The Costs of Debt Limit Brinksmanship
Today I had the chance to testify before the Joint Economic Committee about a perennial challenge, the looming debt limit. Here are my opening remarks. You can find my full testimony here. I’d like to...
View ArticleRay Dalio, the Economic Machine, and Beautiful Deleveraging
Ray Dalio, founder of the remarkably successful Bridgewater Associates, has released a 30 minute video explaining his vision of “How the Economic Machine Works.” Well worth watching, particularly his...
View ArticleActually, the United States Has Defaulted
Since the day of Alexander Hamilton, the United States has never defaulted on the federal debt. That’s what we budget-watchers always say. It’s a great talking point. One that helps bolster the...
View ArticleWhy Did Fama, Hansen, and Shiller Win the Nobel?
Eugene Fama, Lars Peter Hansen, and Robert Shiller won the Nobel Prize in Economics this morning for their work studying asset prices. In one sense, they are a motley trio: Fama is famous for...
View ArticleDoes the Export-Import Bank Make or Lose Money?
Suppose your aunt decides to start a business making pizza ovens. She will design and build the ovens, and her daughter will manage operations. A bank is ready to lend her $100,000 to get started, but...
View ArticleThe $300 Billion Question: How Should Congress Budget for Federal Lending...
Lending programs create special challenges for federal budgeting. So special, in fact, that the Congressional Budget Office estimates their budget effects two different ways. According to official...
View ArticleSpin Alert: DOE Loans Are Losing Money, Not Making Profits
The Department of Energy snookered the media last week with a report that seems to show that its clean energy lending programs are profitable. “Remember Solyndra? Those loans are making money,” went a...
View ArticleBudgeting for Federal Lending Programs Is Still a Mess
On Monday, the Government Accountability Office (GAO) defended the current method for budgeting for federal lending programs, known as “credit reform.” By endorsing the status quo, GAO puts itself at...
View ArticleTaxing carried interest just right
Hillary Clinton and Donald Trump agree on one thing: Managers of private equity funds should pay ordinary tax rates on their carried interest, not the lower rates that apply to long-term capital gains...
View ArticleThree Things You Should Know about the Buyback Furor
Record stock buybacks—driven in part by the corporate tax changes in the Tax Cuts and Jobs Act (TCJA)—have sparked a media and political furor. Unfortunately, they’ve also created a great deal of...
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