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Archives by Tag 'Economy'
Austerity Versus a People’s Budget
MARK VORPAHL
It’s no secret that most cities, counties, states and school districts in the U.S. are facing big deficits. What is less understood is the extent to which austerity cuts have become politicians’ bi-partisan response to the situation. The dramatic measures bein...
The Missing Recovery
PAUL CRAIG ROBERTS
Officially, since June 2009 the US economy has been undergoing an economic recovery from the December 2007 recession.  But where is this recovery?  I cannot find it, and neither can millions of unemployed Americans. The recovery exists only in the official measur...
A Robot Didn’t Steal Your Job
ROB URIE
When Barack Obama first entered office the financial crisis created by Wall Street banks was at its peak and hundreds of thousands of people per week were losing their jobs. As writer ...
Economic Sabotage
ANDREW FIELDHOUSE
As “sequestration” spending cuts seem increasingly likely to take effect tomorrow, and the blame game escalates over responsibility for the fallout, some incorrect ...
Warning: Stocks Likely to Crater from Here
CHRIS MARTENSON
I don’t relish the job of constantly pointing out the risks to the equity markets. But since few on Wall Street seem willing (or able) to do this, I’m “making the call” for a market correction, as enough variables have aligned to indicate a high li...
Servants and Their Bosses
DEAN BAKER
The retirement of the baby boom cohorts means that the country’s labor force is likely to be growing far more slowly in the decades ahead than it had in prior decades. The United States is not alone in facing this situation. The rate of growth of the workforce has slowe...
The Push for Sequester Cuts
ERIC ZUESSE
Republicans in Congress have decided to reject economists, the Congressional Research Service, and the International Monetary Fund, in order to argue that the sequestration cuts will be good for the economy. To do this, they also misstate Keynesian economics, and t...
The Greek Economy is Kaput
MIKE WHITNEY
“The Greek economy is finished. The Greek economy is in a great, great depression… There is no power, no force within the Greek economy, within Greek society that can avert it….Imagine if we were in Ohio in 1931 and we were to ask: What can Ohio poli...
A Quest for New Jobs Where None Exists
JOHN WALSH
“Those jobs are not coming back.” The late Steve Jobs to Barack Obama. Hot on the heels of his State of the Union address with its emphasis on the moribund job market,...
Masters of Fraud
ROB URIE
The most telling line from PBS’s Frontline piece ‘The Untouchables,’ on the absence of criminal prosecutions ...
The Fall and Rise of the French Rothschilds
EVAN JONES
‘Rothschild’ is a household name. It belongs to a family banking dynasty with a two hundred year lineage, reputedly once supremely powerful. Omnipresent historian Niall Ferguson has devoted two volumes to this history. The Rothschild name is now bestowed on a s...
The Debt-to-GDP Diversion
DEAN BAKER
Morgan Stanley director Erskine ...
Still Clueless About the Economy
DEAN BAKER
The latest fad in Washington economic policy debates is arguing over the level at which the government should stabilize the debt-to-GDP ratio. The doves are okay with a debt-to-GDP ratio of 73 percent or even 76 percent. The hawks want 60 percent or even less. This is the...
Obama’s Carnival of Fraud
NORMAN POLLACK
The big picture is clear, from drone warfare as escalation of sought-after global US military hegemony to the trivialization and evisceration of government’s regulatory functions, all pointing to a business-as-usual continuation of policies and practices going back, reg...
Remember Growth?
MIKE WHITNEY
One thing you can say about Obama; he never fails to disappoint. Last night’s State of the Union Speech is a perfect example. In his typical lofty rhetoric, the president promised to continue to implement his regressive social and economic policies without pause pro...
What Will Lew Do?
DEAN BAKER
It has been more than five years since the onset of the financial crisis. It will be at least several more years before the economy recovers fully. And the too-big-to-fail banks are ...
Time to Drop Money From Helicopters
KEVIN ZEESE and Dr. MARGARET FLOWERS
Milton Friedman of the Chicago School of Economics suggested in 1969 that dro...
Housing Hijinx
MIKE WHITNEY
“Experts do not seem to think that we are going back to the same boom. There might be ‘cheap talk’ that housing is ‘off to the races again,’ but the people who think about it seriously, doubt it.” — Robert Schiller,...
