The Disconnect Between Corporate Borrowing and Investment

This paper provides evidence that the strong empirical relationship of corporate cash flow and borrowing to productive corporate investment has disappeared in the last 30 years and has been replaced with corporate funds and shareholder payouts. Whereas firms once borrowed to invest and improve their long-term performance, they now borrow to enrich their investors in […]

Kuttner, Galston, and the Debate Over the Social Safety Net

I take exception to most of the assumptions and conclusions in William Galston’s piece. For starters, the debate about entitlement programs is needs to be located within a larger debate about the mixed economy. Galston begins by asserting: “I take it we agree that suitably structured and regulated markets generate wealth more effectively than other economic […]