70 Words

Gay Gains

03/28/2013

Recognizing gay marriage would reduce, yes reduce, federal spending by about $500 million/year. While that’s just two-hundredths-of-one-percent of annual federal spending, it helps. Spending will fall because generally fewer married couples qualify for (means-tested) entitlements such as welfare, Medicaid, Medicare,…

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Builder Sediment

03/27/2013

Home builder sentiment recently fell for the second straight month despite a booming housing sector. This is probably because small builders face increasing difficulty finding lots, spec loans are still largely off limits, lumber prices have doubled, and labor shortages…

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Wishing for Wages

03/26/2013

While the economic recovery will soon enter its fifth year, wage growth is invisible. In part, it’s because unemployment is high, but also because more and more jobs are in leisure/hospitality and retail. These two sectors now account for 21%…

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Happy Housing

03/25/2013

Between 1998 and 2002, before the housing market went haywire, total housing starts averaged 1.65 million units and the population of the US averaged 282 million persons. Over the next five years the US population will average about 320 million.…

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McIndex

03/22/2013

The Friday File: Based on the idea that exchange rates and prices eventually adjust to make the same thing equally priced the world over, the Big Mac Index was created. In Norway, a Big Mac is $7.84, in Switzerland $7.12…

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The Three Rs

03/21/2013

If Congress accepts President Obama’s proposal to expand preschool programs it would go against the vast majority of research that finds programs like Head Start deliver few if any lasting benefits. That said, if we do it, we must devote…

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Sugar High

03/20/2013

To prevent defaults by sugar processors that borrowed $862 million under a government price-support system, the USDA may purchase 400,000 tons of sugar to prop up prices. Sugar has fallen 18% to 21.03 cents/lb since the loans were made last…

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Cash Crunch

03/19/2013

The Cyprus fiasco shows us two things. First, countries that don’t issue their own currency simply cannot guarantee bank deposits as they have no control over their monetary policy. It also shows that monetary unions cannot survive bank runs. The…

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Strong Week

03/18/2013

Retail sales jumped a strong 0.4%, even after subtracting high gas prices, higher building material prices, and autos and groceries. Industrial production was up and is nearing its pre-recession peak and the four-week moving average of initial weekly unemployment claims…

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Leapin’ Leprechauns

03/15/2013

The Friday File: On St. Patrick’s Day we drink 1% of all beer consumed in America, which equals 1.62 pints per/person, so drink up! 34.5 million Americans claim Irish ancestry which is seven times the population of Ireland. The total…

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