Nobel winners Sargent and Sims taught us to set aside our old, nice, simple economic models. We need to heed that lesson today.

Austerity measures in Europe have been the topic of a heated and mostly confused debate in the economic world. During the May summit of the leading industrial nations at Camp David, German chancellor Angela Merkel and other European leaders pushed for continued European austerity. Keynesian critics argue that these policies destroy economic growth.

While President Barack Obama goes on about the success of his economic stimulus, the latest policy developments suggest Democrats are finally backing away from his radical Keynesianism.

The GOP wants to cut $61 billion of discretionary nondefense spending from the total budget of $3.7 trillion, and Democrats are responding as if this will spell the end of Western civilization.

Recent bad news in unemployment confirmed that the biggest Keynesian stimulus in U.S. history was a bust, and as policymakers considers how to now stimulate the economy, reduced tax rates are the best alternative.

Even though the economy is doing much better than in 2008 and 2009, government should still be spending lots of money to continue to fuel the economic recovery and stave off the continued threat of economic collapse.

This paper describes electric power transmission access, pricing, and investment policies in the United States over the last fifteen years and evaluates the current state of those policies.

The age of humility and second opinions is coming.