Econ70

Bad Economy, Fewer Babies

11/22/2011

US birth rates fell for the 3rd straight year in ‘10 according to the CDC. Teen births saw the biggest decline, 9%, to 43.3 births/1,000 females, the lowest rate ever. And, for the 1st time in a decade cesarean section…

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Sneaky Securities Scam

11/21/2011

Mutual funds (MFs) must get 90% of their income from stocks, bonds and traditional securities. To bypass this, MFs that invest in derivatives and commodities set up shell corps in the Caymans to do it. They then sell shares in…

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Taller is Richer

11/18/2011

The Friday File: Tall men make more money than short men, about $1,000/ year for each inch they are above average. 3 smart economists (are there any other kind?) from the Univ. of PA explain why. They find that men…

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Birmingham Bankruptcy

11/17/2011

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…

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Stupor Committee

11/16/2011

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…

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Tax Cut Stimulus

11/15/2011

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,…

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NBA Fouls Fans

11/14/2011

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…

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Tax the Rich

11/10/2011

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,…

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Dodging Debt

11/09/2011

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…

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Crushed by the Heat

11/08/2011

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,…

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