Economics Roundtable

May 2014 Payroll Employment

After 76 months, we finally got back to the prerecession level of payroll employment.

Click on the image to get a bigger version.


Jobs

The best summary of the state of our economy is the graph (below) of employment as a fraction of population for people over 16 years old. The decrease is large, but the most troubling feature of the graph is the flat trend .


Click on the image to get a bigger version.


Graph-of-the-Year Candidates

Donald Marron likes European interest rates. Click on the image to get a bigger version. Can you find three distinct subperiods?

Brad DeLong favors the U.S. gdp gap.


Remember M1?

Money Supply M1 growth is now over 20% per year over a 12 month lag. M1 growth has touched 20% before, but not with excess reserves of $1.6 trillion. Where is M1 headed?


Click on the chart for a larger version.


EconModel

The Economics Roundtable is sponsored by EconModel.

The Classic Economic Models cover micro, macro, and financial markets.


RSS Feed

- Recent Entries


July 26, 2014, 12:04 pm, 1305954
(July 26, 2014 12:39 PM, by David Henderson) I wrote my earlier post this morning when I woke up in the middle of the night. I finally got back to sleep and woke up with another thought. Here would be a test of Scott Sumner's claim. You would... (0 COMMENTS)


July 26, 2014, 12:04 pm, 1305953

Financial Times  Has GDP outgrown its use? By David Pilling has an excellent beginners article on the make up and use of GDP that poses questions:

Simon Kuznets, the Belarusian-American economist often credited with inventing GDP in the 1930s, had severe reservations about the concept right from the start. Coyle ...


July 26, 2014, 12:04 pm, 1305952

David Zetland has a post from last year at Aguanomics that should stir some thoughts in What about Detroit.  Still relevant.

I have followed Detroit’s fall with interest, mostly because I am hoping that an entrepreneurial government will allow a thousand flowers to bloom in the hollowed-out city(population ...


July 26, 2014, 11:33 am, 1305951

…. is from Burton Malkiel writing in “The Random Walk Guide to Investing: Ten Rules for Financial Success“:

It’s true that when you buy an index fund, you give up the chance to boast at the golf course that you picked the best performing stock or mutual fund. That’s ...


July 26, 2014, 10:05 am, 1305935

It would be much easier if (some) people would simply say “Of course this normally should be kicked back into the legislature for clarification.  But I don’t want to do that because I don’t regard Republican control of the House, and how that control is used, as a legitimate form ...


July 26, 2014, 10:04 am, 1305934
(July 26, 2014 08:53 AM, by Art Carden) Red Mountain Theatre Company here in Birmingham is running Les Miserables through August 3. We saw it last night. It's the fourth time I've seen Les Mis, and it was worth every bit of what we paid for the tickets.... (0 COMMENTS)


July 26, 2014, 9:03 am, 1305921
This is an unofficial list of Problem Banks compiled only from public sources.

Here is the unofficial problem bank list for July 25, 2014.

Changes and comments from surferdude808:

As anticipated, the FDIC provided an update on its enforcement action activity which contributed to many ...


July 26, 2014, 8:45 am, 1305920
A


July 26, 2014, 8:36 am, 1305919
● Asset Rotation: The Demise of Modern Portfolio Theory and the Birth of an Investment Renaissance By Matthew P. Erickson Summary via publisher, Wiley In Asset Rotation, portfolio management pioneer Matthew P. Erickson demonstrates a time-tested approach to asset management … Continue reading →


July 26, 2014, 8:04 am, 1305917
(July 26, 2014 08:56 AM, by David Henderson) Co-blogger Scott Sumner, on his own blog, has written a stinging critique of intellectuals. You can read it for yourself, but here's the part I want to highlight and respond to: It's an embarrassment that the two sides of the... (1 COMMENTS)


July 26, 2014, 8:04 am, 1305916
(Don Boudreaux)

…from page 61 of David Mamet’s 2011 book, The Secret Knowledge (original emphasis):

Hayek calls this utopian vision The Road to Serfdom.  And we see it in operation here, as we are in the process of choosing, as a society, between Liberty – the freedom from the State to pursue happiness, ...


July 26, 2014, 7:33 am, 1305914

Of the ones listed that I've seen, I like10 Things I Hate About You, Groundhog Day, and especially Clueless.


July 26, 2014, 7:23 am, 1305913
Three years on from the riots and deep economic, financial and political crisis, is the reforming Greek economy turning a corner and improving outcomes for the key macroeconomic indicators. Professor Paul Collier labelled Greece as a "sub-merging economy" a little while ago but there are now some positive signs reflected ...


