Legal Cannabis in U.S. Hurting Mexican Cartels

Since the legalization of marijuana in some of the United States, Mexican drugs cartels have seen drops in their illegal business. Either recreational or medicinal marijuana is now legal in over half of the U.S. and American weed has now become a serious threat to illegally imported Mexican weed. NPR did an investigation in Mexico and talked to a marijuana farmer who said 1 kilogram of weed cost $60-90 two to three years ago but now that it is legal in more states, the price for a kilo has dropped to $30-40 and it is expected that the cartels will collapse beyond recovery if the price falls to $20/kilogram. The article also states that not only is legally grown U.S. marijuana gaining popularity because it is up front and legal, it is also of higher quality. Pot has been legal for recreational use in the U.S. for 11 months now and its effect on the illegal drugs market is already apparent.

It sure seems like the "experiments" in Colorado, Oregon, and Washington have been mostly successful and this news of its negative effect on Mexican cartels is certainly yet another good sign. It will also force illegal dealers to find income from somewhere else so they will have to get jobs and pay taxes on what they make rather than off-the-books deals where they keep profit. I wonder if these numbers of the declining illegal market will encourage more states to legalize as it looks like this will be more effective than the war on drugs ever was.

11 Months After Marijuana Legalization, Here's What's Happening to Cartels

Lew: 'Great success story' that U.S. is producing so much oil

 http://www.cnbc.com/id/102259863

Speaking at the "Opportunities for Tomorrow" conference treasury secretary Jack Lew said lower oil prices are "an unquestioned positive for the US economy."  He stated that the lower oil prices have helped boost our economy which hasn't been doing so well recently.  He compared the drop in oil prices to a cut in taxes.  He also spoke about the spending battle that is going on in Washington.  The congressional Republicans are wanting to come up with a solution that allows the government to stay open and keep spending money as an opportunity to repeal part of the Dodd-Frank banking reforms.  He thinks that the president and congress is going to have to come up with a trade-off.  He spoke on several other issues as well such as tax reform.  He said "there's no question that fixing our broken tax code is in the public interest.  Another topic he talked about was employment and wages.  He basically talked about the issues that we need to fix in our economy in the short run.

http://www.nytimes.com/2014/12/14/world/after-barren-years-in-somalia-signs-of-growth-in-bananas.html?hp&action=click&pgtype=Homepage&module=photo-spot-region&region=top-news&WT.nav=top-news&_r=0

Somalia's banana industry is growing again. The industry ran into trouble when the country broke out into civil war in in 1991. The civil war caused the Somali government to collapse. Bananas then became used as a source of currency in what became known as "the banana wars". The banana trade took a huge hit, but it has just started to recover. One of the reasons for the recent recovery is that Somalia is becoming a more stable country as it has recently elected a new president and adopted a new constitution. Also, farmers are increasing security so that they are able to conduct their business. The return of the banana industry is great news for the Somali economy. In 1990, the Somali banana trade was worth $96 million. The trades return is good for all of Somalia. There is also the fact that Somali bananas are said to be the best in the world.

The rise of the banana trade will hopefully be able to boost the Somali economy so that it can recover and maybe become even larger than it was before the country went into turmoil. Currently Dole and other large banana companies are hesitant in investing in Somalia because their are still concerns about stability, but Dole has invested their in the past. Perhaps Somalia will become more stable allowing for outside investment. But for now, the Somali banana trade is growing, which is a good sign for the future of Somalia.

The Most Expensive Picture Ever Sold

     What is the most you would spend in order to buy a photograph? $100? Maybe $200? A Photographer named Peter Lik took a photo titled “Phantom” in the Antelope canyons of Arizona and made art history by selling this piece for $6.5 Million.  The black and white photo shows a beam of light coming through a hole on the ceiling of the cannon resembling a ghost like figure. The private collector who purchased this piece has decided to remain anonymous.  Art experts have different views on whether a photograph should ever be worth this much money but someone out there bought it so according to that private collector it was worth every penny.


http://money.cnn.com/2014/12/11/news/economy/peter-lik-phantom/index.html?iid=SF_E_River

