Search

Begin New Search Topic Economics Political Geography United States of America

81. The Economic Impact of Tax Changes, 1920–1939

Author:
Alan Reynolds
Publication Date:
01-2021
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Estimates of the elasticity of taxable income (ETI) investigate how high‐​income taxpayers faced with changes in marginal tax rates respond in ways that reduce expected revenue from higher tax rates, or raise more than expected from lower tax rates. Diamond and Saez (2011) pioneered the use of a statistical formula, which Saez developed, to convert an ETI estimate into a revenue‐​maximizing (“socially optimal”) top tax rate. For the United States, they found that the optimal top rate was about 73 percent when combining the marginal tax rates on income, payrolls, and sales at the federal, state, and local levels. A related paper by Piketty, Saez, and Stantcheva (2014) concluded that, at the highest income levels, the ETI was so small that comparable top tax rates as high as 83 percent could maximize short‐​term revenues, supposedly without suppressing long‐​term economic growth. Such studies could be viewed as part of a larger effort to minimize any efficiency costs of distortive taxation while maximizing assumed revenue gains and redistributive benefits.
Topic:
Economics, History, Tax Systems, and High-Income People
Political Geography:
North America, Global Focus, and United States of America

82. How Misaligned Incentives Hinder Foster Care Adoption

Author:
Isabella M. Pesavento
Publication Date:
01-2021
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Adoption, particularly adoption out of foster care, has not been well studied within the field of economics. Researchers may avoid this topic because the adoption market greatly deviates from a typical market, and the system and data collection are highly fragmented, with relatively little federal coordination. Rubin et al. (2007) and Thornberry et al. (1999) show that instability in foster care placements produces negative welfare outcomes, and Hansen (2006), Barth et al. (2006), and Zill (2011) demonstrate that adoption out of foster care is socially and financially beneficial. Yet, children waiting to be adopted out of foster care are in excess supply, which has been exacerbated in recent years. I hypothesize that this is, in part, due to misaligned incentives of government officials and the contracted foster care agencies. I show that earnings are prioritized over ensuring permanent child placement, which hinders the potential for adoption, and government oversight fails to correct such iniquities because of career interests.
Topic:
Economics, Government, Markets, Children, Incentives, Foster Care, and Adoption
Political Geography:
North America and United States of America

83. U.S. Trade Policy toward China: Learning the Right Lessons

Author:
Scott Lincicome
Publication Date:
01-2021
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Labor market and cultural disruptions in the United States are real and important, as is China’s current and unfortunate turn toward illiberalism and empire. But pretending today that there was a better trade policy choice in 2000—when Congress granted China “permanent normal trade relations” (PNTR) status and paved the way for broader engagement—is misguided. It assumes too much, ignores too much, and demands too much. Worse, it could lead to truly bad governance: increasing U.S. protectionism; forgiving the real and important failures of our policymakers, CEOs, and unions over the last two decades; and preventing a political consensus for real policy solutions. Indeed, that is happening now.
Topic:
International Relations, Economics, Markets, Bilateral Relations, Trade, and Protectionism
Political Geography:
China, Asia, North America, and United States of America

84. Lessons for the Fed from the Pandemic

Author:
John A. Allison
Publication Date:
06-2021
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
The Covid‐​19 pandemic greatly increased the scope and power of the Federal Reserve. The Fed created a number of new emergency lending facilities, which allowed it to make off‐​balance sheet loans and buy the debt of corporations and municipalities through special purpose vehicles backstopped by the Treasury under the CARES Act. Meanwhile, the Fed’s large‐​scale asset purchase program, known as quantitative easing (QE), was put on steroids after the pandemic struck in March 2020. The Fed has been purchasing longer‐​term Treasuries and mortgage‐​backed securities amounting to $120 billion per month, pushing the size of its balance sheet to an astonishing $7 trillion.
Topic:
Economics, Monetary Policy, Federal Reserve, Pandemic, and COVID-19
Political Geography:
North America and United States of America

85. A Reckoning Looms for America’s 50‐​Year Financial Surveillance System

Author:
Michael J. Casey
Publication Date:
06-2021
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
For all the upheaval of 2020, it’s perhaps not surprising that the 50‐​year anniversary of a major piece of financial legislation came and went with little fanfare. But the 1970 U.S. Bank Secrecy Act (BSA) deserves much scrutiny.1 In mandating that financial institutions maintain customer identity records and report illicit activity to government agencies, the BSA was a landmark statute by any measure. It paved the way to an ever‐​expanding system of international surveillance that’s a cornerstone of U.S. economic power.
Topic:
Economics, Government, Finance, and Surveillance
Political Geography:
North America and United States of America

