not well. By that logic, over-borrowed Americans would repay loans and replenish depleted savings, creating a temporary drop in consumer spending and economic activity. But once savings increased and debt declined, consumer buying would strengthen. It would replace the Obama stimulus program. Hiring would improve; the recovery would become self-sustaining. “It’s easy to criticize Social Security but how would you fix it?” ask defenders of the most popular middle class entitlement ever invented by a German dictator. Here’s how. On August 27, 2010, the BEA reduced its estimate for 2Q2010 GDP growth from 2.4% to 1.6%. This is far lower than the 3.7% growth seen in 1Q2010, much less the 5.0% growth reported for 4Q2009. Total employment declined by 495,000 during the three months ending in July. Opinion polls show that more Americans believe in UFOs than believe that “stimulus” helped the economy. Yet, despite the mounting evidence, the Administration, most Democrats in Congress, and many economists are clinging to “stimulus” the way Obama once accused some Americans of clinging to guns and…
Aug
27
2010
Will a Market Rally Follow Rep. Boehner’s Message?Posted by: realclearmarkets in RealClearMarketsIt’s a bit too early for House Republican leader John Boehner to measure the drapes and pick out new wallpaper. But the Intrade pay-to-play prediction markets are now showing a 76 percent chance of a GOP House takeover in November, along with a 60 percent probability that Republicans will capture at least seven new Senate seats. So Boehner’s lengthy broadside attack on Obamanomics at the City Club of Cleveland this week takes on special meaning. Headlines following the speech were all about Boehner’s call for the resignation of Obama policy generals Larry Summers and Timothy… Finance: Warnings about America’s impending financial car wreck are being sounded, loud and clear. The only question is whether those driving the car will slam on the brakes before it’s too late. WASHINGTON - How well is the stimulus working? This week saw disappointing data in durable goods orders and housing, prompting some economists to predict a double dip recession. |
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