Wyoming Liberty Group
The big news in the global economy right now is that the U.S. dollar and the euro are very close to parity, in other words one dollar for one euro. Since its launch a decade and a half ago the euro has been the higher valued of the two currencies, with an exchange rate in the $1.20-$1.30 bracket for most of the time.
By Bradley Harrington
Published in the Wyoming Tribune Eagle on January 23, 2015.
“A mouse will always find free cheese in a mousetrap, but I never saw one that was very happy about it.” - H.C. Diefenbach, “Everyman’s Almanac,” 1936 -
On certain occasions, two pieces of information combine with one another in a very illuminating way, but it remains to be seen whether or not the implications of this particular commingling will be grasped by our State Legislature:
It has now been five years since President Obama signed the Affordable Care Act (ACA) into law. Notoriously known as "Obamacare", this highly debated reform - probably the most complicated piece of legislation in U.S. history - is still dispensing unintended consequences. With yet another case related to the ACA being heard by the Supreme Court, one is inclined to wonder if this piece of legislation is producing more new lawyer-paid hours than hours of health care.
In the first three installments of this series we looked at the aggregate-demand side of the U.S. economy. The overall message is that the economy is in pretty good shape, given the circumstances: the private-sector share of the economy has grown over the past 15 years, consumers buy more durables (such as cars) while maintaing a steady overall level of indebtedness; business investments are increasingly stable at a high rate - and government consumption and investment spending has been declining for a couple of years.
Yesterday I reported some data showing that the U.S. economy is in good shape from a structural viewpoint. Household spending and business investments - domestic private-sector activity - today absorb a larger share of output than they did under the Bush Jr. administration. Government consumption and investment spending has taken a step back, and the foreign trade balance is in better shape today than at the height of the Bush business cycle.