BERKELEY – US President Barack Obama has called for additional revenue as part of a balanced plan to reduce future budget deficits. But he is also proposing a significant cut in the corporate tax rate. To many, this approach seems inconsistent: Shouldn’t the corporate tax rate be raised, not lowered, so that corporations contribute their “fair share” to deficit reduction? The answer is no.
After its 1986 tax overhaul, the United States had one [...]
October 16, 2012
CNN is making a big deal out of Romney’s “right leaning” supporters. The corporate media branch of thePentagon’s psyops program thinks there’s a good chance these “severely conservative” voters may push Romney over the top and get him installed in the White House as preeminent teleprompter reader for the global elite.
In August, Peter Schiff, economic adviser to Ron Paul’s 2008 presidential campaign, said he thinks the economic implosion will [...]
Tyson also notes how poverty is much higher in single-parent families than in those with married parents. But while she wants to increase taxes for the rich and pour money into education, she stops short of advocating policies to strengthen marriage.
Laura D’Andrea Tyson is a professor at the Haas School of Business at the University of California, Berkeley, and served as chairwoman of the Council of Economic Advisers under [...]
Ohio households were poorer last year than they’ve been in more than 25 years, and the number of people living in poverty is higher than it’s been in more than 30 years, according to a census report released yesterday.
“People are getting squeezed from every direction,” said James Newton, chief economic adviser to Commerce National Bank.
When adjusted for inflation, the 2010 annual median household income in Ohio of $46,093 was down [...]
August 22, 2012
If elected, Mitt Romney’s team will make sure the Federal Reserve and Ben Bernanke finish the job of destroying the economy.
Glenn Hubbard, Romney’s economic adviser, told Reuters he would advise the Republican presidential candidate that Bernanke should “get every consideration” and stay at the helm of the private bankster owned Federal Reserve.
“Ben is a model technocrat. He gets paid nothing for getting kicked around all the time. I think [...]
Confidence among U.S. chief executive officers declined in the second quarter as more business leaders said economic conditions will worsen in the next six months, a private survey showed.
The Young Presidents’ Organization sentiment index fell to 60 in the second quarter from 65.1 in previous three months, the largest decline since the survey began in 2009. Readings greater than 50 show the outlook was more positive than negative.
“High gas prices, ongoing [...]
The White House is really getting specific when it comes to the unemployment rate.
Rather than 8.3% — the rounded-up figure — Obama economic adviser Alan B. Krueger writes onthe White House website that the real jobless rate is 8.254%.
“The household survey showed that the unemployment rate ticked up to 8.3% in July (or, more precisely, the rate rose from 8.217% in June to 8.254% in July),” wrote Krueger, chairman of the Council of [...]
The Southern California city of San Bernardino has seen its workers’ pension costs more than double since 2006, adding to the fiscal stress that led it to the brink of bankruptcy.
Next week, the city of 209,000 will learn annual returns of the California Public Employees’ Retirement System, which may say it failed to meet its investment target. When the nation’s biggest public pension underperforms, the most-populous state and its municipalities [...]
Central banks in developed nations are confronting the limits of their ability to aid economic recovery as government efforts to strengthen their finances fall short, the Bank for International Settlements said.
“Central banks are being cornered into prolonging monetary stimulus as governments drag their feet and adjustment is delayed,” the Basel, Switzerland-based BIS said in its annual report, published yesterday. “Both conventionally and unconventionally accommodative monetary policies are palliatives and have their limits.”
While central [...]
Thursday brought a raft of data pointing toward a global economic slowdown, including:
Markit PMI for Europe falling to 45.9 from 46.7 in April while the May German IFO business confidence hit a six-month low and the U.K. reported a steeper-than-expected drop in third-quarter GDP.
Meanwhile, HSBC’s flash manufacturing PMI fell to 48.7 in May, the seventh-straight month below 50, the watermark for expansion or contraction.
On the home front, April durable [...]
Russia has become the first major country to call for a partial restoration of the Gold Standard to uphold discipline in the world financial system.
Arkady Dvorkevich, the Kremlin’s chief economic adviser, said Russia would favour the inclusion of gold bullion in the basket-weighting of a new world currency based on Special Drawing Rights issued by the International Monetary Fund.
Chinese and Russian leaders both plan to open debate on an SDR-based [...]
Inflation is sometimes referred to as a hidden tax. Unlike other taxes, it doesn’t require legislation by Congress or the states. It doesn’t merit a line item on the 1040 federal income-tax form many Americans will file this week. And it doesn’t appear on the bottom of sales’ receipts as a percentage markup on the things we buy.
Yet, like a tax, it takes resources out of the economy and [...]
Martin Feldstein, former chief economic adviser to Ronald Reagan, says the most important cloud on the economic recovery horizon is the large tax increase that will occur next year unless legislation is passed to block it.
“The Congressional Budget Office predicts that, under current law, the revenue of the federal government will rise from $2.4 trillion in the current fiscal year, which ends in September, to $2.9 trillion in the [...]
Back when he agreed to advise the Obama administration on economics, General Electric CEO Jeff Immelt told friends that he thought it would be good for GE and good for the country. A life-long Republican, Immelt said he believed he could at the very least moderate the president’s distinctly anti-business instincts.
That was three years ago; these days Immelt is telling friends something quite different.
Sure, GE has managed to feast on [...]
Paul Volcker: Goldman Sachs Changed For The Worse
Posted: 03/14/2012 6:12 pm
FOLLOW: Business News
WASHINGTON, D.C. — Former Federal Reserve Chairman Paul Volcker said on Wednesday that Greg Smith, the former Goldman Sachs executive director who dramatically announced his resignation in a New York Times op-ed, is right that Goldman Sachs has changed for the worse over the past decade.
