The United States has set itself on a path of unsustainable debt levels with little political prospect to implement the policy mix that will turn this tide. What America needs is a government committed to generating real and sustainable economic growth and a real lowering of the fiscal deficits through strong commitments to (1) permanently lower tax rates on households and businesses and (2) stricter responsibility and control on government spending. Recent research by two Harvard economists highlights the link between regaining a balanced budget by the federal government, lower …
Figures released today by the Bureau of Labor Statistics provide less encouragement than today’s GDP report. Total compensation increased by only 1.5 percent in 2009 (without adjusting for inflation) – the lowest increase on record. If a turnaround has begun, workers are not feeling it in their wallets. However, this pain has not been distributed equally throughout the economy. In the private sector, total compensation grew just 1.2 percent in 2009. On the other hand the compensation paid to state and local government employees grew 2.4 percent. The average government …
After much congressional handwringing over what budget process reform to attach to a must-pass increase in the debt ceiling, support for the legislative proposal crafted by Senate Budget Committee leaders Kent Conrad (D-ND) and Judd Gregg (R-NH) has crumbled. It fell apart as many members recognized two political facts of life. One is that it would inevitably lead to tax increases. The other, reinforced by the Massachusetts election, is that Americans are in no mood for a back-room, members-only commission that rushes its plan through Congress just after the November …
New U.S. Commerce Department statistics on America’s economy highlight growth in the U.S. trade deficit of $3.2 billion dollars between October and November 2009. That’s good news for Americans. The statistics also show real GDP rising 2.2 percent in the third quarter of 2009, as well as growth in personal income and consumption in November 2009. It is no surprise that rising economic activity and a growing U.S. trade deficit go hand in hand. As the economy and incomes grow, business and consumer demand for all goods, including imports, rises. …
The Congressional Budget Office today released a report asserting that the stimulus succeeded in creating growth and jobs. If this seems completely detached from reality, it’s because CBO did not actually analyze the performance of the economy — including the rapid increase in the unemployment rate since the stimulus was enacted. They simply took their economic model that predicted last January the stimulus would work, re-plugged in the bill’s provisions, and (surprise!) got the same result. CBO is effectively saying the evidence the stimulus worked is that they predicted it …
In the midst of a downturn, it’s easy to lose perspective. It feels at the moment like America’s position in the world is slipping and Asia is taking our place. Permanently. On a longer view, that turns out to be only half-right: Asia is rising but America is not falling. With sound policies, the U.S. will be by far the world’s most important economy for a long time. One of those sound policies is strengthening our ties with Asia. To get a better sense of the current situation, go back …
Each day in Minnesota and all across the nation, billions of dollars worth of products begin their journey to be sold overseas. American farmers, manufacturers, and businesses rely on exports to strengthen and grow both their bottom line, as well as our economy’s. Free and fair trade agreements help spur economic growth; improve efficiency and innovation; create better, higher-paying jobs for hard-working Americans; and increase the availability of lower-priced products here in the United States. Furthermore, the role of free trade as an expression of liberty and opportunity for all …
The government is spending hundreds of billions of taxpayer dollars attempting to stimulate the economy, but it’s clear these spending programs are not achieving the results we need. Instead, the economy continues to shed jobs. Unemployment figures released last week show U.S. unemployment reaching a 26-year high of 9.8 percent. Instead of putting Americans back to work, Congress is simply putting heavier burdens on taxpayers, while driving the country deeper into debt. In short, the current approach is not working. There is another approach to stimulating the economy – a …
China announced economic results yesterday. The results are simultaneously good, bad, and completely unbelievable. The good: GDP growth was put at 9% in the third quarter of this year. This would please almost any country in the world at almost any time. For this particular third quarter, the U.S. would be happy with 0.9%. The bad: 9% is down from 10% in the second quarter, itself down from 12% in 2007. There are indications growth is going to slow further. China is striving to create jobs for millions of new …
There is a lot of information about the national debt, but misconceptions cloud the debate. There are five common misconceptions about the national debt. This video explains them, as well as why they are not accurate guides to measure the debt. Heritage’s Brian Reidl also mentions the real threat to the National Debt – unfunded entitlement programs. Reidl closely examines the myths on how the debt was created, and what can be done to reduce the burden. [youtube]http://www.youtube.com/watch?v=YabLqJ0RwPQ [/youtube]