July 26, 2014, 7:03 am, 1305903

A European Central Bank paper has weighed in on a big debate among economists in recent years: how much of an effect fiscal belt-tightening has on the economy.

The paper was written by a pair of economists–one from the ECB and one from the International Monetary Fund–and concludes that fiscal consolidation ...


July 26, 2014, 7:03 am, 1305904
Getty Images

3.2%

The U.K.’s annualized growth in the second quarter. That’s a little slower than the 3.3% in notched up in the first three months but still a respectable performance. Growth was driven by the U.K.’s dominant ...


July 26, 2014, 7:03 am, 1305906

Has the number of American factories finally stopped its long, painful decline?

One economist thinks so. Daniel Meckstroth, chief economist at the Manufacturers Alliance for Productivity and Innovation, a research group in Arlington, ...


July 26, 2014, 7:03 am, 1305902

It’s been an encouraging 24 hours for British economic policy makers. But the recent run of strong growth figures flatters the economy’s post-crisis performance, and understates the distance that still has to be covered until the recovery is complete.

For a fourth straight update, the International Monetary Fund Thursday raised its ...


July 26, 2014, 7:03 am, 1305905

The Wall Street Journal’s Daily Report on Global Central Banks for Friday, July 25, 2014:

Sign up for the newsletter.

Highlights

Hilsenrath’s Take: In A Quiet Moment, Big Decisions Loom for Fed Greenspan Says Bubbles Can’t ...


July 26, 2014, 7:03 am, 1305898

The Federal Reserve’s various efforts at honing its low-rates message have been successful at keeping borrowing costs down by giving investors greater clarity about the likely path of policy, according to the International Monetary Fund.
However, the policy’s effectiveness has varied depending on the type of guidance used, the ...


July 26, 2014, 7:03 am, 1305897

The anticipated return of first-time buyers to the housing market remains, like many economic indicators, prone to fits and starts. This week, two more leading home builders differed on whether first-timers are on their way back.

PulteGroup Inc. stirred optimism when it disclosed during its quarterly call with investors on Thursday ...


July 26, 2014, 7:03 am, 1305899
Usually a Federal Reserve meeting tops the “what might happen” list, but since the Fed has already indicated its tapering program will end in October, Friday’s July employment report is the event with the most potential to surprise next week. Besides the jobs report, the data calendar is quite ...


July 26, 2014, 7:03 am, 1305900

The economy had an unusual bright spot in the dreary first quarter: the federal government.

After two years of dragging on growth, the federal government’s economic output gave an annualized 3.2% lift to ...


July 26, 2014, 7:03 am, 1305901

The International Monetary Fund has plenty of advice for the Federal Reserve ahead of its policy meeting next Tuesday and Wednesday.

Fed officials are expected to continue discussions about what combination of interest-rate tools to use when they decide it’s time to raise borrowing costs across the economy, and the IMF ...


July 26, 2014, 5:33 am, 1305896

One more reason why Star Trek--particularly the original series--is great.


July 26, 2014, 5:33 am, 1305895
Here's the question, not of the day, but of the month: Who's Winning the War in Ukraine?

That may sound like a simple question, but it isn't.

That question leads to a second question "In whose eyes?" It also depends on the definition of "war". And it ...


July 26, 2014, 5:33 am, 1305894



(p. 240) In an "Interview" conducted by Jessie Romero, John Haltiwanger discusses changing patterns of job creation and destruction: "But now we're seeing a decline in the entry rate and a pretty stark decline in the share of young businesses. . . . But it's also ...


July 26, 2014, 5:23 am, 1305893
An important landmark for the UK economy?Britain’s economyis finally larger than it was before the financial crisis six years ago. FT economics editor Chris Giles analyses the data and warns that continuing weak productivity means output growth will be slower than before the crisis - an excellent analysis of the ...


July 26, 2014, 5:03 am, 1305876

July 26, 2014, 4:04 am, 1305875

This is my FRED graph of the day post. Recently I was almost semi convinced by the Conservative argument that recent unusually rapid growth of employment fit what they said would happen if the extended unemployment insurance program ended. Then I glanced at the data on flows ...


July 26, 2014, 2:05 am, 1305867

But there is one type of insurance that people buy to protect them from the consequences of unusually good luck: In Japan, the U.K., and, to a lesser extent, around the world, golfers buy insurance to protect themselves from the potentially bankrupting consequences of sinking a hole in one.