"Russia's Decision to Drop Pipeline Puts EU in Tough Spot"

In the article titled “Russia's Decision to Drop Pipeline Puts EU in Tough Spot” discusses Russia’s plan to abandon the natural gas pipeline through Europe. Putin said he was going to drop the pipeline under the Black Sea to Bulgaria in favor of an alternative route. The problem is that a lot of Russia is heavily dependent on Russia’s energy, and they are very vulnerable to a cutoff of Russia’s energy. The EU’s antitrust authorities said Russia’s half owner of the pipeline could not control its entire capacity. Russia challenged EU competition and energy market rules at the World Trade organization in April, the EU stopped talks with Russia about the project. 

What do you guys believe will happen in the future? What will be the implication of this?

Obama's economy

During president Obamas presidency many opponents of his policies have claimed Obama has hurt the economy even more than when he took office. Supporters claimed it was not his fault because he took office at the beginning of the worst economic down turn since the great depression. This article just looked at the facts since Obama took office.  The opponents have claimed unemployment has shrunk due to many people leaving labor force, not people getting more jobs. While some people have left the labor force, there have not been enough people leaving the labor force to bring it down to its current level. This past year was actually the best year for hiring since 1999. Opponent’s also claimed Obama’s economic plans are too slow. While it has taken the economy a while to recover, it is important to note Regan experienced two recessions during his presidency. It’s important to just look at the facts when evaluating Obama’s presidency because many politicians are misreporting economic facts and giving the public a bad idea of how the economy is doing.

http://money.cnn.com/2014/12/05/news/economy/obama-economy/index.html

Station Owners Like Low Gas Prices as Much as You Do

http://www.dailyfinance.com/2014/12/12/gas-stations-owners-like-low-gas-prices/

Gas station owners buy gas on the wholesale market.  When the wholesale price of gasoline falls quickly, the difference between the cost of wholesale gasoline (with taxes) and the price at the pump gets wider, boosting profits for stations.  The steeper the drop, the better.  Station profitability is at its highest since 2005.

While this does mean you could be paying even less for gasoline than you already are, gas stations do not make much money from selling gasoline, averaging only 3 cents a gallon.

When the wholesale price of gasoline soars, like it did in 2012, station owners can't increase the price at the pump as fast as their costs are going up or they risk losing customers to competitors.  But when the wholesale price is going down, like it is now, there isn't the same pressure to lower the price.

Because prices are lower, consumers no longer search all over town for the lowest price and they completely fill up their tank when they stop to get gas.  Then, they spend the left-over money on what's really profitable for station owners: the drinks and snacks inside.

The real question is how much longer the low gas prices will last.

Fannie Mae, Freddie Mac detail plans for 3% down-payment mortgages

http://www.latimes.com/business/la-fi-fannie-mae-freddie-mac-mortgage-downpayment-20141208-story.html

This Monday, Fannie Mae and Freddie Mac once again announced plans to back mortgages with down payments as low as 3%, in a move containing "safeguards to protect against abuses that led to the subprime housing market crash." The finance giants were seized by the government in 2008 due to their near-bankruptcy because of the bad mortgages they backed. 187.5 billion dollars were pumped into the companies to keep them from going under. They claim that as the housing market has rebounded, the companies have returned to profitability. FHFA Director Melvin Watt announced the new low-down payment option in October, causing a stir of criticism from critics who believe the companies are too risky. Watt, however, says the 3% down payment programs come with "strong underwriting standards that provide a responsible approach to improving access to credit while ensuring safe and sound lending."

The real silver lining of falling oil prices

http://www.cnbc.com/id/102266409#

It is no surprise that new technology of hydraulic fracturing and horizontal drilling has increased oil and natural gas production. This technology has shocked the market resulting in a 40% price decrease. At the end of this week, oil has dropped to an average of $57 a barrel while the national average of gasoline has dropped to $2.60 per gallon. Despite major controversy, the decrease in prices is bettering the U.S. economy through many facets.  Over the last five years, the economy has consistently been at a 2% growth rate per year while this year we are at 3%.

