All posts by Jeff Haymond

Obama budget, Stimulus vs. Austerity, Friday’s unemployment #s and more

Rather than a single subject today, I’d like to offer some quick thoughts on several recent economic events and get your feedback on what you’d like to hear more about.  Post in the comments if you’d like more details. First up, we are told we will finally have a budget submitted by the President this week, which is over two months late.  Mr. Obama will propose a “fiscally responsible” budget, which will  ‘My budget will reduce our deficits – not… Continue Reading ››

Here is how NOT to do political economy from a moral perspective!

According to The Weekly Standard, President Obama attended Easter services at St. John’s Episcopal Church in Washington, D.C. yesterday, where the pool reporter recorded this tirade against fictional religious right leaders. “It drives me crazy when the captains of the religious right are always calling us back … for blacks to be back in the back of the bus … for women to be back in the kitchen … for immigrants to be back on their side of the border” To… Continue Reading ››

Leave it to our Grand-kids; the Immorality of our National Debt

Our national debt is $16.75T, our unfunded liabilities are ~ $120T, and President Obama says we have no debt crisis.  In a post last week on the national debt and deficits, I promised we’d discuss the morality of passing the debt burden on to our grand-kids.  As is often the case, our moral senses are corrupted by Keynesian economics when thinking about the national debt.  After all, in the Keynesian world that almost all Washington DC lives in, savings and… Continue Reading ››

Same Sex Marriages: Are they inevitable?

Mark Smith has offered some excellent political and constitutional analysis of the same sex marriage debate before the Supreme Court (see here and here).  But one of the most often heard arguments in favor of same sex marriage is its inevitability.  As reported in NPR by Republican strategist (and same sex marriage supporter Ana Navarro): “If we are to build a big-tent party, and we are to start winning elections, what we have to stop being is exclusive,” says Ana… Continue Reading ››

Texas Gold going home: the latest body blow to Federal Reserve credibility?

A few months ago the big revelation to gold bugs was Germany wanted its gold back from the Federal Reserve.  What’s the world coming to when central banks don’t trust each other?  Further, with central banks net buyers of gold for the last few years, something seems afoot in the global currency markets.  In perhaps a move of political theater, Texas is the latest to jump in the fray by introducing a bill to bring $1B in gold bars stored… Continue Reading ››

Please Mr. Federal Reserve, stop worrying about income inequality!

CNBC reports today that the Federal Reserve is increasingly considering income inequality as a consideration for monetary policy.  The basic idea seems to be that monetary policy ought to be kept easy as long as those in the lower income groups are unable to gain jobs.  As CNBC reports Some on the FOMC, they said, assert that inequality “undermines the ability of the economy to grow sustainably and efficiently” and could lower the long-term growth rate. This is suspect for… Continue Reading ››

Are deficits really good for our economy?

They are; at least according to Charles DuBois in his letter to the editor in the Wall Street Journal. Mr. DuBois says, In brief, the near-term impact of deficit spending is for the private sector to incur one debit (to buy the bonds) and two credits—one for receiving the bonds and one for receiving the deficit payment. Of course, there must be a debit for every credit, so the “missing” debit is the increase in the federal debt. However, over the… Continue Reading ››

Marriage; the best financial investment you can make?

The institution of marriage is one of God’s great gifts to humanity, and it will certainly be under great debate over the next few weeks as the Supreme Court looks at challenges to the Defense of Marriage Act.  Nevertheless, in today’s post, I simply want to point to the economic benefits of marriage, courtesy of this article published on CNBC back on Valentine’s Day.  The article notes Couples who get and stay married can have as much as four times… Continue Reading ››

Paul Krugman on Cults and Economics

 “But woe to you, scribes and Pharisees, hypocrites, because you shut off the kingdom of heaven from people; for you do not enter in yourselves, nor do you allow those who are entering to go in. When I think about this verse from Matthew 23 of the Eight Woes, I can’t help but see some applicability to economists such as Nobel Laureate Paul Krugman.  Not only will Professor Krugman not embrace good economics, but he’s doing his best to ensure… Continue Reading ››

President Obama: There Is No Debt Crisis!

That’s the headline of this report from ABC News.  Today, the U.S. National Debt is $16.7T, whereas our 2012 GDP was $15.6T, or our debt/GDP ratio is 107%.  Economists Carmen Reinhart and Ken Rogoff  have shown that when debt levels are greater than 90% of GDP (for advanced economies), economic growth slows. EDIT Jun ’13:  There has subsequently been much controversy over a spreadsheet error in R&R’s calculations for the 90% # highlighted above.  Despite this error, the general conclusion… Continue Reading ››