James Pethokoukis

The GDP report and Okun’s Law

August 2, 2010

One of the mysteries of the Great Recession is why unemployment rose so far so fast. The usual rule of thumb, Okun’s Law, called for a much lower rate of joblessness.  The White House has been hoping that as the economy turned around, the labor market would outperform just as it underperformed during the downturn.  As it turns out, the downturn was deeper than first thought, so the “snapback” scenario is less likely. This from JPMorgan:

Really, David Stockman?

August 2, 2010

David Stockman, Ronald Reagan’s budget chief, attacked Republicans in the NYTimes today. Does he really think the U.S. economy would be better today if the top marginal income tax rate was still 70 percent and the tax code left unindexed for inflation? Then there’s this bit: