Econ70
The biggest civic bankruptcy in America is official with Jefferson County, AL (Birmingham, AL) filing for Chapter 9 last week. Harrisburg, PA had held this dubious honor. The full impact of the filing will not be known until a judge…
With barely a week before the deficit reduction panel must make its recommendations to Congress, and with little hope of success, bank on the goalposts being moved! If the Panel totally fails, expect Congress to pass a law canceling the…
If Congress does not extend the temporary Social Security payroll tax cut on employees of 2% (from 6.2% to 4.2% on the first $106,800 of income) beyond the end of ’11, that would cut about $120 billion off GDP. And,…
NBA Players are proposing a 53%-47% split of revenues while owners want a 50%-50% split. Each 1% is worth $40 million and since the contract is for 6 years, that $720 million. Not chump change. But, it also means a…
The inheritance tax hurts the poor by encouraging the rich to overspend because they can’t leave it all to Junior. This tax-avoidance induced spending on jets, boats and lavish parties reduces the money available for new plant and equipment. Look,…
Frank McCourt, embattled owner of the LA Dodgers is selling the club. By craftily splitting the sale of the team and the sale of the team’s media rights, he expects to net $1 billion. But, he has bills! The club…
Picking grapes at night results in better wine, lower energy costs and happier workers. High daytime temperatures (90 and up) change the sugar composition of grapes leading to possible uncontrolled fermentation due to wild yeast. To bring down the temperature,…
To put the absolutely dismal interest rates we are getting on savings into perspective think of it this way. The highest yielding 1-yr CD pays 1%. At that rate, it takes 70 years to double your money. By contrast at…
The Friday File: A recent article in the Journal of Marketing Research shows that relaxed shoppers pay up to 15% more for the same merchandise as less-relaxed ones. So if you hear soothing music, are offered a free cup of…
Democrats fear a Value Added Tax because it is very regressive. (That means the poor pay more taxes as a proportion of their income than the rich). Republicans fear a VAT because it can easily raise lots of money —…