The Bowtie Economist's Daily Dose of 70-Word Wisdom


Do The Math

07/26/2012

Following the collapse of the U.S.S.R., 300 of their top mathematicians moved here. Their impact on American mathematicians was surprising. The number of papers published by American mathematicians whose research was most similar to that of the Russians dropped dramatically,…

Read More

Cash or Credit?

07/25/2012

While stores have always been able to offer cash-paying customers a discount, the recent settlement with Visa, Mastercard and bank credit-card issuers now allows stores to add a charge (equal to the swipe fee) for credit-card payments. Since stores can…

Read More

Going Nowhere

07/24/2012

If you were worried the economy might be treading water, relax, it is. Consumer spending is flat, consumer confidence and manufacturing activity are down and jobless claims are up. Moreover, a key index of leading economic indicators fell two of…

Read More

Paternalistic Policy

07/23/2012

Unless welfare recipients are penniless, passing laws prohibiting them from spending their welfare money on booze, gambling, strippers and tattoos is pointless. These laws will simply encourage welfare recipients to spend any cash they earn on the prohibited activities. Even…

Read More

A Leg Up

07/20/2012

The Friday File: While high heels push weight forward onto the balls of the feet and toes and stress the back and legs, (and hurt) they’re big business. American women spend $40 billion annually on shoes, with half that spending…

Read More

Inflation and Godot

07/19/2012

While many are nervous the massively stimulative monetary policy engineered by the Fed will inevitably trigger inflation, those folks are waiting for Godot. Subtracting the current yield on a 10-year Treasury Inflation Protected Securities (TIPS) bond (-0.637%) from the current…

Read More

Divinely Different

07/18/2012

Why are Americans significantly more religious than Europeans? In Europe, there are state churches that receive subsidies, and thus the clergy focus on politics and perquisites and not proselytizing. In addition, state-sponsored churches face virtually no competition, all but eliminating…

Read More

Low Blow

07/17/2012

US Interest rates this low are harmful. Investors buy higher-yielding foreign securities (and speculate in commodities) and foreigners borrow in US dollars (not local currency), putting upward pressure on foreign exchange rates. To prevent this, central banks buy US Treasuries…

Read More

Banks Behaving Badly

07/16/2012

The LIBOR scandal is the result of greedy banks. But banks are no greedier today than they were decades ago. The difference is now banks are so big, and involved in so many activities (investment banking, commercial banking, insurance, underwriting…

Read More

Down with Divorce

07/13/2012

The Friday File: Decades ago women faced substantial workforce discrimination, had limited control over their fertility, and due to limited labor saving devices, housework was hard. Thus, women looked to find a working man to marry. Today both spouses work,…

Read More

Recent Posts

Categories

Archives