Items tagged with economics:
News & Updates:
In his OpEd for the Hill, Faculty Affiliate Chris Sanchirico explains some basic economic principals as they relate to findings from the CEA and Trump’s tax plan.
“The CEA’s presentation of economic science is largely pretense. No one knows how much employees would benefit from a corporate tax reduction, and no one has a good answer to why directly lowering wage taxes wouldn’t better serve employees — assuming, that is, that this is the goal.”
Trump indicates he may use executive order on health care; Working class Americans face growing debt burden; IMF raises worldwide economic outlook.
As floodwaters from Hurricane Harvey recede in Houston, one thing that’s been revealed is that some of the damage — financial, physical, emotional — could have been avoided.
“It gives people a feeling of complacency if they are not required to buy insurance,” said Howard Kunreuther, the co-director of the Wharton Risk Management and Decision Processes Center at the University of Pennsylvania. He would like to see FEMA provide people the “gradation of their risk.”
Presentations from Fed chair Janet Yellen, European Central Bank President Mario Draghi and a host of researchers amounted to a broad rebuttal of many of the ideas that carried Trump to office at a Fed Conference in August.
“Renegotiating NAFTA and protectionist measures against China will not save jobs,” Faculty Affiliate Ann Harrison said, arguing that the decline in manufacturing jobs was due to labor-saving management and technologies.
Aging and the U.S. Economy: How a Shrinking Workforce and Aging Related Disorders Slow Economic Growth
The U.S. economy is facing the crisis of an aging workforce that has the potential to harm the economy as more people begin to exit the workforce than enter it. By 2030, it’s predicted that 20% of U.S. residents will be aged 65 and older, compared to only 13% in 2010 and 9.8% in 1970.  The U.S. fertility rate is also at a historic low, sitting at 62.0 births per 1000 women aged 15 to 44.  This combination leads to a slowdown in the replacement rate, and makes it difficult for the U.S. to sustain or increase its economic growth. Additionally, an aging population can have other drags on the economy, especially the costs associated with neurodegenerative disorders and other diseases associated with aging.