Many decision makers and commentators treat gross domestic product (GDP) as if it measures the whole of the economy. They even use “the economy” and GDP interchangeably. GDP is an accounting device—and a poor measure of economic health. Household wealth is much closer to what we mean by “the economy.” …
The number of Americans on food stamps, or the Supplemental Nutrition Assistance Program (SNAP), is at historic highs, but some on the left—like Paul Krugman—think that’s not such a bad thing because, as they argue, food stamps “stimulate” the economy: We desperately needed (and still need) public policies to promote …
Last Thursday’s revisions to the first-quarter growth estimates showed little change: Gross domestic product (GDP) had grown at a 2.4 percent rate, not 2.5 percent as reported in the initial estimate. For those who mistakenly equate GDP and “the economy,” this is bad news—and an excuse to kvetch about sequestration. …
The presidents of the “Pacific Alliance” (Chile, Colombia, México, and Perú) met last week in Cali, Colombia, to sign an agreement removing tariffs on 90 percent of their merchandise trade. This is good news. Congress and the Obama Administration should pay more attention to this trade bloc—one that is considerably …
The immigration debate is about to get a lot more concrete. Lawmakers need to be honest about the cost of their proposed immigration plans—and a new study due out today from The Heritage Foundation calculates the cost to taxpayers of granting amnesty to unlawful immigrants. Yesterday on ABC’s “This Week …
After dreadfully low growth in the last quarter of 2012—just 0.4 percent—gross domestic product (GDP) returned to a healthier rate of growth of 2.5 percent in the first three months of 2013. The autumn’s drop in private inventories was reversed as companies stockpiled more goods in anticipation of future consumer …
When the President’s budget comes out Wednesday, it will complete the last piece of the budget puzzle, as the House and Senate have each duly passed a budget according to law. Never mind that the President’s budget is supposed to lead Washington budget discussions, rather than follow. The key question …
The United States is currently engaged in Trans-Pacific Partnership (TPP) trade negotiations designed to reduce barriers to international trade and investment. The latest text from these negotiations shows how trade agreements, if properly designed and implemented, help advance economic freedom around the world. Among other things, the draft text calls …
In the ongoing debate over deficit reduction, President Obama and his colleagues in the House and Senate incessantly call for tax increases as if our budget problems persisted because of taxes being too low. If only the federal government could usurp more of taxpayers’ hard earned money, the line of …
The latest trade deficit figures are out, and, as always, most reports fail to accurately explain what these numbers mean. Consider the following widely reported statement: A narrower trade gap boosts growth because it means U.S. companies are earning more from overseas sales while U.S. consumers and businesses are spending …
