Wall Street stocks were little changed on Thursday while Asian equities rose in thin Boxing Day trade, extending their "Santa Claus Rally" with several bourses still shut for the holiday. Japan's Nikkei index closed up 1.1 percent, boosted by comments from the Bank of Japan governor and share price gains for top-selling automaker Toyota. China's plans for massive bond issuances in 2025 also bolstered investor sentiment. "Even though many in the region are still shaking off a bit of a holiday hangover, with several markets closed for Boxing Day, Asian stocks opened higher, riding a favorable wave from China's financial bond juggernaut," said Stephen Innes from SPI Asset Management. In New York, major indices veered in and out of positive territory in a sleepy post-Christmas session. The broad-based S&P 500 finished down less than 0.1 percent. Large technology companies that have led the market in much of 2024 mostly took a breather. These included Netflix, Tesla and Amazon, all of which declined. "What's interesting today is that we're seeing small stocks bounce back a little bit," said Steve Sosnick of Interactive Brokers, noting that the Russell 2000 index put on 0.9 percent. Holiday consumer data showed a 3.8-percent increase in US retail spending from November 1 to December 24, according to a Mastercard SpendingPulse review of a key period for retailers. London Stockton, an analyst at Ned Davis Research, noted that the "Santa Claus rally could still be alive, with strong seasonality into the end of the year." Stock markets have traditionally fared well in the last five trading days of the year and the first two in the new year, a trend known as the "Santa Claus rally." Among a number of possible reasons advanced by experts include the festive holiday mood and purchasing ahead of the end of the tax year. Innes said remarks from Bank of Japan governor Kazuo Ueda in which he refrained from signaling a potential interest rate hike next month also "influenced bullish regional sentiments." Japanese market heavyweight Toyota ended nearly six percent higher after reports in the Nikkei business daily said it aimed to double its return on equity -- a key measure of a company's financial performance. New York - Dow: UP 0.1 percent at 43,325.80 (close) New York - S&P 500: DOWN less than 0.1 percent at 6,037.59 (close) New York - Nasdaq: DOWN 0.1 percent at 20,020.36 (close) Tokyo - Nikkei 225: UP 1.1 percent at 39,568.06 points (close) Hang Seng: UP 1.1 percent at 20,098.29 points (Tuesday close) Shanghai - Composite: UP 0.1 percent at 3,398.08 points (close) Euro/dollar: UP at $1.0424 from $1.0414 on Tuesday Pound/dollar: DOWN at $1.2526 from $1.2538 Dollar/yen: UP at 158.00 yen from 157.06 yen Euro/pound: UP at 83.19 pence from 83.05 pence West Texas Intermediate: DOWN 0.7 percent at $69.62 per barrel Brent North Sea Crude: DOWN 0.4 percent at $73.26 per barrel bur-jmb/ahaIsrael strikes Houthi rebels in Yemen's capital while the WHO chief says he was meters away
AP Trending SummaryBrief at 3:36 p.m. ESTKENOSHA, Wis. (AP) — Police arrested a 16-year-old student after he allegedly brought a gun to his high school in Kenosha, the second time in less than a month that someone has apparently tried to bring a firearm into one of the southeastern Wisconsin city's schools. Indian Trail High School and Academy's resource officer learned Monday that a photo of the student with a gun had been posted on social media, police said in a statement Wednesday. The student was located, escorted to an office, arrested and taken to the police department. Investigators later determined that the student had hidden a gun in a “sensitive area," making it difficult for officers to locate the weapon initially. Javascript is required for you to be able to read premium content. Please enable it in your browser settings.
