http://www.cnbc.com//id/39416825
Kohl's to open 21 new stores and service center this fall. The new stores will add 4,000 jobs nationally.
Wednesday, September 29, 2010
Monday, August 9, 2010
Stimulating Employment = Ending unemployment benefit extensions
http://finance.yahoo.com/tech-ticker/man-receiving-unemployment-benefits-refuses-over-a-dozen-job-offers-535306.html;_ylt=Aq.g2NzjWpoLo9MPHDV4Eq.7YWsA;_ylu=X3oDMTE2NHEwbWs1BHBvcwMxMARzZWMDdG9wU3RvcmllcwRzbGsDbWFucmVjZWl2aW5n?tickers=^dji,^gspc,spy,tlt,^ixic,qqqq&sec=topStories&pos=8&asset=&ccode=
The article points out that the number of job openings has risen at twice the rate of hires since the middle of 2009. You would think that with the as much as 10% of the American labor force unemployed, job openings would be filled almost immediately, as people flood the openings with resumes. That is clearly not the case however, and the problem simply lies in adverse incentives. Since individuals understand that the current administration will continue to extend unemployment benefits, there is no incentive to return back to work when you can do nothing and pocket $300 a week (especially if you can not make much more being employed).
If you want the unemployment situation to improve, stop extending unemployment benefits, and communicate that benefits are meant to be a temporary safety net for those in transition.
The article points out that the number of job openings has risen at twice the rate of hires since the middle of 2009. You would think that with the as much as 10% of the American labor force unemployed, job openings would be filled almost immediately, as people flood the openings with resumes. That is clearly not the case however, and the problem simply lies in adverse incentives. Since individuals understand that the current administration will continue to extend unemployment benefits, there is no incentive to return back to work when you can do nothing and pocket $300 a week (especially if you can not make much more being employed).
If you want the unemployment situation to improve, stop extending unemployment benefits, and communicate that benefits are meant to be a temporary safety net for those in transition.
Monday, July 12, 2010
My issue with Gov't debt...The concise version
Debt = paying interest = printing money = inflation = increased interest rates = disincentive to invest = stagnation
Wednesday, April 21, 2010
Airline bailout?
http://finance.yahoo.com/news/Airlines-lose-17-billion-ash-apf-3552930937.html?x=0&sec=topStories&pos=6&asset=&ccode=
Looks like the fear of creating malign incentives associated with the bailout package is coming to fruition. Airlines announced today that they feel a government bailout is in order due to their lost revenue stemming from the Icelandic volcano eruption.
Seems to me that owning a private corporation involves substantial risks. A business owner must take into account these risks in the decision-making of its operations. Natural disasters, while rare, are a risk that must be taken into account. Prudent business owners own flood and fire insurance for the rare instance that these disasters may strike. Airlines must be prepared for such inconvenient situations. Setting aside profits as an insurance policy would be a prudent mechanism for hedging against disasters like this in the future. It is not the government's responsibility to subsidize lost revenue streams due to the unpreparedness of privately owned businesses.
Looks like the fear of creating malign incentives associated with the bailout package is coming to fruition. Airlines announced today that they feel a government bailout is in order due to their lost revenue stemming from the Icelandic volcano eruption.
Seems to me that owning a private corporation involves substantial risks. A business owner must take into account these risks in the decision-making of its operations. Natural disasters, while rare, are a risk that must be taken into account. Prudent business owners own flood and fire insurance for the rare instance that these disasters may strike. Airlines must be prepared for such inconvenient situations. Setting aside profits as an insurance policy would be a prudent mechanism for hedging against disasters like this in the future. It is not the government's responsibility to subsidize lost revenue streams due to the unpreparedness of privately owned businesses.
Monday, March 22, 2010
Towards nationalized health care
http://finance.yahoo.com/tech-ticker/healthcare-reform-bill-is-just-the-latest-step-toward-nationalized-healthcare-446767.html?tickers=%5EDJI,%5Egspc,ixj,wlp,aet,pfe,unh&sec=topStories&pos=9&asset=&ccode=
"If you look at long-term health spending trends, the government's share of health expenditures has consistently risen over time, Gross says. Insurance companies can't profitably insure seniors, so Medicare has taken over that role. Insurance companies can't profitably insure poor people, so Medicaid covers that pool. As our companies struggle to remain competitive in a world with skyrocketing healthcare expenses, the government will increasingly be forced to pay for those who were once insured by their employers. And so on." - Daniel Gross, Economics Editor at Newsweek and a columnist at Slate.
For better or worse...We shall see
"If you look at long-term health spending trends, the government's share of health expenditures has consistently risen over time, Gross says. Insurance companies can't profitably insure seniors, so Medicare has taken over that role. Insurance companies can't profitably insure poor people, so Medicaid covers that pool. As our companies struggle to remain competitive in a world with skyrocketing healthcare expenses, the government will increasingly be forced to pay for those who were once insured by their employers. And so on." - Daniel Gross, Economics Editor at Newsweek and a columnist at Slate.
For better or worse...We shall see
Wednesday, March 3, 2010
Author argues, "Don't send your kids to college."
In the article, hedge fund manager James Altucher argues that due to heavier debt loads from higher tuition rates, the cost of post-secondary education is no longer worth it. He states, "There's a lot of evidence to suggest that motivated kids are going to make money whether or not they go to college," says Altucher, managing partner at Formula Capital. "So teach your kids how to be motivated. Teach your kids how to sell a product, build a network of connections. That's going to be far more valuable."
While many graduates graduate with a large debt load ($23,000 on average according to the article), the earning potential of a career which requires the skill base of those with degrees easily covers the sum stated above. Take a degree in Economics for example. The median starting salary for an Economics graduate is about $50,000. In contrast, the median salary for those with a high school diploma is only $37,000, which would obviously be much lower if the figure was starting median salary.
Wednesday, February 17, 2010
Record-setting deficit pace
http://finance.yahoo.com/news/Federal-deficit-at-43069-apf-64628164.html?x=0&sec=topStories&pos=2&asset=&ccode=
Through the first four months of the budget year, the United States' $430.69 billion deficit is on track to shatter last year's $1.42 trillion record. Can the United States' sustain such enormous deficits? I think the answer in the short run is yes; however, large deficits are not a responsible way to run government in the long run. Deficits create leverage for foreign countries that own our debt and make inflationary concerns more prevalent due to the printing of money to finance interest payments.
Through the first four months of the budget year, the United States' $430.69 billion deficit is on track to shatter last year's $1.42 trillion record. Can the United States' sustain such enormous deficits? I think the answer in the short run is yes; however, large deficits are not a responsible way to run government in the long run. Deficits create leverage for foreign countries that own our debt and make inflationary concerns more prevalent due to the printing of money to finance interest payments.
Subscribe to:
Posts (Atom)
