Fiscal Cliff Notes

There might be 2 ways to look at the fiscal cliff. Specifically, we can focus on tax increases and spending cuts: Tax Increases Bush era tax cuts: expire 2010-2011 2% payroll tax cut: expire Affordable Care Act taxes: kick in…

Economic Uncertainty

Uncertainty might impede economic growth. The research of several economists indicates that policy uncertainty foreshadows and might even cause slower economic activity. To prove their hypothesis, they created an Index of Economic Policy Uncertainty with 3 data components: 1) The…

What is the Fiscal Cliff?

The fiscal cliff is composed of 8 tax and spending events. Permitting all to occur might be the equivalent of jumping over the edge in an economic dive. Tax Increases Bush era tax cuts: expire 2010-2011 2% payroll tax cut:…

Mankiw and Colbert

For some smiles and econ also, the following links are fun. It all began with Harvard’s N. Gregory Mankiw’s NY Times op-ed column on higher tax rates. Explaining, he said that $1000 wisely invested, with no taxes, became $10,000 in…