Archive for September 2016

The Friday File: In 2014, US music downloading totaled $2.6 billion, down from $2.8 billion in 2013, and accounted for 37% of music sales. Physical sales of CDs/LPs totaled $2.1 billion, from $2.3 billion in 2013, and represented 32% of sales. Lastly, streaming revenue hit $1.9 billion, up from $1.4 in 2013, and was 27%…

Surprising many, OPEC announced it may cut production late this year by as much as 700,000 bbl/day, an amount representing about two-thirds of the current global oversupply. However, it’s also an amount easily made up by US fracking activity that is already starting to rise. Moreover, any OPEC production reduction is far from a sure…

In 2015, the male median full-time wage was $51,212 while it was $40,742 for women. Women now make 80% of what men do, up from 78% in 2007 and 60% in 1980. Economists estimate that half the gap stems from women working in lower-paying jobs while one-sixth comes from men working more years and more…

The Bank of Japan’s decision to target a 0% yield on 10-year Japanese government bonds should reassure the government that it can run bigger deficits without triggering a jump in debt service costs, thereby promoting increased spending. But with a peg, the BOJ must buy as many 10-year bonds as necessary to keep the rate…

With viewership expected to reach as high as 106 million, the price for a 30-second pre- or post- Clinton-Trump presidential debate ad (the 90-minute debate is ad free) on a major network is $225,000. While a far cry from the $5 million price of a 2016 Super Bowl spot, which was watched by 114 million…

The Friday File: Through 12/31/15, 80% of the adult US population had taken at least one airplane trip in their life, up from 49% in 1971. Last year, 45% of the adult US population flew compared to 21% in 1971. Of those having flown, the average number of trips taken in 2015 was 4.8, with…

Yesterday, the Fed came as close as you can to raising interest rates, without actually raising them. Assuming the general election doesn’t send markets into a tailspin, rates rise by 0.25% on 12/14/16. Interestingly, Fed members reduced their expectations about future GDP growth. This means that increasingly tight labor markets and the concomitant rise in…

While Apple broke no Irish laws, it was masterful at tax avoidance. To wit, Apple paid a microscopic 0.005% of its profit in taxes, 1/2500th of the 12.5% official Irish rate, between 1991 and 2007. It may now retroactively owe $15 billion in taxes. Apple did this because intellectual property revenues can be easily shifted,…

Despite the trivial economic impact of a rise of one-quarter of one percentage point in the federal funds rate, pundits obsess about whether the Fed will raise the rate as if the fate of mankind hangs in the balance. It’s because the decision is a close call, making it controversial, the result is easy to…

With labor productivity growth dismal, here is a to-do list: increase infrastructure spending, improve K-12 education, boost funding for basic research, make our corporate tax structure internationally competitive, encourage the educated and talented to immigrate, reduce regulation and increase corporate competition. Initially, focus where the problems are worst and these policies should be pursued even…