John A. Parnell, Ph.D.
In my recent post on Obama’s “bottom-up economics” I referred to supply-side economics and largely positive but with shortcomings. My reference to shortcomings generated multiple comments and questions on- and off-line. Let me explain—at the risk of oversimplifying some complicated issues. Economics is about supply and demand, but most “mainstream economists” tend to emphasize the […]
Read MoreIn a Labor Day political push for a minimum wage increase, President Obama ridiculed trickle-down economics and reiterated his support for what he calls bottom-up economics. The former is the pejorative frequently associated with former President Reagan’s supply-side economics, a philosophy built on lower business/corporate tax rates and reduced regulation. While Reagan’s approach was largely […]
Read MoreIn 2009, President Obama and the Democrat Congress colluded to pass the Car Allowance Rebate System (CARS)—better known as CASH FOR CLUNKERS. As part of this economic/environmental stimulus program, car buyers who traded-in their gas guzzlers could get a $3500 or $4500 government cash voucher, depending on MPG ratings. The program was supposed to get […]
Read MoreWhy does the stock market rise or fall? The prospects of individual firms included in the Dow, the S&P 500, and other indexes move on their own, but up and down swings in an entire index are usually based on broader perceptions about the economy. If reports suggest that people expect a stronger economy, you […]
Read MoreIn my last post I expressed my support for the Federal Reserve Accountability and Transparency Act (FRAT). Thursday’s 317-point stock market decline underscores my point. I don’t think it’s possible for Fed intervention to stabilize the economy. Even if I am wrong, the right intervention could only occur if economists at the Fed could actually […]
Read MoreCongress is currently considering a reform measure that looks seriously into the inner workings of the Fed. The Federal Reserve Accountability and Transparency Act (FRAT) is long overdue and doesn’t go far enough, but it’s already getting criticism from Keynesians. The argument is really quite simple. The Federal Reserve was established in 1913 for a […]
Read MoreOn Monday the President hosted a Summit on Working Families, arguing that the business community is squeezing its workers and is not smart enough to adopt progressive policies without government mandates. One of the prominent issues is paid medical leave. “Many women can’t even get a paid day off to give birth—now that’s a pretty […]
Read MoreThe economic meltdown in many parts of Latin America is not receiving much attention in the mainstream media, except as the scapegoat for the influx of kids at the U.S. southern border. While gang and drug activity are big problems in some countries and have contributed to the crisis, it’s only part of the story […]
Read MoreAs a member of the higher education community, I am supposed to support any and every effort made by the feds to increase funding to college students. I do not, and I have explained my opposition to much of what Washington does in detail in previous posts. Of interest in this post is Obama’s recent […]
Read MoreI was watching ESPN the other day when the announcer referred to the process underway to remove Donald Sterling as owner of the LA Clippers franchise as a “constitutional formality.” The more I think about this, the more it bothers me. At first I was taken aback by the casual use of this term. The […]
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