Since the end of World War II, federal tax revenue has grown 15% faster than national income. Federal spending, though, has grown 50% faster. These two statistics should scare all…
Almost Nobody Left Behind in U.S. Labor Market
If you started a new job last month, you’re not alone. In fact, 313,000 Americans found jobs in February. While 92,000 people found jobs in construction and manufacturing, another 50,000…
What Security Threat?
Perhaps you feel more secure today, knowing that steel and aluminum that’s imported to the U.S. from Canada and Mexico will be subject to tariffs. But does security really have…
Tariffs Are a Step Backwards
President Trump has combined tax reform and deregulation to boost the economy and create jobs. Yet he is canceling out this economic enhancement with protectionist policies. His biggest policy mistake…
Central Planners Wrong Again
Based on action by central bankers, the euro should be weakening relative to the dollar, yet just the opposite is happening. The Federal Reserve Board has been raising interest rates…
Deflation Isn’t Always Bad
As we noted yesterday, the Federal Reserve Board’s attempt to avoid deflation has resulted in lowering income for those in the bottom 25% of the income scale. But we likely…
Fed’s Inflation Focus Hurting Average Americans
While we’ve written in the past about the perils of deflation, we’ve also noted that the Federal Reserve Board’s target of 2% inflation is random and dangerous, as the Fed…
The Globe’s New Math
The headline in a recent edition of The Boston Globe read, “White House proposes $4.4 trillion budget that adds $7 trillion to deficits.” That a $4.4 trillion budget could produce…
High-Frequency Headache
Previous posts this week shared concerns from John Mauldin of Mauldin Economics about exchange-traded products and high-yield bonds. Mauldin also called out high-frequency traders, who did nothing to keep the market from dropping…
Kill the Quants – Before They Kill the Markets
As we noted last week, there is always something to worry about. Yesterday, we discussed the risks being created by exchange-trade products, quoting a Mauldin Economics column. In his column,…