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With labor productivity growth dismal, here is a to-do list: increase infrastructure spending, improve K-12 education, boost funding for basic research, make our corporate tax structure internationally competitive, encourage the educated and talented to immigrate, reduce regulation and increase corporate…
The Friday File: While US beer sales totaled $106 billion in 2015, the amount of beer sold fell 0.2% to 197 million barrels. However, craft brewing volume grew by 12.8% and now has a 12.2% market share. Due to its…
Today’s economic data capture perfectly the condition of the US economy. Employment growth is strong, as first time unemployment claims remain under 300,000/week for the 79th straight week. In addition, inflation remains benign as measured by the unchanged reading of…
Income Increase In 2015, median household income (MHI) surged 5.2%, the largest jump ever, to $56,516, up from $53,718 last year. MHI remains below the pre-recession 2007 peak of $57,423 and the 1999 all-time high of $57,909. Women saw their…
The peak monthly load factor (a measure of capacity utilization) for US airlines on all routes barely rose from 85% in 7/06 to 87% in 7/15. During the same period, the trough steadily rose from 73% in 1/06 to 79%…
Last year, the number of US-born babies surprisingly declined to 3,977,775 from 3,988,076 in 2014. Births peaked in 2007 at 4,316,233, slightly ahead of 1957 with 4,300,000 births! In 2015, the number of live births per 1,000 women ages 15-44…
The Friday File: While sugar prices are up 67% YTD from 12 cents/lb. to 20 and cocoa prices are up 10% to $7,500, fret not. Cocoa beans are just 7% of the cost of a chocolate bar; while sugar is…
Since 2007, prescription drug prices have risen 165%. By contrast, the cost of generic drugs has fallen 70%. Moreover, the percentage of prescriptions that are filled with generic drugs is 84%. The key is competition. With one generic competitor, the…
Between 2004 and 2009, 45% of mutual funds run by professional stock pickers beat the stock market; not great but not dismal. Since then, only 25% of funds managed by Wall Street pros have beaten the market. That is horrendous.…
Friday’s August jobs report, showing just 151,000 net new jobs, slowing hourly earnings growth of 0.1%, the loss of 6,000 construction jobs, and a slight reduction in average hours worked/week, has reduced the probability of a Fed rate rise of…