International Relations

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Blog Post - views-on-the-economy-and-the-world

The Case Against Subsidizing Housing Debt

| May 29, 2017

Economists hesitate to explain to people that they should borrow less. The advice sounds too “schoolmarmish.” It seems to lack sympathy for those whose incomes are not keeping up with the standard of living that they had expected based on historical trends. But for those concerned with the reach of the nanny state, the state is precisely what encourages citizens to borrow. And it does nobody any favors to get them overly indebted, as the millions of homeowners who went underwater in the housing crisis ten years ago discovered.

Budget Director Mick Mulvaney holds up a copy of President Donald Trump's proposed fiscal 2018 federal budget as he speaks to members of the media in the Press Briefing Room of the White House in Washington, Tuesday, May 23, 2017. (AP Photo/Andrew Harnik)

AP Photo/Andrew Harnik

Analysis & Opinions - The Washington Post

Larry Summers: Trump’s budget is simply ludicrous

| May 23, 2017

"Apparently, the budget forecasts that U.S. economic growth will rise to 3.0 percent because of the administration’s policies — largely its tax cuts and perhaps also its regulatory policies.  Fair enough if you believe in tooth fairies and ludicrous supply-side economics."

President Donald Trump, joined by Vice President Mike Pence, Secretary of Veterans Affairs David Shulkin, Secretary of Commerce Wilbur Ross, signs an Executive Order on the Establishment of Office of Trade and Manufacturing Policy at The AMES Companies, Inc., in Harrisburg, Pa., Saturday, April, 29, 2017. (AP Photo/Carolyn Kaster)

AP Photo/Carolyn Kaster

Analysis & Opinions - Project Syndicate

Inconvenient Truths About the US Trade Deficit

| Apr. 25, 2017

"It is easy to blame the large trade deficit on foreign governments that block the sale of US products in their markets, which hurts American businesses and lowers their employees’ standard of living. It’s also easy to blame foreign governments that subsidize their exports to the US, which hurts the businesses and employees that lose sales to foreign suppliers (though US households as a whole benefit when foreign governments subsidize what American consumers buy)."

The New York stock exchange on Wall Street

Creative Commons

Analysis & Opinions - Project Syndicate

The Risks to America’s Booming Economy

| Mar. 29, 2017

The US has experienced a decade of excessively low interest rates, which have caused investors and lenders to seek higher yields by bidding up the prices of all types of assets and making risky loans. The danger is that overpriced assets and high-risk loans could lose value and cause an economic downturn.