The concept ...


July 26, 2014, 1:23 am, 1305866

A letter from a reader:

Hi David,

I am XXX, from India. I started reading your blog since few months. Few of the things i learnt, and much more are really complex for me to understand, the learning is ON.

Somehow i decided that ” being good value investor and control the behaviour” ...


July 26, 2014, 12:34 am, 1305856

In this interview, Mark Thornton discusses the future of the US dollar as the world's reserve currency and how both gold and silver and can be part of a return to sound money.


July 25, 2014, 9:33 pm, 1305833
An image from the Security Service of Ukraine ("SBU") that purportedly showed a Buk heading back to Russia at nighttime, has now been removed from the cite.

I made a screenshot of the image and posted it in Ukraine Caught in Third Major Lie? Magic Number 312. ...


July 25, 2014, 9:03 pm, 1305811
From the FDIC: Providence Bank, LLC, South Holland, Illinois, Assumes All of the Deposits of Greenchoice Bank, fsb, Chicago, Illinois

As of March 31, 2014, GreenChoice Bank, fsb had approximately $72.9 million in total assets and $71.0 million in total deposits. ... The FDIC estimates that the cost ...


July 25, 2014, 7:33 pm, 1305810
As I walk the streets of Berkeley, CA, I hear many chickens clucking away. Today, the NY Times presents a video profileof my Hamilton College classmate Robert McMinn. I see that after 26 years he hasn't changed! He has his hair and his chickens. Time has not been ...


July 25, 2014, 7:03 pm, 1305751

The Federal Reserve’s various efforts at honing its low-rates message have been successful at keeping borrowing costs down by giving investors greater clarity about the likely path of policy, according to the International Monetary Fund.
However, the policy’s effectiveness has varied depending on the type of guidance used, the ...


July 25, 2014, 7:03 pm, 1305750

The anticipated return of first-time buyers to the housing market remains, like many economic indicators, prone to fits and starts. This week, two more leading home builders differed on whether first-timers are on their way back.

PulteGroup Inc. stirred optimism when it disclosed during its quarterly call with investors on Thursday ...


July 25, 2014, 6:04 pm, 1305748

You may have seen this photo before. It was taken last August at the scene of a dog fighting raid, and it has been used in ASPCA advertisements all around the Internet and on TV. It can be hard to look at—a small, vulnerable puppy tied to a heavy ...


July 25, 2014, 5:03 pm, 1305687

The economy had an unusual bright spot in the dreary first quarter: the federal government.

After two years of dragging on growth, the federal government’s economic output gave an annualized 3.2% lift to ...


July 25, 2014, 5:03 pm, 1305686
Usually a Federal Reserve meeting tops the “what might happen” list, but since the Fed has already indicated its tapering program will end in October, Friday’s July employment report is the event with the most potential to surprise next week. Besides the jobs report, the data calendar is quite ...


July 25, 2014, 4:44 pm, 1305685
A


July 25, 2014, 4:44 pm, 1305684

As Anna points out, there are indeed moments of poignancy in the pari passu litigation, largely having to do with the fact that, days from a major sovereign default induced in no small part by their rulings, the US courts only now seem to be ...


July 25, 2014, 4:04 pm, 1305679

Here is a video from the IMF…

At the 4 minute point, the representative talks about youth unemployment in Europe and recommends two things…

training to appropriate skills which would make someone more valuable. bringing down costs of employment.

Oh, how wonderful!… Make your skills more valuable only to ...


July 25, 2014, 3:33 pm, 1305674
The grim economic news from France keeps piling up. Today, Europe Online reports Number of Unemployed in France Hits New High.

The number of unemployed people in France has hit a new high as the country grapples with the fallout of the financial crisis and a sluggish ...


July 25, 2014, 3:03 pm, 1305613

The International Monetary Fund has plenty of advice for the Federal Reserve ahead of its policy meeting next Tuesday and Wednesday.

Fed officials are expected to continue discussions about what combination of interest-rate tools to use when they decide it’s time to raise borrowing costs across the economy, and the IMF ...


July 25, 2014, 3:03 pm, 1305612

In case you missed this in today's links, it's worth noting explicitly:

Devolution Number Nine, by MaxSpeak: Rep. Paul Ryan (R-Crazy) has a new plan to fight poverty..., the common theme throughout the report is to convert Federal programs into block grants. A block grant is a fixed pot ...


