Selected in the top 100 Economics Sites

Follow me on Twitter

Monday, October 31, 2011

This is all you need to know.

Please view this night-time satellite photo of the Korean peninsula. We don't get results like this in economics too often. This photo is the purest natural economic experiment we could possibly hope for in a side-by-side test of the efficacy of markets versus command and control economics. And yet, the poor, misguided souls across the world and in the "Occupy This-or-That" movement continue to pathetically pout and grind their teeth for Marxism. Please, emigrate to Ghana and try your theories out there. And take the gold standard people with you. I am sure you will have much to talk about. Please keep your mental delusions to yourselves and your infected fingers off the future of my country.

Sunday, October 30, 2011

A distributional analysis of Herman Cain's 9-9-9 plan.

Click on the above and you will see the impact of the 9-9-9 plan spread across income quintiles (that is every 20%). Notice that the lower 2 quintiles have their tax burden increase the most since...they pay few taxes anyway. In the end the average tax rate comes out to be pretty much proportional (that is the last column on the Table). The peeps in the top of the income distribution get their taxes shaved the most. Remember however this is a static analysis. Fundamental tax reform is one of our tickets out of the mess we are in. Something along these lines would be great although I doubt it would work with 9-9-9. What about 20-10-10 and exempt the lower 40%?

If president Obama were to suggest and adopt anything even remotely close to this or even were to push lightly for fundamental tax reform, he would take this issue from Republicans and win outright. But he can't do it. It is against his DNA and the mental shackle that captivates all Democrats believing that taxes going up on the rich is the only fair thing to do. It is a mental shackle that has them continually kick the economy when it is down and keep us where we are. But at least it serves to promote fairness right?

Monday, October 24, 2011

Saturday, October 22, 2011

The Parker Clan expands by one...

The puppy on the right is my new dog Sophie. She will be coming my way around December 1st. She is an English Springer and I am thrilled to see my newest hunting buddy.

Friday, October 21, 2011

Follow this Blog on Twitter... following Misiu19 on Twitter. Go to!/Misiu19 and hit the follow button! Then hit the cell phone icon right next to it. Viola! I'll be there! Thereafter all the posts will be instantly sent to your cell phone the moment they are published.

Many thanks to my young colleague Andrew Grodner for pushing me forward to be tech savvy.

I signed up.


As an alternative to the continued “stimulus” spending and short-term fixes prescribed by President Obama, Speaker John Boehner and other Republicans in the U.S. House of Representatives have put forth a jobs plan focused on removing government barriers such as excessive regulation and taxation on small businesses that are impeding private-sector job creation in the United States. The White House contends there are no independent economists who believe this plan will have a positive effect on job creation in the short-term, and argues that it may actually “result in fewer jobs,” according to CBS News.

As an independent economist, which do YOU believe is more likely to provide a boost for private-sector job growth in America in both the near- and long-term: a plan focused on billions of dollars in additional “stimulus” spending by government – or a plan focused on halting excessive government regulations and fixing the tax code to help private-sector job creators?

If you believe the latter is more likely, we’d like to add your name to a list that will be released publicly by Speaker Boehner next week. Please respond to this email and let me know if we can add your name to the list. And feel free to share this message with other independent economists who may be interested in adding their names.

Justin Lampert
Office of the Speaker
Rep. John Boehner (R-OH)
U.S. House of Representatives

To be published in the US in November! Step right up! Yours for $1050.

Friday, October 14, 2011

Mervyn King rings the Depression bell.

The world is possibly facing the worst economic crisis in history, the governor of the Bank of England said Thursday.

Sir Mervyn King was speaking after the decision by the Bank’s Monetary Policy Committee to put £75billion of newly created money into the economy in a desperate effort to stave off a new credit crisis and a UK recession, the Daily Telegraph reported.

“This is the most serious financial crisis we’ve seen, at least since the 1930s, if not ever. We’re having to deal with very unusual circumstances, but to act calmly to this and to do the right thing.”

“The world economy has slowed, America has slowed, China has slowed, and of course particularly the European economy has slowed,” he said. “The world has changed and so has the right policy response.”

Read more on Bank of England Head: World Facing Worst Economic Crisis Ever
Important: Do You Support Pres. Obama's Re-Election? Vote Here Now!

Live and not learn. This is disgusting.

Tuesday, October 11, 2011

From Hal Cole and Lee Ohanian...Lessons from the Great Depression....or "Welcome Home Ed Prescott"

If you can hold your nose and get past the first part of the article where they have to beat every economic fact into a real business cycle interpretation, they have some great things to say about today.

Of course, not everyone is all that comfortable with the interpretation that the data have been given by Cole and Ohanian and for good reason. Why in the world the Real Business Cycle folks can't acknowledge the vast importance of the gold standard during the Depression is beyond me. Lee Ohanian has one sentence in one paper saying it would have helped the Depression if the Fed would have been more expansionary early on in 1930. I have waited for those words for some time.

