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Redistribution: Votes Versus Income Shares

While income redistribution has always been a hot topic, the debate has become more intense in recent years. In part, this has reflected stagnation in median family income. Also, standard measures of income distribution had been showing growing inequality in the distribution of income. However, inequality decreased and median family income improved in 2018 and … Continue reading Redistribution: Votes Versus Income Shares

The Economy: How Are Things Looking Now?

Analysts seem divided on where the economic recovery from the COVID shock stands. Some see recent news to be pointing to a still-vigorous expansion—a “V”-shaped recovery. But others read the news, including new COVID outbreaks, to be suggesting that the expansion is stalling out or even receding—that is, a “W” is unfolding. Putting the various … Continue reading The Economy: How Are Things Looking Now?

The Fed’s New Game Plan: Radical?

On August 27, Fed Chair Jerome Powell announced an important change to the Fed’s conduct of monetary policy. The announcement followed a lengthy and thorough review of the Fed’s policy framework and its strategy for achieving its statutory goals of maximum employment and stable prices. The review was prompted by significant changes in the economic … Continue reading The Fed’s New Game Plan: Radical?

The Economy: Sorting Through the Pluses and Minuses

Initial claims for unemployment insurance jump and universities shut down campuses and return to all on-line classes—news pointing to a setback for the economy. In contrast, existing home sales surge and the stock market moves into record territory—news pointing to an ongoing rebound from one of the sharpest declines in history. What does it all … Continue reading The Economy: Sorting Through the Pluses and Minuses

A Trillion Here, a Trillion There: How Will the Federal Debt Problem Get Resolved?

“A billion here, a billion there, and pretty soon you are talking about real money.” Attributed to Senator Everett Dirksen (Illinois) One wonders how Senator Dirksen might react to the current federal budget outlook, given the nearly $3 trillion of red ink that has been spilled so far in the 2020 fiscal year and the wrangling … Continue reading A Trillion Here, a Trillion There: How Will the Federal Debt Problem Get Resolved?

The Recovery: Is The Glass Mostly Full or Mostly Empty?

The recent news on the COVID-19 crisis has been mostly negative, suggesting that the recovery may be experiencing a major setback (the glass is mostly empty). However, a variety of reports on the economy recently have pointed to unexpected vigor (it’s mostly full). Granted, many of these reports are from June, before the recent COVID … Continue reading The Recovery: Is The Glass Mostly Full or Mostly Empty?