In a February 4 commentary, economists Michael Kumhof and Romain Rancière argue that growing income inequality contributed to the economic crisis by forcing lower income households to increase their borrowing.
Also on February 4, Smart Growth America published a report on transportation funding and job creation. It finds wide variation in the number of jobs created per dollar on different types of transportation projects and among the states.
And on February 4, Gallup released a poll showing that many businesses are hiring fewer people than they need due to concerns about sales, cash flow, and an inability to find qualified workers.
On February 3, the Progressive Policy Institute published a study by economist Michael Mandel on reforming federal regulation to stimulate jobs and innovation.
Also on February 3, Federal Reserve Board chairman Ben Bernanke gave a speech on the economic outlook. He indicated cautious optimism.
And on February 3, Moody’s Analytics economist Mark Zandi testified before the Senate Budget Committee on the state of the economy. He is also cautiously optimistic.
On February 1, economists Pierre Cahuc and Stéphane Carcillo published a commentary discussing work schemes that allow employers to temporarily reduce work hours to avoid layoffs. On January 17, the Organization for Economic Cooperation and Development published a working paper on this same topic.
On January 31, Carlos III University in Madrid published a study which calculated that a government needed to invest $55 million to win an Olympic gold medal.
On January 27, the Foundation for Child Development published a study on the declining fortunes of children in middle-class families. It finds that children in such families are increasingly being forced to rely on public programs such as Medicaid.
Also on January 27, the Bureau of Labor Statistics published data on mass layoffs in 2010. Although well down from 2009, mass layoffs are still far above pre-recession levels.
On January 3, economists Andreas Bergh and Magnus Henrekson posted a paper examining the relationship between government size and economic growth. They find that a 10 percentage point increase in the size of government reduces annual growth by 0.5 percent to 1 percent.
Bruce Bartlett is an American historian and columnist who focuses on the intersection between politics and economics. He blogs daily and writes a weekly column at The Fiscal Times. Bartlett has written for Forbes Magazine and Creators Syndicate, and his work is informed by many years in government, including as a senior policy analyst in the Reagan White House. He is the author of seven books including the New York Times best-seller, Imposter: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy (Doubleday, 2006).