From Forbes, Ralph Benko reports congressional sound money legislation.
At RCM, Louis Woodhill explains the terrible employment data. In Forbes, John Tamny analyzes the problem of reliance on GDP. On The Kudlow Report, Benn Steil discusses the eurozone crisis:
At The WSJ, James Bovard highlights efforts to create a happiness index to replace weak GDP statistics. From PJ Media, David Goldman explains declining labor force participation. On RCM, Keynesian Paul Samuelson sides with Ben Bernanke over Paul Krugman on inflation. At RCM, Bill Frezza notes the negative economic consequences of restrictive immigration policy. The Mises Institute features Robert Wenzel’s NY Fed speech, in which he cites his warning of the dramatic monetary tightening of summer 2008:
After growing at near double digit rates for months, money growth has slowed dramatically. Annualized money growth over the last 3 months is only 5.2 percent. Over the last two months, there has been zero growth in the M2NSA money measure.
This is something that must be watched carefully. If such a dramatic slowdown continues, a severe recession is inevitable.
We have never seen such a dramatic change in money supply growth from a double digit climb to 5 percent growth. Does Bernanke have any clue as to what the hell he is doing?
The WSJsuggests the new French president follow German chancellor Gerhard Schroder’s example.
At The NYT, Paul Krugman advocates breaking up the euro.
In The WSJ, Jon Huntsman notes the Chinese government’s profound economic insecurity.
From Forbes, Chris Barth reports David Malpass argues the dollar should rise due to tighter money, not the falling euro.
In Bloomberg, Amity Shlaes challenges Paul Krugman on fiscal austerity.
A reader comments: Amity Schlaes pens an austerity-can-lead-to-growth op-ed, dismissing Paul Krugman's call for more Keynesian spending, but commits a startling error:
...There is evidence that austerity did lead to growth in the past, and that it did not cause fascism. These examples may be less known, but they suggest that austerity can bring recovery faster than spending can.
A strong example in U.S. history is the recession of the early 1920s. Responding to a downturn, the federal government didn't spend; it cut itself in half. Recovery followed so rapidly few people even remember that recession.
Brian Domitrovic has written how there was virtual consensus between Presidents Wilson's and Harding's money men on reducing top marginal rates before the election, so how could Shlaes forget Mellon’s tax cutting agenda that kicked off the Roaring Twenties? The Revenue Act of 1921 brought the top marginal tax rate down to 58% in 1922 from 73%, and with subsequent reductions, Mellon was able to get that top tax rate down to 25% by 1925. The austerity of the 1920s did not take place without efforts to foster economic growth. In this, Shlaes was sloppy.
On NRO, Larry Kudlow reports Senate Minority Leader Mitch McConnell (KY) pushing for the Keystone Pipeline in exchange for the payroll tax cut.
On The Kudlow Report, Steve Forbes discussesNational Review’s editorial opposing Newt Gingrich:
From Forbes, Louis Woodhill argues pro-growth policies explain Gingrich’s rise.
At The American, James Pethokoukis suggests Gingrich’s Iowa lead is softening.
In The American Spectator, Ben Stein predicts President Gingrich and Vice President Huntsman.
At The WSJ, Dan Henninger portrays Gingrich as Mitt Romney’s sparring partner, toughening the former governor up to debate President Obama.
On NRO, Elise Jordan sees Jon Huntsman failing to capitalize on recent opportunities.
At Forbes, Jerry Bowyer highlights the role of interest rates to functional economic and financial systems.
From First Trust, Brian Wesbury predicts unemployment will be down to 8% by Election Day.
On The WSJ, Steve Cortes argues the Chinese economic model won’t work in the long run:
In The WSJ, conservative Keynesian Martin Feldstein pans the Eurozone economic deal.
On C-SPAN, PIIE’s C. Fred Bergsten – Keynesian and key intellectual driver of the 1970s dollar devaluation and subsequent Great Inflation – argues more American jobs will come from rebalancing world trade by lowering the dollar’s exchange rate to a competitive level (around minute 13).
