Bearable Budget Battle

The budget deficit is falling rapidly and is now projected to be $642 billion, or 4% of GDP, in FY 2013. It was projected to be $200 billion higher just three months ago. This improvement will delay the next debt ceiling brawl from June to November. And with election season already starting by then, expect…

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Dry Policy

The Friday file: Since 1940, raisin farmers have been required to give away a percentage of their crop to the Raisin Administrative Committee. The RAC annually decides how many raisins are needed and confiscates the rest. In 2003, farmers forfeited 47% of their crop! In a case now before the Supreme Court, raisin farmers are…

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Painless Price Rise

Despite the recent rise in house prices and residential shelter costs comprising 32% of the CPI, rising house prices won’t, in the short run, worsen inflation. This is because the CPI does not look at house prices, but rather the cost to rent a dwelling (owner-occupied or rented). And since house prices and rents are…

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Watch List

The Friday File: In 2011, 1.15 billion watches sold for $30 billion. China sold the most, almost 700 million pieces, and at an average price of $2/watch; their industry was worth $1.5 billion. By contrast, the average price of the 30 million Swiss watches was $685/watch, making their industry worth $20.5 billion. Hong Kong was…

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Economic Models

The Friday File: Female models like Heidi Klum and Bar Rafaeli make millions annually, yet there isn’t even one famous male model. I think this is this because women spend much more on fashion and cosmetics than men. Moreover, they get their purchase ideas from fashion magazines which are full of beautiful women. Thus, the…

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