Center for Economic and Policy Research

Why the NY Times Is Chiefly Responsible for the Mass Ignorance About the U.S. Budget

Paul Krugman criticized the Trump administration for its budget, which would cut or eliminate many programs that benefit low and moderate income people. In his piece, Krugman points out that the public is incredibly ignorant on the budget, with most people having virtually no idea of where most spending goes.

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Why Shorter Workweeks Would Wipe Out the Much-Hyped Threat of Robots Stealing Our Jobs

More than eight years after the start of the Great Recession, our labor market is far from recovering by most measures. At 5 percent, the current unemployment rate is not very different from its pre-recession level, but the main reason it is so low is that millions of people have given up looking for work and dropped out of the labor force. These people are no longer counted as being unemployed.

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The Washington Post Says Doctors Without Borders Is Silly to Worry About the Impact of the TPP on Drug Prices

The humanitarian group, Doctors Without Borders, along with many other NGOs involved in providing health care to people in the developing world, have come out in opposition to the Trans-Pacific Partnership (TPP) over concerns that the deal will make it more difficult to provide drugs to people in the developing world. Their argument is that it will raise drug prices by making patent protection stronger and longer and by making it more difficult for countries to scale back protections that they may come to view as excessive and wasteful.

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New York Times Absurdly Claims Verizon Workers Make Average of $130,000 a Year: Here's Why That's Not True

Some readers may have been misled by a statement in a NYT article on the Verizon strike that the union members at Verizon receive an average of $130,000 a year in wages and benefits. This is what the company pays in labor costs per worker. This includes not only straight pay, but also overtime pay, employer-side Social Security and Medicare taxes, health insurance, and pension benefits. The pension payments are everything that Verizon pays into its pension, including payments to cover costs of retired employees, averaged over the size of its current unionized workforce.

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Government Is More Efficient Than The Private Sector In Biggest Social Services, Contrary To Right-Wing Claims

As much as some folks might hate this fact, the government is sometimes more efficient than the private sector. This is true in the case of providing a retirement income to workers. It is also true when it comes to providing health care insurance. This is one of the main reasons that we have a government-run Social Security and Medicare program.

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Eric Holder is the Reason Robert Rubin Isn't Behind Bars

The big news item in Washington last week was Attorney General Eric Holder's decision to resign. Undoubtedly there are positives to Holder's tenure as attorney general, but one really big minus is his decision not to prosecute any of the Wall Street crew whose actions helped to prop up the housing bubble. As a result of this failure, the main culprits walked away incredibly wealthy even as most of the country has yet to recover from the damage they caused.

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Surge of Attention to Crusading Economist Piketty's New Book Takes Us to the Big Question of How to Reduce Inequality

Thomas Piketty's new book, “Capital for the 21st Century,” has done a remarkable job of focusing public attention on the growth of inequality in the last three decades and the risk that it will grow further in the decades ahead. Piketty's basic point on this issue is almost too simple for economists to understand: If the rate of return on wealth (r) is greater than the rate of growth (g), then wealth is likely to become ever more concentrated.

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Locking Up the Banksters: It's Not Hard!

Gretchen Morgenson had a column on a new report from the Inspector General of the Justice Department which found that prosecuting mortgage fraud was a low priority, contrary to claims by the Obama administration. Since there is so much confusion on the topic it is worth repeating again what the Justice Department would have done if law enforcement had been its concern.

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MSNBC's New Young GOP Voice, Abby Huntsman, Takes Old False Generational Warfare Line on Social Security

It's always entertaining when people who obviously have no clue about the basic facts on Social Security take to educating people on Social Security. Of course it's unfortunate when such people actually get taken seriously. In the hope of reducing this risk, BTP takes this opportunity to address Abby Huntsman's warning to millennials about the risks posed to them by Social Security.

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NPR Lets Pew Polling Expert Paul Taylor Promote Generational Conflict On Social Safety Nets

In the last three decades the rich have gotten the bulk of the benefits of economic growth, as those at the middle and bottom of the wage distribution have seen little improvement in living standards. This naturally leads many people to want to reverse the policies that have led to this upward redistribution, such as high unemployment, a trade policy that protects high end workers, while subjecting the middle and bottom to international competition, government subsidies to too big to fail banks, an ever more intrusive patent policy, an anti-trust policy that greenlights monopolies like Microsoft, and many others that could be added to this list.

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Washington Post Absurdly Credits GOP Not Progressives For Obama Turnaround On Social Security Cuts

The Washinton Post gets infuriated at the thought that anyone who doesn't have lots of money could affect political outcomes in the United States. Hence it was quick to run a piece with the headline: "Liberals didn't kill Obama's Social Security cuts: Republicans did."

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How the Super Rich Get Wealthy By Rigging the System to Their Benefit

Greg Mankiw is out there defending the 1 percent again. He put forward the argument that the big bucks are simply their just desserts; the rewards for exceptional skill and hard work.

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Mainstream Media Wrong On Obamacare: CBO Says It Will Let People Work Less And Raise Others' Wages

Apparently a lot of media folks have made such a habit of repeating Republican talking points that they can't see what is right in front of their eyes. The Republicans are touting the fact that the Congressional Budget Office (CBO) expects the Affordable Care Act (ACA) to reduce the number of people working.

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America the Isolated: Latin American Leaders Mourn Hugo Chavez as U.S. Expresses Contempt

On Tuesday afternoon, Venezuelan President Hugo Chávez passed away, after a long battle with cancer. The announcement by Vice President Nicolás Maduro came just minutes after Chávez’s death and elicited an immediate wave of obituary pieces by pundits who described Chávez as “divisive”, “authoritarian”, “antagonistic” and “anti-American”, many of them eager to rush the “transition” in the hopes that Chávez’s political project would soon fall apart. 

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Economy Shrinks -- Here's Why It's Not Bad News ...

A sharp drop in government spending, heavily concentrated in defense, coupled with a decline in inventories caused GDP to shrink at a 0.1 percent rate in the 4th quarter of 2012. Government spending fell at a 6.6 percent annual rate, driven by a 22.2 percent decline in defense spending, subtracting 1.33 percentage points from the growth rate in the quarter. A $40.3 drop in the rate of inventory accumulation reduced growth by another 1.27 percentage points. Without these factors, GDP would have growth a 2.5 percent annual rate in the quarter.

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David Brooks' Debate Advice for Mitt: Say Lots of Stuff That Isn't True

It apparently is that time of year when columnists try out as speechwriters for the candidates. After Robert Samuelson tried his hand by writing speeches for both candidates in his Washington Post columnyesterday, David Brooks took a shot in drafting a debate intro for Governor Romney today. Brooks' speech is not especially truthful, but I suppose that is par for a presidential candidate.

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Failure to Enact Bigger Stimulus Was a Fatal Mistake

As expected, the Democrats took big losses in the midterm Congressional elections on Tuesday, holding on to the Senate but losing the House. It is typical for the party of the President to lose some seats in midterm elections, and it is doubtful that this election result represents the beginning of another conservative era. But the Democrats’ losses were big by any measure.

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