Posts Tagged ‘econ70.com’
Minorities Growing Fast
Demographics 101: Over the past decade the US population has grown by 9.7% to 309m. Minorities accounted for 92% of that growth. The ranks of Hispanics swelled by 43% to 51m. The Asian population grew at the same rate to 15m. Blacks increased in number by 11% to 38m. All minority groups put together jumped…
Read MoreStudent Loans Growing
There has been an incentive burst of auto buying recently but in reality the majority of credit growth can be found in student loans! It is worth noting that student loans are probably the only type of loan you can qualify for when you have no job (or prospects) and need to pay for room…
Read MoreNo Inflation
Bernanke and a majority of Fed officials predict that the surge in oil prices will lead only to a modest and short-lived increase in consumer prices as firms will have a very tough time passing cost increases on to consumers as slack in the labor market keeps wage increases to a minimum. Thus, inflation is…
Read MoreBeauty Beats Bucks
While money may not buy happiness beauty buys both money and happiness. Economic research shows that the beautiful are happier than the plain. Moreover, the majority of beauty’s effect on happiness works through its impact on economic outcomes! For example, better looking people earn more and marry those that are better looking who inturn earn…
Read MoreBudget Brawl Begins
The budget battle over FY ’12 is here! The R plan makes big cuts to Medicare & Medicaid, ignores Social Security (SS) and keeps the Bush tax cuts. The D plan, will also ignore SS (2 risky) and will propose; cuts to many programs, reduction of popular tax deductions, increased taxes for the rich and…
Read MoreBig Banks are Challenged
The lobbying power of big banks is being seriously challenged by an alliance of big retailers. The issue; the Durban amendment lowering interchange fess that banks collect when anyone buys anything with a debit card. Retailers pay the fee but pass it on to consumers. The fee averages $.44 and is as high as $.98.…
Read MoreChinese Trade Deficit!
Yesterday China reported that imports ($400bn) had exceeded exports ($399bn) in Q1 ‘11. This tiny deficit, China’s first in 7 years is an encouraging development for the world economy. It comes after 2 successive years of import growth outpacing exports. Hopefully this trend will continue. If so China will stop printing Yuan (to keep the…
Read MoreRepublicans Budgeting Badly
The Ryan G.O.P. Budget Proposal to abolish Medicare and replace it with vouchers to be used to buy private health insurance may be a great idea but privatizing Medicare does nothing to limit health-care costs. In fact, it almost surely raises them by adding a layer of private sector bureaucracy.Yet his plan assumes that we…
Read MoreECB Wrongly Raises Rates
The ECB hiked its main interest rate to 1.25% from 1%, yet inflationary pressures and growth prospects are no different in Europe than in the US and UK and they are not raising. This decision marks the moment when differences in analysis and not divergent economic circumstances, affect policy decisions. This decision will hurt the…
Read MoreNo Government, No Problem!
If the federal gov’t closes does it matter to the economy? NO! Social Security checks will continue arriving and air traffic controllers will still land planes. The fragile recovery will not be harmed. The most serious and negative consequence; a strong signal that the upcoming debt ceiling increase and FY 2012 budget battles will be…
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