3:20 PM, Aug 28, 2014 • By MICHAEL WARREN
At the Washington Post, Christopher Ingraham demonstrates through one chart "why it feels like the recession never ended." Here's the chart, with part of Ingraham's explanation below:
From the start of the recession in 2007 to today, the average price of the things you buy - clothes, food, housing - has risen by 15 percent. This, in itself, isn't a problem at all. The problem is that wages haven't kept pace with that increase. In fact, for all but the top wage earners, real (inflation-adjusted) earnings are actually down over the same period.
Let's put it another way. Say that you're a median wage earner, right in the 50th percentile. And let's say that in 2007 you could buy a week's worth of groceries for $100. Fast forward to today: those exact same groceries cost $115, but you only have $112 dollars in your pocket.
Read all of Ingraham's post here, in which he also points out that pessimism about the permanence of the Great Recession is up.
Not many candidates for office, Republican or Democrat, have made an argument about how to solve the problem of price inflation and stagnant wages. This, despite the political opportunity demonstrated by a recent poll that found 75 percent of Americans are concerned about inflation. But at least one candidate for Senate, Republican Jeff Bell of New Jersey, senses an opening.
“No one in Washington wants to talk about the cause of this problem -- least of all my opponent, Cory Booker," said Bell in a statement responding to the Post article. "I am running for U.S. Senate because I know the cause of this problem and I have the solution. The reason why goods are more expensive but wages are being crushed is because of the Federal Reserve’s zero interest rate policy. My solution is to restore the value of the dollar by tying the dollar to gold. This will reign in the Fed and curb inflation, while bringing jobs and growth back to the economy."
As Andrew Ferguson writes in the current issue of THE WEEKLY STANDARD, Bell has so far focused his entire campaign against Booker on the Democrat's implicit support for the Federal Reserve's monetary policy. And on Wednesday, the Bell campaign released its first ad, a 30-second radio spot, touting his plan to return to the gold standard. You can listen to the ad here, which is running on two New York radio stations.
Majority don't trust Fed to fix it.1:01 PM, Aug 25, 2014 • By MICHAEL WARREN
Things are getting more expensive, and the American people know it. A new poll from Rasmussen Reports found three-quarters of Americans say they are concerned about inflation, with 81 percent saying they are paying more for groceries and 71 percent saying they expect to pay even more for groceries a year from now. Here's more:
Go bold with gold.Jul 21, 2014, Vol. 19, No. 42 • By JUDY SHELTON
Republicans are searching for big, bold ideas that will inspire voters to embrace a conservative agenda. To unite its disparate segments, the GOP needs to uphold our nation’s founding principles—a key requirement for Tea Party adherents—while fostering the aspirations of those who believe the United States should play a strong leadership role in the world. A prime opportunity presents itself in the most compelling problem America faces: the need to restore confidence in its economic future.
12:20 PM, Apr 28, 2014 • By MATTHEW SCHOENFELD
Everybody seems to agree that the U.S. Federal Reserve's quantitative-easing program, which involves buying bonds to lower interest rates, plays a role in spurring economic growth. Folks differ on whether the contribution to growth outweighs the risk of inflation.
But what if the Fed's efforts are actually hurting growth, and the feared inflation has already arrived?
Zero interest rates have side effects.Feb 17, 2014, Vol. 19, No. 22 • By CHARLES WOLF
Income inequality in the United States has been increasing for a generation. The share of pretax income received by the top 1 percent of earners rose from 7.8 percent in 1973 to 17.4 percent in 2010. A broader and widely used measure of inequality—the Gini coefficient—indicates that inequality for the entire range of income recipients rather than only the top 1 percent has risen by 26 percent since the early 1970s.
A modest proposal for the new Fed chairman. Jan 27, 2014, Vol. 19, No. 19 • By ANDREW FERGUSON
It's been more than a week now and I’m beginning to suspect she’s not going to call, so here I will offer Janet Yellen the advice I’ve been hoping to give her privately since the Senate confirmed her as the new chairman of the Federal Reserve. My advice is: Think about John Cowperthwaite. By this I mean: Really think about
Bill de Blasio and Wall Street. Nov 25, 2013, Vol. 19, No. 11 • By FRED SIEGEL
First, a matter of numbers and nomenclature: Bill de Blasio, who is being hailed like Eliot Spitzer before him as the new face of American liberalism, won his race to be New York City’s next mayor with a near-record victory margin but also record low turnouts in both the primary and the general elections. There was no “populist” surge as reported in the press. De Blasio won 40 percent of the 22 percent who showed up for the Democratic party primary.
Hosted by Michael Graham.4:50 PM, Sep 19, 2013 • By TWS PODCAST
THE WEEKLY STANDARD podcast with the American Enterprise Institute's James Pethokoukis on the recent actions by the Federal Reserve.
10:53 AM, Sep 19, 2013 • By GEOFFREY NORMAN
Yesterday, the Fed decided that the economy was not yet sufficiently robust for it to "taper." Wall Street celebrated.
Today, the consumer put in his two cents, which is about what he thinks this "recovery" is worth. As Ben Schenkel at Bloomberg writes:
Consumers views of the U.S. economic outlook deteriorated in September to the weakest level in a year as higher borrowing rates started to chip away at progress in the housing market.
12:00 AM, Sep 7, 2013 • By IRWIN M. STELZER
It’s not that anyone here in Washington begrudges Britain, and to some extent Spain, their fledgling recoveries. But President Obama and other proponents of more government spending aren’t delighted that those nations’ austerity programs seem to be paying off in renewed growth rather than in the perpetual recession the Keynesian try-another-stimulus-crowd in the White House has been predicting. Conservatives are saying that the austerity sauce for the British roast beef would be just as tasty on the U.S. hot dog.
It’s policy that counts, not personalities. Aug 12, 2013, Vol. 18, No. 45 • By JUDY SHELTON
At first, it was fun—this parlor game of guessing who the Obama administration will appoint as the next chairman of the Federal Reserve. We all assumed it would be Janet Yellen, because she’s a woman. And then suddenly we had Larry Summers all over the leading financial newspapers receiving multiple endorsements from respected economists. There were sly references to his intellectual prowess and invaluable experience, not to mention (but they always did) his connections with Obama’s closest advisers on economic and financial matters.
No, no, and no.12:31 PM, Jul 31, 2013 • By ETHAN EPSTEIN
Have you heard the news? Janet Yellen is positively clairvoyant!
Yellen, vice chairman of the Federal Reserve and, evidently, a front-runner to replace Ben Bernanke as chairman in several months, “was one of the first members of the Federal Open Market Committee . . . to realize that the [housing market’s troubles] could cause a major recession.” (Alan Blinder, Wall Street Journal, July 29.)
12:00 AM, Jul 20, 2013 • By IRWIN M. STELZER
Data-driven, legacy-driven. Keep those two descriptives in mind and you will know a good deal about the prospects for a dialing back of asset purchases—“tapering”—by Federal Reserve Board chairman Ben Bernanke.
12:00 AM, Apr 27, 2013 • By IRWIN M. STELZER
The U.S. economy grew at an annual rate of 2.5 percent in the first quarter, well ahead of the paltry 0.4 percent in the final quarter of 2012.
12:00 AM, Dec 15, 2012 • By IRWIN M. STELZER
The fiscal cliff is a diversion, designed by politicians to conceal their inability to come to grips with the fact that they continue to spend too much, and refuse to reform a tax structure that reduces the competitiveness of American companies in world markets. No matter what deal is cut, whether before or after the new year, it will at best nibble at the edges of the trillion-dollar annual deficits that are being piled up.