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By Rachel Goldfarb, originally published on Next New Deal

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Surprise! 'Pro-Business' Policies Hurt State Economic Growth (LA Times)

A University of Wisconsin professor has shown that business-friendly ALEC's rankings of state economic policies are good predictors of slow job growth, writes Michael Hiltzik.

A Year After Being Discredited, Austerity Economics Still Reigns (AJAM)

Dean Baker says that despite knowing that Carmen Reinhart and Ken Rogoff were wrong about debt-to-GDP ratios and economic growth, governments haven't given up on austerity.

  • Roosevelt Take: Roosevelt Institute Fellow Mike Konczal was one of the first to write about the problems in the infamous Reinhart-Rogoff paper.

Study: RomneyCare Seems To Have Saved Lives, And Obamacare Could Too (TPM)

A new study shows that Massachusetts' mortality rate fell after it implemented health care reform, reports Dylan Scott. The study's authors say the same could happen nationally.

  • Roosevelt Take: Roosevelt Institute Senior Fellow Richard Kirsch says that in addition to data like this, stories about the ACA's success are key to building support.

SEC Finds High Rate of Fee, Expense Violations at Private-Equity Firms (WSJ)

More than half of the firms allocated their expenses or charged fees inappropriately, or even illegally, to boost profits, report Gillian Tan and Michael Wursthorn.

There’s Still No Reason to be Afraid of the Inflation Monster (WaPo)

Matt O'Brien writes that despite persistent fears, wages aren't rising and therefore aren't causing inflation. The real story is that wages are flat despite lower unemployment.

What Would Happen to Companies Like Target If They Paid $15 an Hour? (PolicyShop)

David Callahan considers the possible impact of a modern-day Henry Ford giving low-wage workers a big increase. He says it would boost the entire economy and that company's profits.

New on Next New Deal

Turning Students' Vision Into Reality: Roosevelt's Campus Network at 10

As the nation's largest student policy organization approaches its 10th anniversary, alumna and former staffer Tarsi Dunlop reflects on what it has accomplished and what's to come.


Originally posted to Daily Kos Economics on Wed May 07, 2014 at 05:17 AM PDT.

Also republished by Daily Kos.

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Comment Preferences

  •  ALEC is About Global Ownership Not Local, Regional (3+ / 0-)
    Recommended by:
    occupystephanie, Cadillac64, thomask

    or American society.

    We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

    by Gooserock on Wed May 07, 2014 at 05:25:26 AM PDT

    •  I disagree. The Kochs have money to burn, (1+ / 0-)
      Recommended by:
      Cadillac64

      and they are investing it in local politics. Thisarticle in the NYT supports this.

      The main reason “we fight local issue battles is because they result in good policy outcomes, generally promoting economic freedom via less taxes, less government spending,” [AFP] said.

      But here, in this town of fewer than 20,000 residents, the group has not been so welcome, and the nonpartisan campaign has become an informal referendum on the involvement of outsiders.

      The Kochs are ahead of the curve. Local politics is the last bastion of democracy and they know it, want to kill it.

      We have it within our power to make the world over again ~ Thomas Paine

      by occupystephanie on Wed May 07, 2014 at 06:49:34 AM PDT

      [ Parent ]

  •  Great. The SEC is looking at... (1+ / 0-)
    Recommended by:
    Cadillac64

    ...how Private Equity firms fleece their clients.

    Those firms should know better than to steal from the rich.

  •  Companies pay 15 Dollar and hour (0+ / 0-)

    Washington State , USA

    Most of the studies cited just look at what business reactions are to a
    wage hike not to what actually happens to the general business
    environment under the new conditions.
    The NYT had a story that covered how small businesses were affected when
    Washington State increased the min wage. They looked specifically at
    businesses on the border with Idaho whose min wage was 50% lower. What
    was expected was a run of businesses across the border to Idaho. The
    actual result was the economic climate picked up so dramatically that
    the state’s major business lobby, the Association of Washington
    Business, changed their position and no longer fought the minimum-wage

    http://www.nytimes.com/...
    law.

    The story can be found at,

    You Don't Happen To Make It. You Make It Happen !

    by jeffrey789 on Wed May 07, 2014 at 10:35:02 AM PDT

  •  15 Dollars an Hour (1+ / 0-)
    Recommended by:
    tardis10

    Highest Minimum-Wage State Washington Beats U.S. Job Growth " March 5, 2014

    When Washington residents voted in 1998 to raise the state’s minimum
    wage and link it to the cost of living, opponents warned the measure
    would be a job-killer. The prediction hasn’t been borne out.

    In the 15 years that followed, the state’s minimum wage climbed to
    $9.32 -- the highest in the country. Meanwhile job growth continued at
    an average 0.8 percent annual pace, 0.3 percentage point above the
    national rate. Payrolls at Washington’s restaurants and bars, portrayed
    as particularly vulnerable to higher wage costs, expanded by 21 percent.
    Poverty has trailed the U.S. level for at least seven years.

    http://www.bloomberg.com/...

    You Don't Happen To Make It. You Make It Happen !

    by jeffrey789 on Wed May 07, 2014 at 10:36:31 AM PDT

  •  15 Dollars an Hour in Austrailia (1+ / 0-)
    Recommended by:
    tardis10

    Aussies the World’s Richest People

    We should follow the example of Australia: the minimum wage is
    roughly $15.00-US; workers receive an annual COLA. How is it that
    Australia can afford to pay a living wage and provide good benefits,
    including universal health care?

    Business Profits as a Percentage of National Income:

    U.S.: 20.4%
    Australia: 12.7%

    A higher minimum wage will help to boost the wages of other income
    earners. In 2011, the median wage was $57,400 in Australia (it’s $40,000
    in the U.S.). Australians rank no. 1 in the world on median wealth:
    $219,505.

    Aussies the World’s Richest People: Credit Suisse

    http://www.smh.com.au/...
    It’s time to put an end to corporate welfare for companies like
    Wal-Mart and McDonald’s. Taxpayers should not be providing their
    employees with food stamps and other assistance because they do not pay a
    living wage.

    You Don't Happen To Make It. You Make It Happen !

    by jeffrey789 on Wed May 07, 2014 at 10:41:51 AM PDT

  •  A better ALEC debunking (0+ / 0-)

    was done in December 2012 by University of Iowa economist Peter Fisher for the Iowa Policy Project and Good Jobs First. It uses correlations for all 50 states as well as multiple regression analysis. The results show that ALEC policies do not improve economic growth even as they are designed to increase inequality. It's titled "Selling Snake Oil to the States."

    Link: http://www.iowapolicyproject.org/...
    My commentary: http://www.middleclasspoliticaleconomist.com/...

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