July 25, 2014, 3:03 pm, 1305611

From BBC:

Russia’s central bank has unexpectedly raised its key bank interest rate over concerns about inflation and “geopolitical tension”.

The bank’s board decided to raise the interest rate by 50 basis points, or half a percent, to 8% per year.

The Central Bank of Russia said on Friday that ...


July 25, 2014, 3:03 pm, 1305610
The automakers will report July vehicle sales next Friday, August 1st. Sales in June were at 16.92 million on a seasonally adjusted annual rate basis (SAAR), and it appears sales in July will be above 16 million SAAR again. The analyst consensus is for July sales of 16.8 million SAAR.


July 25, 2014, 2:45 pm, 1305609
A


July 25, 2014, 2:45 pm, 1305608
A


July 25, 2014, 2:34 pm, 1305607

Two years ago, we apparently came alarmingly close to an event that we could not have possibly avoided which would have had widespread devastating consequences:

On July 23, 2012, the sun unleashed two massive ...


July 25, 2014, 2:05 pm, 1305606

Jeff Deist and Yuri Maltsev discuss not only his defection from the former USSR, but also his defection from the Marxist economic mindset, the crime of reading Hayek, why so many westerners still have a naïve, uninformed, and romantic view of socialism, how the Ruble ...


July 25, 2014, 2:05 pm, 1305605

Like much of her commentary, I find this considerably overstated.  Still, it suggests a few points of interest and also concern:

The mere existence of this facility could exacerbate liquidity runs during times of market stress. Borrowers in the short-term debt markets will have to compete with it for investment dollars ...


July 25, 2014, 1:33 pm, 1305599

In his CNBC interview yesterday, President Obama offered a misleading criticism of corporate inversions and missed an opportunity to call for structural reform of corporate income taxation.

President Obama began by condemning inversion transactions, in which corporations effectively swap their US charters for foreign charters. Inversions offer tax savings ...


July 25, 2014, 1:33 pm, 1305598

In the New York Times today, John Harwood asks the following of Hillary Clinton:

Harwood: Paul Ryan’s out with a plan today proposing that states be allowed to take all of the programs for those in need in one revenue stream as a way of finding better ways to ...


July 25, 2014, 1:33 pm, 1305597

Republicans, generally, seem very worried about the Fed’s low-interest rate policy, not to mention its bond buying. So this is their response:

Several House Republicans are embracing Stanford University economist John B. Taylor’s call for the Federal Reserve to adopt a mathematical rule for determining interest rates, stepping into ...


July 25, 2014, 1:33 pm, 1305596

… is from Karr Ingham, economist for the Texas Alliance of Energy Producers, from a recent presentation in Houston where he predicted that crude oil production in Texas will surpass its 1972 all-time high within two years:

When oil companies get richer, they don’t pocket their money. They invest ...


July 25, 2014, 1:23 pm, 1305595
Added to the familiar gallery of corporate monsters are those making money from parasitic smartphone apps


July 25, 2014, 1:03 pm, 1305535

It’s been an encouraging 24 hours for British economic policy makers. But the recent run of strong growth figures flatters the economy’s post-crisis performance, and understates the distance that still has to be covered until the recovery is complete.

For a fourth straight update, the International Monetary Fund Thursday raised its ...


July 25, 2014, 1:03 pm, 1305534

Robert Rubin:

How ignoring climate change could sink the U.S. economy, by Robert E. Rubin: ...When it comes to the economy, much of the debate about climate change ... is framed as a trade-off between environmental protection and economic prosperity. Many people argue that moving away from fossil fuels ...


July 25, 2014, 1:03 pm, 1305533
From HotelNewsNow.com: STR: US hotel results for week ending 19 July

In year-over-year measurements, the industry’s occupancy rate rose 2.9 percent to 77.1 percent. Average daily rate increased 4.1 percent to finish the week at US$117.57. Revenue per available room for the week was up 7.1 percent to finish ...


July 25, 2014, 12:45 pm, 1305532
A


July 25, 2014, 12:05 pm, 1305530

Mises Daily Friday by Ryan McMaken

The Navajos want to develop the southern rim of the Grand Canyon, but environmentalists are unhappy. There’s little private property involved, so don’t blame the capitalists, and it’s worth remembering that much of the tourist economy ...


