Economics Roundtable

January 2014 Payroll Employment

We are getting closer to the previous peak.

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

April 22, 2014, 1:03 pm, 1258914

Congressman Patrick Tiberi (R-OH), a House Ways and Means member, recently introduced a bill (H.R. 4457, “America’s Small Business Tax Relief Act of 2014”) that would restore Section 179 to 2013 levels and make the law permanent.

In 2013, Section 179 allowed businesses to write-off the full cost of certain ...

April 21, 2014, 3:03 pm, 1258392

The reasons for America’s sluggish economic growth in recent years are many fold, but a big part of the problem is high taxes on investment. It is not just the high corporate tax rate – the highest in the developed world – but also the fact that businesses ...

April 21, 2014, 3:03 pm, 1258391

In a recent column in the New York Times, Mark R. Rank added an important point to the income inequality debate: that people are economically mobile.

From the New York Times:

“It turns out that 12 percent of the population will find themselves in the top 1 percent ...

April 21, 2014, 1:03 pm, 1258305

Today is Tax Freedom Day, the day when the nation as a whole has earned enough money to pay its total tax bill for year. A vivid, calendar-based illustration of the cost of government, Tax Freedom Day divides all federal, state, and local taxes by the nation’s income. In ...

April 21, 2014, 1:03 pm, 1258304

The LA Times editorial board has endorsed a move for an expanded film tax credit in the Golden State, arguing that “To not nix pics, California must use tax trix.” Given that California’s historical command of the film production industry puts it, and especially Los Angeles, ...

April 18, 2014, 1:03 pm, 1257636

One of the provisions under consideration in the tax extenders discussion is a reinstatement of 50 percent bonus expensing for equipment. This would strengthen investment spending and boost the sluggish recovery. It has done so in the past, most clearly in 2002 and 2003 when it helped to turn ...

April 17, 2014, 5:03 pm, 1257251

The question is often asked: Do the rich pay their “fair share” in taxes? It’s never particularly clear what the rich currently pay, nor is it clear what share of taxes is fair for them to pay. A good place to start would be to determine exactly what high-income ...

April 17, 2014, 5:03 pm, 1257250

Tax revenue as a percent of GDP is one metric many use to gauge how much corporate income tax revenue the United States is raising. The advantage of this metric is that it controls for the size of the economy and gives people a readily available way to compare ...

April 16, 2014, 5:03 pm, 1256616

We recently outlined a bill introduced by Senator Patty Murray (D-WA), which would expand the EITC and pay for it in part by further limiting the deduction for executive compensation. The Senator believes that the ability for corporations to fully deduct performance-based compensation represents a massive loophole, ...

April 16, 2014, 3:03 pm, 1256534

Yesterday was Tax Day, and former Defense Secretary Donald Rumsfeld shared a letter he sent to the IRS with his Twitter followers. Rumsfeld said he did his best to fill out his taxes but says he's not sure he got it right, due to the complexity ...