Category Archives

Archive of posts published in the category: Business

The True Function of the Corporate Income Tax

From Holman Jenkins at The WSJ, Harmonize this Eurocrats,  What about the undoubted problem of companies like Apple shielding their globally earned profits behind a small country’s friendly tax regime? There’s a remarkably sanitary solution: Get rid of the corporate…

Read More

The New Trusts

from The Great Regression in The National Review by Victor Davis Hanson As a result of liberal hyper-wealth, the new trusts are given veritable media and political passes on their embrace of practices once seen as illiberal and self-serving, like excessive electronic…

Read More

The True Cost of Low Rates

From Barron’s Stephanie Pomboy: A Grim Outlook for the Economy, Stocks by Leslie Norton In the past rates that were too high were the trigger (for a financial crisis). Not this time. No. 1, we have basically bankrupted corporate and state and…

Read More

Stifling Inflation and Productivity

From The Reasons Behind the Obama Non-Recovery by Robert Barro in The Wall Street Journal The main U.S. policy used to counter the Great Recession was increased government transfer payments. Federal social benefits to persons as a ratio to GDP…

Read More

Known and Unknown Risks

No government policy can remove the risk of investment; the best they can do is not add to the risks by adding uncertainty to the environment. The reason that strangers from all over the country will congregate to a blackjack…

Read More

The Home Ownership Myth

from The Wall Street Journal, The Housing Non Crisis The home ownership rate is a largely meaningless statistic that has more to do with politics than economics. For starters, it promotes the myth that owning a home is the key…

Read More

A Thousand Course Smorgasboard

from The Clinton Plan’s Growth Deficit by John Cochrane in The Wall Street Journal The rest of Mrs. Clinton’s economic agenda is a thousand-course smorgasbord of government expansions, with the same deficiencies. A random sample: Higher taxes on capital gains and corporations.…

Read More

Hillary’s World

From John Cochrane at The Grumpy Economist,  Clinton Plan: There are no numbers here anywhere. The $275 billion is clearly just a made up number that sounds sort of big but not so big as to attract tax-and-spend criticism. Because…

Read More

Inventory Growth

From Barron’s Stephanie Pomboy: A Grim Outlook for the Economy, Stocks by Leslie Norton What’s caused this growth in inventories? It isn’t because companies ramped up production. Companies aren’t using cheap capital to increase production and capital expenditures, but are lavishing money…

Read More

Ass Backwards Policy

From Barron’s Stephanie Pomboy: A Grim Outlook for the Economy, Stocks by Leslie Norton The statistics bear this out. Over the last four years, U.S. nominal GDP growth has gone from 4.3% to 4.1% to 3% to 2.4%. The deflator, the inflation…

Read More

Power and Blockchain

from Richard Fernandez at PJ Media, The End of the Memory Hole But just to illustrate how things have changed for the State we now know that Orwell was wrong.  The mathematically dominant method for recording transactions, whether they involve the transfer of financial assets, intellectual…

Read More

Determined to Save

From Barron’s Stephanie Pomboy: A Grim Outlook for the Economy, Stocks by Leslie Norton Post-crisis, the consumer has clearly pulled back. How many months did we have disappointing retail sales numbers that no one could explain? They’d say it’s too…

Read More

The Buyer of Last Resort

So there we have it. The unicorn buyer of last resort will be the Fed. The “lender of last resort” for the financial system, the governmental guarantor for all the big banks and other “systemically important financial institutions,” the backup…

Read More

Gilded Progressives

from The Great Regression in The National Review by Victor Davis Hanson At the turn of the last century, “trust busters” of the progressive movement made the argument that the free market was imperiled by crony capitalists, who had, with…

Read More

Bridges to Stagnation

from The Clinton Plan’s Growth Deficit by John Cochrane in The Wall Street Journal America’s foremost economic problem is sclerotic growth. If the economy continues to expand at only 1% to 2% a year, instead of the historical 3% to…

Read More

Fix the Structure of Government

from The Clinton Plan’s Growth Deficit by John Cochrane in The Wall Street Journal Her speech Thursday at least identifies the problem: “Powerful special interests and the tendency to put ideology ahead of political progress have led to gridlock in Congress.” To…

Read More

It’s the Growth, Stupid

Scott Grannis at Calafia Beach Pundit is one of my favorite economics bloggers. He does not post often, but when he does he produces some real gems.  His work includes illuminating graphs that supports his clear analysis. While I have…

Read More

The True Costs of Compliance

from Daniel Yergin at the WSJ, Markets Run Into Skepticism—and Regulators There had been a shift in the balance of confidence—the respective weighting in people’s minds between the role of markets and government, between the invisible hand and the visible one.…

Read More

Capitalization vs Regulation

While the left claims the greedy 1% led us to financial ruin, years of reflection indicate that wrongheaded regulation and policy had much to do with magnifying the depth of the recession. Deregulation was not the problem, wrong regulation was…

Read More

Thoughts on Brexit

by Henry Oliner Many Americans have become familiar with basic economic concepts because it affects them so regularly, but our understanding usually stops at our shore. The Brexit vote has us scratching our head to comprehend something we hardly knew…

Read More