Category: Economic Theory

Discussion of various points of free markets. See Government Economic Policy for US Government’s significant role.

Cost of Tea II

The Tea Party logic that we go from a high government cost to a low government cost overlooks the transition costs.  All the social contract based on the current government structure will be affected.  That contract includes current government employment, level playing field for investors, retirement plans based on social security and medicare, education, energy…

Jobs Growth

Finally, we’re getting some jobs growth again.  151,000 in October.   From the demographic data, we know that 60,000 are needed to absorb natural population growth. That leaves 90,000 to reduce unemployment. That’s 6 years to make up the 6 million lost in this Great Recession – at this rate.

The Cost of Tea

The Republicans and the Tea Party want to balance the budget and shrink the government. Laudable goals, but you have to get through the immediate economic reactions of lower aggregate demand – unemployment increase with government workers and sagging GDP growth. … and the lost Republican majority in the Senate …

Demographic Changes

Demography and Unemployment In the last 10 years, the US population has grown 27M and the working age population has grown 19M In the next 10 years, the US population will grow 27M but the working age population will grow only 7M. The baby boomers retiring. Implying last decade we needed to add 160K new…