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, […]
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Are deficits really good for our economy?
24 Mar 2013
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 […]
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President Obama: There Is No Debt Crisis!
14 Mar 2013
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: […]