Sep 1, 2017

White House ties tax cuts to wage growth

Carolyn Kaster / AP

Top White House economic advisor Gary Cohn made the biz network rounds this morning, in support of a tax reform package that remains woefully short on specific details. But one thing Cohn told CNBC could raise economist eyebrows:

We will hire people. When you hire people you compete for labor. When you compete for labor you drive wages.

Reality check: Cohn's statement may sound like Econ 101, but it hasn't proven true lately. Wage growth has been stubbornly sluggish — even declining in recent quarters — compared to where many economists think it should be given current unemployment levels, GDP and corporate cash piles. Part of this is may be tied to slow productivity growth, which Cohn didn't mention in his comments. Moreover, past corporate tax cuts have a mixed record when it comes to creating new jobs.

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Bernie's juggernaut

Sen. Bernie Sanders speaks in San Antonio last night with his wife, Jane. Photo: Eric Gay/AP

Sen. Bernie Sanders won so big in the Nevada caucuses that Democrats are hard-pressed to sketch a way he's not their nominee.

Driving the news: With 60% of precincts counted (slow, but better than Iowa!), Sanders is running away with 46% of delegates — crushing Joe Biden's 20%, Pete Buttigieg's 15%, Sen. Elizabeth Warren's 10% and Sen. Amy Klobuchar's 5%.

Go deeperArrowUpdated 2 hours ago - Politics & Policy

Buttigieg campaign claims Nevada caucuses were "plagued with errors"

Photo: Win McNamee/Getty Images

Pete Buttigieg's campaign wrote a letter on Sunday asking the Nevada State Democratic Party to release early vote and in-person vote totals by precinct and address certain caucus errors identified by campaigns, The Nevada Independent reports.

The big picture: The campaign alleges that the process of integrating early votes on caucus day was “plagued with errors and inconsistencies,” and says it received more than 200 incident reports from precincts around the state.

Go deeperArrowUpdated 2 hours ago - Politics & Policy

Coronavirus threat grows, threatening some drug supplies

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

As the novel coronavirus continues spreading globally and China grapples with a limited production capability, there's a growing risk to about 150 prescription drugs in the U.S., sources tell Axios.

The big picture: The coronavirus has spread to more countries, with both South Korea and Italy stepping up emergency measures amid rising case numbers on Sunday. COVID-19 has killed at least 2,467 people and infected almost 79,000 others, mostly in mainland China.

Go deeperArrowUpdated 3 hours ago - Health