Celebrating the Flash Crash with a Wall Street Sales Tax

This week marks the fifth anniversary of the Flash Crash; when the stock market lost almost 9 percent of its value from its opening level, within 5 minutes. The market quick recovered, but the crash revealed its extraordinary instability.
Dean Baker
  • 12

The End of the U.S. Boom

Economic analysts now say the economy isn't as strong as they thought. There never was much basis for claiming a boom in the U.S. economy and the people claiming otherwise were relying on a very selective reading of the data.
Dean Baker
  • 27

The Terrible Twos: Central Bank Inflation Targets

The March job numbers came in somewhat worse than most analysts had expected. Many are warning that the economy is weaker than they thought. These warnings are in fact good news. They may slow down the Fed's rush to raise interest rates.
Dean Baker
  • 7

Scott Walker Ends Freedom of Contract in Wisconsin

Wisconsin Governor Scott Walker and his backers could not give a damn about workers’ rights. His "right to work" bill is really about taking away workers ‘ freedom of contract in a way that will weaken their bargaining.
Dean Baker
  • 13

The Federal Reserve Board’s Plan to Kill Jobs

While there is an enormous amount of political debate over various imaginary job killers, the Federal Reserve Board is openly mapping out an actual job-killing strategy and drawing almost no attention at all for it.
Dean Baker
  • 14

The Federal Reserve Board and Social Security Disability

The Republican Congress, making overhauling the Social Security disability program one of its first orders of business, put in place a rule change that would make it difficult to address a projected funding shortfall.
Dean Baker
  • 21

Democrats Take on Wall Street with Financial Transactions Tax

The House Democratic Party leadership made a remarkable step forward last week in putting out a proposal for a financial transactions tax. There should be no mistake; this is a really big deal for the financial industry.
Dean Baker
  • 34

What Congress isn’t Seeing When the Government Spends

The House adopted a new rule requiring lawmakers to take long-term macroeconomic effects into consideration when voting on tax and spending bills. This "dynamic scoring" has little to do with the way the economy actually works.
Dean Baker
  • 12

Economic Policy Myths of 2014: Dead and Enduring

With the holiday season upon us, the time for end of year lists is fast-approaching. To beat the rush, today I give my list of the top dead and enduring myths of 2014.
Dean Baker
  • 17

We Don’t Need More Public Service From Wall Street Bankers

We have a very serious problem of financial regulators who serve Wall Street and not the general public. Our financial regulators have done a terrible job for everyone except the people they are supposed to be regulating.
Dean Baker
  • 10

Seven Years After: Why This Recovery Is Still a Turkey

December will mark the seventh anniversary of the recession brought on by the collapse of the housing bubble. Usually an economy would be fully recovered after seven years. Unfortunately, this is not close to being the case now.
Dean Baker
  • 23

Full Employment: The Recovery’s Missing Ingredient

Economists come up with complexities when a shave with Occam’s razor is all that’s needed. The bargaining power of most American workers is at a historical low point. The best way to restore it is to get the economy back to full employment.
Dean Baker
  • 15

Democrats Run Away from Success of ‘Obamacare’

Stealing a page from the Denver Broncos’ Super Bowl playbook from last year, the Democrats have spent the fall campaign hiding from the most successful federal government program since Medicare.
Dean Baker
  • 17

Ebola Hysteria Fever: A Real Epidemic

Thus far, the Ebola virus has infected three people in the United States that we know of, however Ebola hysteria seems to have infected somewhere close to 300 million.
Dean Baker
  • 20

The Damage From A High US Trade Deficit

Some economists blame upward redistribution of income, which reduces overall demand, for excessive unemployment. However, upward redistribution is only part of the explanation. The trade deficit is a much bigger part of the picture.
Dean Baker
  • 11

Eric Holder: The Reason Robert Rubin Isn’t Behind Bars

Undoubtedly there are positives to Eric Holder’s tenure as attorney general, but one really big minus is his decision not to prosecute any of the Wall Street crew whose actions helped to prop up the housing bubble.
Dean Baker
  • 25

