Found 82 article(s) for author 'Martin Feldstein'

Harvard’s Martin Feldstein: Labor Market Remains Tight

Harvard’s Martin Feldstein: Labor Market Remains Tight. Martin Feldstein, August 4, 2016, Opinion, “Former Reagan Economic Advisor and current George F. Baker Professor of Economics at Harvard University Martin Feldstein weighed in on concerns about the deficit and the state of the U.S. economy and job market.” Link

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Would Reducing the US Corporate Tax Rate Increase Employment in the United States?

Would Reducing the US Corporate Tax Rate Increase Employment in the United States? Martin Feldstein, 2016, Book Chapter. “Reducing the corporate tax rate and changing the rules for taxing the foreign earnings of US corporations would have many favorable effects, including an increase of employment in the United States.  First, a brief description of the current corporate tax arrangements. The federal government now imposes a statutory tax rate on corporate profits of 35 percent, the highest tax rate among all the industrial countries of the world. In addition, the individual states levy corporate tax rates that average 9 percent. Since that state tax is a deductible expense in calculating income subject to the federal corporate tax, the combined tax rate is approximately 40 percent.Link

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Where the Fed Will Be When the Next Downturn Comes

Where the Fed Will Be When the Next Downturn Comes. Martin Feldstein, July 5, 2016, Opinion, “Testifying before the Senate on June 21, Federal Reserve Chair Janet Yellen said the chances of the U.S. economy sliding into recession this year are “quite low.” I agree. But the Fed still faces the difficult problem of what to do when the next downturn occurs if interest rates are still extremely low.Link

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How EU Overreach Pushed Britain Out

How EU Overreach Pushed Britain Out. Martin Feldstein, June 18, 2016, Opinion. “A thoughtful British friend of mine said to me a few days before the United Kingdom’s “Brexit” referendum that he would vote for Remain because of his concern about the economic uncertainty that would follow if the UK left the European Union. But he added that he would not have favored Britain’s decision to join the EU back in 1973 had he known then how the EU would evolve.Link

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Reducing Long Term Deficits

Reducing Long Term Deficits. Martin Feldstein, May 26, 2016, Paper. “The most serious long-term challenge for the economic policy of the US Federal government is the explosive growth of the national debt that will occur unless there are specific policy actions. The ratio of the federal government debt to the GDP has doubled in the past decade from a level of less than 40 percent that prevailed for many years before the recent recession to 75 percent of GDP now. According to the most recent report by the Congressional Budget Office (2016), the debt ratio is already beginning to rise. The CBO projects that with current policies the debt to GDP ratio will reach 86 percent within ten years and the federal debt will be on its way to 155 percent of GDP by the year 2045. I suspect that even this disturbing forecast is too optimistic because a debt trajectory like that is likely to cause portfolio investors in the United States and elsewhereto conclude that the U.S. government has lost control of its fiscal policy …” Link

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A Debt Agenda for the G7

A Debt Agenda for the G7. Martin Feldstein, May 23, 2016, Opinion. “On May 26-27, the heads of the Group of Seven leading industrial countries will gather in Japan to discuss common security and economic problems. A major common problem that deserves their attention is the unsustainable increase in the major developed countries’ national debt. Failure to address the explosion of government borrowing will have adverse effects on the global economy and on debt-burdened countries themselves.Link

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Ending the Fed’s Inflation Fixation

Ending the Fed’s Inflation Fixation. Martin Feldstein, May 17, 2016, Opinion, “The primary role of the Federal Reserve and other central banks should be to prevent high rates of inflation. The double-digit inflation rates of the late 1970s and early ’80s were a destructive and frightening experience that could have been avoided by better monetary policy in the previous decade. Fortunately, the Fed’s tighter monetary policy under Paul Volcker brought the inflation rate down and set the stage for a strong economic recovery during the Reagan years.Link

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Dealing with Long Term Deficits

Dealing with Long Term Deficits. Martin Feldstein, January 2016, Paper. “The United States economy is now in good shape. We are essentially at full employment with the overall unemployment rate at 5.0 percent and the unemployment rate among college graduates at a very low 2.5 percent. The near zero overall rate of inflation is distorted by the sharp decline in energy prices. The core CPI inflation rate that excludes the prices of energy and food has increased by 2.0 percent over the past 12 months. The growth of demand in 2016 will be limited by the absence of excess capacity in the economy rather than by a lack of demand. Household spending will support real domestic demand growth of two percent or more because real earnings are rising at two percent, house prices are increasing in real terms, and employment prospects are good …” Link

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