            The international Energy Agency’s 2015 forecast shows a reduction in demand growth of 900,000 barrels a day to the previously projection of 1.1 million barrels a day globally. Moreover, the U.S. production predicts to grow to 685,000 barrels a day next year. What does all this mean for the future? Well, since 2011, the U.S. dollar has appreciated by over 20% meanwhile gold and oil has fallen 40% in the past 6 months. The dollar is the world’s reserve currency therefore commodities are priced in dollars; the dollar causes lower commodity prices. This occurred in the 1980’s and 1990’s but when the dollar collapsed in the 2000’s, gold and oil skyrocketed. Today, commodity prices are falling while the purchasing power of the dollar is increasing. With inflation being low, this means the money in your pocket can purchase a lot more in the open market.

            A problem being talked about today is due to the Fed adopting a 2% inflation target. Many believe this is a problem because it will double prices as generations pass. Paul Volcker, the greatest American central banker argued the adoption by the Fed because our job today is to maintain the dollar’s stability.  The ultimate goal is to keep oil prices down and keep the dollar where it’s at today, which will help grow the economy in a positive direction.

Do you think the Fed is conducting the correct policy or is Volcker right in terms of creating inflation?

China's factory output growth declines

 Industrial production rose by 7.2 percent over a year earlier. The Chinese officials decide to commit "new normal" of slower growth based on Chinese consumption. Their economic growth is 7.3%. The import decreased due to lack of domestic demand.
The officials say that they can solve this problem. but they cut interest rate unexpectedly in  November 22. As a result, economic growth may fall to 7.1 or even 7 because of that. Investment slows in 11 months as rate of 15.9.
"Officials seem willing to allow investment to cool further, as long as employment and consumer spending remain strong,"- an analyst said.
Analysts told the president that it will face downward pressure and increase difficulty for the business. They want the government to reduce excess productivity and wrestle with heavy debt made by state companies and local government.
 As an economist's perspective, I don't think decrease interest rate is a great idea, because of inflation rate that goes with it. Of course it boosts investment demand, but also increase debt too, that results in crowding out. With the situation of decreasing in domestic consumption, this will result in more excess production. The problem hasn't been solved. Instead, they should make Chinese product more appeal to other countries, so that export will increase more.
Source:
http://finance.yahoo.com/news/chinas-factory-output-growth-declines-092450160.html

How Chicago Saved its Small Businesses

http://money.cnn.com/2014/12/12/smallbusiness/chicago-rahm-emanuel-innovation/index.html?iid=SF_E_River

Nearly half of Chicago's workforce is supported by small business, and the mayor, Rahm Emanuel, is working to pass new legislation to support those small businesses.  Some of the improvements being made in the city are availability to microcredit loans, streamlined approaches to open new businesses faster (the time it takes to open a restaurant in the city has fallen 33%, from 66 to 44 days), and reducing the number of business licensing types.  This will save small business $1-2 million annually.  The "Innovation Delivery Team" is the Chicago based program in charge of these and other changes.  Its specific goal is to make it easier for small businesses to get started and succeed, and so far, it seems to be working well.  According to the article:

 "already, $1.4 million in micro-loans has been allocated to 160 business, 80% of which are minority-owned and 56% women-owned. These loans have helped create and retain 700 small business jobs."

US oil ban lifted?

The US has had a ban on oil exports for over 40 years. This ban could be lifted after a new study came out saying that the US is producing more oil than Saudi Arabia for the first time in decades. This would continue to push oil prices down for Americans who pay at the pump. Environmentalists are against this because they say this will increase the chances of an oil spill happening close to home. AAA has yet to take a position on if America should lift the band. This debate is expected to hit the floors of Washington in the next coming months.

