Econ70

The Chinese COVID-19 virus will hurt US GDP four ways. First, Chinese tourists will not be arriving nor will they be spending money here. Second, US manufacturers dependent on China for critical raw materials and parts may soon have to…

In 1990, when the Baby Boomers median age was 35, they owned 21% of the nation’s wealth. In 2008, when Generation Xers median age was 35, they owned 9% of the nation’s wealth. While Millennials median age will not hit…

Usually when an economy faces an extreme drop in demand, like China is experiencing now, the standard government response is some combination of easier fiscal and monetary policy. But in China’s case these policies will not stop the ongoing factory…

The Friday File: This year consumers will spend $27.4 billion, or $196.31/person on Valentine’s Day, shattering last year’s record of $20.7 billion. This year’s total includes the spending of $1.7 billion, $12.21/person, or 6% of all Valentine’s Day spending, on…

Recently, a raft of inflation measures have been reported, all totally benign. Overall GDP-wide inflation is just 1.4%; the Fed’s favorite measure of inflation, Personal Consumption Expenditure inflation is running at just 1.6%, and wage growth, no matter how measured,…

In 2019, the US trade deficit shrank for the first time since 2013, from $628 billion to $619 billion; just 1.7%. Exports fell 0.1%, imports fell 0.4%. Imports from China fell 17.6%, but it was made up by a huge…

Last week, to no one’s surprise, the Fed left rates unchanged. But due to domestic inflation running well below its 2% target, weak global growth (and specifically weak global manufacturing activity), and now the Wuhan coronavirus, the concern is that…

Net job growth of 225,000 in January, mild upward revisions to November and December, a nice jump in the labor force participation rate from 63.2% to 63.4%, the best rate since 6/13, making the unemployment rate rise from 3.5% to…

Rocking Rollers The Friday File: The tallest roller coaster in the world is the Kingda Ka at 456 feet in Jackson, New Jersey. It’s held the record since 5/05. The fastest coaster; the Formula Rossa which peaks at 149 mph…

The share price of Tesla has more than tripled since the end of July and Tesla is now the world’s second most valuable automaker at $160 billion, behind Toyota at $200 billion. The only problem: it’s a consistent money loser.…