The Econ Review

Economics News with a Historical Perspective

July 23, 2016

The Econ Review features a historical perspective on economics news and opinions with daily updates.  All original material is copyrighted.  Off-site references open in new windows.

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Opinions

U

U.S. Budget Deficit

Discussion of the latest CBO budget projections can be found at the Economics Roundtable.

 

In the News

Payroll Employment

Recent History   Long-Term Chart

U.S. Budget Deficit
Bar Graph
CBO Budget Projections
Historical Data

Inflation & Unemployment
The Phillips Curve

John Cochrane uses very similar Phillips Curve charts to review recent history and current issues.

The Chart Room
Charts for GDP and payroll employment show the historical patterns in this relationship.  Custom select side-by-side charts for these variables and interest rates and yield curves.

Euro Roller Coaster
The wild ride continues.

Economics Roundtable
The latest news and views.

Features

Reagan Tax Cut

Reagan Tax Cut

August 15, 1981.  President Reagan signed into law the Economic Recovery Tax Act, also known as the Kemp-Roth bill after its two principal sponsors, U.S. Representative Jack Kemp and Senator Bill Roth.  The Reagan tax cut reduced marginal rates by about 23% over three years and instituted adjustments for inflation in the bracket limits.  The latter eliminates "bracket creep" where individuals find themselves in higher tax brackets as incomes increase simply due to inflation even if real incomes do not change.

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President Reagan

President Ronald Reagan

1980.  The Reagan tax cut of 1981 marked the emergence of supply-side economics in the Federal government.  After a decade of shifting opinions about the merits of the Keynesian demand-side and the classical supply-side viewpoints, the latter became dominant.  The 1981 tax cut was specifically oriented toward increasing motivation for production by cutting marginal tax rates.

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Stock Market Crash 1987

Oil Shocks Hit Supply Side

In the 1970's, oil prices rocketed to levels completely out of line with historical experience.  The underlying cause was use of crude oil prices and availability as political weapons after war in the Middle East.  Economists scrambled to understand the implications of these events for macroeconomic models.  Models had not previously incorporated energy as a factor of production because the price of energy was relatively constant and thus not useful in explaining fluctuations in the economy.  This was certainly not the case in the 1970's.

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Models

Micro Models

Micro Models

The Theory of the Firm and the Theory of the Consumer form the foundation for microeconomics.  The Classic Economic Models collection includes the most important models from each, covering both the supply and demand for goods and the supply and demand for labor.

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Additional models of interest are available at Classic Economic Models.


Econ Clubs

Check the directory of economics clubs to see if your club is listed. Links are free.


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