70 Words

Grifting GDP

12/18/2019

US GDP only includes legal activities. It really should include black-market activities like illegal drug sales, prostitution, theft, gambling, and so on. If it did, GDP would be about 1%, or $210 billion larger; the GDP of Alabama. In 1980,…

Happy Housing

12/17/2019

November housing starts came in at an annualized rate of 1.365 million, up a strong 13.6% Y-o-Y. Single-family starts were up 16.7% Y-o-Y; multifamily was up 4.4% Y-o-Y. Despite these seemingly strong Y-o-Y numbers, YTD starts are up a scant…

Women’s Work

12/16/2019

Last month, women comprised exactly 50% of employed persons in the US. The last and only other time this occurred was in 2009-2010, when male employment collapsed due to the massive loss of manufacturing and construction jobs during the Great…

Tree Timing

12/13/2019

While the average price of a Christmas tree in 2018 was $76.35, there was great variation over time. On 11/23/18, Black Friday, the first major tree buying day, the average price was $79.11. It then peaked at $83.92 on 11/26/18,…

Saudi Shareholders

12/12/2019

In an effort to boost the value of Aramco (Saudi Arabian Oil Company) to $2 trillion, the Saudis reduced the offering size to just 1.5% from 5%, listed it on the Saudi stock exchange and not in NY or London,…

Tiny Taxes

12/11/2019

At 24.3% of GDP, the US tax burden is lower than all but three OECD (36 western democracies) nations; Chile, Ireland and Mexico. The US tax rate is exactly 10 percentage points lower than the OECD average rate. In 2000,…

Money Man

12/10/2019

This past Sunday, former Fed Chairman extraordinaire Paul Volker died. During his helm (1979-1987), he unequivocally changed economic history. He not only fought relentlessly for central bank independence but slayed runaway 1970s inflation. Because of the latter, he was one…

Excellent Employment

12/09/2019

Net jobs growth of 266,000 in November, along with upward revisions to September and October totaling 41,000, and a slight decline in the unemployment rate to 3.5% makes this a solid job report. Better yet, average job growth over the…

Wealthy Whiskey

12/06/2019

The Friday File: In October 2019, a bottle of whisky sold at auction for $1.9 million, breaking the previous record of $1.5 million set in 2018. Both bottles come from Macallan cask 263 (European Oak) distilled in 1926 and bottled…

Economic Emissions

12/05/2019

In 2018, US CO2 emissions rose 2.7% to 5.27 billion metric tons. However, CO2 emissions have declined in six of the past 10 years and remain 12% lower than their 2005 peak despite the economy being 25% larger in inflation-adjusted…

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