James Pethokoukis

Obama, this is why America is not Europe

October 13, 2009

As usual, Joel Kotkin nails it:

In a rapidly aging society like Germany’s and those of other E.U. countries you can make a case for slow growth, limited work hours, early retirement and a strict regulatory regime. But for America, with its growing workforce and population, slow economic growth simply is not socially sustainable.

Why the GOP shouldn’t embrace calls for a VAT

October 7, 2009

You can add New York Times economics columnist David Leonhardt to the parade of liberals, Democrats, Obama allies and fellow travelers — such as John Podesta, Nancy Pelosi, Paul Volcker, and Robert Rubin — calling for higher taxes, preferably a value-added tax.

IMF ups its estimate for 2010 global growth

October 1, 2009

Another unsurprising economic forecast that portends continued high US unemployment next year.

The Fed as a growth driver

September 28, 2009

Does the Obama administration care more about creating wealth or redistributing wealth? Maybe the strategy is for the WH to worry about the latter and let the Fed take care of the former. Scott Grannis, the Calfia Beach Pundit, makes an interesting observation (bold is mine):

More evidence of rising trade protectionism

September 24, 2009

As Reuters reports it:

The United Steelworkers union, fresh from persuading President Barack Obama to restrict tire imports from China, filed a new case Wednesday asking for duties on coated paper from both China and Indonesia. The action came just one day after Chinese President Hu Jintao complained to Obama about the tires decision in a meeting on the sidelines of a United Nations summit in New York. … The steelworkers union, which represents workers in a number of industries, sees itself in a battle against what it believes are unfair foreign trade practices that have led to the loss of millions of U.S. manufacturing jobs. They are joined in their latest trade case by paper manufacturers NewPage Corp of Miamisburg, Ohio; Appleton Coated LLC of Kimberly, Wisconsin; and Sappi Fine Paper North America of Boston, Massachusetts, which together employ about 6,000 union workers at paper mills in nine states. … Unlike the steelworkers’ petition in the tires case, this complaint will not land on Obama’s desk. Instead, the U.S. International Trade Commission, a U.S. federal agency, will have the final word on whether anti-dumping and anti-subsidy duties will be imposed after an investigation by the U.S. Commerce Department.

The mild ‘W’ scenario

September 16, 2009

Yardeni sketches it out, though he thinks a “muddling along” is more likely:

A case for long-term high unemployment in America

September 11, 2009

A fantastic article by Joshua Cooper Ramo looking at whether the US is doomed to years of high unemployment. Read the whole thing, but this a key bit:

Is there where economic growth will come from?

September 11, 2009

Barry Ritholtz ticks off ten technologies:

My top 10 list (in order of biggest near term potential):

1. Nano Technology (Think of the line “Plastics” in The Graduate).

2. Green (low carbon) Energy  (generation)

3. Battery technology  (storage)

4. Genomics/Stem Cell Research

5. Web 2.0/3.0 — smaller, niche companies using increased bandwidth

6. Robotics — the continued replacement of humans by machine, for both labor and judgement

Obama stimulus: promises vs. reality

September 4, 2009

This from the WaPo:

IHS Global Insight, an economic consulting firm, estimates that the stimulus has increased the 2009 gross domestic product by about 1 percent over what it otherwise would have been, with the benefit almost entirely in the second half of the year.

The consequences of massive budget deficits

September 3, 2009

The Cleveland Fed gives the bad news:

First, without a correction on the spending side, more tax revenue will need to be raised, with the consequence of subjecting the economy to greater tax-associated inefficiencies.