What do you think, should America lift the band?

http://money.cnn.com/2014/12/12/news/economy/oil-export-ban/index.html?iid=SF_E_Lead

Working hours: Proof that you should get a life

Link to the Article

This article discusses about how reducing working hours can help improve workers' productivity. A British economist named John Hicks said that with "longer hours, output per hour would fall. As workers slaved away for longer and longer, they would lose energy, which would make them less productive". In the jargon, "the marginal product of hours is a constant until the knot at about 50 hours after which it declines". Which means worker output at seventy hours has not much difference from output at fifty-one hours. The extra nineteen hours was just wasting time.

The article suggests that people who work longer hours will have lower productivity, but what if people work longer just because they are less productive? I am not saying this applies to all, but I know there are people who have to work longer simply due to their low efficiency. But I disagree with some companies stressing over working hours instead of looking at output. Workers are human beings and they need rest in order to reach their full potential.

Congress narrowly averts government shutdown

The House approved a $1.1 trillion spending bill that keeps the government open through September. This was passed at 9:57, narrowly averting a government shutdown that was slated to take effect at midnight.

The vote capped a day of drama in the House. The chamber recessed for nearly seven hours as leaders scrambled to find votes to move the bill across the finish line. The chaos was fitting for a Congress that has already gone through one government shutdown and has been generally characterized by turmoil and inertia.

Since government spending is such an important part of our countries output it is critical that the government avoid another shutdown. Last year, when the shutdown occurred, hundreds of thousands of peoples lives were shaken up as government agencies stopped working. It is definitely good that these politicians were able to actually get something done for once and get this passed.

America is Shaking Off It's Addiction to Oil

http://www.bloomberg.com/graphics/2014-america-shakes-off-oil-addiction/

This graphic shows recent trends in oil consumption in the US (and imports/exports) while providing evidence for why these trends may be occurring. The most interesting, and probably the one that accounts for a large part of the difference, is the increased fuel efficiency in vehicles. Even a 1mpg difference in fuel efficiency averages out to probably a 4-6% less fuel consumed over the year (assuming an average of somewhat less than ~25mpg, as most of the cars being sold now according to the graphic have that kind of fuel efficiency; with many people using previous, less efficient models, it seems reasonable that the overall average would be lower).

It is also interesting to not the increased use of public transportation among the millennials, though this is also likely due in part to the fact that none can drive yet and many still need to take busses, trams, etc. to school.

Finally, the trend towards decreasing reliance on the OPEC nations for oil is nice; more US independence when it comes to reliable energy is always a good thing. All in all, this set of graphics shows a lot of interesting trends, the development of which will be fun to watch.

Atlanta reduces homeless population (and saves money in the process)

This article mainly speaks about one of five Innovation Delivery Teams, funded by Bloomberg Philanthropies with the goal of helping city halls around Georgia solve problems holistically. Atlanta's team is focusing on homelessness and customer service. The team partnered with government agencies and community stakeholders to create solutions that substantially reduce homelessness and create an entirely new way for residents to access information.
The main issue in finding a way to reduce homelessness is the fact that the issue touches so many different government agencies. Focusing on a single one causes the government to overlook opportunities that may be more impactful.
In 2012, the team started developing a plan to reduce the 4,400 people who were either homeless or living in emergency shelters. Data they found concluded that homelessness has caused mounting public costs of around $63 million, $2 million to the local police department, and over $61 million to a single local hospital. Data also revealed that out of over the one hundred programs that service the homeless, there were no common goals. This made it difficult for the government to channel money into a more comprehensive strategy.
With this and other data, the team constructed and launched Unsheltered No More, a "collective action campaign" that planned to house over 800 homeless by December 2013. That goal was exceeded, with the program housing over 1,000 people. The team also worked to enact policies and set up a nonprofit dedicated to resource distribution to make sure that their efforts were sustained and built upon.
I think that this was a great idea. In big cities with more temperate climates, homelessness is rampant. There are so many types of people forced onto the streets and so many vastly different efforts being employed to help them. Streamlining the goals of public organizations and government entities in order to come up with a clearer goal and specific channels through which to reach that goal. The Innovation Delivery Team's work in Atlanta proves that many more people can be helped and given shelter if there is a common goal. I believe that programs like this should exist in all big cities because it not only helped bring people off the street, but immensely reduced the monetary cost of homelessness to local organizations.

