For those who enjoy worrying about global economic health, here is a handy checklist. Macroeconomic risks have declined, but easy credit and low interest rates have caused pension funds and insurance companies to chase yield and in the process make…
Perhaps surprisingly, 56% of federal and state welfare program spending (EITC, Medicaid, TANF and food stamps) went to households headed by a working adult. 52% of fast-food workers receive government assistance, 48% of home care workers, 46% of child-care workers…
The California drought can be overcome with a grand compromise. Shift some water from agriculture to residential use. Purify wastewater into drinking water, recycle graywater to be reused as irrigation, and improve stormwater retention. Simultaneously, raise the price of water,…
The Friday File: The Washington Nationals recently signed hurler Max Sherzer to a mind-blowing seven-year $210 million contract, payable over 14 years. Sherzer will receive $15 million/year. Beyond Sherzer’s performance, this is a bet on expected long-term inflation. If inflation…
After a dismal February, housing bounced back slightly in March, but is still quite weak. While starts jumped a weather-related 115% in the Northeast and 31% in the in the Midwest, they inexplicably fell 4% in the South and 19%…
While China has the largest trade surplus at $380 billion, Germany, with a trade surplus of $250 billion, may soon take that title. China’s surplus is about 2% of its GDP, but Germany’s is almost 7% and rising. It’s high…
In 2014, the bottom fifth of Americans (incomes up to $24,200/year) earned 4.5% of income and paid -2.2% of income taxes (because of credits like EITC). The next quintile earned 9.3% of income and paid -1% of income taxes. The…
A dollar of government spending can create more than a dollar of tax revenue! About $60 billion/year of Medicare spending goes for “improper payments.” With a return of over $10 for each dollar spent, Congress should increase the Medicare fraud-busting…
Doctor Drupe The Friday File: Contrary to popular wisdom and after controlling for socioeconomic status, persons that eat an apple a day are just as likely to see the doctor or have an overnight hospital stay as those that do…
While the Fed struggles as to the timing of its first rate rise since 2004, this puts it in rarified company. Last quarter, Australia, Brazil, Canada, China, Denmark, India, Indonesia, Japan, South Korea, Thailand, the ECB, Hungary, Israel, Poland, Russia,…