Tag Archives: Obama

Progress on Global Warming Is Not Yet in Evidence in Copenhagen

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I am writing from Copenhagen, the site of the 15th Conference of Parties to the UN Framework Convention on Climate Change.     If one were to judge by outward appearances, the prospects look dim for a meaningful global agreement by the end of the week.   

First, most conference participants have been put through an experience that seems designed to convince them that global warming may not be such a bad idea after all:  a registration system that requires waiting in long lines in freezing temperatures.  (Wait times commonly reported this week vary from one hour for China’s negotiator to 8 hours for other participants, such as prominent NGO leaders.  Even 9 or 10 hours.)    
 
Second, there has been little convergence of positions.  The views expressed here cover the same fantastically and unbridgeably wide range as they did at the time of the Kyoto meeting 12 years ago.   At one end of the spectrum, developing countries are still asking for reparations – African delegations boycotted Monday’s meetings;  and demonstrators are still very confused about who they should be trying to persuade and how.   At the other end of the spectrum, the climate change deniers are also represented here.  Recent opinion polls show that the percentage of skeptics among the fickle American public has risen very recently, even though the scientific evidence for anthropogenic warming continues to mount.   (For some reason, many find it easier to deny science than to make any of the less indefensible arguments available to critics: that global warming wouldn’t be all bad, or that cutting emissions enough to prevent it would be too expensive, or that the U.N. is not a competent instrument, or that geo-engineering would be a cheaper approach.)     read more

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An Evaluation of the First 200 Days of Obama Economics

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Friday marks 200 days in office for President Obama.   “How has he done?” asks Fortune.

The first thing to say is that Barack Obama took over the presidency at an extremely difficult time. A variety of analogies suggest themselves: He is Harry Houdini who has been thrown in the river, in a straitjacket, with chains wrapped around him. Or he has taken over as the captain of a ship with a rotting hull, while the ship is under attack in a hurricane. To capture the state of the economy, perhaps the best metaphor is that Obama took over as pilot of an airplane in the middle of a steep dive. For a president precedent, he is Lincoln, who takes office as the South secedes. Or he is Roosevelt, who takes office at the depth of the Great Depression. read more

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Americans save their tax cuts => Federal spending gives more bang-for-buck stimulus.

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Personal saving rose again in the second quarter. “Does this mean the stimulus tax cut has failed, as the 2008 tax cut stimulus did?”, asks The National Journal.

My answer:

Martin Feldstein and others predicted that the tax-cut component of the 2009 fiscal stimulus package would have substantially less expansionary bang-for-the-buck than the spending component of the package, because much of the tax cut would be saved, as had been the case with the 2008 tax cut.  (“Bang for the buck” in this case could be defined as demand stimulus divided by budget cost.)   We knew this from Milton Friedman’s permanent income hypothesis, or even from good old Keynesian multiplier theory. read more

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