Which of the three pillars of the economy — consumers, government or business — is thriving?

Floyd Norris has THE ANSWER to the question above: The economic recovery from the recession that officially ended in 2009 has been extremely disappointing for American consumers. But for business, it has been the best recovery in decades… The government’s estimate of first-quarter gross domestic product last week indicated the overall economy was only 8.3 percent higher than it was in the second quarter of 2009, the quarter the recession ended. That is significantly weaker than the recoveries that followed the recessions that ended in...

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Wake up, Republicans! Everywhere austerity has been tried it has failed!

As you may have read in the past few weeks — HERE, for example — the intellectual  underpinnings of Republican theories on austerity economics have been pretty much debunked. HERE‘s more on that matter: Academia remains incredulous as evidence accumulates that the Reinhart-Rogoff paper that underwrote much of the intellectual justification for austerity economics omitted important data and contained severe Excel errors. Some are calling it a technical knockout of austerity economics, handing victory to the anti-austerity...

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Meet the graduate student who debunked Republican theories on the economics of austerity

Last week, I gave you THIS. Today, I give you THIS: The world of economics has just changed, and somebody has some ‘splaining to do! Please savor the following twisted tale of bad math, academic folly and pundit hubris. Since 2010, the names of Carmen Reinhart and Kenneth Rogoff have become famous in political and economic circles. These two Harvard economists wrote a paper, “Growth in the Time of Debt” that has been used by everyone from Paul Ryan to Olli Rehn of the European Commission to justify harmful austerity policies. The authors...

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Intellectual foundation of Republican push for austerity falls apart

Economic policy wonks are buzzing today over revelations that a celebrated study conducted by a couple of Harvard University academics was fundamentally flawed. Steve Benen has the story HERE: Carmen Reinhart and Kenneth Rogoff published a report a few years ago that was music to the ears of Republicans: when a nation’s debt climbs above 90% of the nation’s total economy, it necessarily serves as a drag on economic growth. The Reinhardt/Rogoff study became the intellectual foundation for austerity and a deliberate shift from job...

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Surprise! It’s Romney’s economic model, not Obama’s, that mirrors the European approach!

Mitt Romney’s campaign for president has featured loads of rhetoric — on his own part and that of his surrogates — that seeks to portray Barack Obama as the dreaded “Other,” a “foreign” interloper who’s not really American. “I don’t think he understands America,” Romney said of Obama last winter. “I wish this president would learn how to be an American,” said Romney campaign chairman John Sununu this past summer. Obama’s political philosophy “does not...

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