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


Budget Brawl Makes no Cents

12/20/2010

There will probably a nasty spending fight in ’11 complicated by the need to raise the federal debt limit to avoid a default; a vote many new Republican have indicated they would not make. Republicans say the debt limit vote…

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Farming for Funds

12/17/2010

If there is a positive theme that transcends the weak U.S. economy it’s ag! Farm incomes are way up & indications suggest more increases in ’11. This is due to increasing demand for food, especially proteins, from rising living standards…

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Bond Bites Man

12/16/2010

Yields on Greek & Spanish bonds (credit downgrade looms) are up; Irish bond yields are also up to 8.4%, which, in real terms is over 10%. Something is going to give because that is unsustainable when real GDP is CONTRACTING…

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Back to Basics

12/15/2010

2010 NOV U.S. retail sales up 0.8% but Autos down 0.8%, Furniture/appliances down 0.5%, Electronics down 0.6% & Building materials down 0.1%. What was up? Groceries 0.8% Gas 4.0% Drug stores 0.9% & Clothing 2.7% What we had was a…

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Money, meet Mentality

12/14/2010

There is tremendous econometric evidence strongly suggesting that only tax cuts that are perceived to be permanent contribute to spending — people do not alter their behavior based on temporary changes to their income, wealth or job. Temporary tax cuts,…

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Economic Science? Mabe Not!

12/13/2010

Some economists say higher income taxes keep people from working. This is the substitution effect–because leisure becomes relatively cheaper people consume more of it. But higher taxes also reduce after-tax income so one might work more due to higher taxes.…

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Austerity is Awful

12/11/2010

The risk of front-loaded fiscal austerity in the UK is that big cuts in spending, subsidies, public employment & increases in taxes will have a recessionary effect on an anemically recovering economy. A credible early commitment to gradual fiscal consolidation…

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Bipartisan Benefits!

12/10/2010

While things could always be better the recent Obama-Republican tax package compromise rates a B+. It will raise GDP growth and reduce unemployment in 2011 but things may sag a bit in 2012 when some of the tax cuts end.…

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Fire Deaths in the U.S.: How Best to Keep Reducing Them

01/01/2005

Read this article by Elliot Eisenburg posted on Magazine.Sfpe.orgproviding providing an analysis of trends in residential fire fatalities and their implications for the future. Fire Deaths in the U.S.: How Best to Keep Reducing Them

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Country Cash

03/08/0202

The Friday File: The wealthiest nation is Luxembourg with per capital GDP of $135,605, followed by Ireland at $112,248 and Switzerland at $102,865. No other nations exceeded $100,000. Norway was next at $99,266. Singapore was 5th at $87,884 then, Qatar…

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