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Wealth always begins with savings from income and new ideas.
Peter Morici With the fall of France in 1940, Britain and America were left to defend democracy and capitalism – systems built on the ideas...
Few things are more threatening to the progress of our civilization than a group of economists at a blackboard prescribing public policy.
It is important to recognize Trump is negotiating with a repressive criminal regime.
The problem is that since the 2000s U.S. long rates have been suppressed by foreign investors. Europeans stuck in a lethargic economy, and Latin Americans and Asians fearful that their corrupt governments will ignite inflation to solve their debt problems, have been buying up U.S. real estate and long bonds.
Britons should read the Declaration of Independence, and get a new prime minister – pronto!
The truth is that Japanese auto makers can sell sedans at a profit, and GM cannot. And GM is struggling to compete on its home turf in SUVs too.
It is important to recognize Mr. Trump is negotiating with a repressive criminal regime.
General Motors is gradually disappearing – like a block of ice on the hot pavement of an August day.
Faced with tight budgets and pressures to absorb inadequately qualified applicants, colleges and universities lowered standards.
China is pouring hundreds of billions of dollars into accomplishing dominance in artificial intelligence – a technological ecosystem that will be analog in this century to what water power and mechanized mills were in the 19th century and electrification and assembly line were in the early 20th century.
Democrats must give up the fantasy of socialized medicine based on confiscatory taxes on upper-income Americans.
When the U.S. economy was nearly half the global pie, we might have been able to dictate terms, but these days it is about one-sixth, and other players can simply retaliate and go around us.
America needs more skilled immigrants to grow rapidly and compete internationally.
Most economists and Fed policymakers see the inflation neutral, short term interest rate a bit less than 3 percent, and that would imply only three more rate increases.
Democrats have managed to steal the healthcare issue from the Republicans and with it, likely win control of the House.
WTO rules were created for market economies adhering to Western concepts of law, and China has taken industrial policy and state-sponsored confiscation of foreign intellectual property and industrial espionage to criminal levels that the WTO was simply not designed to discipline.
Productivity growth, after languishing during the Obama presidency, is taking off again.
If Mr. Obama could bail out the banks, Mr. Trump could do the same for students sold on a lousy idea by their government. And he can finance some of that by going after the resources of for-profit colleges and mainstream universities.
Industry leaders almost always dislike changes in the regulatory environment.
The GOP may well get skewered in the midterms and Mr. Trump may be denied a second term from the sheer weight of hectoring by liberal Democrats, Bush-era Republicans and the media, but history will treat him more kindly.
Big Tech is losing favor with the public and more regulation is likely.
Families in West Virginia or in coastal ghettos will not catch up if their men are denied proper training and forced to leech off others.
Asking China to reform would be akin to asking pre-World War II Germany to give up militarism and become a benevolent state.
The Trump economy has delivered strong growth and low unemployment – now the challenge is to keep it all going.
In the European Union, Brussels experts impose regulations and make antitrust, civil rights and international trade policies with little or only distant political accountability.
If Detroit stays on course, it will lose considerable market share to Japanese, Korean and German manufacturers and eventually the Chinese as folks on limited budgets seek their sedans.
Sorry Bitcoin, offshore dollars were a private currency for years – largely virtual, without official government sanction and lightly regulated – long before initial coin offerings came along. And it’s run by much more trustworthy and careful people.
If we exercise self-control on their behalf – as helicopter parents too often do – then our children will not likely develop the executive skills necessary to occasionally refrain from multitasking and balance priorities as adults.
Many college graduates land in low-paying dead-end jobs and are saddled with a lifetime of debt when more practical alternatives are available.
If hard times hit, you are out of a job and over-extended, credit card balances can be more easily renegotiated than mortgage debt. Student loans, unlike most other debt, are not dischargeable in bankruptcy.
Nonpartisan research predating the Trump candidacy indicates the 15 percent cut in taxes on business profits enabled by corporate reforms should increase investment between 7.5 percent and 15 percent.
No Western government fully adheres to the free market ideal embodied in WTO rules, including ours. Its dispute settlement mechanism is there to decide when incidental contact becomes pass interference – WTO panelists are no more perfect than NFL referees.
Redirecting federal and state funding from higher education is sorely needed to encourage more of these innovative programs.
Economists mostly sort into two camps – those who believe the post-World War II period was exceptional and those at the White House and a few others (count me in) who believe the best is yet to come.
The Trump strategy to radically change trade and investment relations with China is well-intentioned but poorly conceived.
If users want Facebook, Twitter and other social media, they have to pay with something – in this case, a reasonable amount of personal information to drive advertising.
Beijing and local governments, with the collaboration of its technology giants, are funneling hundreds of billions of dollars into startups and big company projects that enjoy notably more freedom than Western companies.
China has targeted one U.S. industry after another – metals, solar panels, computer chips, artificial intelligence and supercomputers – many having significant economic and national security consequences.
