James Pethokoukis

AEIAmerica's lopsided economy: Tech job edition Congressional Democrats say they're attacking “monopolies and the concentration of economic” power with their “Better Deal” policy agenda. But perhaps the more relevant issue is the increasing geographic concentration of both economic power and employment. A new Indeed.com analysis finds that technology jobs offering salaries in excess of $100,000 a year are becoming increasingly concentrated in just eight metro areas. Nearly 40% of those positions are in Seattle, San Francisco, San Jose, Austin, Raleigh, Washington, Baltimore, and Boston. Check out this map from the Indeed study: So even taking a more expansive view of what constitutes [...]
Wed, Jul 26, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS
AEIA stuck economy? A Q&A with Bret Swanson on the future of productivity The US economy seems stuck at around 2% GDP growth, much less than the 3.5% it averaged between World War II and the Great Recession. One reason is that productivity growth — that is, output per worker — is barely rising. Why is the American economy apparently not as productive as it used to be? Are we, despite our tech giants such as Apple and Google, somehow less innovative than we used to be? If so, then why are we also concerned about robots taking our jobs? To [...]
Wed, Jul 26, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS
AEIThe coming productivity boom: A short-read Q&A with Bret Swanson The US economy's 2% GDP growth over the past several years falls well short of the 3.5% it averaged from World War II to the Great Recession. Why is the American economy apparently not as productive as it used to be? Are we somehow less innovative than we were 50 years ago? To help answer those questions and others, I spoke with Bret Swanson, an AEI visiting fellow and president of Entropy Economics. You can listen to our conversation at Ricochet, or read the full transcript here. Could we be on the [...]
Wed, Jul 26, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS
AEI Congressional Democrats say they're attacking “monopolies and the concentration of economic” power with their “Better Deal” policy agenda. But perhaps the more relevant issue is the increasing geographic concentration of both economic power and employment. A new Indeed.com analysis finds that technology jobs offering salaries in excess of $100,000 a year are becoming increasingly concentrated in just eight metro areas. Nearly 40% of those positions are in Seattle, San Francisco, San Jose, Austin, Raleigh, Washington, Baltimore and Boston. Check out this map from the Indeed study: So even taking a more expansive view of what constitutes a “tech hub,” there' [...]
Wed, Jul 26, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS
AEIIt's all about demand: The left is looking for the Fed to juice US productivity growth New York Times Democrats are trying to fashion a new economic agenda, a bit more populist and progressive than what Hillary Clinton ran on. And some on the left are proposing that the Federal Reserve and monetary policy be central to any rethink. A new study from the Roosevelt Institute argues that the sustained post-recession weakness in US productivity and economic growth is a “consequence of depressed demand for goods and services and a slack labor market that has depressed wages.” It's not so much, for [...]
Wed, Jul 26, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS
AEIWhy US innovation can be seen everywhere but in the GDP statistics “The future is already here — it's just not very evenly distributed,” is an oft-repeated William Gibson line. (Especially by bloggers, I would imagine.) It's an insight that may help explain the odd disconnect between innovation and productivity. If you look at the broad US economic growth and productivity statistics for the past decade — actually a little longer — it's sort of like Silicon Valley doesn't exist. But maybe it's more a case of what happens in Northern California — and Seattle and Boston — stays there. Innovation is [...]
Mon, Jul 24, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS
AEIStudy: Tax subsidies like the mortgage interest deduction have ‘zero effect on homeownership' If you had told me in 2007 that the United States would suffer a cataclysmic housing market collapse, I might have guessed that at some point there would be a big public discussion and rethink about the role of housing the US economy. For instance: What is the true value of the mortgage interest deduction, a roughly $100 billion-a-year subsidy for home ownership? Is that the best use of that dough given the wide variety of US economic challenges? Does the deduction boost home ownership and thus support various [...]
Mon, Jul 24, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS
AEIHeaven help me, but I sort of love Elon Musk's new hyperloop idea. (Well, at least in theory…) The sci-fi buff and futurist in me just loves, loves, loves Elon Musk's idea of building an underground hyperloop between Washington and New York. Heck, I would love the idea even if the vacuum tube connected LA and San Francisco or Houston and Dallas or Chicago and St. Louis. Even Dubai to Abu Dhabi. Journalists and guests look over tubes following a propulsion open-air test at Hyperloop One in North Las Vegas, Nevada, U.S. May 11, 2016. REUTERS/Steve Marcus Now since I live in the [...]
Fri, Jul 21, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS
AEIDoes lack of tech-driven unemployment mean US innovation is moribund? “Is the best the US economy can do?” is perhaps the most pressing economic question there is. (Right along with it: “How do we create faster, sustained growth whose benefits are more widely shared?”) So it is a real treat to read an insightful debate between two key thinkers on this issue, such as the one presented by Knowledge@Wharton between Northwestern University economists Robert Gordon and Joel Mokyr. One sees stagnation, the other acceleration. The techno-pessimist vs. the techo-optimist. Both give great summations of their positions. Gordon thinks the computer revolution has [...]
Fri, Jul 21, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS
AEIIs the American economy being hurt by monopolistic Corporate America? If we want more economic growth, we'll need more productivity growth — and the latter would sure benefit from more business investment. (And more business investment might diffuse innovation more broadly through the economy.) That's the obvious message from the above chart, produced last year by the Obama White House. Now given that so-so investment is a problem across advanced economies, explanations should be global, at least in part. So one explanation is that weak investment is connected to the economic hangover from the Great Recession. But the US business sector might [...]
Thu, Jul 20, 2017
Source: James Pethokoukis Category: JAMES PETHOKOUKIS