July 25, 2014, 12:05 pm, 1305529

Friday July 25 (Central Daylight Time)
9:00 - 10:00 a.m.—Common Objections to Capitalism | Terrell
10:15 - 11:15 a.m.—Hayek and Friedman: Head to Head | Garrison
11:30 a.m. – 12:30 p.m.—Gold Standards: True and False | Salerno


July 25, 2014, 12:05 pm, 1305528

Archived from the live broadcast, this Mises University lecture was presented at the Mises Institute in Auburn, Alabama, on 23 July 2014.


July 25, 2014, 12:05 pm, 1305527

Chris Westley’s article explaining how Carl Menger put consumers front and center in determining value has been translated into Italian: “I consumatori sono i re in un’economia di libero mercato.”


July 25, 2014, 12:05 pm, 1305526

1. The London pheromone party.

2. Get paid (a little) for Facebook posts.

3. “Both studies revealed similar patterns of relations between trolling and the Dark Tetrad of personality: trolling correlated positively with sadism, psychopathy, and Machiavellianism, using both enjoyment ratings and identity scores. Of all personality measures, ...


July 25, 2014, 12:04 pm, 1305525

ProGrowthLiberal in his comments on my last post and in his own post at EconoSpeak highlights the fact that drug-maker AbbVie already makes most of its profits outside the United States, about 87% in fact over 2011-2013 by his calculation. For PGL, then, AbbVie is not the best ...


July 25, 2014, 11:33 am, 1305521

Each week, The LEDGER highlights AEI’s research and commentary on economic matters, covering hot issues such as the budget, tax reform, housing policy, inflation, minimum wage, and the Eurozone crisis. So you don’t miss anything, here’s a sneak peek.

Financial regulatory reform—four years later

Testimony from Paul Kupiec ...


July 25, 2014, 11:33 am, 1305520

Here is President Obama in a chat yesterday with CNBC’s Steve Liesman:

STEVE LIESMAN: Mr. President, I just want to pivot back one more time to domestic issues.  You’ve said a bunch of times that getting the wealthy to pay a little bit more, and you’ve succeeded in raising that top ...


July 25, 2014, 11:23 am, 1305519
A report out yesterday from theHealth and Social Care Information Centreshows a dramatic fall in the consumption by young people (aged 11 to 15) of our favourite demerit goods – alcohol, cigarettes and drugs. The report suggests that over the last decade regular smoking fell from 9% to 3% ...


July 25, 2014, 11:03 am, 1305457

A European Central Bank paper has weighed in on a big debate among economists in recent years: how much of an effect fiscal belt-tightening has on the economy.

The paper was written by a pair of economists–one from the ECB and one from the International Monetary Fund–and concludes that fiscal consolidation ...


July 25, 2014, 11:03 am, 1305456
Here is a new indicator that I'm following that appears to be a leading indicator for industrial production.

From the American Chemistry Council: U.S. Economic Expansion Being Tempered By Uncertainty in Energy Markets, Shows Leading Economic Indicator

The Chemical Activity Barometer (CAB), a leading economic indicator created ...


July 25, 2014, 10:45 am, 1305455
A popular saying around the Obama White House during the economic crisis in 2009 was: If you’re not talking about the economy, you’re not relevant. That still seems to be the driving mantra in the West Wing.


July 25, 2014, 10:45 am, 1305454
The Journal's morning rundown of the biggest news stories and exclusive features from Washington on politics, policy, financial regulation, defense and more.


July 25, 2014, 10:45 am, 1305453
A


July 25, 2014, 10:44 am, 1305452

AS ANY fruit enthusiast knows keeping track of the seasons is important. Looking for strawberries in winter or apples come the summer is bound to result in high prices, poor quality or both. Curiously,new researchby Justin Murfin of Yale University and Mitchell Petersen from the Kellogg School ...


July 25, 2014, 10:36 am, 1305451
Housing remains a weak spot for the US economy, as suggested in yesterday’s news of a surprisingly large decline in new home sales for June. The report follows last week’s update on new residential construction, which also slumped more than … Continue reading →


July 25, 2014, 10:36 am, 1305450

Nick Cohen describes how "diversity" can be used to justify illiberal inequality. I suspect this might be true in another way.

What I mean is that there might be less diversity of opinion and character now than there was in the past. Naturally, I can't ...


July 25, 2014, 10:04 am, 1305449
(July 25, 2014 09:49 AM, by Bryan Caplan) Though I'm no fan of The Economist's editorials, their science coverage remains outstanding. Check out their latest piece on overparenting. You could say I'm biased because the piece draws so heavily on my work, but as a pedantic professor, you'd... (0 COMMENTS)


July 25, 2014, 10:04 am, 1305448
(Don Boudreaux)

Cato’s David Boaz takes E.J. Dionne to task for carelessly and myopically – and ideologically blindly – criticizing the Halbig decision.  A slice:

Third, I wonder if E. J. Dionne Jr. really wants a judiciary that rolls over for the political branches, whether legislative or executive. Does he believe that ...


