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The vast majority of political journalists - and I include some of my conservative colleagues - are missing a very big story.
The Republicans are going to recapture the Senate, picking up more seats than most any forecaster expects. And the House GOP is going to add to its majority. But then comes the big story: The beginning of a new conservative revolution.
The idea that nothing much will change if the GOP captures the whole Congress is just plain wrong. The politics and policies in Washington are about to change in a major way.
Obama may still be president. But he is going to be…

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By speaking out on the issue of inequality, has Fed Chair Janet Yellen risked appearing as a ‘partisan hack’? That is certainly the view for some on the right. (For a nuanced version of the argument see AEI’s Michael Strain here - for a more polemical treatment, Diana Furchgott-Roth here.)No doubt there are some political risks here. But was she supposed to remain silent on inequality for her entire tenure? For the Chair of the nation’s most powerful economic institution to ignore one of most powerful economic trends of our time would be close to a dereliction of duty.Arguments are…

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As of Wednesday, almost 800,000 Californians have voted by mail, representing 9% of total registered vote-by-mail voters and possibly about 17% of total 2014 ballots. With the election rapidly taking place, it is important to remember that Californians are not just voting on candidates, but also ballot initiatives.
Two weeks ago, I examined the four propositions on the 2014 ballot (Propositions 1, 2, 47, and 48) that are important to pass. As noted, all six of California’s 2014 propositions are boring because none have a large and vocal voter constituency on both sides, making the campaigns…

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Entrepreneurs launching “disruptive technologies” are reshaping markets across the U.S. economy, often by disintermediation and innovation. While these new products and services provide consumers more choices and better value, regulators have place increased attention on these activities, from car services such as Uber and Lyft, to those offering accommodations like Airbnb, to pop up restaurants running afoul of local health codes. In many instances, these new products emerged because innovators were one step ahead of the regulators. But as the regulatory state grows, these innovators…

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It’s common to hear that Americans face a “retirement crisis.” In response, progressives have come up with their own solutions; including expanding Social Security and having the government run retirement plans for workers. In reality, though, the crisis is vastly overstated. And progressive solutions would do surprisingly little for those Americans who truly are underprepared for retirement. Real answers exist, but they are more about making government work better, than about making it larger.One prominent study claims that 53 percent of Americans won’t have enough income in retirement….

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The Federal Reserve’s talking heads have been hard at work over the last week. They have tackled issues ranging from early childhood education, to the Fed’s “duty to advance the maximum well-being of all citizens,” to regulatory compliance by financial firms. The Fed’s musings on topics far outside of its mandate seem odd for an institution that has a lot more thinking to do about-just to throw out a crazy suggestion-monetary policy. But the Fed’s regulatory mandate is also large, so its reflections on compliance are worth a closer look.New York Fed President William Dudley and Fed Governor…

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It is difficult to decipher why David Gordon of the Ludwig von Mises Institute is being so critical of Steve Forbes and Elizabeth Ames’ book Money: How the Destruction of the Dollar Threatens the Global Economy - and What We Can Do About It. His clearest objection is Forbes and Ames’ belief that money is a unit of measure that that needs a fixed gold price to remain a reliable and useful unit of value over time. In Gordon’s view this belief and this book are “odd”. Unfortunately, by the end of his review, the only “odd” thing is Gordon’s lack of understanding of some basic economic…

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Here’s a great example of using the right concepts and formulating a complex thought in a simple, retainable way. It’s from Daniel Henninger’s column in Thursday’s Wall Street Journal:
“The U.S. and Europe have paid a high price for six years of stimulus that didn’t stimulate, programmed consumption that fell short, regulatory expansions that froze private producers, and high tax-rate regimes that benefited the public-spending class and beggared everyone else . . .”
“Stimulus that didn’t stimulate”-a great phrase. It could be partnered with: quantitative easing that didn’t ease.
Foggy…

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Apple stock rose over 2 percent on Monday as the company announced an increase of 13 percent in its quarterly profit, and sales of 39 million iPhones. And in a few days the company will roll out ApplePay, increasing the demand for the iPhone 6. Instead of a credit card, all people will need is their iPhone, which can be activated with a secure fingertip to prevent fraud.
South Koreans and Japanese have been using their phones as credit cards and train tickets for the past decade, but America has yet to catch on. Apple’s entry into the mobile payment space is not the industry’s first, but it…

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The global economy is beginning to resemble 1982, a deflationary environment that climaxed with that summer’s Peso Crisis and aggressive intervention by Federal Reserve Chairman Paul Volcker. Although certainly not as strong as twenty-two years ago, another bout of deflation (or ‘disinflation’) is underway. The bad news is: Federal Reserve officials are only slowly recognizing it. The good news is: they have time to avert its destructive consequences.
The parallels between 1982 and 2014 are eerily similar, although the circumstances are wholly different. During the lead-up to both…

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Though it’s highly debatable that European economic weakness is what’s “rattling” global stock markets, to the New York Times this bit of conventional wisdom makes perfect sense. Forget the IMF’s hopeless track record when it comes to predicting much of anything, to the Times the IMF’s assertion about weakness has been accepted without protest.
Not surprisingly, the Times is similarly accepting of the view that says a lack of government spending is the source of European hardship. In a front page story last Friday Times reporters Jim Yardley and Jack Ewing wrote that “the largest European…

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The latest regulatory challenge for Tesla, the upstart electric vehicle (EV) manufacturer, concerns a potential roadblock to direct consumer distribution of its luxury automobiles in Michigan. Under H.B. 5606, which passed the Michigan Senate 38-0 and the Michigan House 106-1, a new motor vehicle cannot be sold directly to a retail customer other than through a franchised dealer in Michigan, with the exceptions being a nonprofit organization or governmental agency. Moreover, Tesla cannot operate a showroom or gallery featuring its automobiles and provides information without conducting…

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European bond yields had calmed down as people believed that the worst of the European financial crisis and economic problems were behind them. Yet, in the past month the yield on Greek bonds is up over 300 basis points, with a 100 basis point rise in one day last week. This is restarting fears that interest rates on other European country bonds will rise to unaffordable levels (they have crept up a little already). The problem, however, is not the yields but the level of debt with which the countries are now burdened. After all, the Greek bond yields are just a return to the old normal.The…

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You’ve had a scary seven-year ride on the U.S. Economy Bus Line. The bus went into the ditch once, and it stayed stuck there for 18 months. Since then, it’s come close to running off the road several times. There are 319 million other passengers on the bus with you, and this vehicle is your only way forward.
The bus has wifi, your laptop is open, your E-Trade account is up, and you are trying to decide whether to buy or sell U.S. Economy Bus Line shares.
Federal Reserve Chairman Janet Yellen is driving the bus. Economist Paul Krugman is sitting to the left of Ms. Yellen, with Dallas…

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The GOP should dare Obama to do more.
Steep stock market corrections often create shrouds of pessimism that do bad things to people’s brainpower. And one of the absolutely stupidest things I have heard in recent weeks is that the recent drop in oil prices is bad. You heard me right. Serious people on financial television are saying lower oil prices are a signal of worldwide economic collapse. Here at home that translates to recession, deflation, a profits collapse, and rising unemployment.
I’ve been around for a while, and I’ve seldom heard such gibberish.
The latest stock market scare stems…

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