Business-targeted tax cuts do not improve state economies

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FROM a London School of Economics and Political Science paper by Soledad Artiz Prillaman and Kenneth J Meier (my emphasis): Studying the 50 U.S. states over the past four decades, we find that tax incentives to businesses prove unhelpful in stimulating economic growth and may even be harmful to state economies. Over the past 30 […]

Infrastructure Spending and Tax Incentives

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FROM a recent Bloomberg article on the issue of infrastructure spending: Last week, Larry Summers repeated his plea for the U.S. to invest more in its crumbling infrastructure. He—and the latest World Economic Outlook (PDF) from the International Monetary Fund—are imploring governments to issue additional debt to finance roads, bridges, water treatment, and extension of power grids. Even the […]

Do Colleges and Universities Increase Their Region’s Human Capital?

economic_growth

TO follow up two previous posts regarding job growth and educational attainment.  Succinctly, increasing the educational attainment of a workforce alone will not boost job growth unless there is adequate demand for labor is there.  To reinforce that, the following is the abstract from a 2011 paper authored by Jaison Abel and Richard Deitz (my emphasis): […]

What we know and what we (should) know that we don’t know about minimum wage increases

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FROM a piece in the in the BDN regarding the minimum wage debate: Democratic candidates for Maine governor and the U.S. Senate joined former Ohio governor and U.S. Rep. Ted Strickland and Portland Mayor Michael Brennan on Tuesday to call for an increase in the minimum wage, expansion of health care benefits and other steps […]

Advanced Degrees and Job Growth

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THERE’S been some discussion in Maine about the need to increase educational attainment of the state’s workforce to boost job growth.  While such discussions garner support, and the notion that Maine’s job growth would accelerate with a more educated workforce, there are some questions about the efficacy of education as an engine for economic growth. […]

What’s not surprising about the Unemployment Rate

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IN doing some research for my piece on the weaknesses masked by Maine’s unemployment rate (UER), I noticed two interesting things about the UER.  These two things should be kept in mind during the current campaign season. The state’s economy is certainly one of the central issues in the campaign season, and with that candidates […]

Nationally, job quality and wage growth continue to lag during recovery

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AS noted yesterday, the BLS released the jobs report for September showing that the economy added 248,000 jobs while the unemployment rate (UER) dropped to a 6 year low of 5.9%. So that’s the good news–the economy continues to add jobs and is above pre-recession levels: Moreover, 2014 has shaped up to be (thus far) […]