Economics Roundtable

May 2014 Payroll Employment

After 76 months, we finally got back to the prerecession level of payroll employment.

Click on the image to get a bigger version.


The best summary of the state of our economy is the graph (below) of employment as a fraction of population for people over 16 years old. The decrease is large, but the most troubling feature of the graph is the flat trend .

Click on the image to get a bigger version.

Graph-of-the-Year Candidates

Donald Marron likes European interest rates. Click on the image to get a bigger version. Can you find three distinct subperiods?

Brad DeLong favors the U.S. gdp gap.

Remember M1?

Money Supply M1 growth is now over 20% per year over a 12 month lag. M1 growth has touched 20% before, but not with excess reserves of $1.6 trillion. Where is M1 headed?

Click on the chart for a larger version.


The Economics Roundtable is sponsored by EconModel.

The Classic Economic Models cover micro, macro, and financial markets.

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Tax Foundation

November 20, 2014, 5:03 pm, 1375221

There are five basic legal forms of business structures found in the United States: C corporations, S corporations, sole proprietorships, partnerships, and Limited Liability Companies (LLCs). In order to understand business income taxes, we can start with how the business forms are different.  We can divide the five ...

November 20, 2014, 3:03 pm, 1375146

After winning reelection this month, Maine’s Governor, Paul LePage, announced that he wants to completely eliminate the state’s individual income tax. He would replace the lost revenue by broadening the sales tax base.

This sort of swap is generally good tax policy. Individual income taxes have a few problems. ...

November 20, 2014, 3:03 pm, 1375144

One important common-sense taxpayer protection in the federal income tax code is inflation-indexing. Inflation indexing means that tax brackets (and other important dollar-amount features of the individual income tax, like standard deductions or personal exemptions) are revised annually to reflect ...

November 20, 2014, 3:03 pm, 1375145

This week Switzerland became the 52nd country to sign an OECD initiative which will enable automatic exchange of financial account information among the tax authorities of each country. That is, no more bank secrecy in Switzerland, an institution that began in 1934 partly as a way to ...

November 20, 2014, 1:03 pm, 1375064

In number of firms, pass-throughs are the dominant business type, with over 30 million tax returns in 2011. Pass-throughs are unique in that all pass-through business income is taxed at individual tax rates.

Over the last 30 years, the number of pass-throughs has increased substantially. Much of this growth ...

November 19, 2014, 5:03 pm, 1374505

The U.S. House of Representative’s leadership has chosen Rep. Paul Ryan to chair the House Ways and Means Committee. In the continuing debate over ways to fund the government and grow the economy, Ryan has remained a longstanding voice for reform.

The House Ways and Means Committee is ...

November 19, 2014, 5:03 pm, 1374504

The Washington Examiner yesterday published an editorial that advanced a rather contrarian idea – that certain tax breaks should be made permanent so that they can be repealed.

If this logic sounds nonsensical to you, good! It is! But that is not because the staff of the Examiner are ...

November 19, 2014, 3:03 pm, 1374423

Back in 2008, one of the Tax Foundation’s tasks was to fact-check the fiscal policy statements by the candidates. We documented a lot of the misleading rhetoric and advertisements that came from both sides. Personally, most of the work we did is forgotten, but one area of the 2008 ...

November 19, 2014, 1:03 pm, 1374345

The financial crisis was most disastrous for housing, but it was terrible for all kinds of investment. After accounting for the wearing out of equipment and buildings, most sectors of the U.S. capital stock are barely being replenished fast enough to make up for depreciation. The U.S. is doing ...

November 19, 2014, 11:03 am, 1374267

This week, a new report from the Center for Effective Government claims that a number of corporations paid their CEOs more than they paid in federal income taxes. They claim that this reflects the fact that corporations are not paying their fair share and the corporate tax system ...