July 25, 2014, 9:33 am, 1305446

|Peter Boettke|

This is the cover from Vol. 2 (October 1959) edition of theJournal of Law and Economics and as you will notice 3 University of Virginia economics faculty are in this issue --- Coase, Buchanan and Nutter. Coase and Buchanan would go on to win the Nobel Prize, ...


July 25, 2014, 9:03 am, 1305384

Has the number of American factories finally stopped its long, painful decline?

One economist thinks so. Daniel Meckstroth, chief economist at the Manufacturers Alliance for Productivity and Innovation, a research group in Arlington, ...


July 25, 2014, 9:03 am, 1305382
Getty Images

3.2%

The U.K.’s annualized growth in the second quarter. That’s a little slower than the 3.3% in notched up in the first three months but still a respectable performance. Growth was driven by the U.K.’s dominant ...


July 25, 2014, 9:03 am, 1305383

The Wall Street Journal’s Daily Report on Global Central Banks for Friday, July 25, 2014:

Sign up for the newsletter.

Highlights

Hilsenrath’s Take: In A Quiet Moment, Big Decisions Loom for Fed Greenspan Says Bubbles Can’t ...


July 25, 2014, 8:45 am, 1305381
The Journal's morning rundown of the biggest news stories and exclusive features from Washington on politics, policy, financial regulation, defense and more.


July 25, 2014, 8:44 am, 1305380

WHO would have thought a couple of years ago that the British economy would be among the fastest-growing in the developed world? The Office for National Statistics (ONS) has just releasedits latest GDP estimates, which confirm its surprising revival: the UK has expanded for the sixth consecutive quarter. Overall, ...


July 25, 2014, 8:44 am, 1305379

“IF I have seen further”, Isaac Newton once demurred, “it is by standing on the shoulders of Giants”. The process of invention has long been a cumulative one, in which incremental advances are made on previous innovations. However, a new NBERworking paper* by Alberto Galasso of the Rotman School ...


July 25, 2014, 8:36 am, 1305378

Corporate inversions: Not exactly a home-run campaign issue. But some Democrats are swinging for the fences anyway, including President Obama: “You shouldn’t get to call yourself an American company only when you want a handout from American taxpayers.” He reiterated a call for “economic patriotism” among corporations and ...


July 25, 2014, 8:34 am, 1305377

Ticket collectors at Southwest Airlines are our first line of defense.

GMA (“Family Booted Off Southwest Airlines After Dad Tweeted About ‘Rude’ Gate Agent“):

A Minneapolis man said ...


July 25, 2014, 8:05 am, 1305374

Now seems like an apposite time to remember, Congress intends no more than Congress smiles. As Ken Shepsle put it in his classic paper Congress is a “They,” not an “It”:

Legislative intent is an internally inconsistent, self-contradictory expression. Therefore, it has no meaning. To claim otherwise is to entertain a myth (the ...


July 25, 2014, 8:04 am, 1305373
For all the caveats about per capita GDP - not something that usually gets much emphasis in the policy debate - this was another good GDP number, following on from the symbolic uprating of UK growth forecasts by the International...


July 25, 2014, 8:04 am, 1305372
(Don Boudreaux)

… is from page 52 of the 1987 Liberty Fund edition of Helmut Schoeck’s excellent 1966 volume, Envy; it occurs in a section of the book where Schoeck discusses the practice of many primitive people to use black magic against those whose positions and possessions they envied:

The false ...


July 25, 2014, 7:33 am, 1305367

Revealing: "#5. Jennifer Aniston Is Always With a Guy and Never Really Happy About It".


July 25, 2014, 7:33 am, 1305369

Why does pain hurt, why does anesthesia work, and three more.


July 25, 2014, 7:33 am, 1305368

He's good.


July 25, 2014, 7:03 am, 1305350

Millennials get flack for postponing marriage, living with parents and shying away from homeownership. But what’s less discussed is how, to some extent, they’re just responding rationally to their local housing markets.

Nearly half of Americans between the ages of 23 and 34 who lived in metro areas with “ideal housing ...


July 25, 2014, 7:03 am, 1305349

The U.S. housing market appears to be finding its footing after a sharp rise in mortgage rates last summer, on top of some big price gains, deflated sales.

