Tag Archives: Investment

Great Questions from Paul Krugman

Why have profits been so strong in a weak economy? Why, with profits so high, don’t businesses find reason to invest more (equipment investment is actually fairly strong, but construction remains weak). (For the seriously wonkish, why do average and marginal … Continue reading

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Do Dividend Tax Cuts Increase Investment and Hiring?

Abstract: Policymakers frequently propose to use capital tax reform to stimulate investment and increase labor earnings. This paper tests for such real impacts of the 2003 dividend tax cut – one of the largest reforms ever to a U.S. capital … Continue reading

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How much cash are companies sitting on? More than a trillion

According to Lloyd Blankfein’s WSJ op-ed, cash holdings of non-financial companies amount to more than a trillion. Cash holdings have been high for the past few years, but I haven’t looked at the numbers on this lately and I found … Continue reading

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Is College a Good Investment?

Last night, I went to a debate on the value of college and relied heavily on some great work by the Hamilton project. On average, college is a fantastic investment. Here’s why: 1. Benefit vs Cost: Benefit: 450K in PDV based … Continue reading

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A five point economic strategy from Larry Summers

Before getting to his 5 point economic plan, Summers argued that despite its central importance as a precautionary measure, initiating a long term debt reduction deal today, unlike in 1993, cannot be supposed to constitute a growth strategy going forward. … Continue reading

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Noahpinion: College is mostly about human capital, not signaling

Noahpinion: College is mostly about human capital, not signaling. Interesting take on the benefits of college.

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Time to Invest

People, companies, and governments should invest when it’s cheap to do so. Most commentators have been focusing on the need to invest in U.S. infrastructure. While more infrastructure investment is certainly worthwhile, these two stories reminded me that our human … Continue reading

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Falling Interest Rates

The secular decline in rates since the Volker era is quite striking. Besides factors related to the great moderation and the global savings glut, I wonder how much of this trend is due to the USD’s exorbitant privilege in a … Continue reading

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