Why Trump’s Industrial Policy Will Fail

President Trump appears set to press for a mixed bag of fiscal and trade policies that will likely have contradictory effects. In addition to taking pages from President Ronald Reagan’s agenda to lower corporate and personal tax rates, trim government spending and deregulate business, President Trump also seems committed to pushing a version of the Democrats’ 1980s “New Industrial Policy” agenda.

How the Economy Affects Major Asset Classes

Asset performance patterns are not always easy to explain, even over longer time frames. For instance, stock and bond prices are positively correlated, but they are also negatively correlated at various times. Asset prices also move differently in periods of uncertainty than in quieter times.

Economics of the 2016-2017 Debate Topic: U.S. Relations with China, Mixing Cooperation with Competition

There is no more important bilateral relationship than that between the United States and China. Yet the Congressional Research Service warns that ties have “become increasingly complex and often fraught with tension.” Relations appear likely to become even more fractious with the election of Donald Trump as president. Every four years the People’s Republic of China (PRC) becomes a presidential election issue, but Americans deserve a better explanation of the importance of U.S.-China political and economic relations than candidates’ sound-bytes.

Proposed Payday Lending Rule Will Hurt Lower-Income Consumers

The Consumer Financial Protection Bureau is a federal agency created by the Dodd-Frank Wall Street Reform and Consumer Protection Act to protect consumers from “unfair, deceptive, or abusive practices” by financial institutions. On June 2, 2016, the CFPB proposed federal regulations for the short-term loan industry.

Gold Revisited

Gold is a useful hedge against inflation and uncertainty, but investing in it speculatively is not always a good strategy. In 2011, the price of gold climbed to historic heights; but since …

How To Raise Wages

Since the Great Recession, the unemployment rate has steadily fallen from a high of 10 percent in October 2009 to the current rate of 4.9 percent. However, job gains and a …

What Is Important — and Not Important — about Inflation

From early times investors have rightly worried about the instability of the price level. Inflations large enough to wipe out real returns from stocks and bonds are all too common. Does that require that the rate of inflation be a vital consideration in investment decisions? Not necessarily. It is not so much inflation itself, but its instability or unpredictability that hardest hits investment performance. Egged on by statisticians, the Federal Reserve, pundits and the press, investors spend scarce time and resources arguing about the degree of inflation. Yet the facts suggest much of the fuss is unnecessary.

The Mortgage Meltdown

The 2008 financial crisis was one of the most severe economic breakdowns in the history of the world.2 The crisis was a classic financial bubble with all the classic attributes thereof: greed, …

How Dodd-Frank Harms Main Street

The financial crisis of 2007-2008 was a shock to the American economy. The federal regulatory response of 2009-2010 was equally shocking to the financial system. The reforms enshrined in the Wall Street …