New York Times (September 5)
The United States Postal Service (USPS) stands on the verge of bankruptcy. Volume has been shrinking in the digital age and the USPS deficit is expected to reach $9.2 billion by the end of the current fiscal year. The postmaster general, Patrick R. Donahoe, is seeking Congressional approval of his plan for “eliminating Saturday mail delivery, closing up to 3,700 postal locations and laying off 120,000 workers.” Without drastic measures, the USPS will default on pension payments this month and “sometime early next year… run out of money to pay its employees and gas up its trucks… forcing it to stop delivering the roughly three billion pieces of mail it handles weekly.”
The Economist (August 27)
The U.S. economy is missing the usual drivers of an economic recovery, but it is equally missing the usual triggers of a recession. Whether the U.S. double dips or not will depend on the generally competent Fed, an unpredictable Congress and quite a bit on luck. In the end, there may be little difference between weak growth and a weak recession. “Although the absence of obvious imbalances or financial strains does not eliminate the risk of recession in America, it does militate against a long, deep downturn. Indeed, it may be hard for most people to distinguish a shallow recession from lacklustre growth.”
Boston Globe (August 2)
In the U.S., Republicans and Democrats have been battling down to the wire over a debt deal. The final deal, “like all compromises…is not a win for either side.” It could have been better, especially if it created additional revenue, but it did avoid a disastrous default. The debt deal also has some positive aspects. The cuts are “spread across federal programs—including defense.” Moreover, the deal “delays any serious cuts for two years, to give the economy more time to recover.”
In the U.S., Republicans and Democrats have been battling down to the wire over a debt deal. The final deal, “like all compromises…is not a win for either side.” It could have been better, especially if it created additional revenue, but it did avoid a disastrous default. The debt deal also has some positive aspects. The cuts are “spread across federal programs—including defense.” Moreover, the deal “delays any serious cuts for two years, to give the economy more time to recover.”
Tags: Compromise, Congress, Debt, Democrats, Economy, Republicans, U.S.
Washington Post (July 30)
It’s high time for Congress to grow up and reach agreement on the debt ceiling. They are holding a “gun to the head of the nation’s economy. That makes for a dangerous atmosphere in which to conduct negotiations but one in which, we continue to hope, enough clear-thinking lawmakers will conclude that the time for compromise is now.”
Tags: Compromise, Congress, Debt ceiling, Economy, U.S.
Wall Street Journal (May 14)
The next federal bailout will be the United States Postal Service (USPS). Congress gave the USPS a $15 billion line of credit, but with Q1 losses of $2.2 billion (a 25% increase over last year), the credit “will be used up by the end of this year, with low odds on ever being paid back.” E-mail has battered the USPS. By decade end, 20 billion fewer letters will be mailed according to current projections. Instead of cost-cutting, however, the USPS has offered its union workers a new 4.5 year contract with a 3.5% pay raise, cost of living wage hikes and protections against layoffs. The WSJ wishes USPS management would protect taxpayers instead.
The Economist (May 5)
The U.S. Patent Office issued 244,358 patents in 2010. That’s the good news. The bad news is that there is a back log of over 700,000 applications. “On average, hopeful inventors wait for two years until their applications are even considered. Ten months more may go by before they learn whether they have been successful.” As Congress has further cut spending, the backlog is expected to worsen. The Economist believes the wait stymies innovation. “While they wait for a decision, the American economy is losing out.”
The U.S. Patent Office issued 244,358 patents in 2010. That’s the good news. The bad news is that there is a back log of over 700,000 applications. “On average, hopeful inventors wait for two years until their applications are even considered. Ten months more may go by before they learn whether they have been successful.” As Congress has further cut spending, the backlog is expected to worsen. The Economist believes the wait stymies innovation. “While they wait for a decision, the American economy is losing out.”
Tags: Congress, Economy, Innovation, Patents, U.S.
Washington Post (May 5)
Was it legal for U.S. Special Forces to kill Osama bin Laden? The Post argues both the killing and the raid, which was conducted without Pakistani approval, were legal under the authorization for the use of military force (AUMF). Passed by Congress one week after September 11, AUMF essentially declared war on al-Qaeda and the Taliban, giving the president broad powers to conduct the campaign. “The covert military operation that brought down the most wanted terrorist in the world appears to have been gutsy and well executed. It was also lawful.”
Tags: Congress, Legality, Osama bin Laden, Pakistan, U.S.
Boston Globe (April 23)
The Pension Benefit Guaranty Corporation (PBGC) receives small premiums from corporate pension plans. In return PBGC ensures that workers receive their benefits even if their employer goes bankrupt. Congress needs to raise these premiums to put “the corporation on more solid footing.” Doing so will protect the 44 million Americans covered by company pension plans “and spare taxpayers another costly bailout.”The Pension Benefit Guaranty Corporation (PBGC) receives small premiums from corporate pension plans. In return PBGC ensures that workers receive their benefits even if their employer goes bankrupt. Congress needs to raise these premiums to put “the corporation on more solid footing.” Doing so will protect the 44 million Americans covered by company pension plans “and spare taxpayers another costly bailout.”
Financial Times (March 22)
America needs to get its fiscal house in order. “Halfway through the current fiscal year, the US still has no budget and shows little sign of getting one.” In a sign that Congress is unable to make progress on its own, 64 Senators asked President Obama to directly intervene. The Financial Times believes he must try. He alone “might sway the country and break the impasse.”
America needs to get its fiscal house in order. “Halfway through the current fiscal year, the US still has no budget and shows little sign of getting one.” In a sign that Congress is unable to make progress on its own, 64 Senators asked President Obama to directly intervene. The Financial Times believes he must try. He alone “might sway the country and break the impasse.”
Washington Post (February 8)
The results of the National Highway Safety Traffic Administration into sudden acceleration found no link to a supposed software flaw in the Toyota Prius. “In short, human error, mechanical errors that Toyota repaired and a dose of politically induced hysteria were to blame.” The hearings by Congress lacked restraint and placed Toyota officials “in an impossible situation, since blaming Toyota customers – though this was true in many cases – would have been a public relations disaster.”
