From Saving to Spending

Update 528 — From Saving to Spending:The Consumer’s Role in the US Recovery Consumer spending comprises 70 percent of GDP, so big changes in consumer behavior bear directly on growth more than any other factor. Per the Bureau of Economic Analysis, total personal income in the U.S. increased $4.21 trillion in March. This 21.1 percent …

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Yellen Moves Markets

Update 527 — Yellen Moves MarketsAnd Can Remove FSOC Roadblocks The Federal Reserve surprised no one last Wednesday by continuing its near-zero interest rate policy and large-scale asset purchases. But markets tumbled Tuesday after Treasury Secretary Janet Yellen mentioned the possibility of raising rates, at some point, to prevent the economy from overheating.  In the …

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Biden Economic Policy Plan

Update 526 — Biden Economic Policy PlanOutline of a New Social Contract on Offer? In his first address before a joint session of Congress on Wednesday, President Biden proposed an ambitious and progressive domestic economic policy agenda for the months ahead. He declared trickle-down economics dead and offered what amounts to a redefinition of the …

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The Decelerated Decennial

Update 525 — The Decelerated Decennial:Demographic Stasis in Census a Surprise The U.S. Census Bureau released the official state results of the 2020 Census on Monday, after a series of legal changes, budget battles, and deadline extensions. The decennial count showed that the U.S. population grew by 22.7 million, just 7.4 percent in the last …

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Tax Plans: Equity Analysis

Update 524 — Tax Plans: Equity AnalysisTax Code as Cause and Cure of Inequities President Biden shook markets yesterday with details of his tax plan he rolled out previously and precisely during the 2020 campaign. Democrats in Congress have a slew of tax proposals on the table as well, many of which are currently under …

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Taxes on the Table

Update 523 — Taxes on the Table:Whether, How to Pay for New Plans This week, we will look at tax policy and proposals under discussion from the administration and in Congress. Today, we look at the fiscal side of the equation, how to finance spending going forward. On Friday, we will examine tax equity: what …

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Skinny Budget, Heavy Lift?

Update 522 — Skinny Budget, Heavy Lift?President Outlines FY2022 Spending Plans Last Friday, the Biden administration released its “skinny budget,” the initial framework for its FY2022 discretionary funding request. Although not elaborate, the $1.52 trillion budget gives us the first clear glimpse into President Biden’s priorities.  The administration calls for increased spending levels across the …

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Senate Process SOP

Update 521 — Senate Process SOP:Real Reforms and Honorable Manchins Over time, policymakers in Washington have used the term “bipartisan” to describe bills. But the true meaning of the word has been clouded by the way Washington uses it and how folks elsewhere still understand it. Which bills it applies to — how it is …

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Macro Reconciliation Act

Update 520 — Macro Reconciliation Act:Survey of Labor and Capital Markets 1Q21 Despite strong numbers coming out of the March jobs report, the economy still has 8.4 million fewer employed Americans than it did a year ago. With a new set of infrastructure proposals from the Biden administration on the table, the questions arise: how …

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