End the Fed
ROB URIE
The Federal Reserve is supporting and maintaining a system of finance capitalism that by the ‘rules’ of capitalism should have disappeared in 2008. Wall Street, with its outposts now circling the globe, claims its ‘due’ under the premise its system of savage capit...
What they Don’t Tell You About the Economy
Dr. MARGARET FLOWERS AND KEVIN ZEESE
The corporate media and front groups for big business and political parties leave out what we believe are important details. In this week’s news: the real national security budget is bigger than acknowledged, the growth in GDP before the election seems to be due to ...
Want to Fix the Economy? Spend More Money
MIKE WHITNEY
The economy operates on a simple principle: When people spend money, the economy grows. That means the goal of economic policy should be to maintain a level of spending that keeps the economy growing and minimizes the unavoidable peaks and valleys of the business cycle. T...
Why Economic Inequality is Not Good for the Economy
ROB URIE
The nineteenth and twentieth centuries saw multiple discourses on the relationship between concepts of ‘truth’ and power—social, political and economic. The ‘view from nowhere,’ the rhetorical device of science and economics used to claim that truth exists in ...
There is No Hope for Change
DEAN BAKER
There have been two momentous events in the last week. Of course President Obama’s swearing in for a second term is a big deal, even if somewhat less historic than his inauguration back in 2009. The other big event was the release of the Federal Reserve Board’s ...
Exit Geithner
DEAN BAKER
Treasury Secretary Timothy Geithner’s departure from the Obama Administration invites comparisons with Klemens von Metternich. Metternich was the foreign minister of the Austrian Empire who engineered the restoration of the old order and the suppression of democracy...
Housing Bubble on the Horizon
MIKE WHITNEY
The US Consumer Financial Protection Bureau’s rule defining a “qualified mortgage”, which was announced on Thursday, creates vast new opportunities for the nation’s biggest banks to engage in predatory lending practices with impunity. While the mai...
Suitcases and Misadventure
KATHLEEN PEINE
Just prior to the dust-bowl era, individuals would exit trains from the east; they’d step into the grassland of the southern plains, and they would plot their dreams. But these dreams were of tangible wealth, and these so called “suitcase farmers” pulled...
The Long-Term Jobs and Wage Picture
ALAN NASSER
“We are being afflicted with a new disease of which some readers may not yet have heard the name, but of which they will hear a great deal in the years to come – namely, technological unemployment. This means unemployment due to our discovery of means of e...
The Errors of Austerity
BINOY KAMPMARK
They were created and feted to make witchdoctors respectable.  The harm and extent that economists can produce, while still not quite in the vicinity of those of doctors, can be extensive.  Errors are tolerated, fictions propagated.  Dangerous doctrines become impenetr...
Heckuva Job, Bernanke!
MIKE WHITNEY
Despite the dire “fiscal cliff” predictions, stocks ended the year on a high-note led by the Dow Jones crossing the 13K mark with an impressive 166 po...
Premature Austerity
ANDREW FIELDHOUSE
My colleague Josh Bivens outlined the contours of this weekend’s 11th hour budget deal, concluding that Congress mostly monkeyed around with upper-income taxes—a politically contentious “...
Latvia’s Economic Disaster as a Neoliberal Success Story
JEFFREY SOMMERS and MICHAEL HUDSON
A generation ago the Chicago Boys and their financial supporters applauded General Pinochet’s anti-labor Chile as a success story, thanks mainly to its transformation of their Social Security into Employee Stock Ownership Plans (ESOPs) that almost universally were...
The Fiscal Cliff and Other Distractions
DEAN BAKER
We have just passed into the new year, and the distractions created by the debate over the fiscal cliff appear to be behind us. Maybe. That debate has been part of a larger distraction — the concern over budget deficits at a time when by far the count...
Fiscal Cliff Averted, Now the Attack on People Begins
KEVIN ZEESE
Last night, Congress passed a watered down fiscal cliff package that will raise taxes on everyone, but the worst is yet to come, and this “deficit cutting” measure contains some surprises. Economist Jack Rasmus highlights Obama’s comments after passage which ...
All You Wanted to Know About Housing in Three Minutes
MIKE WHITNEY
There’s a ...