The National Association of Realtors reported on Tuesday that sales of previously owned homes rose 2.6% in June to a seasonally adjusted annual ...


July 25, 2014, 7:03 am, 1305343

The Wall Street Journal’s Daily Report on Global Central Banks for Wednesday, July 23, 2014:

Sign up for the newsletter.

Highlights

Da Costa’s Take: The Fed Still Has Little Reason to Worry About Inflation Regulators Said ...


July 25, 2014, 7:03 am, 1305342

Manufacturers, by definition, make things.

But is that definition outdated? That’s the question behind a move among federal government agencies to reclassify as “manufacturers” companies like Apple Inc., which controls every aspect of the iPhones and other products it sells–except their actual fabrication. Production is ...


July 25, 2014, 7:03 am, 1305344

Uncertainty breeds volatility. That’s why even though volatility levels are near record lows, the Institute of International Finance sees choppy markets ahead.

Investors have been willing to take on more risk, pushing borrowing costs down and buoying stock values, amid strengthening confidence in the U.S. and global recoveries. But with perhaps ...


July 25, 2014, 7:03 am, 1305341

Hungary’s central bank governor has said the institution was done cutting interest rates, but analysts aren’t so sure.

The central bank  on Tuesday lowered its benchmark rate by 0.2 percentage point to 2.10%, a deeper cut than expected and the latest in a series of monthly cuts since August 2012, ...


July 25, 2014, 7:03 am, 1305347

When the Federal Reserve started tests late last year of its so-called reverse repo facility, some officials hoped it would play a starring role in the campaign to raise interest rates when the time comes.

But now the Fed thinks the new tool will play no more than a “useful supporting ...


July 25, 2014, 7:03 am, 1305348

It’s a good time to be a vegan. Meat prices are up 9.4% in June from a year earlier, and pork, fish and eggs are more expensive, too.

Prices for the food Americans ...


July 25, 2014, 7:03 am, 1305346
A wholesale market in Hyderabad. Agence France-Presse/Getty Images

India is on the verge of torpedoing another trade pact, and at issue yet again are the country’s ...


July 25, 2014, 7:03 am, 1305340

By Eva Dou

Taiwan has long been home to many of Apple 's key suppliers.

Getty Images

But is the iPhone maker’s business really big enough to ...


July 25, 2014, 7:03 am, 1305345
t Reuters

Last year, Australia’s central bank cut rates to a record low 2.5% to help boost flagging growth as a mining boom slowed.

While that extreme measure ...


July 25, 2014, 7:03 am, 1305334

Federal Reserve Chairwoman Janet Yellen has made clear that her perceptions of a healthy labor market hinge on more than just the unemployment rate or the strength of recent job gains. Also high up on her labor-market dashboard is wage growth. As labor markets tighten, workers should be able ...


July 25, 2014, 7:03 am, 1305332

 

ZUMAPRESS.com

Japan’s annual inflation rate in June was stable enough that it is unlikely to trigger a fresh round of monetary stimulus by the Bank of Japan ...


July 25, 2014, 7:03 am, 1305331

Singapore’s industrial production for June tells an interesting story. Output grew 0.4%, surprising analysts who expected a contraction. But electronics production continued to fall heavily, by 4.8% on year after a 4% ...


July 25, 2014, 7:03 am, 1305339

Japanese trade data for June, released Thursday, may not have encouraged analysts looking for a pickup in exports to end a two-year streak of trade deficits.

Yet the figures are not all ...


July 25, 2014, 7:03 am, 1305333

It’s tempting to make sweeping statements that millennials don’t want to own anything and would rather rent it all—from cars on Uber to movies on Netflix to apartments ...


July 25, 2014, 7:03 am, 1305335

Bankers tend to abhor risk. Especially geopolitical conflicts involving a nuclear power.

So risk managers around the world probably smiled Wednesday when the numbers came out showing their exposure to Russian creditors fell significantly in the first quarter, while Ukraine was facing the loss of its Crimea region and


July 25, 2014, 7:03 am, 1305338
Two cleaners rest on a bench at the Bund in Shanghai on July 23, 2014. Agence France-Presse/Getty Images

It has been a rocky year for China’s economy ...


July 25, 2014, 7:03 am, 1305337

The Wall Street Journal’s Daily Report on Global Central Banks for Thursday, July 24, 2014:

Sign up for the newsletter.

