Publications

Ben Leubsdorf of the Wall Street Journal writes that few economists expect the recently-passed tax cut bill to boost long-run economic growth in the U.S. While many economists expect the tax cuts to provide a short-term boost to spending and business investment in 2018, they don’t expect the tax cuts to fundamentally alter worker productivity or the labor force participation rate, the two factors that determine long-run potential growth. WSJ

According to the Wall Street Journal, the U.S. agricultural community is seeking signs from President Trump that he will not withdraw from the North American Free Trade Agreement (“NAFTA”). The agricultural community has staunchly opposed a potential U.S. withdrawal from NAFTA, which would result in much higher tariffs on American farm commodities and would pose a threat to the nearly $40 billion in annual agricultural exports to Canada and Mexico. WSJ

Greg Ip of the Wall Street Journal writes that Ray Dalio, founder of hedge-fund manager Bridgewater, deems Americans’ growing debt a looming threat to economic growth and a point of vulnerability as interest rates rise. Dalio argues that the Fed’s balancing act between the need for higher interest rates to tame inflation with the need for lower interest rates to pay off debt will become riskier as time goes on. WSJ

According to the Financial Times, car parts retailers are seeing a boost in sales as colder weather takes its toll on cars. The recent cold snap will test whether previous mild winters were responsible for dampened sales, or if the shift to e-commerce fueled the decline. FT

The Wall Street Journal reports that international producers of washing machines and solar panels are quickly increasing shipments to the U.S. as the government considers implementing new trade barriers. The president has until early 2018 to decide whether to impose tariffs on foreign washers and solar panels. WSJ

According to the Wall Street Journal, workers in U.S. cities with the tightest labor markets are starting to see wage gains. As available workers become scarcer, businesses in areas with low unemployment such as Minneapolis, Denver, and Fort Myers are raising pay in order to attract employees. WSJ

David Harrison of the Wall Street Journal reports that the minimum wage is set to rise in 18 states this year. While some states will only see increases because the minimum wage is indexed to inflation, others such as Arizona and Washington have multiple minimum wage increases planned via legislation over the next few years. WSJ