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Dow Jones Futures: Small Caps Lead As SoundHound, Heat Stocks Surge; Nvidia At Key LevelCORAL GABLES, Fla. (AP) — Miami probably was one win away from getting into the College Football Playoff. Iowa State definitely was one win away. Their consolation prize of sorts: playing one another. The Hurricanes and Cyclones — a meteorological matchup — have accepted bids to the Pop-Tarts Bowl, to be played Dec. 28 in Orlando, Florida. Iowa State (10-3) is looking for its first 11-win season in the program's 133-year history, and Miami (10-2) is seeking its first 11-win season since 2003. Miami's loss at Syracuse to close the regular season wound up being the game the Hurricanes could point to as the reason they missed out on the CFP. Iowa State could have played its way in and lost the Big 12 title game to CFP-bound Arizona State on Saturday. “I think everyone that doesn't get in feels disappointment,” Miami coach Mario Cristobal said. “We feel the onus of just doing better. Just do better, go forward, have an opportunity to get better.” It's essentially the same task for both teams: regrouping after seeing the playoff slip away. “I think that’s what’s made Iowa State football really special is our ability to have great resiliency," Cyclones coach Matt Campbell said. "And I know our kids are super-excited about the opportunity to finish off. Obviously (Saturday) was disappointing. But this group and this football team has the opportunity to just continue to fight.” A big question for Miami: whether quarterback Cam Ward will play. The likely Heisman Trophy finalist has thrown for 155 touchdown passes in his career at Incarnate Word, Washington State and Miami. That’s tied for the most by anyone in Division I (FBS and FCS) history; Case Keenum threw 155 in his career at Houston. Many draft-bound players not in the playoff will be opting out of bowl games over the coming weeks. There's been no indication from Miami yet that Ward or any other draft-bound player has made a decision. “I think it’s important that our guys, anyone playing and closing out the season, understands the importance of that next step for a program like ours," Cristobal said. "And I think our guys do.” Get poll alerts and updates on the AP Top 25 throughout the season. Sign up here . AP college football: https://apnews.com/hub/ap-top-25-college-football-poll and https://apnews.com/hub/college-football
Roy Keane gives damning on Man Utd star - "his general play is shocking"Mexico is gearing up to take back its citizens who have been living in the US illegally — and officials are planning to open more than 12,000 beds in shelters across the country to house the new arrivals. The 25 planned shelters — which will each have the capacity to hold 500 people — will open their doors on President-elect Trump’s inauguration day, Baja California Gov. Marina del Pilar Ávila Olmeda announced on Monday, according to Border Report . “This is a strategic plan to accommodate exclusively people who get deported after Jan. 20,” Olmeda said. Olmeda said she takes Trump’s threats of a mass deportation seriously. “What we do know, throughout his campaign, he threatened to do this, and since he was already president of the United States, we believe this time he will be stricter and tougher when it comes to deportations,” she said. “We are working to get ready and receive our migrants.” The shelters are only for Mexican citizens who have been sent back to their home country. They will not house deported migrants from elsewhere. “These shelters that are being planned are for those being repatriated who are coming from north to south, but no foreigners, only Mexicans, this must be made clear — Mexicans will be welcomed back to their country and their human rights will be respected,” Olmeda explained. Five of the shelters will be located in the area just south of San Diego, the busiest region for illegal crossings along the US-Mexico border. Two others will be set up south of El Centro, California, according to Border Report. The shelters will hold migrants for just a few days before they can be returned to their hometowns. Each building will either house men, women, unaccompanied children or families. Last month, Trump said Mexico’s newly-elected President Claudia Sheinbaum pledged to “stop migration” through her country bound for the US. “Just had a wonderful conversation with the new President of Mexico, Claudia Sheinbaum Pardo,” Trump wrote on Truth Social . “She has agreed to stop Migration through Mexico, and into the United States, effectively closing our Southern Border,” he added. Sheinbaum, however, later put a different spin on the conversation. “In our conversation with President Trump, I explained to him the comprehensive strategy that Mexico has followed to address the migration phenomenon, respecting human rights,” she wrote on X . “Thanks to this, migrants and caravans are assisted before they reach the border. We reiterate that Mexico’s position is not to close borders but to build bridges between governments and between peoples.”Middle East latest: Ceasefire between Israel and Hezbollah in Lebanon is set to begin at 4 am
