Link here. I think history helps us in a variety of ways. First, the data put our current situation in perspective. It's not the past 30 years of large immigration flows that are anomaly, it’s the previous 40 years (circa 1940-1980) that vary from the long-run American experience. Second, the economy evolves over time, with some industries and jobs disappearing and others appearing, and the … [Read more...]

President Trump announced his choice for Fed Chair (formal title: Chairman of the Board of the Governors of the Federal Reserve System): Jerome Powell, a current Fed governor appointed by President Obama in 2012. I'm disappointed, but not surprised, that he did not reappoint Janet Yellen as chair. I think she had a nearly ideal background for a Fed chair: Academic smarts as a professor at … [Read more...]

"Trump Seeks 20% Tax on Mexico Imports" is the headline in the New York Times. President Trump claims this is how Mexico will pay for a border wall. It is economic nonsense; a 20 percent tariff is a way to get Americans to pay for the wall without directly taxing them for it. If the tax applies to all imported goods and services, this will affect everything from auto parts to fresh vegetables. … [Read more...]