FeedPosted Nov 2nd 2009 5:30PM by Joseph Lazzaro (RSS feed)
Filed under: Forecasts, Politics, Recession, Financial Crisis
New York Times (NYSE:
NYT) columnist
Paul Krugman argues quite persuasively that the major problem with the fiscal stimulus package was that it was too small, given the financial crisis and the large economic crater the accompanying, pronounced recession created.
Further, the fiscal stimulus' many benefits -- including substantial job retention in essential public services such as education -- are harder to see and not likely to translate into too much political gain for President Obama and Congressional Democrats, he said. That's consistent with a political science axiom -- often repeated by U.S. Rep. Barney Frank, D-Massachusetts -- that
"Congress gets little credit or benefit for averting something." Indeed, retained jobs are hard to see, and the fact that a local public school system is is still operating with as many teachers is an accomplishment, but one that most American voters will take for granted, and not give Democrats credit for.
Continue reading Fiscal stimulus package's primary flaw: It was too small
Posted Nov 1st 2009 11:40AM by Connie Madon (RSS feed)
Filed under: Industry, Competitive strategy, China, Politics
It all started when President Obama, under pressure from U.S. unions, slapped a 35% tariff on tire imports from China. This move angered Beijing to no end, and to the point that China is challenging the action with the World Trade Organization.
China, in retaliation, has said that it would launch an "antidumping" policy against U.S. car exports to China. U.S. car makers export only about 9,000 vehicles to China at present. However, China is now the leading auto maker in the world, and barring U.S. imports would hamper the U.S. auto export market.
Continue reading The looming U.S./China trade war
Posted Oct 26th 2009 5:30PM by Joseph Lazzaro (RSS feed)
Filed under: Politics, Housing, Recession

Put this one under the the category of 'a half-loaf is better than none.'
Senate leaders are apparently poised to extend the $8,000 federal tax credit for first-time home buyers, Bloomberg News
reported Monday.
However, the extension will not please all in the housing sector, as the Senate is working on a plan that would extend the credit, which expires November 30, for homes that close before April 1, 2010. The credit would then be reduced to $6,000, then $4,000, then $2,000 for homes that close in each successive quarter, until the end of 2010, at which time the credit program would end.
Continue reading Senate seen extending a reduced first-time home buyer tax credit
Posted Oct 22nd 2009 5:30PM by Joseph Lazzaro (RSS feed)
Filed under: Politics

Sometimes, in American politics/public policy, the unexpected occurs. A year ago, if you had said health care reform in 2009 would lead to the end of the health insurance industry's anti-trust exemption, you probably would have been classified as a candidate for 24-hour observation.
It still hasn't become law yet, but on Wednesday the above took one more step toward becoming reality as the U.S. House Judiciary Committee approved a bill that would curb the health insurance industry's limited exemption from antitrust law and would allow the U.S. Justice Department to enforce laws relating to price fixing and market allocation,
The New York Times reported. The committee voted 20-9 in favor of the measure, with three Republicans joining 17 Democrats.
Continue reading Incredibly, bill to end health care insurers' anti-trust exemption gaining steam in Congress
Posted Oct 21st 2009 5:30PM by Joseph Lazzaro (RSS feed)
Filed under: Forecasts, Politics

Health care reform's long and winding road continues, as debate will begin soon on several bills in the House and Senate. Each chamber is likely to approve a bill, with the all-important conference committee set to reconcile the two after each chamber's vote.
Let's put on the old political science hat for a moment to see if history and research can tell us anything about the likely shape of the health care reform bill at this stage of the U.S. public policy process.
The House, Senate, and conference committee (CC) outcomes are labeled: Probable, Possible, Doubtful.
Continue reading Health care reform update: Look for an overhaul that gives Congress flexibility
Next Page »