Wednesday , August 23 2017
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Global Economic Intersection

Optimizing the Federal Corporate Tax Rate

Written by Dan Lieberman, Alternativeinsight The Trump administration and its lower tax advocates have not provided adequate analyses and proofs to validate their opinions. Proponents of lower corporate taxes, who claim it will make corporations more productive and escalate production activity, may find their proposals do not automatically make corporations more competitive and benefit the economy less than equivalent government spending. Follow up: Please share this article - Go to very...

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Exploring Inequality: Real Wages and Productivity Growth

by Philip Pilkington I recently had an argument with a few New Keynesian types in the comments section of Lars Syll’s blog. I won’t get into the nuances here as they are not very interesting. Basically the New Keynesians were trying to defend the idea that, in the long-run, wages are indeed flexible. The argument went nowhere partially, I think, because they misunderstood what the phrase “wages are flexible in the long-run” means. Follow up: Please share this article - Go to very top of...

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The Global Energy Transition: Will Renewables Save Us?

by Elliott Morss, Morss Global Finance Introduction Even with the US pulling out of the Paris Accord, there has been a lot of positive press about growth in the use of renewable energy worldwide. In this piece, I look at energy data to illustrate what has really been happening. Follow up: Energy Consumption Table 1 provides data on energy consumption by leading countries and regions. The countries/regions listed constitute 81% of the world total. Million tons oil equivalent (MTOE)...

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What I Learned at (Economics) Summer Camp

by John Mauldin, Thoughts from the Frontline All over America, kids who were fortunate enough to go to summer camp are busy telling mom and dad what they did. Their stories will be suspiciously incomplete, but that’s OK. We know they learned something. Follow up: Please share this article - Go to very top of page, right hand side, for social media buttons. Well, I went to camp this summer, too. I go every year, and I always learn more than I can manage to remember. Camp Kotok is an...

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Fighting Colony Collapse Disorder: How Beekeepers Make More Bees

by Timothy Taylor, Conversable Economist Bees and pollination play an important supporting actor role in economic discussions of how and when markets will work well. Follow up: Please share this article - Go to very top of page, right hand side, for social media buttons. In a 1952 article (Economic Journal, "External Economies and Diseconomies in a Competitive Situation") , James Meade suggested some problems that could arise between an apple farmer and a beekeeper. In Meade's example,...

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Why Sraffa’s Theory Does Not Contain a Labour Theory of Value

by Philip Pilkington Article of the Week from Fixing the Economists In my last post I tried to argue that, for a number of reason, once we make additions to Sraffa’s theory to make it comprehensive enough to confront the real world any potential interpretation of the theory in line with the labour theory of value falls apart. In that post, however, I never dealt with why some people have sought out a labour theory of value in Sraffa’s work. Follow up: Please share this article - Go to...

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Technological Change – Nobody Really Knows What Is Coming

by Elliott Morss, Morss Global Finance Introduction We hear endlessly that technology is advancing at an ever-increasing rate. But for the most part, we just plod along in our current life paths. Thinking back, I remember learning how to use a slide rule and typing my college thesis. Follow up: Please share this article - Go to very top of page, right hand side, for social media buttons. At the University of Michigan, I punched cards and then handed them through a window to be loaded...

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US Public Firm Agonistes

by Timothy Taylor, Conversable Economist The number of shareholder-owned US corporations is in steep decline, falling from 7,507 in 1997 to 3,766 by 2015. Thus, Kathleen M. Kahle and René M. Stulz ask "Is the US Public Corporation in Trouble?" in their article in the Summer 2017 Journal of Economic Perspectives (31:3, pp. 67-88). (Full disclosure: I've been Managing Editor of JEP since its inception in 1987, and thus may be predisposed to believe that the articles appearing there are...

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Money and Banking – Part 19(A): Financial institutions: An overview

by Eric Tymoigne Follow up: Financial Companies Financial companies are involved in creating, buying, selling, and pricing financial instruments. Given the multitude of financial instruments that carry different sorts of risks, and given the complexity involved in issuing and trading financial instruments, financial companies tend to specialize in some specific aspects of the financial sector: Activities surrounding marketable financial instruments: the creation and maintenance of a...

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The Tax Deception Exposed

Written by Dan Lieberman, Alternativeinsight "A good catchword can obscure analysis for fifty years." - Oliver Wendell Holmes Follow up: Please share this article - Go to very top of page, right hand side, for social media buttons. Without proof, the Republican Party and Grover Norquist's Americans for Tax Reform have pushed catchy expressions into our lexicon, casually and with absolute conviction. Two of the most prominent are:  Lowering income tax rates benefits the economy. Raising...

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