James Pethokoukis

10 reasons why the US economy will stay weak

September 25, 2009

From David Goldman’s Inner Workings blog (the actual post of chock full of charts, expanded explanation):

Is the US economy suffering from hysteresis?

September 25, 2009

That is, has the economy snapped in such a way that it can’t bounce back to its previous form? This might be true in the labor market. Mark Thoma takes a shot at the issue:

WH adviser Romer: ‘Cringes’ at talk of exit strategy

September 25, 2009

CEA Chair Christina Romer at the Chicago Fed:

The economic historian in me cringes every time I hear mention of “exit” from fiscal
stimulus and rescue operations in the current situation. “Exit strategy” is one thing—of course
we should be planning for the time when private demand has recovered and governmentstimulated
demand can be withdrawn. But to talk seriously about stopping policy support at a
time when the unemployment rate is nearing 10 percent and still rising is to risk nipping the
nascent recovery in the bud.

Yes, Washington did help cause the financial crisis

September 25, 2009

There are, to be sure, lots of villains to blame for America’s financial crisis: regulators, Wall Street executives, credit ratings agencies, Alan Greenspan.

How to kill a democracy

September 25, 2009

The Tax Foundation does the math:

New reports from the Tax Foundation show that President Obama’s policy proposals will increase the financial dependence of middle-income Americans on the federal government.

Why the US budget deficit is worse than you think

September 25, 2009

The great Dan Clifton of the Strategas Research finds this gem:

Douglas Elmendorf, director of the Congressional Budget Office, told the National Economists Club that today’s deficits are more troublesome than in the early 1980’s. Projected deficits are twice the deficit in the early 1980’s but more importantly there is a growing disconnect between current law and provisions set to expire which will eventually be extended. Most notably there is (and will be) growing pressure to extend the expiring stimulus provisions in addition to the usual expiring provisions.

G20: A global test for US economic policies?

September 25, 2009

This from the lede of today’s WSJ piece on the G20:

The Group of 20 nations is close to an agreement that would require members to subject their economic policies to a type of “peer review,” according to several senior G-20 officials, in a shift that would expose the U.S. and China to broad scrutiny of the way they run their economies.