Tuesday , October 15 2019
Home / Tag Archives: Fiscal Policy (page 3)

Tag Archives: Fiscal Policy

Politics, complexity, and confusion in the social media sphere

Very few people have used the seemingly sensible argument that there is little use in arguing against public debt when borrowing is so cheap. "El vulgo admira mas lo confuso que lo complejo." My rough translation: the people admire more what is confused than what is complex. This is an aphorism of Nicolás Gómez-Dávila, a fascinating Colombian philosopher who may change your view (if you hold it) that...

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Do deficits matter?

I am seeing a disturbing rise in "free lunch" thinking. One place this increasingly shows up is in the case of "deficits". People seem to have trouble grasping that deficit spending implies future austerity. Let's start with an electric company. Suppose it plans on being in business forever. It decides to issue enough debt so that it's current stock of debt at any given point in time is equal to 1% of...

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Henderson and Furman on Kudlow

My Wall Street Journal piece last Friday led to an invite to be on the Larry Kudlow show. I didn't know until I got on that I would be up against Jason Furman, former chairman of the Council of Economic Advisers under President Obama. No matter. The conversation, as Larry noted halfway through, was civil. I had a pleasant email discussion with Jason shortly afterward. I complimented him on his piece a few...

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Charlie Brown and the GOP

When growing up, I was frequently told that the GOP was the "small government" party. Back in the early 2000s, the GOP finally gained simultaneous hold of the Presidency, the House and the Senate, for the first time in my life. Now they could finally implement their small government vision. Instead government spending started actually accelerating, rising at a faster rate than under Clinton. And it wasn't...

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Saudi Arabia Launches Misguided $19 Billion Stimulus In Desperate Bid To Kickstart 2018 Growth

If you haven’t been living under a rock in recent months, it’s been impossible to miss the turmoil in Saudi Arabia and its relations with the outside world. A few weeks ago we published a piece by Chris Martenson of PeakProsperity.com “If The Saudi Arabia Situation Doesn't Worry You, You're Not Paying Attention”. Martenson argued. A dramatic geo-political realignment by Saudi Arabia is in full swing…upending many decades of established strategic relationships among the world's superpowers...

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Trump’s Tax Cut – FDR Would Be Envious

Authored by Tom Luongo, The first rule of politics is feather your own nest.  President Trump’s tax cut proposal always had this in mind. Congress has passed a bill which tinkers at the edges but leaves most of Trump’s core proposal intact.  It’s obvious to me that Trump has the political acumen of another brilliant U.S. politician, the loathsome Franklin Delano Roosevelt. Yeah, I’m not a fan of FDR.  But I do respect his political skill in the same way I respect the way sharks hunt their...

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We Give Up! Government Spending And Deficits Soar Pretty Much Everywhere

Authored by John Rubino via DollarCollapse.com, A recurring pattern of the past few decades involves governments promising to limit their borrowing, only to discover that hardly anyone cares. So target dates slip, bonds are issued, and the debts keep rising. This time around the timing is especially notable, since eight years of global growth ought to be producing tax revenues sufficient to at least moderate the tide of red ink. But apparently not. In Japan, for instance, government debt is...

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This Cycle: It’s Not The Economy, It’s China, Stupid!

Authored by Kevin Muir via The Macro Tourist blog, I know everything is fan-freaking-tastic - with the tax reform bill and global synchronized expansion and all. I figure the last thing you need is some nattering naysayer throwing cold water on this unbelievable party, so I won’t. At least not for the short run. This rally will end when it ends. Maybe tomorrow, maybe next week, maybe next month, maybe next year. I don’t know and every time I try to guess, I just end up looking foolish. But I...

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Chicago Gets An ‘F’ On New Fiscal Report Card As Bonds Continue To Hover Around All-Time Highs

As Illinois muni debt continues to hover around all-time highs, the number of watchdog groups offering warnings about Chicago's deteriorating finances continues to grow.  The latest such warning comes from Truth In Accounting which provided the Windy City an 'F' on their latest fiscal report card citing a staggering debt burden that amounts to $41,700 per Chicago resident. To put that figure in perspective, the median household income in Chicago is roughly $48,500.  Here's a summary from...

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Europe’s New ‘Values’ – Austerity, Bloodletting, And Incompetence

Authored by Raul Ilargi Meijer via The Automatic Earth blog, Punxsutawney Phil Hammond, the UK chancellor, presented his Budget yesterday and declared five more years of austerity for Britain. As was to be expected. One doesn’t even have to go into the details of the Budget to understand that it is a dead end street for both the country and for Theresa May’s Tory party. So why the persistent focus on austerity while it becomes clearer every day that it is suffocating the British economy?...

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