50,000 Page Views. We’re pleased to announce that yesterday this site reached 50,000 page views since its founding in May 2010. When setting goals for 2011, we set that target as a goal, so it’s gratifying to achieve it. To be sure, this number is a small fraction of the hits for big web sites, but this is a part-time site that has grown without much promotion. Thanks for reading. -------------------------
From his 1999 Nobel lecture, Robert Mundell provides a fascinating monetary history of the 20th century.
In The WSJ, Alan Reynolds notes the recession’s disproportionate impact on the top 1%.
On Forbes, Ralph Benko credits Robert Mundell with China’s recent economic success.
At RCM, John Tamny critiques the Fed’s latest easy credit maneuver.
On The Kudlow Report, Newt Gingrich advocates major tax reform, cites Peter Ferrara, Jude Wanniski, and Art Laffer, and refers to himself as part of Jack Kemp's "supply-side cabal":
In The Washington Examiner, Conn Carroll notes conservative interest in Jon Huntsman.
From Alhambra Partners, Joe Calhoun surveys the market.
At Asia Times, David Goldman argues Italy’s mix of spending cuts and tax increases doom it to stagnation.
On Forbes, Charles Kadlec critiques European austerity measures.
In The Hill, Republican lobbyist (and former congressional colleague) John Feehery advocates less focus on “no new taxes,” and more focus on a pro-growth tax system.
From SNL, “President Obama” lists anti-tax activist Grover Norquist as the nation’s second most powerful entity:
In The NYT, Bruce Bartlett suggests tax hikes on the wealthy are inevitable.
At COAL, Paul Krugman notes Germany’s huge export boom since the euro was established.
Klassa (Bulgaria) reports Robert Mundell advocating a common currency between the US and EU.
On Coffee and Markets, Brian Domitrovic discusses his Laffer Center paper on the Federal Reserve’s financing of the federal debt.
At The Freeman, John Chapman and John Allison argue for a return to gold-linked money.
On The Kudlow Report, Dan Mitchell discusses a US bailout of Europe:
On his website, Jon Huntsman advocates sound money:
Jon Huntsman supports a strong and stable dollar. As president, he will appoint Federal Reserve Board Governors and a Chairman who believe in sound money. The United States cannot devalue our way to prosperity and efforts to do so risk a “beggar thy neighbor” round of devaluations, which will ultimately harm American exporters and risk the dollar’s privileged position as the primary global reserve currency.
On NRO, Larry Kudlow doubts the Fed’s cheapening of dollars to Europe will change anything.
From Cato, Steve Hanke suggests Europe is suffering from monetary contraction.
At The WSJ, George Melloan notes Europe’s move toward fiscal consolidation:
The possible direction of the negotiations was tipped by a leaked German memo proposing a "European Monetary Fund" that would be the core of a "stability union" paving the way for "political union." As a quid pro quo for financial aid, this fund would demand policy reforms in distressed nations to facilitate a work-off of excessive debt. Ms. Merkel, French President Nicolas Sarkozy and the new Italian premier, Mario Monti, are promising that a plan for closer economic and political integration will be submitted at the Dec. 9 European Union summit. If approved, this could be a very big deal.
From The Council on Foreign Relations, Benn Steil explains the ECB is restrained, unlike the US Fed, because it lacks the backing of a national treasury.
In The WSJ, Art Laffer supports Herman Cain’s 9-9-9 plan.
At Bloomberg, National Review’s Ramesh Ponnuru critiques Cain’s plan.
The NY Sunchides the GOP candidates for sounding hostile to immigration.
In The WSJ, Leonard Lauder argues that immigration is pro-growth, noting that more than 40% of Fortune 500 companies were founded by immigrants or their children.
On The Kudlow Report, a panel discusses last night’s GOP debate:
In The WSJ, Jon Huntsman opposes too-big-to-fail banks.
