Publications

The Wall Street Journal reports that White House economists say that cutting the corporate tax rate to 20% would boost average household income by at least $4,000 a year. Kevin Hassett, the chairman of the White House Council of Economic Advisers, also said that the study only examined a cut to the corporate tax rate, and that other changes to deductions or loopholes could alter the results. WSJ

In a Wall Street Journal op-ed former chairman of the White House Council of Economic Advisers Edward Lazear argues that the current GOP tax plan could be improved by targeting small- and medium-sized businesses for deeper tax cuts. Lazear contends that these businesses would benefit the most from tax cuts which would in turn help accelerate U.S. economic growth. WSJ

Eric Morath of the Wall Street Journal writes that the Labor Department is organizing a group of corporate executives, labor unions, and governors in order to establish a new apprenticeship task force. The White House says that apprenticeships will help workers learn the skills they need to fill openings in various specialized industries that have reported substantial shortages of skilled labor. WSJ

The Financial Times reports that National Economic Council Director Gary Cohn says post-crisis regulation is leading to the consolidation of financial activity in a few, immense banks. Cohn argues that strict financial regulations are keeping new players from entering the sector, thereby driving new business to existing banks. FT

According to the Wall Street Journal, analysts are beginning to consider the possibility of a full U.S. withdrawal from the North American Free Trade Agreement (“NAFTA”). While the White House aims to renegotiate NAFTA and avoid terminating the pact, analysis shows that a full withdrawal would have a minimal effect on U.S. GDP. WSJ

The Wall Street Journal reports that President Trump recently interviewed economist John Taylor for the Federal Reserve Chair position. Taylor joins former Fed governor Kevin Warsh and current Fed governor Jerome Powell as candidates for Janet Yellen’s replacement, though the White House has hinted that Yellen may be considered for another term. WSJ

A Wall Street Journal survey of economists shows that former Fed governor Kevin Warsh is the most likely candidate to replace Janet Yellen. Warsh, a former bank executive, would be expected to continue the administration’s path of deregulation and loosened government oversight. WSJ

According to the Wall Street Journal, record-high job openings are not enticing employees to quit their current job for better work. The quits rate, which economists see as a measure of confidence in the labor market, is little changed from two years ago, signaling that workers may not yet feel that they can find better work if they voluntarily depart their current job. WSJ

The Job Openings and Labor Turnover Survey (“JOLTS”), a closely-watched measure of labor market health, indicated there were 6.1 million job openings at the end of August, little changed from June.  Hires edged down to 5.4 million and the quits rate moderated to 2.1%.  BLS Report

Eduardo Porter of the New York Times writes that small U.S. cities were hit especially hard by the recession because they did not have the industrial mix necessary to rebound. Porter writes that these cities were often reliant on a single industry, while larger cities enjoyed a mix of industries and professions that allowed for shifts in employment. NYT

The Wall Street Journal reports that Chicago Fed President Charles Evans says that another rate hike in 2017 is not a given. Evans also said that he is nervous about recent, weak inflation and that if inflation remains low, officials will have to reopen the debate about the path of future rate hikes. WSJ