The federal deficit has become a front-page issue. These deficits generate a need for more taxes, so the Treasury Secretary recently suggested an increase in corporate tax rates as a starter. Other tax hikes will be considered, but the most immediate option to obtain the funding for the planned federal […]
The competition between the political parties in the US, has caused both of them to claim their policies strengthen economic growth. Potential as the supply capability of the economy, as you would imagine, is based on inputs primarily the availability of physical capital , natural resources, and labor. The existence of […]
The intractable Great Depression some 85 years ago led to the intellectual thought that perhaps it’s possible for a government to “policy” its way out of a deep economic hole. The question is, can economic growth be created out of thin air by passing a resolution or law, or by […]
The Coronavirus and the federal government’s response to it have set off free-floating anxiety, which in turn has affected economic and financial market optimism and pricing — sometimes with a downward tilt, and sometimes with an upward lift. Witness to that was the immediate 30% one-week decline of the S&P index when […]
It’s obvious the economy has taken a large hit. Not just in the US but globally. When demanders and suppliers are told to go home what else should one expect? The question is what lies ahead. An endless recession or spontaneous growth? The drop in employment and income will no […]
The responses of the macro-financial market as we knew them now have changed and that is that interest rates are at the lowest point in the financial history of the United States. That’s right, interest rates in the US debt markets recently reached their lowest point since 1790. Yes, the […]