Cap and Trade Effects

One of the stated goals of the cap and trade legislation is to reduce our dependence on fuel imports. It may have the opposite effect: June 26 (Bloomberg) — America’s biggest oil companies will probably cope with U.S. carbon legislation by closing fuel plants, cutting capital spending and increasing imports. Under the Waxman-Markey climate bill…


An Austrian Explanation of the Recession

The only economic theory which anticipated the recession is the Austrian school. While it has gotten more press recently, most people do not have an understanding of Austrian theory. Steven Horowitz has published a working paper for  the George Mason Mercatus Center which explains the current recession in Austrian terms. It is concise and easy…


Why Isn’t the Stimulus Stimulating?

Bruce Bartlett on why the stimulus isn’t stimulating – yet (via Forbes): Since 60% of the stimulus package had a multiplier effect of less than one, only 40% of the package went to programs like public works that have a high multiplier. Moreover, the programs with a low multiplier were the fastest ones to implement;…


Federal Reserve: FOMC Policy Statement – June 24

The Federal Open Market Committee decided today to maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period. FOMC Policy Statement: Information received since the Federal Open Market Committee met…