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Back to Basics

12/15/2010

2010 NOV U.S. retail sales up 0.8% but Autos down 0.8%, Furniture/appliances down 0.5%, Electronics down 0.6% & Building materials down 0.1%. What was up? Groceries 0.8% Gas 4.0% Drug stores 0.9% & Clothing 2.7% What we had was a…

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Money, meet Mentality

12/14/2010

There is tremendous econometric evidence strongly suggesting that only tax cuts that are perceived to be permanent contribute to spending — people do not alter their behavior based on temporary changes to their income, wealth or job. Temporary tax cuts,…

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Economic Science? Mabe Not!

12/13/2010

Some economists say higher income taxes keep people from working. This is the substitution effect–because leisure becomes relatively cheaper people consume more of it. But higher taxes also reduce after-tax income so one might work more due to higher taxes.…

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Austerity is Awful

12/11/2010

The risk of front-loaded fiscal austerity in the UK is that big cuts in spending, subsidies, public employment & increases in taxes will have a recessionary effect on an anemically recovering economy. A credible early commitment to gradual fiscal consolidation…

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Bipartisan Benefits!

12/10/2010

While things could always be better the recent Obama-Republican tax package compromise rates a B+. It will raise GDP growth and reduce unemployment in 2011 but things may sag a bit in 2012 when some of the tax cuts end.…

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Country Cash

03/08/0202

The Friday File: The wealthiest nation is Luxembourg with per capital GDP of $135,605, followed by Ireland at $112,248 and Switzerland at $102,865. No other nations exceeded $100,000. Norway was next at $99,266. Singapore was 5th at $87,884 then, Qatar…

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