Austerity Program Set To Begin Next Week

By: Friday February 22, 2013 5:57 am

We are now a week away from the “sequester” another round of austerity cuts. Cuts that will take place despite the overwhelming evidence that all austerity programs do is make a bad situation worse.  Even the IMF, bastion of Neoliberalism, has revised itself and said austerity was actually a bad idea reporting that economists underestimated [...]

Obama Tells Democrats He Still Wants Grand Bargain

By: Friday February 8, 2013 6:32 am

Despite winning re-election on not cutting Social Security and Medicare and pushing back on plans for austerity President Obama still apparently wants those cuts. President Barack Obama said he wants to reach a “big deal” on the budget that will cut the nation’s deficit without slashing spending on education and research that is needed to [...]

GDP Drops As War Economy Slows Down

By: Wednesday January 30, 2013 7:07 am

Call it a victory for Military Keynesianism theory as today’s dreadful GDP numbers seem to be a result of a drop off in military spending. The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus. The economy [...]

Payroll Tax Increase May Hurt Consumer Spending

By: Tuesday January 22, 2013 9:39 am

One part of the “fiscal cliff” deal that received little attention was the expiration of the middle class payroll tax cut. The tax increase occurred immediately and hit workers right in the paycheck. While the lower classes may not drive the economy their spending does have influence: A payroll tax increase of 2 percentage points has [...]

Berlusconi’s Return Roils Italian Markets

By: Monday December 10, 2012 10:08 am

Markets in Italy are freaking out today, mainly because of the pronouncement of one man, Silvio Berlusconi. The former Prime Minister plans to run for office yet another time, and Mario Monti, the current caretaker leader, has resigned, setting up new elections probably in February.

Austerity Still Taking a Bite Out of Europe

By: Wednesday December 5, 2012 8:30 am

While debating how much austerity outside of the magic no-budgetary-impact spending on the Pentagonto enact, the United States could take a lesson from, well, from the rest of the developed world. The relative lack of austerity in the US compared to Britain and the rest of Europe led to better economic performance (and it’s important [...]

Obama to Request $50 Billion for Sandy Relief

By: Wednesday December 5, 2012 7:45 am

For a Congress spending every waking minute talking about deficits, they sure know how to spend gobs of money above and beyond requested budgets – as long as it goes to the hands of defense contractors. The Senate version of the defense authorization bill costs $631 billion. This is $17 billion more than the Pentagon asked for. It passed 98-0. It now goes to a conference with the bill passed by the GOP-led House, which costs $3 billion MORE. The White House threatened to veto the bill over the budget overages, which is just adorable.

Poll: Public Will Blame Republicans If Country Starts Down the Fiscal Slope

By: Tuesday December 4, 2012 10:00 am

Republicans have enough problems dealing with their own internal insurgencies, but it should be explained that their biggest problem in the fiscal slope negotiations is that the public is poised to blame them if things go awry. Four-in-ten (40%) expect that the president and congressional Republicans will reach a deal by Jan. 1 to prevent [...]

Eurozone Unemployment Rises to New Highs

By: Friday November 30, 2012 9:15 am

Joblessness in the Eurozone reached new highs in October, with 11.7% of the population in the member states out of work. This compares to a 10.4% unemployment rate just a year ago. And inflation has slowed, suggesting that consumer spending activity has weakened even further. 23.9% of young people under 25 are unemployed. There’s considerable [...]

Greek Reaches Yet Another Debt Deal With Europe

By: Tuesday November 27, 2012 10:00 am

European Union finance ministers and the IMF reached another in a series of deals with Greece on long-term debt. The deal will lead to the release of another tranche of around 44 billion euros in bailout funds for the country to pay its debts to creditors, including government payroll and pensions. The deal aims to [...]

White House Report on Threats to Consumer Spending from Middle Class Tax Hikes Leaves Out Payroll Tax Cut

By: Monday November 26, 2012 7:45 am

The White House is getting more vocal on pressuring Republicans to extend tax cuts on the first $250,000 of income. They supplement this today with a new report from the NEC and the CEA, showing the impact of tax rises on the middle class on consumer spending, which comprises about 70% of the economy. It [...]

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