Why Did Investment Fall During the Recession?
My view is that investment fell largely because labor fell (and labor and capital are complements). For example, if fewer …
labor market
Jobs: The Next Clue Arrives at the End of the Week
Is the labor market finally set to create jobs on a sustained basis? If not, will the stock market continue …
Higher Marginal Tax Rates
The big news this morning is that the Senate Health Reform bill passed the House of Representatives. (The House also …
Does “Making Work Pay” Actually Make Work Pay, or Raise GDP?
The “Stimulus” law’s single most expensive provision was “Making Work Pay”. It is a $400 tax credit to persons with …
Supply Matters, Even During Deep Recessions
“Traditionally, many economists have been leery of prolonged unemployment benefits because they can reduce the incentive to seek work. But …
Labor Markets and the Current Cycle
There are growing concerns about the labor market performance in the US during the current crisis, concerns that might extend …
Difficult to Administer and Prone to Abuse
According to The Washington Post, this was the reaction of House leaders to President Obama’s proposal to use tax credits …
Much Fewer than 10% of Americans are Unemployed
Both Democrats and Republicans last night said that “10% of Americans are unemployed.” That is incorrect. The United States Census …
Predictions Through 2014: In Levels
The aggregate neoclassical growth model – with a labor income tax or “labor market distortion” that began growing at the …
Household Survey Shows No “Deceleration”
The chart below graphs monthly employment as measured by the household survey (red) and payroll employees (green). I have subtracted …