Economic Plunder in Recent History
ROB URIE
In the mid 1990s Republican New Jersey Governor Christine Todd Whitman ...
What’s Wrong with the Economy?
MIKE WHITNEY
The reason the US economy is still sluggish 4 years after Lehman Brothers defaulted, is of lack of demand. Demand dropped off after the housing bubble burst and has never really recovered. Economist Dean Baker calculates that hit to demand is somewhere in the neighborhood...
The Fact-Free Fiscal Cliff Debate
NEWK MINDSHAFTGAP
Those who cannot remember the past are condemned to repeat it                               ...
A Roadmap to the New Economy
ROBIN BROAD and JOHN CAVANAGH
Most progressives have long embraced a clear alternative to the conservative story that prosperity flows best from a “free market” unfettered by government regulation and taxes. The standard progressive response: government incentives and spending are essenti...
The Coming Crash of America
PAUL CRAIG ROBERTS
Is the “fiscal cliff” real or just another hoax?  The answer is that the fiscal cliff is real, but it is a result, not a cause.  The hoax is the way the fiscal cliff is being used. The fiscal cliff is the result of the inability to close the federal budget d...
Monetizing Japan
MIKE WHITNEY
“If possible, I’d like to see the Bank of Japan purchase all of the construction bonds that we need to issue to cover the cost.” Shinzo Abe, President of Japan’s Liberal Democratic Party (LDP) Japan’s next prime minister has a plan for en...
Livable Labor
JOHN GRONBECK-TEDESCO
Austin, Texas is the latest U.S. city to pass a groundbreaking measure that, if upheld, would require companies looking for tax incentives in Travis County to pay its employees $11/hour. This is particularly big news for the area’s large construction sector that has...
We Used to Make the Rich Poorer and the Poor Richer
DAVID SWANSON
Many of us have heard the current period referred to as a second gilded age.  Or we’ve seen the current inequality in wealth in the United States compared to that of 1929.  But we have not all given sufficient thought to what ended the first gilded age, what creat...
The Fate of Keynesian Faith in Joseph’s Countercyclical Moral
DOUGLAS GROTE
Into the fifth year of the Great Recession our nation’s scarcity of jobs continues to condemn tens of millions of us to suffer a hard life of involuntary unemployment, underemployment, and insufficient wages. One would hope that any future political agreements made to m...
An Open Letter to the Spirit of a Rebellious Leader
ADAM CHIMIENTI
[Note: Thomas Sankara, president of Burkina Faso from 1983-87, was assassinated on October 15, 1987. This letter was written on the 25th anniversary of his death and modified slightly after.] Dear President Sankara, It was 25 years ago this autumn t...
Who Really Crashed the Economy?
DEAN BAKER
The talk in Washington these days might lead people to think that the main cause of the economic downturn is the Social Security and Medicare benefits being paid to retirees. After all, we have people from both parties giving us assurances that cuts to these programs are ...
The Post-Election Economic Blues
DEAN BAKER
U.S. President Barack Obama won an extraordinary victory last week. Republicans have largely dominated the presidency over the last six decades. The Republicans have won most of the elections since World War II and they have won them by larger margins. In fact, only two D...
America’s Defense Dependency
FRANKLIN C. SPINNEY
The essay — America the Third World Nation in Just 4 Easy Steps, (Trutho...
If Marx’s Math is Fundamental, Why Do So Few Teach It?
BRIAN MCKENNA
“Capital is dead labor, that, vampire-like, only lives by sucking living labour, and lives the more, the more labour it sucks.” Karl Marx, Capital, Volume 1, (1867:233) “Fuzzy math?” Obama accused R...
Cut Gouging and Inequities
RALPH NADER
Congress is still talking about a “Grand Bargain” that “balances” far more spending cuts than tax increases. That is another way of saying that you – the consumer of Medicare and Medicaid services, the recipient of Social Security, and the average taxpayer will ...
The First 10 Things Obama Needs to Do in His Second Term
DAVID MACARAY
1. Don’t spend one dime on a gala inauguration. In fact, don’t do anything more than you are legally bound to do, which is placing your hand on a Bible and swearing to uphold the Constitution. Keep it austere. Show the public you’re aware of the challenges ahead and...