86. Reflections on Monetary Policy and Its Future

Author:
Jeb Hensarling, Phil Gramm, and John B. Taylor
Publication Date:
06-2021
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
The Fed’s huge balance sheet allows it to engage in credit policy (the composition of the balance sheet is by definition credit policy), which inherently auto‐​resides in fiscal policy — but should auto‐​reside with Congress. This discussion, moderated by John B. Taylor, took place at the Cato Institute’s 38th Annual Monetary Conference on November 19, 2020. The transcript has been edited for publication.
Topic:
Economics, Monetary Policy, Federal Reserve, and Credit
Political Geography:
North America and United States of America

87. The Concerts and Live Entertainment Industry: A Significant Economic Engine

Author:
Michael Mariano and Adam Sacks
Publication Date:
07-2021
Content Type:
Commentary and Analysis
Institution:
Oxford Economics
Abstract:
We all remember our first concert or seeing our favorite band live, but rarely do we think of the stagehands, lighting techs, and ushers who worked hard to deliver these memorable experiences or the impact they have on our local, state, and national economies. In order to better understand the economic impact this important industry has across the United States, Oxford Economics developed a customized framework to analyze the impact of the concerts and the live entertainment industry's nationwide economic contributions in 2019 and conducted an in-depth analysis of the economic impacts of live event venues, artists, and visitor spending in terms of economic output, labor income, taxes, and jobs. Due to the pandemic putting a pause on live events in 2020, this report examined 2019 data to ensure a complete analysis could be conducted that is in line with regular performance of the industry. The industry drives significant economic activity that supports businesses, households, and government finances across the United States. In the wake of COVID-19, live events were shut down for over a year. Beyond the cultural loss involved, the US economy has incurred massive losses in GDP, employment, household income, and tax revenue due to the absence of live events. After a year of isolation, many crave getting back to enjoying memorable live experiences safely in 2021 and into the 2022 and 2023 seasons, which position the industry for growth in the coming years. The Concerts and Live Entertainment Industry, as defined by this report, includes all live musical performances, such as festivals and concerts, and comedy shows held in amphitheaters, clubs, theaters, arenas, stadiums, and other venues. Not included in this analysis are theater, Broadway, sporting events, and family shows.
Topic:
Economics, Culture, Music, popular culture, and Entertainment
Political Geography:
North America and United States of America

88. What if …? Economic consequences for Australia of a US-China conflict over Taiwan

Author:
David Uren
Publication Date:
06-2021
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
hat if China were to attempt to seize Taiwan by force and the US and allies responded militarily? One consequence would be the disruption of China’s trade with many countries, including Australia. While strategic analysts have been working over such scenarios for years, there’s been little study of the likely economic consequences. This study is focused on the short-term shock to Australia’s economy. The objective is to contribute to an understanding of the nature of Australia’s economic relationship with China and the likely paths of adjustment should that trade be severed. It also explores the options available to the Australian Government to ameliorate the worst of the effects of what would be a severe economic shock. The conclusion of this report is that the disruption to the Australian economy would be significant. There would be widespread loss of employment, along with consumer and business goods shortages that would be likely to necessitate rationing.
Topic:
Foreign Policy, Defense Policy, Economics, National Security, and Conflict
Political Geography:
China, Taiwan, Asia-Pacific, and United States of America

89. Supporting a Public Purpose in Research & Development: The Role of Tax Credits

Author:
Jake Taylor
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Tax credits for research and development are a means of incentivizing the private sector to invest their own resources on challenging problems. However, in practice, the fungibility of tax credits and other monetary elements can lead to misalignment between the public good represented by R&D and the actions of the company. In this policy brief, we consider the existing mechanism of tax credits. We see how they can encourage private sector risk-taking to enable research and development (R&D) outcomes. However, our goal is to go beyond economic growth benefits, and to include the less tangible considerations of public good and public purpose in the research and development domain. We then suggest an expansion of tax credits focused on supporting the researchers involved in the R&D and encouraging innovation in both large organizations and in startups and small businesses. This approach builds upon the existing framework of agency-led, mission-defined support of the private sector used by the U.S. government, as occurs in other programs such as America’s Seed Fund (sometimes known by its acronyms, SBIR and STTR). The integration of specific agency- and mission-focused elements to the credit system ensures that these additive credits support research and researchers whose R&D outcomes will improve the health, prosperity, and opportunity for the U.S. as a whole. Specific means of implementing this public-purpose R&D credit system under existing authorities within the executive branch are suggested, along with the public-facing mechanisms for creating and maintaining the evaluation approach of what constitutes “public purpose” as science and society progress.
Topic:
Economics, Science and Technology, International Affairs, Tax Systems, and Tax Credits
Political Geography:
Global Focus and United States of America

