Publications -- Economy

May 20, 2008

BA #618 – Insuring New Jersey's Uninsured

Individual health insurance policies in New Jersey are among the most costly in the United States due to over-regulation and expensive mandates. Two radically different bills have been proposed recently to reduce the number of uninsured in the state by making health coverage more affordable. One proposal would mandate that individuals purchase insurance.

Apr 30, 2008

BA #616 – Social Security and Medicare Projections: 2008

The 2008 Social Security and Medicare Trustees Reports show the combined unfunded liability of these two programs has reached $101.7 trillion in today's dollars! That is more than seven times the size of the U.S. economy and 10 times the size of the outstanding national debt.

Apr 25, 2008

BA #615 – 401(k) Loans = Retirement Insecurity

The popularity of 401(k) plans has grown in recent years.  According to the Employee Benefits Research Institute, almost two-thirds of employers offer such plans and millions of employees now contribute to them.  These defined contribution plans allow workers to set aside part of their earnings in tax-deferred retirement accounts that are invested in stock and bond funds. 

Apr 07, 2008

BA #614 – Energy Independence in Brazil: Lessons for the United States

Nationwide, average retail gasoline prices are nearing the all-time inflation-adjusted high of $3.40 a gallon reached in 1981, lending urgency to renewed calls for U.S. energy independence.  Analysts often tout Brazil as the epitome of energy self-sufficiency.  Brazil imported more than 80 percent of its oil in the 1970s, but it likely reached energy independence by the end of 2007, according to projections from the U.S. Energy Information Administration (EIA).

Mar 31, 2008

ST #309 – Economic Freedom and the Trade-off between Inequality and Growth

One of government's biggest challenges is to develop policies that raise the standard of living in a society without creating large income gaps between the rich and poor. But to a great extent, raising living standards and redistributing income are mutually exclusive goals.

Mar 18, 2008

BA #613 – Our Triple Deficits

Economists often refer to the U.S. trade deficit and the federal budget deficit as problems of inadequate domestic saving.  They speak of these deficits “crowding out” domestic investment.  They allude to unspecified relationships between these deficits but seldom explain them, confusing everyone.

Mar 17, 2008

BA #612 – Giving No Credit Where It Is Due: Social Security Disability

The disability insurance component of the U.S. Social Security system is funded by a 1.8 percent payroll tax. It pays benefits to disabled adults who have earned a required number of credits based on previous years of work. The benefit amount is based on the wages taxed for Social Security. Most people do not realize that the system penalizes those who leave the workforce for a few years. The system often penalizes women, who are more likely to move in and out of the workforce.

Feb 28, 2008

BA #611 – How the Fed Creates Money

Signs of an economic slowdown, or recession, have prompted the Federal Reserve to lower interest rates.  The Fed reduces interest rates by increasing the supply of money available to borrow.  This additional money is distributed to banks and loaned to consumers.  Assuming a constant demand for money, an increase in the quantity of money will cause interest rates to drop.  But how does the Fed increase the money supply?

Jan 21, 2008

BA #606 – Tax Code Became More Progressive after the Bush Tax Cuts

Critics complain that the 2001 and 2003 Bush tax cuts gave the greatest tax relief to the wealthiest taxpayers. However, every major tax bill over the past 15 years — both Republican and Democrat — has increased the progressivity of the federal income tax system.

Jan 18, 2008

BA #605 – Economic Freedom and Economic Growth in Mexico

Over the last 25 years, the wage gap between Mexico and the United States has grown progressively wider, making U.S. jobs increasingly attractive. This is a major reason for the increasing influx of immigrants from Mexico to the United States.