Dean Baker's Blog, page 113

Washington Post Presents More Evidence of Skills Gap Troubling Employers

The Washington Post ran an article telling readers that employers are finding it difficult to attract qualified workers. As the piece says:

"Firms that save money from the tax cuts may simply be unable to find more workers to hire at the price they are willing to pay."

This is really the core of the problem. There is apparently a huge skills gap among employers at firms across the country. They don't seem to understand basic market principles. If they want to hire more workers then they have...

This Year's Contribution to the United Nations Is Equal to 0.08 Percent of Federal Spending

The New York Times had an article on President Trump's plans to cut the U.S. contribution to the United Nations. The article told readers:

"Under a formula tied to economic size and other measurements established under an article of the United Nations Charter, the United States is responsible for 22 percent of the United Nations operating budget, the largest contribution. It paid about $1.2 billion of the 2016-2017 budget of $5.4 billion.

"The United States also is the largest single financial...

NYT Pushes Trump View of Tax Cuts in Major News Stories

Most economists didn't accept the view that the corporate tax cuts pushed through by the Trump administration and the Republican would lead to a large increase in investment in the United States. (See for example, this piece by Larry Summers.) This is why few accepted the claim that the additional growth from the tax cut would offset much or all of the revenue lost.

However, the NYT appears to have accepted the Trump administration's view in an article arguing that European countries may star...

The Trump Tax Cuts’ Secret Santa

No one should have any doubt about the main impact of the Republican tax cuts. These tax cuts are about giving more money to the richest people in the country. After four decades of the largest upward redistribution in the history of the world, the Republican tax cuts give even more money to the big winners.

In TrumpWorld, that makes sense. Instead of spending money to rebuild our infrastructure, reduce greenhouse gas emissions, provide quality child care or affordable college, we’re going to...

Another Possibility in the Tax Cut Debate: The Economy May Aleady Be On a Faster Growth Path

A NYT article on the Republican tax cut told readers:

"When President Trump adds his distinctive signature to the tax bill, he will also be making a huge bet that the Republican strategy of deep cuts for businesses and wealthy individuals will fuel extraordinary growth across the board.

"Perhaps more than any other American political leader, Mr. Trump knows that long shots, like his own presidential bid, sometimes pay off. In that vein, he and congressional Republicans are arguing that their...

Vox Joins the Effort to Divert Class Warfare into Generational Warfare

The nonsense is flowing thick and heavy now that Congress has just voted to hand the bulk of a $1.5 trillion tax cut to the richest people in the country. Vox is outfront getting its two cents in, telling us the big problem is the government debt built up by the baby boomers and the Social Security and Medicare that they plan to collect.The context is an interview with Bruce Gibney who is hawking a new book blaming the baby boomers for everything evil.

The confusion is thick and heavy here. F...

In Honor of Donald Trump's Big Tax Victory, Let's Hear it for State-Level, Employer-Side Payroll Taxes!

The Republicans in Congress and Donald Trump were really hoping to sock it to the blue states like California and New York, which voted against him by large margins. This is what limiting the deduction for state and local income and property taxes is all about. These states also have relatively high taxes because they try to do things like provide people with decent health care and education.

However, it is not difficult to design a way around the Trump scam. States can impose state-level,&nb...

In Honor of Donald Trump's Big Tax Victory, Let's Hear it for State Level Employer Side Payroll Taxes!

The Republicans in Congress and Donald Trump were really hoping to sock it to the blue states like California and New York, which voted against him by large margins. This is what limiting the deduction for state and local income and property taxes is all about. These states also have relatively high taxes because they try to do things like provide people with decent health care and education.

However it is not difficult to design a way around the Trump scam. States can impose state level empl...

Alternative Reality at the Washington Post: Tax Bill Had Working Class Roots

There is a lot of craziness in the era of Trump. According to the Washington Post, a tax bill that gives the overwhelming majority of its benefits to the richest people in the country had "working-class roots." This is pretty loony stuff.

Contrary to What You Read in the NYT, China's Economy Is 20 Percent Larger than the U.S. Economy

An article in the NYT on China's plans to create a market for trading permits to emit greenhouse gases told readers that China has the world's second-largest economy after the United States. According to the International Monetary Fund's estimates, China's economy is currently more than 20 percent larger than the U.S. economy, using a purchasing power parity measure. This measure, which applies a common set of prices to the goods and services produced in both countries, is clearly the correct...