Volcker, who served as an economic adviser to President Obama, said at The [...]
China has said that the next World Bank president should be chosen on merit, seeking to challenge a tradition that the bank’s chief be a US citizen, though it did not suggest a candidate.
Robert Zoellick said on Wednesday that he would step down in June at the end of a five-year term as bank president. Speculation has focused on Hillary Clinton, US secretary of state, and Larry Summers, former White House [...]
Earlier this week, White House economic adviser Gene Sperling announced his support for changes in the tax structure. “[W]e need a global minimum tax so that people have the assurance that nobody is escaping doing their fair share as part of a race to the bottom or having our tax code actually subsidized and facilitate people moving their funds to tax havens,” Sperling said at an official White House meeting. He even [...]
(Reuters) – World Bank President Robert Zoellick said on Wednesday he plans to step down when his term ends on June 30, raising questions whether the United States will insist on holding on to a job that has always gone to an American.
“I’m honored to have led such a world class institution with so many talented and exceptional people,” Zoellick said in a statement announcing his plans.
Speculation has been rife [...]
From Economic Policy Journal:
As if there wasn’t enough unemployment in the country, Jared Bernstein, who was the Chief Economist and Economic Adviser to Vice President Joe Biden, executive director of the White House Task Force on the Middle Class, and a member of President Obama’s economic team, is calling for a hike in the minimum wage from its current federal level of $7.25 to the $9.00-$10.00 range.
… Here’s what Bernstein [...]
By Greg Robb, MarketWatch
CHICAGO — The outlook for the Chinese economy is cloudier than it has been in years, experts said.
The road ahead for China is the “great unanswerable question,” said Lawrence Summers, the former top economic adviser to President Barack Obama, in a speech at the American Economic Association meeting Saturday.
“Whatever you think the range of possible outcomes is [for China] over the next 25 years, [...]
By Mark Felsenthal and Margaret Chadbourn
WASHINGTON | Wed Jan 4, 2012 7:41pm EST
The U.S. government-run mortgagefinance firms Fannie Mae and Freddie Mac could play a bigger role in turning around the battered U.S. housing market, the Federal Reserve told Congress, a call that looks set to run into stiff political opposition.
The Fed, in a paper sent to lawmakers on Wednesday, outlined an array of steps that could be taken to help the housing sector, including [...]
By Darrell Delamaide
WASHINGTON (MarketWatch) — Iowa Republicans who go the caucuses next week probably won’t be looking at the presidential candidates’ policies on fiscal stimulus, but such policies might be the best thing a would-be president could do for the American people.
In fact, argues University of California economist David Romer, the current economic crisis has decisively demonstrated that fiscal policy can be effective in combating an economic [...]
BRUSSELS (AP) — Russia, hoping to keep its largest export market from collapsing, will give at least $10 billion to the International Monetary Fund to help support the struggling euro currency, an aide to President Dmitry Medvedev said Thursday.
Russian officials have said in the past that the country would offer up to $10 billion. But Arkady Dvorkovich, a Medvedev economic adviser, indicated the total may be greater because Russia has a big [...]
Portugal’s statistics agency on Monday reported a 0.4% contraction in third-quarter GDP compared to the second quarter, while growth fell 1.7% compared to the third quarter of 2010. Portuguese GDP has contracted for four consecutive quarters. A recession is informally defined as two consecutive quarters of contracting GDP.
Spanish GDP was flat in the third quarter after 0.2% growth in the second quarter.
Third-quarter data isn’t yet [...]
By JOHN MERLINE, INVESTOR’S BUSINESS DAILY Posted 08:05 AM ET
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When Republicans took control of the House in January, they pledged to make deep cuts in federal spending, and in April they succeeded in getting a bill advertised as cutting $38 billion from fiscal 2011′s budget. Then in August, they pushed for a deal to cut another $2.4 trillion over the next decade.
Some analysts have blamed these [...]
Is gold the answer?
With the nation smothered in debt, crippled by unemployment and financed by dollar bills backed by nothing more than the faith of the public, some conservatives are calling for a return to the gold standard.
At The Heritage Foundation’s Conference on a Stable Dollar last week, former Bush economic adviser and Federal Reserve Governor Larry Lindsey said the weight of history leaned [...]
Herman Cain defended the economic team behind his 9-9-9 tax plan but still refused to name his economic advisers.
“My advisers come from the American people,” Cain said Tuesday night at a debate sponsored by Bloomberg News and the Washington Post. “I also have a number of other economists who helped me with this 9-9-9 plan. It didn’t come off a pizza box.”
The pizza box reference [...]
ONCE THE OBAMA administration’s paragon of a clean-energy future, Solyndra has gone bankrupt, taking a $527 million Energy Department-guaranteed loan with it. President Obama, however, has no regrets. “Hindsight is always 20-20,” he told George Stephanopoulos of ABC News. “It went through the regular review process. And people felt like this was a good bet.” Solyndra didn’t pan out, Mr. Obama conceded, but that’s [...]
Austan Goolsbee was President Barack Obama’s most important economic adviser until August. He told SPIEGEL that Europe must recapitalize its banks immediately to avoid the risk of a financial collapse. He says that Europe has been far too hesitant in combatting the ongoing debt crisis.
SPIEGEL: Many US economists now say that Europe’s currency crisis could destroy the US economy. Do you agree?
Goolsbee: It is a [...]