Highlights

Hannon’s Take: BOE Seeks Clarity on Wages As First Rate Rise Awaits Carney: U.K. Economy ...


July 25, 2014, 7:03 am, 1305336

It has become a common refrain: “It’s too hard to get a mortgage.” But is it true?

An analysis from economists at Goldman Sachs tries to shed some light ...


July 25, 2014, 6:45 am, 1305330
A popular saying around the Obama White House during the economic crisis in 2009 was: if you’re not talking about the economy, you’re not relevant. That still seems to be the driving mantra in the West Wing.


July 25, 2014, 6:45 am, 1305329
A


July 25, 2014, 6:45 am, 1305327
A


July 25, 2014, 6:45 am, 1305328
A


July 25, 2014, 5:23 am, 1305324
This is a super report from BBC Newsnight on the issue of our throwaway society and the externalities of waste. How can the link between consumption and the discarding of unwanted and broken products be weakened? What role can innovation play - for example the rise of modular phones where ...


July 25, 2014, 5:03 am, 1305303

Singapore’s industrial production for June tells an interesting story. Output grew 0.4%, surprising analysts who expected a contraction. But electronics production continued to fall heavily, by 4.8% on year after a 4% ...


July 25, 2014, 5:03 am, 1305302

It was a triumphant story that was first published by the Northport Patch back on 5 August 2011. Then, the tiny community web site of the tiny town located on the northwest corner of Long Island, New York announced that then 13-year old ...


July 25, 2014, 5:03 am, 1305301

July 25, 2014, 5:03 am, 1305300

Beware of "anti-government propaganda":

Left Coast Rising, by Paul Krugman, Commentary, NY Times: The states, Justice Brandeis famously pointed out, are the laboratories of democracy. And it’s still true. For example, one reason we knew or should have known that Obamacare was workable was the post-2006 success of Romneycare ...


July 25, 2014, 4:45 am, 1305299
A


July 25, 2014, 4:05 am, 1305298

…they all had help in the early going from Matt Scherer. Scherer is, or was up until about a week ago, a professional track pacer, one of only a handful of people worldwide who used his speed and finely honed sense of time to help other people run ...


July 25, 2014, 4:05 am, 1305297

The Ryan plan is here (pdf), an NYT summary is here. Overall it’s pretty good.  It attacks excess incarceration and occupational licensing and regressive regulations, three issues where a serious dialogue is badly needed.  It makes a good attempt to limit the incentives for lower-income people ...


July 25, 2014, 3:33 am, 1305295
Corporate Deserters

President Obama was beating the drums on Thursday in Los Angeles regarding corporate tax deserters, companies that move headquarters or tax shields to another country in order to escape high US tax rates.

The LA Times provides the details in President Obama Hits ...


July 25, 2014, 3:23 am, 1305294

I love economic history books, and I believe that most investors should read economic history.  History offers a broader paradigm for analyzing investment situations than mathematical models do.

Mark Twain is overquoted on this, but only because he deserves to be quoted:
“History doesn’t ...


July 25, 2014, 2:44 am, 1305255

It is too easy to miss poignant moments in the news avalanche of Argentina debt litigation. Here is one from Judge Griesa's monologue at the July 22 hearing:

I can't remember whether it was 2010 or 2011, but thereabouts, the attorneys for the plaintiffs requested the Court ...


July 25, 2014, 2:05 am, 1305253

What’s important to remember politically about this is if you’re a state and you don’t set up an exchange, that means your citizens don’t get their tax credits — but your citizens still pay the taxes that support this bill. So you’re essentially saying [to] your citizens you’re going to ...


July 25, 2014, 1:03 am, 1305207

 

ZUMAPRESS.com

Japan’s annual inflation rate in June was stable enough that it is unlikely to trigger a fresh round of monetary stimulus by the Bank of Japan ...


July 25, 2014, 1:03 am, 1305206

I was at the NBER Summer Institute’s meeting of the International Finance and Macro group where (in addition to finally meeting Jim Hamilton) I had the opportunity to hear two papers on a topic near and dear to me — namely the relationship between the forward premium (the gap ...


July 25, 2014, 12:34 am, 1305205
Teaser:

Scott ...


July 25, 2014, 12:04 am, 1305203
(July 24, 2014 10:32 PM, by Scott Sumner) Keynesians often say that it's "obvious" that more government spending will boost GDP. I love this reply by Nick Rowe: The average reader of the New York Times probably thinks he knows about fiscal policy. "We know that Y=C+I+G+NX, so... (1 COMMENTS)