Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Standard view
Full view
of .
Look up keyword
Like this
0 of .
Results for:
No results containing your search query
P. 1
The Ledger 09/20/13

The Ledger 09/20/13

Ratings: (0)|Views: 45|Likes:
A weekly snapshot of news, views, and economic cues from AEI's Economic Policy team
A weekly snapshot of news, views, and economic cues from AEI's Economic Policy team

More info:

Published by: American Enterprise Institute on Sep 19, 2013
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less





If you have trouble reading this message, click here to view it as a web page. 
Easy money keeps flowing 
Surprise! Fed will not taper. 
 After managing to introduce the additional drag of sharplyhigher interest rates and attendant signs of a housing relapse, by talking, prematurely as it turns out,
about tapering, the Fed cited a ‘tightening of financial conditions’ (that it had caused) as a reason not totaper. The FOMC, it turns out, needs to see ‘more
evidence that progress (on the economy) will be
sustained before adjusting the pace of purchases.’ So much for helpful ‘forward guidance’ from the Fed.”
 Yellen up, Summers down.
James Pethokoukis:Obama will no doubt try to put this mess quicklybehind him, nominating Yellen without much delay. . . . Republicans would ask plenty of tough questionsabout the quantitative-easing bond-
buying program that she’s helped oversee and her views on inflation.
It’s hard to imagine Republicans blocking the first female Fed nominee, however, given Yellen’sindisputable qualifications for the job.”
A Fed in crisis. 
The Fed is facing huge
if not insurmountable
challenges over the next few years. . . . The so-called "taper" is one part of the story. But the bigger story
the one thateveryone seems to be missing
is how the responsibilities of the Fed have exponentially grown under the Dodd-Frank financial reform law.
with Peter Fischer (Blackrock), John Makin (AEI),Stephen Oliner (AEI), and Alex Pollock (AEI).
 A debt limit deal?
Chained CPI is bipartisan and fiscally responsible.
Even after adding sensible protectionsfor the poor and the oldest retirees, the president's proposal would cut benefits by $130 billion over thenext decade, while also pulling in $100 billion of extra revenue. The budgetary impact in the followingdecade would likely be three times larger, as the annual reductions continue
d to cumulate.”
Pressure on entitlement reform grows as Social Security deficits double. 
Congressional Budget Office released on Tuesday its annual Long Term Budget Outlook. . . . for those
who previously said that there’s no hurry to fix Social Security because the long
-term deficit is small andeasily managed, a near-doubling of that deficit
should cause them to reconsider their positions.”
Five years after the financial crisis
Don’t mention the government’s involvement
With the fifth anniversary of theLehman Brothers collapse, the media have been full of analyses about what happened in those fatefuldays. We hear plenty about Wall Street rapacity but any discussion of the government's central role in thedisaster is neatly avoided. This historical airbrushing is something of a
feat, given the facts.”
Why Lehman was not rescued. 
“Lehman failed before TARP was passed or even
proposed to the Congress. This meant that the Treasury Department had no legal authority to put
government money into the firm or provide a guarantee for its obligations.”
Tax reform
Senator Mike Lee discusses his new tax reform plan at AEI. 
“Parents receive no
additional benefits for having contributed or sacrificed hundreds of thousands of additional dollars raisingtheir kids. This is the inequity my bill is designed to highlight and address. . . . the centerpiece of the planis an additional $2,500-
per child tax credit.”
NEW RESEARCH -- OECD tax proposal brings unintended consequences
:“OECD’s attempts to revise the existing transfer pricing regime may significantly alter the
incentives facing multinational taxpayers and national tax authorities. We believe those altered incentivesand their implications for investment, employment, and overall welfare should be carefully considered.
Tech policy 
Trolling for a patent policy fix. 
There is no apparent downside in making it easier tothrow out patents that
should never have been issued in the first place.”
High-tech patent mess. 
:“U.S. Trade Representative (USTR) Michael Froman
overturned a decision by the quasi-judicial U.S. International Trade Commission (ITC). . . . The ITCdecision would have barred certain Apple iPhones and iPads from entering the United States because
they allegedly infringed on patents held by Samsung, Apple’s major competitor in the global smartphonemarket.”
In other news
NEW RESEARCH -- Yet again,
it’s found that
minimum wages lead to lost jobs
Theincrease in minimum wages between 2007 and 2009 can account for a 0.8 percentage point increase inthe steady state unemployment rate and a 2.8 percentage point increase in unemployment for 15-24 year 
old workers.”
Do tattoo waiting periods protect us from ourselves? 
“Just as Theresa Vail —
thetattooed Miss Kansas
made the top 10 in the Miss America
pageant, the District of Columbia’s Health
Department proposed a 24-
hour waiting period for tattoos and body piercings.”
Obamacare and Trader Joes. 
They are not doing this to empower their workers, they are
doing it to avoid paying for a new mandated benefit.”
Mark your calendar 
AEI event: 
AEI event: 
Trillion-dollar problem: How oil dependency drives US debt9.26 Jobless claims released9.26 Revised second-quarter 2013 GDP growth numbers released
Keep up with AEIecon
Get up-to-the-minute updates @AEIeconRead more from the American Enterprise Institute economic policy team at www.aei.org/economics. Contact Abby at abby.mccloskey@aei.org if you have questions for the economics team.
 Sign up for a weekly copy of the LEDGER here. 

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->