Saturday, February 28, 2026

Wrap Up for February 2026

Kevin Warsh's dogmatic view of economic policy could keep him from closely observing the relevant data. He does appear to have more criticisms than actual solutions.

Warsh actually faces two separate confirmation hurdles.

When it comes to monetary policy at the Federal Reserve, simpler is better.

Given the housing shortages of today, what could be learned from the city planners of the nineteenth century?

A wide range of data sets is no longer available for public access.

The U.S. lost its lead in R&D spending in 2024.

What made planning work so well for nineteenth century cities?

Higher oil and gas production has actually led to further U.S. deindustrialisation. It turns out the "Dutch Disease" is still relevant.

The large-country model doesn't work all that well in explaining real-world tariff outcomes.

Even though tourism in the U.S. currently has problems, it has done remarkably well in years past.

AI isn't enough justification for lower interest rates.

Defense spending per capita puts countries in a different light.

A closer look at the AI investment boom. 

A better understanding is needed regarding the sharp decline in hiring.  Plus an update.  

Perhaps the human brain just hasn't had time, to adjust to the relatively recent world of impersonal exchange. 

Glimmers of hope: A growing recognition of supply as the real problem.

Brian Potter details specifics in U.S. construction trends (part of a longer report).

Gallop will no longer track presidential approval ratings.

Many now turn to selling blood plasma as a way to make ends meet.

The last three years have seen surprising drops in rental costs in Sun Belt markets.

Labour force participation rates have risen as of late, perhaps higher than expected.

The populist trade backlash isn't solving economic problems, it is only assigning blame.

Once the price mechanism is suppressed, chaos results. And the Harberger triangle is the least of it.

If only it weren't for the details, this would look like a Goldilocks economy.

"The systems meant to protect nature now often prevent us from restoring it."

The ECB hopes to create a greater role for its currency.

A visual for electrical power sources in North America.

"The economic case for ditching the dollar remains weak. But the political case is growing stronger."

Where do states most align with Christian nationalist beliefs?

Timothy Taylor highlights a report re how AI affects productivity and employment.

Wherever automation technology adapts to situation-specific scenarios, the production gains could be considerable.

Which crops account for the greatest worldwide production?

Even the WSJ has noted how the ultra rich are pulling away from everyone else.

What will become of Medicare Advantage, once it loses some of those government advantages?

Tariffs have not led to trade rebalancing. Instead, tariffs have led to retreat, and continue to do so.

Property tax obligations vary widely across the U.S.

People were understandably concerned that data quality might be manipulated. However, the real problem has been the neglect of investment shortfalls.

Some specifics how the Supreme Court handled Trump's tariff loss. Joseph Politano provides further details.

Oil production gains are in a good place right now.

Even though monetary policy is good at dealing with inflation, neither monetary or fiscal policies are the right tools for prices that are considered too high. 

Is hard power really the currency of the age?

USA Facts offers a more practical version of the state of the union.

Some of the data center pipeline may ultimately be delayed.

Macro Musings goes full video, and the first episode is with Raghuram Rajan.

Where is food inflation expected to increase the most this year?

Some worthwhile books on communication.

Is Europe really poorer than the U.S.?

It turns out smartphones have been saving lives.

"People care. They just need a platform to act."

A visual which aptly illustrates home buying realities.

The reaction to Citrini was overblown.

Even though the Citrini report scared people, it was a fantasy without economic logic. 

It turns out lower income households spent more than expected this past year.

Disgruntled at work? Some who are, may be susceptible to hackers who offer the "right price".

"Our economic lives unfold in nominal terms."

Could the system break? Or will it be able to bend?

A film from 1997 feels relevant today.  Also, pictures from the airstrikes. 

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