London Drugs spreads Christmas joy with Stocking Stuffers for SeniorsNEW YORK , Nov. 26, 2024 /PRNewswire/ -- Report on how AI is driving market transformation - The global styrene butadiene (SB) latex market size is estimated to grow by USD 1.50 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 3.68% during the forecast period. Growing demand for sb latex from APAC and Europe is driving market growth, with a trend towards rising preference for bio-based latexes. However, fluctuations in crude oil prices poses a challenge.Key market players include Asahi Kasei Corp., BASF SE, Dow Chemical Co., EcoSynthetix Inc., Fosroc International Ltd., General Industrial Polymers, Hansol Holdings, JSR Corp., Jubilant Industries Ltd., Kumho Petrochemical Co. Ltd., Lanxess AG, LG Chem Ltd., Mallard Creek Polymers, MCTRON Inc., NANTEX INDUSTRY Co. Ltd., Rishiroop Polymers Pvt. Ltd., RPM International Inc., S.R. Chemical, Synthomer Plc, and Trinseo PLC. Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View Free Sample PDF Styrene Butadiene (SB) Latex Market Scope Report Coverage Details Base year 2023 Historic period 2018 - 2022 Forecast period 2024-2028 Growth momentum & CAGR Accelerate at a CAGR of 3.68% Market growth 2024-2028 USD 1.50 billion Market structure Fragmented YoY growth 2022-2023 (%) 2.93 Regional analysis APAC, Europe, North America, Middle East and Africa, and South America Performing market contribution APAC at 52% Key countries US, China, Japan, South Korea, and Germany Key companies profiled Asahi Kasei Corp., BASF SE, Dow Chemical Co., EcoSynthetix Inc., Fosroc International Ltd., General Industrial Polymers, Hansol Holdings, JSR Corp., Jubilant Industries Ltd., Kumho Petrochemical Co. Ltd., Lanxess AG, LG Chem Ltd., Mallard Creek Polymers, MCTRON Inc., NANTEX INDUSTRY Co. Ltd., Rishiroop Polymers Pvt. Ltd., RPM International Inc., S.R. Chemical, Synthomer Plc, and Trinseo PLC Market Driver The Styrene Butadiene (SB) latex market is experiencing significant growth in various industries. In the paper processing segment, SB latex is used as binders for coated paper and adhesion applications. In construction, it serves as a mortar additive, enhancing compressive and tensile strength. In the automotive industry, SB latex is used for lightweight automotive materials and sealants, providing durability, resilience, and water resistance. The adhesives industry benefits from SB latex in pressure-sensitive and bonding adhesives, while the coatings segment uses it for water-based coatings, film-forming properties, and print quality. The furniture industry and e-commerce sector also utilize SB latex for upholstery and packaging materials. In the renewable energy sector, SB latex is used in green building materials and as a feedstock for producing acrylic, vinyl, and polyurethane. The paper industry uses SB latex for impregnation, while the carpet industry employs it for tufted carpets and back coating. SB latex's stability, abrasion resistance, and adhesion properties make it an essential ingredient in various industries. Butadiene and styrene are the primary monomers used in the polymerization reaction to produce styrene butadiene copolymers. The emulsifier plays a crucial role in the production process. SB latex alternatives are being explored in the market, but its unique properties make it a preferred choice for numerous applications. Architects and developers in residential complexes and commercial spaces continue to rely on SB latex-based products for their sustainability, durability, and environmental friendliness. The demand for bio-based latexes, such as starch-derived latex, is increasing due to growing concerns about synthetic latex materials in various industries. In particular, the paper industry, which is the largest end-user of Styrene Butadiene (SB) latex, is looking for alternatives to petroleum-derived latex due to price fluctuations of styrene and butadiene. Latex manufacturers are replacing synthetic latex binders with bio-based latex in applications like coatings for paperboard, catalogs, and packaging board. EcoSynthetix Inc. Is a leading producer of EcoSphere bio-based latex binders. Bio-based latex not only offers sustainability