90. Biden-Erdogan meeting: cautious rapprochement amid still thorny disputes

Author:
Al Jazeera Center for Studies
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
Al Jazeera Center for Studies
Abstract:
As long as Turkey pursues its regional ambitions, any understandings with the US and the West will necessarily have a hard ceiling. However, Ankara seems to be pursuing a more conciliatory policy in the region and in its relations with the West for both economic and strategic reasons.
Topic:
International Relations, Economics, Bilateral Relations, Recep Tayyip Erdoğan, Rapprochement, Strategic Interests, and Joe Biden
Political Geography:
Turkey, Middle East, North America, and United States of America

91. Europe’s Capacity to Act in the Global Tech Race: Charting a Path for Europe in Times of Major Technological Disruption

Author:
Kaan Sahin and Tyson Barker
Publication Date:
04-2021
Content Type:
Special Report
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Technological leadership has become a central dimension of geopolitical power. In this development, the primary front in the emerging tech power rivalry is between the US (United States of America) and China (People’s Republic of China). The European Union (EU) has fallen behind and needs to catch-up. The stakes in this race are high and will have an impact on economic competition, national security and broader values-based notions of political order. This study sheds light on Europe’s approach to technological mastery. This study looks into the progress of the EU and its member states across selected technological fields and their global entanglements with other nations and technology actors.
Topic:
Development, Economics, Science and Technology, European Union, and Geopolitics
Political Geography:
China, Europe, and United States of America

92. The Logic (and Grammar) of US Grand Strategy: Implications for Germany and Europe

Author:
Markus Jaeger
Publication Date:
06-2021
Content Type:
Special Report
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Although President Biden has made US foreign policy more predictable, its medium- and long-term direction and concomitant implications for transatlantic relations are less certain. This report presents three scenarios of how US strategy might evolve. They provide insight into how the United States behaves in the spheres of security and international economy under different conditions and why, suggesting ways for the EU and Germany to preemptively mitigate risks and positively influence future policy.
Topic:
Security, Economics, Grand Strategy, Risk, and Transatlantic Relations
Political Geography:
Europe, Germany, North America, and United States of America

93. The New Geo-Economic Environment and the EU’s Capacity to Act

Author:
Claudia Schmucker
Publication Date:
06-2021
Content Type:
Special Report
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
The European Union must position itself in a new geo-economic environment in which the United States and China are increasingly using their economies to shape international relations, as well as regional and global regulatory structures. Although the EU has a good grasp of the challenges that this new environment poses, it does have vulnerabilities in its bilateral and multilateral channels that require attention.
Topic:
International Relations, Economics, Environment, Bilateral Relations, European Union, Geopolitics, Regulation, and Multilateralism
Political Geography:
China and United States of America

94. Germany Between a Rock and a Hard Place in China-US Competition

Author:
Markus Jaeger
Publication Date:
03-2021
Content Type:
Commentary and Analysis
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
The Biden administration has just issued its Interim National Security Strategic Guidance. The guidance document states the need to “build back better at home” and acknowledges that “international economic policies must serve all Americans” – a theme often referred to as “foreign policy for the middle class”. While the interim guidance does not preclude cooperation with China in selected policy areas, it is unambiguous in considering China a strategic competitor. The prospect of intensifying China-US geopolitical and (geo)economic competition is bad news for Germany, which has high value trading and investment relationships with both countries.
Topic:
Foreign Policy, Economics, National Security, and Geopolitics
Political Geography:
China, Europe, Asia, Germany, North America, and United States of America

95. Why Wages Are Growing Rapidly Now— And Will Continue to in the Future

Author:
Gad Levanon and Frank Steemers
Publication Date:
07-2021
Content Type:
Special Report
Institution:
The Conference Board
Abstract:
In the first half of 2021, wages grew at the fastest pace in over 20 years. The sudden surge is likely to challenge organizations in recruitment, retention, and compensation strategies in the near term—and over the next decade. Wage growth in the US through 2022 and beyond fits into three distinct phases: 1) strong wage growth in the spring and summer of 2021; 2) moderating wage growth by late 2021 and during 2022; and 3) renewed acceleration of wages in 2023 and beyond, most notably in blue-collar and manual services.
Topic:
Economics, Labor Issues, Business, and Wage Growth
Political Geography:
United States of America

