Federal Tax Hikes Expected to Hurt Louisiana’s Rich and Poor Alike

By Fergus Hodgson
Heritage Foundation predicts “substantial job losses” among earners of less than $250,000 The Heritage Foundation, a D.C.-based policy institute, has released a scathing report on the prospect of income tax increases for the coming year. The authors contend that while high income households may be targeted, everyone will pay the price through lower economic growth...

TAGS: Barack Obama, Economic impact, Federal plan, Income taxes

Consumer Protection Can Lead to Moral Hazard

By Jennifer Moreale
Barack Obama proclaimed March 7th-March 13th to be the National Consumer Protection Week. Supporting the creation of an independent Consumer Financial Protection Agency, Obama said: “[…] our Government must do more to stand up for consumers. From excessive bank account overdraft fees to abusive mortgage lending practices, our broken financial system produces profits at the...

TAGS: Barack Obama, Cato Institute, Consumer Financial Protection Agency, FDIC, Free Market, George Selgin, John Tammy, Loyola Economics Club, Mark Calabria, National Consumer Protection Week, RealClearMarkets

Federal Largesse Does Not Benefit States

By Jennifer Moreale
Chris Edwards of the Cato Institute highlights the level of government intervention by examining the various forms of federal aid to the states. As he writes in Downsizing the Federal Government: “There are more than 800 state and local aid programs, based on my count of programs in the Catalog of Federal Domestic Assistance. They...

TAGS: Barack Obama, Cato Institute, Chris Edwards, Downsizing The Federal Government, Federal Budget Deficit, Federalism, FY2011 Budget

Beware of Bank Regulations Curtailing Credit

By Jennifer Moreale
As Diana Furchtgott-Roth of the Manhattan Institute points out, there is widespread hostility towards the financial sector even though: 140 banks failed in 2009 regulators and Congress encouraged banks to make high-risk loans many banks were required by Hank Paulson to take the TARP money in 2008 all but one large bank repaid TARP funds...

TAGS: Barack Obama, Diana Furchtgott-Roth, Financial Crisis Responsibility Fee, Jason Zweig, Manhattan Institute, Volcker Rule

A New Record: $1.6 Trillion Deficit for the United States

By Jennifer Moreale
President Obama has announced his 2011 budget proposal. When FY 2010 ends on September 30 the deficit will total to $1.6 trillion, much higher than the Congressional Budget Office’s forecast. The Bush tax cuts will expire at the end of this year and if Obama extends their term, the federal deficit estimates will be even...

TAGS: Barack Obama, Brian Reidl, Chris Edwards, Congressional Budget Office, Federal Budget Deficit

An Uncertain Future for America’s Economic Growth

By Jennifer Moreale
As of January 22, the current public debt totals more than $12.3 trillion. The Congressional Budget Office reports that if current laws and government spending remain the same, the budget for FY 2010 is estimated at more than $1.3 trillion. During the Middle Class Task Force meeting, Vice President Biden and President Obama announced new...

TAGS: Barack Obama, Congressional Budget Office, Federal Budget Deficit, Government Spending, Joe Biden, Middle Class Task Force, Tax Cuts

Volker Rule Offers More, Not Necessarily Better, Regulation of Banks

By Jennifer Moreale
“If these folks want a fight, it’s a fight I’m ready to have,” said President Obama as he emphasized his campaign against Wall Street. Following up on the after-TARP tax, Obama is introducing the Volker Rule to impose tougher regulations on the financial sector. The Volcker rule will cap the size and scope of banks,...

TAGS: Bailouts, Banks, Barack Obama, Financial Reform, Jason Zweig, Nicole Gelinas, Troubled Asset Relief Program, Volcker Rule, Wall Street

Executive-Level Bonuses are Returns on High-Risk Investments

By Jennifer Moreale
Since September 2008 executive bonuses have been criticized as excessive, unfair, and unnecessary. Case in point: Last week in a public speech President Obama referred to executive bonuses as being “obscene.” Are executive bonuses really a problem? Or just a way for politicians to gain public approval? Consider the traditional return on investment model: the...

TAGS: Augustin Landier, Barack Obama, Executive Compensation, NYU, Xavier Gabaix