benefits by consuming less energy but also aligns with the industry's shift towards eco-friendly alternatives. Request Sample of our comprehensive report now to stay ahead in the AI-driven market evolution! Market Challenges Discover how AI is revolutionizing market trends- Get your access now! Segment Overview This styrene butadiene (sb) latex market report extensively covers market segmentation by 1.1 Low- Styrene Butadiene (SB) latex is a hydrocarbon compound used extensively in various industries for adhesive and coating applications. SB latex with low butadiene content is gaining popularity due to its environmental benefits. It helps reduce volatile organic compound (VOC) emissions, contributing to a smaller carbon footprint. In certain applications, this type of SB latex offers enhanced mechanical properties, such as improved tensile strength and abrasion resistance, making it suitable for industries where durability is crucial. The increasing demand for eco-friendly and high-performing products is driving the growth of the global SB latex market. Specifically, low butadiene SB latex is preferred due to its superior chemical and UV resistance, resulting in more durable coatings and adhesives. This trend is expected to continue during the forecast period. Download a Sample of our comprehensive report today to discover how AI-driven innovations are reshaping competitive dynamics Research Analysis The Styrene Butadiene (SB) Latex market refers to the global trade of styrene butadiene latex, a type of elastomeric dispersion. This market encompasses various applications, including paper processing, mortar additives, adhesives, coatings, sealants, and paper coatings. SB latex is produced through the polymerization reaction of butadiene and styrene monomers, with the assistance of emulsifiers. In the paper processing segment, SB latex is used for coating and sizing paper. In the mortar additives segment, it enhances the plasticity and workability of mortar. In the adhesives industry, it is used in the production of pressure-sensitive adhesives. In the coatings segment, SB latex is utilized in paints and coatings to improve their elasticity and durability. The carpet industry also uses SB latex as a binder in the production of carpet backing. In the sealants segment, it is used to produce high-performance sealants with excellent adhesion and flexibility. The sealants find applications in construction, automotive, and other industries. SB latex is also used in the impregnation of fiber materials, such as glass fiber processing, to improve their strength and durability. The feedstock for SB latex production includes butadiene and styrene, which are obtained from refineries and petrochemical plants. The production process requires refrigeration equipment to maintain the temperature during the polymerization reaction. Market Research Overview Styrene Butadiene (SB) Latex is a versatile elastomeric material derived from the polymerization of Styrene and Butadiene monomers. It is widely used in various industries due to its excellent properties such as print quality, water resistance, film-forming properties, and adhesion. In the paper processing segment, SB Latex is used as binders for coated paper and impregnation for improving stability and reducing fraying. In the construction industry, it is used as mortar additives for enhancing bonding adhesion, compressive strength, and tensile strength. SB Latex finds extensive applications in adhesives, coatings, sealants, paper coatings, and packaging materials. It is used in the automotive industry for producing lightweight automotive materials and in the renewable energy sector for manufacturing eco-friendly and sustainable latex-based products. The textile, furniture, and e-commerce industries also use SB Latex for producing durable and resilient products. SB Latex is produced through a polymerization reaction involving Styrene, Butadiene, and an emulsifier. The resulting Styrene Butadiene copolymers exhibit excellent properties such as water resistance, abrasion resistance, and adhesion. SB Latex alternatives are also available in the market, offering similar benefits but with different chemical compositions. In the paper industry, SB Latex is used for producing high-quality coated paper, while in the carpet industry, it is used for back coating tufted carpets to improve their stability and durability. The adhesives industry uses SB Latex for producing pressure-sensitive adhesives and bonding adhesives. In the fiber processing industry, SB Latex is used for glass fiber processing and in the production of non-woven fabrics. SB Latex is also used in the production of acrylic, vinyl, and