96. Building Infrastructure in Real Time: Avoiding Regulatory Paralysis

Author:
Committee for Economic Development of the Conference Board
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
The Conference Board
Abstract:
The physical infrastructure base of the US economy, once an advantage in global competition, has become a liability. This problem has multiple causes, several of which CED has addressed in recent policy statements, and our nation’s elected policymakers are now taking up the need for additional funding. But the nation needs not only adequate funding but also a more-efficient regulatory process for our infrastructure investment—choosing the right projects, with the minimum delay, and executing them at the least possible cost. Regulatory paralysis is one of the causes of our infrastructure shortfall. It needs attention if we are going to spend our tax dollars on infrastructure wisely and efficiently so that the US economy remains globally competitive. Streamlining regulatory procedures, promoting competition, and cutting red tape across federal, state, and local governments are key to increasing investment, decreasing cost, and maximizing efficiency. Business as usual will not suffice. It takes too long and costs too much to deliver infrastructure projects, preventing us from achieving the advancements and improvements that a future-focused, competitive economy requires. CED has consistently advocated “smart regulation,” subjecting new regulations to rigorous cost-benefit analysis and reviewing existing regulations for continuing cost effectiveness to enhance efficiency and achieve quicker execution, greater benefits, and lower costs. With long delays between project conception and execution, and often multiple layers of jurisdiction and review, a smart regulation approach could ensure that the rules governing review and permitting of projects address all important concerns and ensure that net benefits are maximized over time at all levels of government on a comprehensive and timely basis.
Topic:
Economics, Infrastructure, Governance, Regulation, Business, Economic Policy, and Strategic Competition
Political Geography:
North America and United States of America

97. Annual Social Security and Medicare Trustees Report Reflects Worsening Economic Environment

Author:
Committee for Economic Development of the Conference Board
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
The Conference Board
Abstract:
The Trustees of the Social Security and Medicare Trust Funds are required by law to produce an annual report on April 1 of each year. It is by no means a shock that the report is late in any year; it happens often. This year, however, there is probably more of a justification that the report was released only yesterday, five months late. The economic and health care environments are perhaps as chaotic and uncertain as they have been in living memory.
Topic:
Economics, Health Care Policy, and Social Security
Political Geography:
North America and United States of America

98. Methane Emission Controls: Redesigning EPA Regulations for Greater Efficacy

Author:
Robert Kleinberg
Publication Date:
10-2021
Content Type:
Commentary and Analysis
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
Natural gas holds a critical role in the US energy economy, providing 32 percent of primary energy evenly distributed among electric power generation, industrial use, and residential and commercial consumption (LLNL 2020). As countries set targets to minimize climate change, however, widespread reliance on fossil fuels, with their attendant greenhouse gas emissions, is being scrutinized. Methane, the main constituent of natural gas, is second only to carbon dioxide in its contribution to greenhouse gas warming (Kleinberg 2020). It holds the potential to be a primary driver of global average temperature change between now and 2050—no matter what progress is made in controlling increases of atmospheric carbon dioxide over the next thirty years (Shindell et al. 2012). Half of global methane emissions come from natural sources, such as swamps and seeps, and half from anthropogenic sources, such as agriculture and fossil fuels. Regulations curbing methane emissions from the oil and gas industry are essential to mitigating global climate change over the next three decades. In the United States, current regulations were devised at a time when the technology for the measurement of natural gas emissions was relatively immature. Comprehensive performance-based regulations were not an option, and because of this, many regulations put in place were highly prescriptive. Data show these regulations have been largely ineffective. This commentary examines the potential to reduce emissions of methane from oil and natural gas infrastructure. It begins with a brief history of natural gas regulations and the effectiveness of rulemaking, before exploring unregulated and underregulated sources of methane. This is followed by a discussion about improvements in measurement capabilities and how regulations could be used to more effectively address methane emissions. This work shows the complexities of oil and gas production do not lend themselves to prescriptive regulation. Performance-based regulation, including quantitative compliance monitoring, would engage the talents of thousands of engineers, encouraging them to solve problems using locally appropriate solutions rather than relying on a prescriptive checklist approach that cannot anticipate every eventuality. The key to performance-based regulation is accurate measurement, and this capability has improved rapidly in recent years. Aircraft-based, facility-scale measurements encompassing tens of thousands of facilities spread over tens of thousands of square kilometers are economically viable and increasingly common. Permanently installed continuously monitoring sensors show promise in detecting intermittent sources; oil field pilot studies are underway. However, aircraft- and ground-based facility-scale measurements are not compliant with the current regulatory regime, which focuses on individual components. Therefore, the current regulatory regime must be completely rethought. (A comprehensive exposition of this topic, with evidentiary support, has been submitted to the Environmental Protection Agency [Kleinberg 2021b].)
Topic:
Economics, Energy Policy, Natural Resources, Gas, and Methane
Political Geography:
North America and United States of America

