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After declining by a record 9%, or 31.4% if annualized in 20Q2, 20Q3 GDP has come in at a simply stunning 7.4%, or 33.1% if annualized! At this point, the US economy is 3.5% smaller than it was on 12/31/19,…

Over long periods of time, I suspect income inequality will systematically worsen. When first entering the labor force, workers generally know little and get paid poorly. However, labor productivity of educated, skilled workers steadily rises due to technological improvements. Thus,…

In 12Q1, corporate profits surged and hit $1.88 trillion. Real corporate profits have never been higher since, despite recently lower tax rates. It’s because of the business cycle. Early in the cycle, when unemployment is high, wages stagnate and capital…

September new home sales came in at a seasonally-adjusted annual rate of 959,000. While slightly below street expectations, starts are amazingly up 16.9% YTD. But Y-o-Y growth is declining, inventory is up slightly to 3.6 months from August all-time low…

The Friday File: Comparing the average asking price of a dog in the UK between March and September 2020 to the same period in 2019, the price rose from £888 ($1,161) to £1,883 ($2,462), an increase of 112%! By breed,…

While equity prices have rapidly recovered from their 3/20 lows, the recovery means much less for the economy than in the past. In 1973, publicly traded firms accounted for 41.4% of total non-farm payroll employment. That percentage was just 29%…

To spur growth, the Turkish Central Bank slashed rates and banks made cheap loans. The rate cut caused the lira to depreciate. To arrest that, the Central Bank sold $65 billion dollars and bought lira. But, simultaneously, households flush with…

While there is perpetual talk about increasing student subsidies to boost college attendance, the problem is schools will not increase enrollment. Thus, additional aid simply causes tuition inflation. Instead, push schools, via subsidies, to boost class sizes, with the subsidy…

The 8/20 US trade deficit hit $67 billion. After inflation, the deficit hasn’t been this high since 2008. Imports have largely recovered but not exports. This is because the US imports goods but primarily exports services, and visits by tens…

The Friday File: The state with the highest percentage of persons born in state of current residence is Louisiana at 77.6%, meaning 22.4% were born in another state or country. Michigan’s second at 76.2%, then Ohio at 74.7%. Mississippi is…