From Forbes, Brian Domitrovic quotes Warren Buffett’s father on debt and gold.
On Forbes, Ralph Benko counters arguments against a gold standard.
In USA Today, Gov. Mitt Romney (MA) outlines the 10 points of his 59-point economic plan, including middle class tax relief, spending cuts, expanding free trade, and reducing regulation. Sound money and stable exchange rates don’t rate a mention.
In The WSJ, Gov. Jon Huntsman (UT) outlines his plan for entrepreneurial growth, including Dodd-Frank repeal, Fannie and Freddie privatization, domestic energy production, free trade, and, as its capstone, major tax reform. Dollar reform is not included:
For individual taxpayers, we will introduce three drastically lower rates of 8%, 14% and 23%. Eliminating deductions and credits in favor of lower marginal rates will yield a simpler and more efficient system, decreasing the taxpayer burden. We'll also use the increased revenue from closing loopholes to make business tax rates globally competitive and eliminate double taxes on investment, both measures that will encourage hiring.
On CNBC, Larry Kudlow offers ideas to liberate free enterprise.
At TGSN, Ralph Benko highlights a 2010 TV ad from my former employer, Citizens Against Government Waste.
On Kudlow, Stephen Moore discusses Romney’s economic plan:
From Pajamas Media, David Goldman challenges the Keynesian notion that we need to boost consumer spending.
The NY SuncitesThe Federalist in support of sound currency.
Korea has been hit by the same dollar tidal wave the Federal Reserve has unleashed on the rest of the world. These inflows have caused inflation spikes all over, with consumer price rises of nearly 4.5% in Thailand, more than 3% in Malaysia, above 5% in Singapore and so forth in recent months. A weak-dollar policy out of Washington inevitably strains everyone else in what still is the Asian dollar bloc.
Korea, however, has managed to make matters worse by attempting a form of competitive devaluation of the won on the sly. Dollar inflows have also sparked currency appreciations in most corners of Asia, with the yen (up 17.5% vis-à-vis the dollar since January 2010), Singapore dollar (14%) and Thai baht (10%) leading the pack.
But in Seoul, the central bank has refrained from raising interest rates that are still negative after accounting for inflation, despite unsustainably robust growth and mounting evidence of rising prices. Data on foreign-exchange reserve accumulation over the past two years also suggest the government may be quietly buying dollars and selling won, although the government denies this.
McClatchy’s Kevin Hall reports small businesses aren’t concerned with regulation or taxes.
From Yahoo! Finance, World Bank chief Robert Zoellick discusses the world economy.
From The Economist, supply-side guru Robert Mundell emphasizes “growth, growth, growth,” advocates making the Bush tax cuts permanent and cutting the corporate tax rate, opposes European devaluation, and explains the role of exchange rate fluctuations in global economic crises over the last 40 years.
At Forbes, Nathan Lewis suggests a debt default combined with tax cuts would solve Europe’s economic problems.
The WSJapplauds former-Gov. Jon Huntsman’s (UT) economic plan as the best so far from the Republican presidential field:
The heart of the plan lowers all tax rates on individuals and businesses. Mr. Huntsman would create three personal income tax rates—8%, 14% and 23%—and pay for this in a "revenue-neutral" way by eliminating "all deductions and credits." This tracks with the proposals of the bipartisan Bowles-Simpson commission and others for a flatter, more efficient tax system….
Mr. Huntsman would repeal two of President Obama's most economically debilitating creations, ObamaCare and the Dodd-Frank financial regulation law. Mr. Huntsman has it right when he says, "Dodd-Frank perpetuates 'too big to fail' by codifying a regime that incentivizes firms to become too big to fail." He'd also repeal a Bush-era regulatory mistake, the Sarbanes-Oxley accounting rules, which have added millions of dollars of costs to businesses with little positive effect.
On The Kudlow Report, Stephen Moore debates demand vs. supply-side economics:
At NRO, Larry Kudlow sees a Reagan moment coming in 2012.