polyurethane coatings, offering improved properties such as print quality, water resistance, and durability. In the automotive industry, SB Latex is used for manufacturing lightweight automotive materials, while in the construction industry, it is used for producing green building materials. The properties of SB Latex make it an ideal choice for various applications, including residential complexes, commercial spaces, and architectural projects. Architects and developers use SB Latex-based products for their excellent bonding properties, durability, and resistance to environmental factors. The production of SB Latex involves the use of refrigeration equipment to maintain the temperature during the polymerization reaction. The resulting latex is a viscoelastic material with plasticity, making it easy to handle and apply. The monomers used in the production of SB Latex include Styrene, Butadiene, and carboxylic acid. The polymerization reaction results in the formation of Styrene Butadiene copolymers, which exhibit excellent properties such as adhesion, abrasion resistance, and water resistance. In summary, Styrene Butadiene Latex is a versatile material with a wide range of applications in various industries, including paper processing, construction, automotive, textile, furniture, e-commerce, renewable energy, and adhesives. Its excellent properties, such as print quality, water resistance, film-forming properties, and adhesion, make it an ideal choice for various applications. The production of SB Latex involves the use of refrigeration equipment and the polymerization reaction of Styrene, Butadiene, and carboxylic acid to form Styrene Butadiene copolymers. Table of Contents: 1 Executive Summary 2 Market Landscape 3 Market Sizing 4 Historic Market Size 5 Five Forces Analysis 6 Market Segmentation 7 Customer Landscape 8 Geographic Landscape 9 Drivers, Challenges, and Trends 10 Company Landscape 11 Company Analysis 12 Appendix About Technavio Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios. Contacts Technavio Research Jesse Maida Media & Marketing Executive US: +1 844 364 1100 UK: +44 203 893 3200 Email: media@technavio.com Website: www.technavio.com/ View original content to download multimedia: https://www.prnewswire.com/news-releases/styrene-butadiene-sb-latex-market-to-grow-by-usd-1-50-billion-2024-2028-demand-from-apac-and-europe-boosts-growth-ai-impact-on-market-trends---technavio-302316090.html SOURCE Technavio
Richard Parsons , the Time Warner CEO from 2002-2007 when the media conglomerate was recovering from the epic fail of the AOL merger and who later became interim chairman of CBS to right its ship following the resignation of Leslie Moonves, died Thursday in Manhattan after a long illness. He was 76. Parsons’ longtime friend Ronald S. Lauder, a member with Parsons of the Estée Lauder board, told the New York Times today that Parsons died of bone cancer. The Brooklyn-born Parsons, an astute but soft spoken and genial presence, was a lawyer and a specialist in helping steady companies in need. He also served in both state and federal politics under New York Gov. Nelson Rockefeller, and presidents Gerald R. Ford, George W. Bush and Barack Obama. In business, he helped turn around New York’s Dime Savings Bank before joining the Time Warner board in the early 1990s and being elevated to president in 1995. Along with Gerald Levin, he helped broker the disastrous AOL-Time Warner merger eventually overseeing the company and helping to rebuild it in the aftermath. Exiting Time Warner, he handed the reins to then-COO Jeff Bewkes, who led the company through its subsequent sale to AT&T. After Time Warner, Parsons was named chairman of Citigroup in the aftermath of the 2008 financial crisis, and then became interim CEO of the Los Angeles Clippers in 2014 amid the scandal around then-owner Donald Sterling forced Sterling to resign and sell the team. DEADLINE RELATED VIDEO: In September 2008, Parsons, who had been serving as an advisor to CBS controlling shareholder Shari Redstone’s National Amusements amid a battle with Moonves for control of CBS Corp, was appointed interim CBS chairman after Moonves was forced resignation amid allegations of sexual misconduct from several women. That tenure lasted just a month, however, resigning in October of that year. Parsons cited health reasons related to his ongoing fight with multiple myeloma as the reason for his sudden exit. In 2008, Parsons also served as a member of the then president-elect Obama’s Economic Transition Team and later served as a member of Obama’s Council on Jobs and Competitiveness. He co-founded Imagination Capital in 2017 and served as partner in the venture capital