Wrap Up for September '15

How does one know whether or not what appears as though a recession, is the real thing? More countries will likely experience some of the pseudo type in the near future, not unlike Japan. Scott Sumner looks into some of the particulars in pseudo-recessions and actual recessions, at Econlog.

I feel for the people who have even more worries on their mind, just because of the uncertainty of their health insurance requirements and coverage.
https://www.washingtonpost.com/national/health-science/coverage-in-affordable-care-act-health-plans-wanes-since-january/2015/09/08/a8cad442-563d-11e5-b8c9-944725fcd3b9_story.html

Wikipedia has a description of The Theory of Justice by John Rawls, which was originally published in 1971.  For those thinking of purchasing the book, this entry may help:  https://en.wikipedia.org/wiki/A_Theory_of_Justice

It can be difficult for individuals with high incomes to build new traditional homes, in some prosperous regions of the U.S. Likewise, lower income levels don't easily find innovative housing options in other areas. http://blogs.wsj.com/economics/2015/09/10/why-is-home-building-lagging-job-creation-realtors-builders-disagree/?mod=WSJBlog

Perhaps more denial exists on the part of builders instead of realtors, but then what needs to occur is actually beyond the reach of both groups. Another slowdown is due to a lack of construction workers. Readers know what I would suggest: why not mass produce flexible, lightweight and portable building components, instead of waiting for a larger construction workforce which would only have to be whittled down again in the next downturn?
http://blogs.wsj.com/economics/2015/09/11/the-construction-industry-struggles-to-rebuild-its-worker-ranks/?mod=WSJBlog And until something radical takes place in terms of building construction: http://blogs.wsj.com/economics/2015/09/21/renters-will-continue-to-struggle-for-the-next-decade-harvard-study-says/?mod=WSJBlog

Ricardo Hausmann, in Does Capitalism Cause Poverty? has a suggestion for the concerns Pope Francis holds regarding capitalism: eliminate the barriers which thwart its expansion. From Hausmann:

The developing world's fundamental problem is that capitalism has not reorganized production and employment in the poorest countries and regions, leaving the bulk of the labor force outside its scope of operation.

Matthew Yglesias explains why a resurgent, unapologetic left is on the rise globally. http://www.vox.com/2015/9/16/9322625/sanders-corbyn-mulcair  Of course this development echoes the growing political shift to the far right, as well. The fact that the Fed continues to tighten monetary policy, certainly does not help.

Even though the additional information will hopefully assist patient needs, it represents an extreme burden on an already overwhelmed system. And some of these healthcare facilities have already experienced cash flow problems due to sluggish government compensation...http://www.nytimes.com/2015/09/14/us/politics/one-symptom-in-new-medical-codes-doctor-anxiety.html

Tim Harford looks at some historical aspects of city development: http://timharford.com/2015/09/what-cities-tell-us-about-the-economy/

Two on price:
A post from Robin Hanson http://www.overcomingbias.com/2015/09/beware-intuitive-econ.html
and a textbook from Deirdre McCloskey, The Applied Theory of Price

Lars Christensen will be speaking at the Federal Reserve Bank of Dallas in October. Hopefully some of my readers will be able to attend! http://www.dallasfed.org/institute/events/2015/15evening.cfm

Scott Sumner recently highlighted a new paper on NGDP targeting, from the Kiel Institute for the World Economy: https://polcms.secure.europarl.europa.eu/cmsdata/upload/5bcc04fc-0ce1-4934-a240-da5d5249c6a6/KIEL_FINAL.pdf