South By North Strategies, Ltd.

Around The Dial – March 8

Economic policy reports, blog postings, and media stories of interest:

• Macroblog discusses the recent employment report.
• Paul Krugman wonders about “degrees and dollars.”
• TaxVox discusses tax policy and small businesses.
• Robert Reich doesn’t like budget ransom.
• Joseph Stiglitz likes the “Mauritius Miracle.”

Analyzing NC’s Proposed Budget

A new report from the North Carolina Budget and Tax Center analyzes the budget proposal recently released by Gov. Bev Perdue. From the report …

This proposed state budget, released on February 15, 2011, defied the most pessimistic expectations of advocates by avoiding deep personnel cuts in education and health and human services and maintaining critical investments in public structures. In fact, several key recommendations of this budget deserve praise …
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Although the state sales tax remains a disproportionate burden to low-income North Carolinians, the governor’s decision to extend the current state sales tax at 5.5 percent (down from5.75 percent)through the biennium provides the boost in revenues needed to sustain key state services and avoid even deeper cuts in education and health and human services. The budget contains no proposals to alter the personal income tax and does not extend the current 2 percent surcharge on the state’s wealthiest taxpayers.
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However, the governor’s budget is disappointing in that it proposes a corporate tax cut that is unlikely to spur significant job growth. It also relies heavily on the elimination of up to 5,800 state appropriation supported positions – some vacant and some filled – as well as cuts in funding to local governments that could result in the elimination of as many as 4,400 non-teacher positions in North Carolina public schools.

A Costly Infrastructure Deficit

The New America Foundation estimates that under-investments in physical infrastructure cost American households and businesses at least $195 billion a year in lost efficiency. Concludes the foundation’s study …

The American economy, in aggregate as well as at the individual level, is paying a heavy cost for its aging and deteriorating infrastructure. From wasted fuel to wasted time, lost lives and lost revenue, there is an obvious need to address the economic efficiency gap resulting from poor roads, antiquated air traffic control systems, and other out-of-date infrastructure. Ignoring America’s crumbling infrastructure will only serve to slow an economy that is in the early stages of recovery, and leave the future of American growth on shaky ground.

Around The Dial – March 7

Economic policy reports, blog postings, and media stories of interest:

• The New York Times reports on another aspect of the mortgage mess.
• Bob Herbert wonders what students learn in college.
• Barry Ritholz asks if McKinsey & Co. is “the root of all evil.”
• Calculated Risk mulls the labor force participation rate.
• The Baseline Scenario explains the flaws of bank bailouts.
• Rortybomb looks at the latest employment report.

Hypocrisy Watch

Courtesy of The Daily Show …