Kauffman Economic Outlook 1Q 2008

A Quarterly Survey of Leading Economics Bloggers

in partnership with Palgrave’s Econolog.net

Tim Kane
Senior Scholar, Ewing Marion Kauffman Foundation

Introduction

This paper reports the results of a survey of top economics bloggers. The survey was conducted in mid-January 2011 by soliciting input from top economics bloggers as ranked by Palgrave’s Econolog.net. While many (around 50 percent) of the respondents have participated in all quarterly surveys, the results across quarters are not directly comparable.

Core questions that recur each quarter and topical questions submitted by participating bloggers were designed in coordination with a distinguished board of advisors, which includes:

Robert X. Cringely I, Cringely
Laurie Harting Palgrave’s Econolog
Paul Kedrosky Infectious Greed
Lynne Kiesling Knowledge Problem
Donald Marron DMarron.com
Mark Perry Carpe Diem
Wade Roush Xconomy.com
Allison Schrager Free Exchange
Nick Schulz Enterprise Blog
Yves Smith Naked Capitalism
Alex Tabarrok Marginal Revolution
Mark Thoma Economist’s View

The Kauffman Foundation is dedicated to the idea that entrepreneurship and innovation drive economic growth. Naturally, this new technology of blogging is a fascinating one, both for its effect on the economic research frontier, but also as an innovation in its own right. A survey of so many high-profile participants offers a unique opportunity for discussion, and this survey should be viewed as one way of summarizing some of the insights of the community of economics bloggers.

Key Findings

The Economy

Economics bloggers are less pessimistic in their outlook on the U.S. economy than they were at the end of 2010, though 77 percent believe overall conditions are mixed, facing recession, or in recession. For an economy in which growth is the norm, 31 percent of respondents think that the U.S. economy is worse than official statistics indicate, and only 10 percent believe it is better. When asked to describe the economy using five adjectives, “uncertain” remains the most frequently used term to describe the economy.

Policy Recommendations

Although the panel is largely non-partisan, a three-to-one majority of top economics bloggers believe the government is too involved in the economy. The top policy recommendation (selected from a small set of choices) is for the government to “reduce regulatory burdens and fees on new firm formation” and “approve trade agreements with South Korea, Colombia, and Panama,” with 92 percent support.

Promoting entrepreneurship is a consensus agenda among policymakers. However, only 32 percent agree with a policy of “subsidizing new firm formation with targeted spending and tax benefits,” with 68 percent disagreeing (24 percent strongly). The alternative option to “reduce regulatory burdens and fees on new firm formation” is favored by 92 percent of respondents. Rather than recommending that the government get more involved in helping entrepreneurs, top economics bloggers recommend it simply do less to hinder them.

How do you assess the overall condition of the U.S. economy right now?