The Myth that Sold the Financial Bailout

Six years ago, Wall Street's giants were falling like dominoes. Henry Paulson and Tim Geithner told Congress that failing to bail them out would lead to a second Great Depression. It was nonsense then. It's even greater nonsense now.
Dean Baker
  • 47

Obamacare and Family Values: Parents Get to Stay Home With Children

Obamacare is making it possible for parents to spend more time with their kids. Before trashing Obamacare became a fundamental principle for Republicans, most would have said that parents spending time with their kids is a good thing.
Dean Baker
  • 22

Labor Day Victories to Celebrate

In recent decades the news for the country’s workers and the labor movement has been mostly bad. It would be easy to go on about how bad things are, but it is worth highlighting a couple of good news items against this backdrop.
Dean Baker
  • 6

Public Pressure Can Influence The Federal Reserve

The structure of the Federal Reserve ensures that the banking industry's concerns get a full hearing at Fed meetings, while those of workers may not. But that doesn't mean protests against Fed policies are futile.
Dean Baker
  • 9

What Does The Fed Have To Do With Social Security? Plenty.

People who are concerned about the future of Social Security should be paying a great deal of attention to what the Fed does. Raising interest rates will not only affect the economy today, but it will also affect Social Security tomorrow.
Dean Baker
  • 17

Income Growth is Not Quite What Robert Samuelson Implies

Robert Samuelson is correct that income inequality in the US today is nothing like it was in the 1920s, because of the social welfare state. However his column is somewhat misleading on the income gains for middle- and low-income families.
Dean Baker
  • 6

What Problem Is Privatizing Fannie and Freddie Meant to Solve?

President Obama's chief economist, Jason Furman, weighed in behind efforts to privatize Fannie Mae and Freddie Mac last week. Fannie and Freddie are doing their job just fine. Why is there any need to overhaul the system?
Dean Baker
  • 9

The Trans-Pacific Partnership: Warnings From NAFTA

The Trans-Pacific Partnership is not really about trade. The point of the deal is to put in place a structure of regulations that will be friendlier to the large corporations who are in many cases directly part of the negotiating process.
Dean Baker
  • 22

Obamacare: It’s Better Than You Think

Workers who lose their job because of an illness will still be able to find affordable insurance. This will provide a huge element of security that is currently lacking. In effect, most workers will have true health insurance for the first time.
Obamacare: It’s Better Than You Think
Dean Baker
  • 16

The Financial Crisis and the Second Great Depression Myth

All knowledgeable D.C. types know that the TARP and Fed bailout of Wall Street banks five years ago saved us from a second Great Depression. Like most things known by knowledgeable Washington types, this is not true.
The Financial Crisis and the Second Great Depression Myth
Dean Baker
  • 14

N.Y. Times Claims Summers Was Closet Regulation Supporter

The supporters of Larry Summers drive to be Fed chair are desperately trying to rewrite history so that this world class champion of financial deregulation was actually a prescient supporter of tighter regulation all along.
N.Y. Times Claims Summers Was Closet Regulation Supporter
Dean Baker
  • 8

Glenn Hubbard is Unhappy About the Budget Deficit

Glenn Hubbard, along with Tim Kane, had a column in the NYT today decrying the budget deficit. The column begins by repeating the warnings of Mike Mullen, that the debt is the “single biggest threat to our national security.”
Glenn Hubbard is Unhappy About the Budget Deficit
Dean Baker
  • 0

Glass-Steagall Now: Because the Banks Own Washington

A bipartisan group of senators recently put forward a proposal for legislation to restore a separation between commercial banks and speculative trading. Such legislation is badly needed.
Dean Baker
  • 68

Stop Swinging Its Social Security-Medicare Axe

The Social Security and Medicare cutters are very unhappy. Who can blame them? The vast majority of people across the political spectrum oppose their plans to cut these programs.
Dean Baker
  • 0
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