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 Policy Center:  Urban Institute and Brookings Institution

September 19, 2016, 12:34 am, 1676067

The earned income tax credit (EITC) lifts millions of working families out of poverty, but provides little support to workers without children and some low-wage workers married to other low-wage workers. Congress could fix this flaw by scaling back the EITC and creating a new worker credit that ...

September 19, 2016, 12:34 am, 1676068

Better something than nothing? House Ways & Means Chairman Paul Ryan has thrown in the towel on broad-based tax reform—at least for the next two years. He says the best possible deal the GOP can manage while President Obama is in office would be a “down payment” that would ...

September 19, 2016, 12:34 am, 1676069

Last week, I blogged on the many GOP presidential candidates who are talking about tax reform rather than tax cuts. This week, tax historian Joe Thorndike published a rebuttal on the Tax Analysts blog and on

Joe, who is very much in the watch-what-they-do-not what-they-say (WWTDNWTS) camp, noted ...

September 19, 2016, 12:34 am, 1676070

Maryland’s tax on some out-of-state income is unconstitutional. Maryland gives residents only a partial tax credit for income that is earned—and taxed—outside the state. The US Supreme Court said yesterday that this violates the Commerce Clause by discouraging individuals from conducting business across state lines, since their income would ...

September 19, 2016, 12:34 am, 1676066

Redesign the EITC to help more low-income workers. TPC’s Elaine Maag thinks that’s the way to go. She explains in her new paper: “A worker credit based on individual earnings, and not contingent on having children at home, could provide substantial benefits to all low-income workers, ease administration for the IRS, and ...

September 19, 2016, 12:34 am, 1676065

Congress will be in recess next week. The Daily Deduction will post on Tuesday, May 26, 2015, after Memorial Day, and will return to its regular schedule on Monday, June 1.

Wisconsin’s GOP: Tax bikes to pay for bike paths, use tax dollars to expand private schools. Presidential hopeful Governor Scott ...

September 19, 2016, 12:34 am, 1676062

GOP Presidential candidate Mike Huckabee recently got into a spirited debate with Fox News anchor Chris Wallace about Huckabee’s  proposal to replace all federal taxes with a national retail sales tax, called the FairTax by its supporters.  Wallace pointed out that low-income people spend a much larger share of their ...

September 19, 2016, 12:34 am, 1676063

It is easy to mock Senator Marco Rubio, who cashed out $68,241 in IRA retirement funds last September. The GOP presidential hopeful, who made about $230,000 last year, told Fox News he needed the dough to prepare for his campaign, buy a new $3,000 refrigerator, and fix his busted a/c. ...

September 19, 2016, 12:34 am, 1676064

Congress is in recess this week. The Daily Deduction will return to its regular schedule on Monday, June 1.

Congress delays a highway bill for two more months. Just before leaving town for its Memorial Day recess, and with no funding solution in the tank, Congress extended spending authority until the ...

September 19, 2016, 12:34 am, 1676061

The magic number for today is 16. That is, remarkably, the number of times Congress has extended the allegedly temporary research and experimentation tax credit since it was first enacted in 1981.  The question for philosophy class (this is far beyond economics) is this: Can something that has been extended ...