economics and eisenberg Archives - Page 2 of 2

Financial Repression

By Econ70 | 07/25/2013

While the Chinese government must rebalance its economy away from export and investment-led growth towards household consumption-led growth, the problem is that the combination of low wages, low interest rates on savings and an undervalued currency all conspire to keep the household share of Chinese GDP spectacularly low, constraining household spending. Reversing all these policies…

Workless Policy

By Econ70 | 06/13/2013

With the Obamacare requirement that most employers offer affordable health insurance to their employees soon to become law, expect total employment to rise and hours worked/worker to fall. This is because employers will force their employees, where possible, to work less than 30 hours/week. But employers will have to compensate by hiring more workers to…