August 10th, 2011 — Economics and Investing
My last book review for The Library Journal was about the original edition of Bruce R. Barlett’s Reaganomics: Supply Side Economics in Action, with introduction by Jack Kemp, published in 1981. Library Journal reviews are specifically written by librarians for librarians, so they are exceedingly economical – they run 25 lines or less of a narrow column. Normally the editors of LJ didn’t change my reviews, but this editor did. She took my assessment that Mr. Bartlett was an was “articulate” spokesman for his group’s views. She turned that into a notion that Mr. Bartlett’s presentation about supply-side economics were “accurate”.
As soon as I saw her mistake I contacted her. We debated the issue. “Articulate,” I said meant “well-said”, but not necessarily “correct”. She insisted that “logical” equalled “right.” With no promise that my meaning wouldn’t be edited again in the future, I resigned as reviewer.
I respected Jack Kemp and Bruce Bartlett, but I sure didn’t agree with their views. And now I’m dismayed to see how their views are being even rendered into something even more “wrong” for the US. Here is why the US Government is at an economic impasse. Continue reading →
August 2nd, 2011 — Jobs
“These jobs are goin’ boys and they ain’t comin’ back” (Bruce Springsteen, “My Hometown”)
Where have all the jobs gone?
At a picnic recently, someone asked why all the wars the US is in aren’t creating jobs like they did during World War II.
“Hey! Why go back to World War II?” asked someone else, “Every job I held as an adult in my 20s was connected in some way to the Vietnam war.”
Why, we all wondered, aren’t the wars we are in now creating more jobs? Continue reading →
July 31st, 2011 — Government
Where is the discussion of risk in the current debt ceiling debates? Why isn’t anyone talking about the risks of the deficit reduction proposals being put on the table?
Only today, two days before the deadline, did I clearly hear one side talking about risk. That was progressive economist Paul Krugman on the This Week show. Krugman, clearly in despair, finally predicted “a lost decade” worse than Japan’s for the United States if any cuts were made without revenue increases. Clive Crook too, considers that “America flirts with a fate like Japan’s” (Financial Times, June 20, 2011) and expounds on Krugman and Eggertsson’s theory of the “paradox of toil” where if everyone tries to save, aggregate (total) savings actually decline.
Is the choice either cuts or revenue (tax) increases? Personally I detest either/or thinking. It always gets me into trouble, and I think it is getting our economy into trouble right now too. Continue reading →