99. Seizing a Historic Opportunity: the U.S.-DRC Privileged Partnership for Peace and Prosperity

Author:
Michael A. Hammer
Publication Date:
11-2021
Content Type:
Journal Article
Journal:
The Ambassadors Review
Institution:
Council of American Ambassadors
Abstract:
The Congolese people have endured a tragic history, first at the hands of a colonial power and, since gaining independence, from its own homegrown rulers. A country with ample supplies of strategic minerals and natural resources has become dependent on considerable international humanitarian assistance and peacekeeping support to avoid a further calamity. Yet out of an imperfect electoral transition in 2019, the Democratic Republic of the Congo can break with the past and achieve substantial progress. Despite Congo’s unpredictability and legendary challenges, one constant has been clear throughout my time in Kinshasa: there is presently an opportunity for real change. One can envision how sustained good governance that channels resources toward development could rapidly transform this struggling nation. If President Tshisekedi can embody the vision he has ambitiously laid out, it is possible to achieve a rapid transformation of this struggling nation. But DRC cannot do it alone. Since the U.S. is a committed, reliable and long-term partner of the Congolese people and their government, it is incumbent on us to step up and make a difference. Still, given the enormity of the task at hand, U.S. interagency efforts in support of the DRC must be sustained over time even if there are setbacks and if progress is painfully slow. This is an investment well worth making!
Topic:
Security, Economics, International Cooperation, Military Strategy, Transition, and Prosperity
Political Geography:
Africa, North America, United States of America, and Democratic Republic of Congo

100. Mexico: Highest U.S. Priority in the Western Hemisphere

Author:
Earl Anthony Wayne
Publication Date:
11-2021
Content Type:
Journal Article
Journal:
The Ambassadors Review
Institution:
Council of American Ambassadors
Abstract:
The most important bilateral relationship in Latin America for the United States is that with Mexico. Mexico is one of America’s top two trade partners and largest export markets. Economic ties support millions of jobs on both sides of the border. Mexico is an indispensable partner in improving management of migration across the southern border. Cooperation with Mexico is essential to getting a better handle on the deadly flows of drugs into the U.S. from Mexico, as well as getting better control over the billions of dollars of drug sale profits and illicit arms headed to criminal groups in Mexico. Mexico-U.S. is the quintessential example of an “inter-mestic” relationship: many of the key issues are simultaneously international and domestic for both countries. The historic, family and cultural links between these two neighbors add to the complexity and politically sensitive challenges for both governments in their efforts to guide the relationship well. For Mexico and the United States, no other international relationship has more day-to-day impact on the daily lives of their citizens. Both U.S. President Joseph Biden and Mexico’s President Andres Manuel Lopez Obrador (AMLO) have much to lose if the bilateral relationship goes off the rails. Yet they have some significant differences in policy priorities and in their capacities to deliver effective cooperation. Biden came to office with a deep understanding of Mexico and the region, having worked on these issues as Vice President in the Barack Obama Administration. Lopez Obrador realizes the importance of economic ties with the U.S. for his country’s well-being but has long been hesitant to be too close to Mexico’s big northern neighbor on other issues, such as public security and ownership of energy resources and networks. The Biden Administration is trying to build trust for broader cooperation through high-level visits to forge new cooperation mechanisms, generous vaccine donations, and with patience where priorities differ. The two governments are working toward a presidential meeting, building cooperation and establishing working dialogues on migration, commerce, security, pandemic recovery and the environment.
Topic:
Security, Economics, Regional Cooperation, Bilateral Relations, and Immigration
Political Geography:
North America, Mexico, and United States of America