On this Fourth of July, we recognize and celebrate America's birthday and the American Revolution -- a revolution that began in 1775 and that continues today. It is a revolution based on the fact that America as a nation was not created "perfect" but in order to "form a more perfect union." In 2013, we continue to work on that union -- not always perfectly, not always progressively, not always agreeably -- but always in a manner in which Americans of all positions and persuasions can struggle … [Read more...]
Remembering West, Texas: Lessons from a Tragedy
The blasts at the two chemical plants in Louisiana a day apart on June 13 and June 14 brought back to memory the explosion in West, Texas approximately two months earlier on April 17. A total of three people and more than 100 were injured in the two Louisiana blasts but there was apparently little collateral damage to the surrounding neighborhoods. In contrast, the explosion at the West Fertilizer Company killed 15 (most of whom were fire fighters and first responders), injured at least 200 … [Read more...]
The Necessity for “Muddling Through” Economics
An old joke goes, "If you laid all the economists in the world end to end, they still wouldn't reach a conclusion." That may no longer be the case. Some of the world's top macro-economists convened in a conference titled "Rethinking Macro Policy II" by the International Monetary Fund in April of this year generally agreed on one thing. They concluded that the existing macro-economic models did not do a good job in predicting or preventing the financial crisis of 2008-2009 nor in stimulating … [Read more...]
Minimum Wage, Maximum Dissent
Given the reactions that President Obama got after he proposed raising the minimum wage to $9 an hour in his State of the Union address, he must have felt a little like comedian Rodney Dangerfield. He just didn't get any respect. And that was from the left and the right. Those on the conservative side criticized the increase as a job killer and harmful to small business. Those on the progressive side criticized the increase as insufficient and too small to be meaningful. From the right, … [Read more...]
Will We Have Another?
The 144th Belmont Stakes was run on Saturday, June 9, but without I'll Have Another, the Triple Crown contender, who was withdrawn from the race because of tendinitis. That raised the question in our mind, "Will we have another?" No, not a racing Triple Crown winner. We are confident that another champion horse will come along to claim that title -- even though there hasn't been one for more than 30 years since Affirmed won in 1978. Our question relates to a different type of race: that among … [Read more...]
Big Data and Deep Learning: Big Deals or Big Delusions?
Big Data and Deep Learning are two major trends that will impact and influence the future direction and potential of innovation in the United States. From the deluge of information on both trends over the past year, it would appear that they may be key drivers for the future growth of the American economy. We're not that sanguine. In our opinion, both of these trends have substantial promise. But, they also have limitations that must be overcome to deliver on that promise. Let's examine … [Read more...]
National Service Not Military Service
A debate has erupted over the past year or so regarding reinstating the military draft. Representative Charles Rangel (D-NY) has introduced a bill for this purpose. Proponents of the reinstatement include Thomas Ricks, a fellow at the Center for New American Security, and Lawrence Korb, a former assistant secretary of defense in the Reagan administration. Their primary arguments center on the points a draft would cause greater deliberation before entering a conflict, shorten the length of … [Read more...]
Need to Start the Small Business Engines
Historically, American small businesses have been strong engines for job creation. Since the Great Recession, those engines have either been turned off or idling. We need to start those engines again if we want to get on the road to meaningful economic growth and recovery. Given the current attitude and the performance of the small business community over the past few years, however, that will not be an easy proposition. Two polls released recently reveal the extent of the problem. The January … [Read more...]
The Audacity of Jobs
President Obama used his State of the Union address to shift the legislative and national focus from austerity (the debt and deficit) to audacity (growth and economic development). Some pundits assert that in doing so he was taking his eye off the ball. We would argue quite the contrary. Putting jobs and wages in the direct line of sight is exactly what needs to be done to move the economy forward in a manner that benefits the middle class and average Americans. We made that argument last … [Read more...]
The Key to Prosperity: Manufacturing American Jobs
In his recent major speech at the American Enterprise Institute (AEI), House Majority Leader Eric Cantor (R-VA 7th District) called for Republicans to "focus our attention really on what lies beyond the fiscal debates" and to create "conditions for health, happiness and prosperity." It appears that the national conversation may be about to pivot from an almost obsessive concentration on big government and expense reduction to a concern for the well-being of the individual citizen and revenue … [Read more...]