As I have said in the past, I was at a conference and heard Ed Prescott say "all of this financial market stuff that people are worrying about is much ado about nothing."
Well Dr. Prescott the men in the white coats are not far behind you...Welcome home Ed Prescott:

This is why the debit card fee went in place. This is all you need ot know.

Friday, October 7, 2011

Economic Growth is all that matters. Everything else is just a side show.

Click on this graph. What I have done here is create a graph of the future path of our GDP at two different rates of growth. One is at around 3% and the other around 2% and then let them compound for 50 years. Look at the difference. One economy is 50% bigger than the other. How many of all the entitlement promises we have made can we pay for in the future if our long-run rate of growth were to fall by 1%. Not pretty is it? Well this is what I fear most (other than the ghosts of my sordid past). Well, think of the top graph as the US economy between 1980 and 2008. Think of the bottom economy as France and the growth paths match up pretty well. Still think 1% doesn't mean much?

This message coming to Greenville tonight. Ron Paul is here at the Convention Center at 5 pm. Maybe they are on to something?

Thursday, October 6, 2011

The demands of the Wall Street protesters. If this is what democracy looks like, what's a W-2 form look like?

Demand one: Restoration of the living wage. This demand can only be met by ending "Freetrade" by re-imposing trade tariffs on all imported goods entering the American market to level the playing field for domestic family farming and domestic manufacturing as most nations that are dumping cheap products onto the American market have radical wage and environmental regulation advantages. Another policy that must be instituted is raise the minimum wage to twenty dollars an hr.

Demand two: Institute a universal single payer healthcare system. To do this all private insurers must be banned from the healthcare market as their only effect on the health of patients is to take money away from doctors, nurses and hospitals preventing them from doing their jobs and hand that money to wall st. investors.

Demand three: Guaranteed living wage income regardless of employment.

Demand four: Free college education.

Demand five: Begin a fast track process to bring the fossil fuel economy to an end while at the same bringing the alternative energy economy up to energy demand.

Demand six: One trillion dollars in infrastructure (Water, Sewer, Rail, Roads and Bridges and Electrical Grid) spending now.

Demand seven: One trillion dollars in ecological restoration planting forests, reestablishing wetlands and the natural flow of river systems and decommissioning of all of America's nuclear power plants.

Demand eight: Racial and gender equal rights amendment.

Demand nine: Open borders migration. anyone can travel anywhere to work and live.

Demand ten: Bring American elections up to international standards of a paper ballot precinct counted and recounted in front of an independent and party observers system.

Demand eleven: Immediate across the board debt forgiveness for all. Debt forgiveness of sovereign debt, commercial loans, home mortgages, home equity loans, credit card debt, student loans and personal loans now! All debt must be stricken from the "Books." World Bank Loans to all Nations, Bank to Bank Debt and all Bonds and Margin Call Debt in the stock market including all Derivatives or Credit Default Swaps, all 65 trillion dollars of them must also be stricken from the "Books." And I don't mean debt that is in default, I mean all debt on the entire planet period.

Demand twelve: Outlaw all credit reporting agencies.

Demand thirteen: Allow all workers to sign a ballot at any time during a union organizing campaign or at any time that represents their yeah or nay to having a union represent them in collective bargaining or to form a union.

These demands will create so many jobs it will be completely impossible to fill them without an open borders policy.

A List of their supporters:
United NY
Strong Economy for All Coalition
Working Families Party
TWU Local 100
SEIU 1199
CWA 1109
Communications Workers of America
CWA Local 1180
United Auto Workers
United Federation of Teachers
Professional Staff Congress - CUNY
National Nurses United
Writers Guild East


Community Voices Heard
Alliance for Quality Education
New York Communities for Change
Coalition for the Homeless
Neighborhood Economic Development Advocacy Project (NEDAP)
The Job Party
NYC Coalition for Educational Justice
The Mirabal Sisters Cultural and Community Center
The New Deal for New York Campaign
National People's Action
Human Services Council
Labor-Religion Coalition of New York State
Citizen Action of NY
Common Cause NY
New Bottom Line
Tenants & Neighbors
Democracy for NYC
Resource Generation
Tenants PAC
Teachers Unite

Wednesday, October 5, 2011

Here are the PowerPoints from the Monetary Policy Symposium last Monday.

From the left: Jim Butkiewicz, Randy Parker, Jim Fackler, Bob Carpenter and Bob Hetzel. We had a turnout of about 80 good folks from the business and financial community of Greenville. Thanks so much for your support and I hope you had a pleasant experience. I am also going to post a webcast of this event as soon as I get it from the videographer.

Tuesday, October 4, 2011

YOU wanted it and now here it is.

Here is an academic assessment of the Dodd-Frank bill one year hence. I have some reading to do looks like. Thanks once again to Dr. Rothman.