Article Artículo
Misleading Claims on the Keystone Pipeline: Brought to You By Our Friends at Washington PostDean Baker / December 18, 2011
Article Artículo
You Don't Have to Save When Your House Does it For YouDean Baker / December 18, 2011
Article Artículo
How Did Fannie and Freddie Get to be the Symbols of the Housing Bubble?Dean Baker / December 17, 2011
Article Artículo
Labor Market Policy Research Reports, Dec. 5 – 16, 2011Recently released reports from CBPP, EPI, NELP, and PERI:
Center on Budget and Policy Priorities
House Unemployment Insurance Proposal Would Harm Jobless Workers, Weaken Economy, and Undermine UI System
Chad Stone and Hannah Shaw
Economic Policy Institute
The Restore the American Dream for the 99% Act: An analysis of job-creation provisions
Andrew Fieldhouse and Rebecca Thiess
CEPR and / December 16, 2011
Article Artículo
Consumer Price Index Unchanged, Rebounding Dollar Restrains Import PricesDavid Rosnick / December 16, 2011
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Change in Core Producer Prices, by Processing Stage, Jan 2007 – Nov 2011CEPR / December 16, 2011
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CPI Unchanged in November, Inflation Remains LowDavid Rosnick / December 16, 2011
Article Artículo
Europe’s Crisis and Latvia’s “Success”Mark Weisbrot / December 16, 2011
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Quick, How Big a Deal Is $200 Billion Over the Next Quarter Century?Dean Baker / December 16, 2011
Article Artículo
Time Magazine Decides to Throw Numbers to the Wind to Promote Representative RyanDean Baker / December 15, 2011
Article Artículo
How Does the Post Know that the Ryan-Wyden Plan Will "Preserve" Medicare?Dean Baker / December 15, 2011
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SOPA Will Cost Jobs! The NYT Should Talk to an Economist, not the Chamber of CommerceDean Baker / December 15, 2011
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NYT Forgot to Mention That Ryan's Medicare Plan Raises CostsDean Baker / December 15, 2011
Article Artículo
The Impact of a Financial Speculation Tax on GDP: Problems with the European Commission ModelWhile interest in a financial speculation tax, also known as a financial transaction tax (FTT), is picking up in the United States, the European Union is getting close to actually approving a tax. As part of this process, the European Commission (EC) had its staff put together a model that would project its impact on investment and growth.
This model, which the staff admits is very much a work in progress, projected that in the long-run the tax would lead to a 1.76 percent decline in output. Opponents of the tax were quick to seize on this projection as a basis for opposing the tax.
As I noted earlier, there are good reasons for questioning this projection from the model. It implies that the cost of financial transactions (a tax would have no different effect than brokerage fees and other trading costs) have an extraordinarily large impact on growth and productivity growth. This is completely at odds with nearly all of the economic literature on growth, which does not mention financial transactions costs at all.
Extrapolating from the model, the decline in the average cost of financial transactions in the United States over the last three decades would explain close to 15 percent of the productivity growth in over this period. If this is true, then the U.S. should anticipate slower productivity growth in the years ahead, since there is little room for transactions costs to decline further, now that they getting close to zero. (The Congressional Budget Office and the Office of Management and Budget have not incorporated any such slowdown into their growth projections.)
Another implication of the EC model’s projection is that the U.K. could quickly see a jump in its GDP of close to 9 percent if it got rid of its 0.5 percent tax on stock trades. It is unlikely that anyone really believes this. Of course, if the EC model’s projections are accurate then the UK should have seen its GDP increase by close to 9 percentage points above its baseline in the years following 1986. That was the year it lowered its tax from 1.0 percent to 0.5 percent. (There was no increase in growth that was close to this size.)
CEPR / December 14, 2011
Article Artículo
NYT Presents Good Analysis of State Tax Breaks for BusinessDean Baker / December 14, 2011
report informe
Latin America and the Caribbean
La historia del éxito económico argentino y sus implicacionesMark Weisbrot, Rebecca Ray, and / December 13, 2011