Economic Growth

Did someone once say, where you look determines what you see? For evaluating the impact of federal spending, perhaps that is the problem. Some economists emphasize the connection between federal spending and the change in GDP (national production). Mathematically, they…

A Contagious Disease

Seeing the Bloomberg Businessweek headline, “Greek Contagion Spurs Surge in Portugal, Spanish Debt Swaps,” I started thinking about diagnosing fiscal illness, treating it, and contagion. How can we diagnose the illness? The illness seems to be the Greek spending disease. Just like you…

Handy Quotations

On Economics: Economics is “the study of mankind in the ordinary business of life.”   Alfred Marshall, 1842-1924 (U.K. economist). “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.”…

Deficit D

2010Facing a $1.6 trillion deficit, President Obama creates the National Commission on Fiscal Responsibility and Reform. 1993:Facing a $260 billion deficit, President Clinton appoints a Bipartisan Commission on Entitlement and Tax Reform.The commission’s recommendations (which were not implemented):http://retirement.gov/policy/docs/ssb/v58n2/v58n2p74.pdf 1992From the…

Are We All Keynesians?

According to the Yardeni newsletter, in 1965, A Time Magazine cover story was titled, “The Economy, We Are All Keynesians Now”. Even Milton Friedman was quoted as saying, “We are all Keynesians now.” (which he later corrected as having been,…