Posts Tagged ‘Graphsandlaughs’
Government Diversion
Federal government spending has steadily increased from 14% of GDP in 1950 to about 25% today. Because of this, legislators and bureaucrats are increasingly lobbied in an effort to have them bestow government largess on one group or another. Unfortunately, this is a zero-sum game. Were government spending to decline, so would the importance of…
Read MoreTicket to Ride
Despite having 26% of the US Market, the American Airlines-US Airways merger will proceed. That said, it will mean higher fares between smaller cities, reduced service on unprofitable routes and possibly fewer hubs. The key to minimizing harm to consumers is eliminating overwhelming airline dominance at airports. Hello passengers in Cincinnati, Charlotte, Dallas, Miami, Minneapolis…
Read MoreBuy Phone
The Friday file: When buying stuff over the phone, men stay on the phone for 7 minutes and 23 seconds, women just 6.5 minutes. Men prefer to call between 3am and noon, women between noon and 9pm. Two-thirds of calls to nutritionists are from women, while men make two-thirds of all calls to auto repair…
Read MoreHappy Valentine’s Day
Americans will spend $19 billion on Valentine’s Day gifts — $60/person. 56% will be spent on a romantic partner, 20% on family, 7% on friends, 5% on teachers and 4% each on; co-workers, others, and pets! That’s $750 million on Fido, a tad less than the $860 million spent on greeting cards. Guys will spend…
Read MoreDeclining Deficit
The federal deficit peaked at 10.1% of GDP in 2009, and fell to 6.94% of GDP by 2012. The CBO projects that it will fall to $845 billion or 5.3% this year. And, if no policy changes are made, the deficit will fall to 2.4% of GDP by 2015, a decline of 4.54 percentage points.…
Read MoreThe Zen of Yen
New Japanese Prime Mister Shinzo Abe has pushed the Yen down 15% against the dollar since 10/12 because of his insistence that the Bank of Japan create inflation by pumping more money into the economy. Moreover, the new Abe appointed Governor of the BoJ will enthusiastically embrace this new policy, unlike the outgoing Governor. Another…
Read MoreWeek in Review
Decent Week in Review: Consumer credit expanded fueled by long-term student (yikes) and auto loans, the service sector continued to expand at a steady if uninspired rate, while manufacturing activity jumped to its highest level since 05/12. The best news, the trade deficit narrowed to $38.5 billion, about $8 billion more than expected, and should…
Read MoreDelayed Delivery
The Friday File: In an effort to lick billions in losses, the USPS plans to halt Saturday delivery of letters in 8/13. Mail volume has plummeted from 210 billion pieces in 2008 to just 160 billion in 2012, a decline of 24% while revenues have declined 13%. Worse, per capita use has declined a whopping…
Read MoreLobbying Loot
In yet another sign of how omnipresent government is in the economy and thus how lucrative having access to and influencing policymakers is, the law firm of Cravath Swaine & Moore just hired David Kappos, departing Director of the US Patent and Trademark Office, and last year hired Christine Varney former Assistant Attorney General. They…
Read MoreHagel Hurts
Nominating Senator Hagel for Secretary of Defense raises serious doubts among allies and enemies that President Obama will use all means necessary to prevent Iran from acquiring nuclear weapons. Therefore, the chances of a negotiated settlement fall (despite biting sanctions), because for negotiations to have any hope of success, the Iranians must believe the US…
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