Rob Goldman, Twitter’s head of advertising, was roundly criticized for stating the easiest way to fight a Russian campaign is a “well educated citizenry,” but he is right.
More alarming than the Middle Kingdom’s breakneck growth, challenges to Western leadership in electric cars, artificial intelligence and other emerging industries, our youth is losing confidence in the American way.
Uncle Sam’s incessant borrowing – just like irresponsible home mortgages in the 2000s – could again send financial institutions barreling over a cliff.
Requiring social media organizations to work with federal authorities to ferret out Russian operatives and similar malefactors and cancel fictitious accounts is fine, but personalities should not be banned because they upset our biases.
Bitcoin recently lost about two-thirds its value in seven weeks – the fifth such collapse in recent years.
Of all the economic policies President Trump has marked for attention this year – merit-based immigration, infrastructure and vocational training – fixing the trade deficit offers the biggest bang for the buck.
New technologies and the changing workplace have great potential to supercharge growth but only if governments do not handcuff businesses.
In all ages, parents come up against reckless childhood behavior and its ingenious methods of escape. Smartphones make these times no different or more challenging.
Overall, the Trump administration and Republican Congress – much like President Bush and his Republican Congress before them – are hardly addressing the genuine concerns of the great mass of voters who put them in power. Yet, the clients and executive class of the liberal state see the GOP as an existential threat to their systems of privileges and persecution so carefully erected during the Clinton and Obama years.
If the president is the dealmaker he offers himself to be, infrastructure offers his time to shine.
Sadly the regulatory state and high taxes have caused too many American firms to focus on lobbying instead of the next wave.
These days, politics poses more threats to the economy than the machinations of the bond market as measured by the slope of the yield curve or any other metric.
Instead of rallying American allies to confront China’s mercantilism through joint action, Mr. Trump has bullied Mexico, South Korea and Canada, pulled America out of the Trans-Pacific Partnership and derailed free trade talks with the EU.
Either China commits to opening up its markets to U.S. goods and investments on a fully reciprocal basis and balancing bilateral trade over three years, or the United States should unilaterally impose a system of import licenses.
AI will not replace doctors, but it will permit them to treat more patients more effectively and at lower costs. And somehow, I do not think people are quite ready to leave life and death decisions to an iPhone app.
If carmakers cannot get mundane high-tech gadgets to work flawlessly, how can anyone reasonably expect them to provide assured safety for passengers in driverless vehicles?
When the next recession arrives and the Fed wants to boost bank lending, it will not be able to accomplish much by lowering the rate it pays banks and asset funds on their deposits at the Fed–the financial crisis taught us that banks worry about getting repaid a lot more than their cost of lendable funds.
The upcoming showdowns over Medicaid, other entitlements and cuts to other federal spending as part of efforts to raise the debt ceiling and to define targets for spending in the 2018 fiscal year appropriation bills will reveal the Republican majority’s stomach for spending reform and courage to lead the country out of the fiscal wilderness.
Skepticism is growing among economists – and more importantly business decision makers – that Mr. Trump and Republicans in Congress will appreciably lower the cost of investing in the United States.
Investors more than 10 years from retirement should consider how much cash they need on hand to cover about six months of expenses or upcoming college tuition and beyond that, sink their money into the stock market.
America’s immigration policy sorely needs modernization. By endorsing reforms offered by Sens. Tom Cotton and David Perdue, President Trump offers Congress an opportunity to better consider how new arrivals can contribute to national prosperity.
North Korea’s nuclear and missile programs present the United States with no good options, but China’s posture is a foil for its wider strategic objectives.
Central bankers are captive to conventional economics – faced by low inflation and low unemployment they are flummoxed about pulling back on monetary stimulus.
Each wave shares three common themes — the newcomers buy and deliver products more efficiently, address changes in how Americans work and live, and exploit the hidebound management of the established retailers and municipal governments that host them.
Peter Morici As Apple launches the 10th anniversary iPhone this fall, we should not only marvel at where the device has taken us but also...
For those with lazy vacation eyes, let me offer my short form – five forces that will reshape our civilization by 2030.
Animal spirits are running high.President Donald Trump’s promises to repeal Obamacare, cut taxes, and roll back regulations have supercharged stock prices and business optimism.
Even before the Affordable Care Act, federal and state governments were paying nearly half of the nation’s healthcare bills.
The most disturbing aspect of the presidential campaign is neither major party nominee has adequately focused on rekindling economic growth.
This is no time to sell the United Kingdom short.
The EU suffers from chronic slow growth thanks to a smothering bureaucracy and single currency that fits the needs of the continental economy like stilettos on a ballerina.
Of the college graduates that can think, too many major in social sciences and humanities that provide little background to succeed in medicine, finance and the vast array of opportunities created by the digital economy.
Peter Morici China’s economic chaos is fomenting fear across global stock markets, and President Obama would do well to start listening to Donald Trump about...