Presidential Path

With the debt ceiling fast approaching, President Obama is caught between borrowing no more than Congress will allow him, or paying what Congress has instructed him to do, but not both. Either way, he breaks the law. Given the huge economic consequences of not paying our bills, President Obama must breach the debt ceiling. Should…

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Lousy Legislators

The most active Congress, as measured by the number of bills passed into law, excluding private bills, was the 84th (1955-1956) which passed 1,028 bills. Eisenhower (R) was President; Lyndon Johnson (D) was Senate Majority Leader and Sam Rayburn (D) Speaker of the House. The least active was the 112th (2011-2012) which passed 238 bills.…

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Hazardous Headwinds

While the economy is improving, it’s now facing huge headwinds. They include the need for a Continuing Resolution, hitting the debt ceiling, Syria and its impact on oil prices, who will be the next Chairman of the Federal Reserve, the start date of tapering, fear about whether Abenomics will work in Japan, and concerns about…

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Costly Unemployment

As Congress considers–and eventually extends–a temporary payroll tax cut and extended unemployment benefits past 2/12, it should note that if both lapse GDP in ’12 would be reduced by 1%, when GDP growth is only 2%. They might also note that when workers lose their jobs when unemployment is below 6% they lose 1.4 years…

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