firm. He has been a longtime senior advisor to giant Providence Equity Partners. According to various bios, Parsons is also the chairman of the Apollo Theater Foundation, and also serves on the boards of Citigroup, the Estee Lauder Companies, the Museum of Modern Art and the American Museum of Natural History. He also co-chairs the Advisory Committee of the National Museum of African American History and Culture at the Smithsonian.KENOSHA, Wis. (AP) — Police arrested a 16-year-old student after he allegedly brought a gun to his high school in Kenosha, the second time in less than a month that someone has apparently tried to bring a firearm into one of the southeastern Wisconsin city's schools. Indian Trail High School and Academy's resource officer learned Monday that a photo of the student with a gun had been posted on social media, police said in a statement Wednesday. The student was located, escorted to an office, arrested and taken to the police department. Investigators later determined that the student had hidden a gun in a “sensitive area," making it difficult for officers to locate the weapon initially. The statement did not elaborate, and a police spokesperson did not immediately respond to an email from The Associated Press seeking more details late Wednesday afternoon. The student was in custody at a juvenile detention facility on Wednesday awaiting a court hearing, the statement said. Criminal proceedings involving minors and their outcomes are secret in Wisconsin. Kenosha police arrested a 13-year-old boy on Nov. 7 after he tried to bring what police said were “suspicious bags” into Roosevelt Elementary School. Investigators believe the boy was armed, judging by videos of him brandishing what detectives believe was a rifle and comments he made to other students. The teen fled after school staff members moved to question him. Police arrested him at his home later that afternoon.
Authored by William Andersen via The Mises Institute, After spending 25 years as a columnist for the New York Times , Paul Krugman is finally retiring from that position - 25 years too late, if one wishes to be honest. It is hard to measure the influence he had from that perch, but his columns surely were the deciding factor in his winning the Nobel in economics in 2008 after eight years of lambasting the George W. Bush administration. [ZH: Yes, we know that isn't a picture of Krugman, but it always makes us laugh...] (His Nobel Prize was given , ostensibly, for “his work in economic geography and in identifying international trade patterns,” but one should have no doubt that, without having the power and influence of the New York Times behind him, it is doubtful that the Nobel Committee would even have known of his existence. I weighed in on the Nobel selection in a column in Forbes, hastily-written during a short break between classes I was teaching at Frostburg State University.) Not surprisingly, the response from his peers is hagiographic. Kathleen Kingsbury, quoting from Krugman’s first column, declares : That lede and the column were signature Krugman: The authoritative voice. The lively writing. The direct style. The clear hand guiding readers through a thicket of policy, data and trade-offs. The big ideas — in that column, they were about the First Global Economy and the Second Global Economy and how the interplay of political and economic questions would shape life worldwide in the 21st century. In little time, Paul became an essential read in Opinion, helping countless readers become more fluent in and mindful of how trade, taxes, technology, the markets, labor and capital intersected with political leadership, ideology and partisanship to shape the lives of people across America and the world. Indeed, Krugman has been influential, but his influence hasn’t been a good thing. He is a disciple of John Maynard Keynes and has played an important role in legitimizing the application of Keynesian schemes by governments to “stimulate” their economies. Those governments were unsuccessful, Krugman claimed, because they had failed to inflate their economies enough to break out of the Keynesian “ liquidity trap ,” an imaginary state of affairs that Murray N. Rothbard fully debunked . Krugman even resorted to fantasy in his quest to fight the mighty “liquidity trap,” claiming that if the US were to prepare for a never-to-come alien invasion, the burst of government spending would revitalize the economy. That nonsense alone should have discredited him as a serious economist, but instead cemented his status as the great advocate for the Keynesian trope that government spending is the key to economic prosperity. To his credit, Krugman did condemn