70 Words

No Jobs, Weak Productivity

06/03/2011

Jobs, where are they? The Labor Dept. employment tally came in at 54K well off the 232K in April and 194K in March. While our economy may be entering another “soft patch” the thing is you don’t get 2 of…

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Economy is Not Fun

06/02/2011

The Institute of Supply Management’s Manufacturing Activity Index fell to 53.5 in May from 60.4. This shows the pace of manufacturing activity moderating since the index reached a 7 year high of 61.2 in March. Add to it a decline…

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Education Revolution

06/01/2011

The cost of education is so high, student achievement so dismal and technology and computerized pedagogy sufficiently developed and ubiquitous that the long awaited education revolution is about to begin. If ed moves to an online teaching model students could…

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Food is Expensive

05/31/2011

In poor countries people spend much more on food than we do. In the Philippines 47% of income is spent on food. The amount is 45% in India, 40% in Vietnam, 36% in Indonesia, 33% in Thailand, 30% in China,…

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Economics of the Indy 500

05/27/2011

The Indy 500 is more than a huge financial Memorial Day event. Via trickledown technology it has vastly improved our lives. Turbochargers were 1st used in ’52, rearview mirrors in ’11 and seatbelts after WWII. Wide low-profile tires now used…

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Winners and Losers

05/26/2011

Because Quantitative Easing Two (QE2), which is soon ending, forced interest rates down to record lows, stocks and commodities soared as investors’ searched for better returns than those available on Treasuries. US exporters also enjoyed the lift they received from…

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Expansive Gas, Cheap House

05/25/2011

When gas prices rise we become leery about driving. That lowers the value of homes far from jobs. But, by how much? If gas costs $4/gal and you get 20 mpg, each mile you drive costs $0.20. When commuting, you…

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Icelandic Luck

05/24/2011

The gov’t of Iceland wasn’t smart. It just couldn’t afford to bail out its banks, so they failed and foreign creditors including the UK and the Netherlands got badly burned, to the tune of $6 billion. While Iceland has suffered,…

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Weak Growth, Low Rates

05/23/2011

The output gap, the difference between what GDP is and what it could be, at 5.2% has never been this large this late in an economic recovery. Usually the gap has completely disappeared by the 2nd anniversary of the expansion…

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Democracy and Perishability

05/22/2011

Trade predates agriculture. The advent of ag sped up the trend towards specialization in temperate zones, but not in the tropics. Why, perishability. If you can store what you make (cereals) you trade it. And trade leads to cities, stable…

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