the tariffs proposed by President-elect Donald Trump, but the truth is that he never has truly understood economics from the praxeological vantage point, nor has he ever been interested in seeing economics in that way. An economy, to Krugman, is a series of aggregates—consisting of homogeneous labor, natural resources, and capital—all to be manipulated by government agencies and central banks. The idea that demand springs from what we produce in a market economy was anathema to Krugman, who hated that economic doctrine so much that he referred to Jean-Baptiste Say as a “ cockroach .” Given Krugman’s inability to understand the basics of economic logic, perhaps it isn’t surprising that he made the wild prediction : “By 2005 or so, it will become clear that the Internet’s impact on the economy has been no greater than the fax machine’s.” Someone who cannot understand how production of goods drives demand for other goods most likely isn’t going to comprehend how improving pathways for information will also improve commerce. Krugman was just as uncharitable to the Austrians as he was toward Say—although he never really understood Austrian economics and, to be honest, was happy to remain in blissful ignorance. He referred to the Austrian Business Cycle Theory wrongly as “ The Hangover Theory ,” turning a well-developed theory that meticulously explains the processes of booms and busts and reducing it to a morality play. He wrote: A few weeks ago, a journalist devoted a substantial part of a profile of yours truly to my failure to pay due attention to the “Austrian theory” of the business cycle—a theory that I regard as being about as worthy of serious study as the phlogiston theory of fire. Oh well. But the incident set me thinking—not so much about that particular theory as about the general worldview behind it. Call it the overinvestment theory of recessions, or “liquidationism,” or just call it the “hangover theory.” It is the idea that slumps are the price we pay for booms, that the suffering the economy experiences during a recession is a necessary punishment for the excesses of the previous expansion. The hangover theory is perversely seductive—not because it offers an easy way out, but because it doesn’t. It turns the wiggles on our charts into a morality play, a tale of hubris and downfall. And it offers adherents the special pleasure of dispensing painful advice with a clear conscience, secure in the belief that they are not heartless but merely practicing tough love. Powerful as these seductions may be, they must be resisted—for the hangover theory is disastrously wrongheaded. Recessions are not necessary consequences of booms. They can and should be fought, not with austerity but with liberality—with policies that encourage people to spend more, not less. In other words, government spending on wars was just as economically useful as spending money on new capital and research that increases crop yields because, after all, someone is spending money. To Krugman, an economy is a purely circular thing in which we produce something to put on the shelves and spending is the process by which we remove the goods from the shelves so we can produce something else to put on the shelves—and so on. It is not surprising that regime-minded elites worshiped his every declaration. Governments were not spending too much money; they were spending too little! Those who print money hand-over-fist, who intervene in the markets to direct resources to politically-favored winners are the real public benefactors. Those who question the wisdom of untrammeled government spending are the true enemies of the people. At a Southern Economic Association meeting in 2004, I asked Krugman if he was endorsing the 70 percent tax rates that existed before 1981. “No,” he replied emphatically, “Those rates were insane!” When Rep. Alexandria Ocasio-Cortez called for the return of 70 percent marginal rates in 2019, Krugman said he believed those rates were “reasonable.” No doubt, he would attribute that change of heart to personal “growth” or just an evolutionary change in his thinking. In truth, believing in an all-powerful state that can, in Keynes’ own words, turn “ stones into bread ” through the magic of spending and creation of new credit does not require personal growth or maturity. Instead, it reflects a mind that prefers fantasy over reality, lies over truth. Paul Krugman can retire peacefully, knowing that he has sanitized the use of raw state power in place of mutually-beneficial exchange that characterizes the marketplace.Insurgents reach gates of Syria’s capital, threatening to upend decades of Assad rule
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