http://money.cnn.com/2014/12/11/news/economy/atlanta-kasim-reed-innovation/index.html?iid=A_E_News

Cheap gas is akin to a $60 billion tax cut

http://money.cnn.com/2014/12/10/investing/oil-prices-akin-to-tax-cut/index.html?iid=SF_E_River

Gas prices have gone down dramatically in recent months, on average a gallon of regular gas costs $2.64 according to AAA. In extreme cases, in some places, prices has fallen to below $2 a gallon. This price drop has given a large boost to the U.S. economy. As gas prices get lower, that is saving households a lot of money. All this money that households are saving becomes disposable income, money that people can use to but other things or save. This helps the economy by increasing spending and saving, retailers dream. It is estimated that the lowering gas prices will increase around 1/2 of a percent to the annual GDP. Can gas prices go too low? Will they go too low? Are there negative effects to the lowering of gas prices so lower other than hurting the energy industry itself? 

Want to get rich? Don’t pay off your loans

This article reveals the financial strategy of a Pennsylvania engineering student after graduation with current student loan debt of $55,000.  The common mentality after graduation is to desperately attempt to tackle your debt as soon as possible, which is exactly what he started to do.  With a starting salary of $48,000 dollars, he began making payments monthly of $460.  After awhile, he began wondering why he was rushing to pay off 3% to 6% interest rates when the S&P has historically returned 11%.  He then began paying the lowest amount he possibly could on his debt and started putting the monthly $460 into an investment account instead.  By age 26, his debt amount and investment account each equaled $35,000.  He then had the choice to either cash out and wipe out his loans, or continue on course allowing the investment account to continue growing.  This sounds like a very enticing idea, except that when he came up with the plan of investing the year was 2009, when stocks were very cheap and he got bargain deals.  So now that the stock market prices have recovered, would the plan still be worth the risk for today’s graduates?  

http://money.cnn.com/2014/12/11/investing/dont-pay-off-your-student-loans/index.html?iid=HP_LN

Making the best (or worst) of a low price

Source: http://www.economist.com/news/finance-and-economics/21635510-what-oil-cartel-up-making-best-low-price

With oil prices lower than $70 a barrel, some OPEC members are doing nothing to bring the price back up. Saudi Arabia is sitting on $900 billion in savings and can afford to sit around with such low prices. Additionally, the fact that Saudi Arabia can produce oil at a cost much lower than many other members of OPEC furthers this point.

However, if OPEC is acting as a cartel shouldn't it be looking out for other members? Venezuela, is currently suffering from these low oil prices in the worse way possible. They are cash strapped and predicted to default on a number of financial obligations in the coming weeks.

As an organized cartel do OPEC members have a responsibility to help other members out (e.g. Saudi Arabia and Venezuela)? If so in what capacity?

Airline fares set to fall in 2015, Iata predicts

This article talks about the predicted decrease in airline fares from 2015. This is mainly due to the fall in oil prices, which a lot of us had already predicted.  According to the International Air Transport Association (Iata), average return fares for air passengers will be 5.1% lower next year compared with 2014. The industry body represents 250 airlines, accounting for 84% of global air traffic. The major airline companies are expected to lower their fares because higher profits as a result of cheaper fuel and faster global growth. Iata also expects the global airline industry to report a record $25 billion profit next year. More specifically, Iata's 2015 forecast equates to an average 3.2% profit margin for airlines. Iata's forecast also differed dramatically according to region, with North American airlines expected to see profit margins of 6% next year while European airlines are only expected to see profit margins of 1.8%, which Iata blamed on high regulatory costs, infrastructure inefficiency and onerous taxation. Iata also said it expected global economic growth to be 3.2% next year, up from 2.6% in 2014 - marking the first time it has exceeded 3% since 2010.

http://www.bbc.com/news/business-30413173

Negative Consequences of Income Inequality in the UK

Source

Income inequality in the UK has been increasing for about 30 years, and as a result has led to a loss of about £134.5 billion in the country's GDP. This is a growing problem because it comes to show that it has a significant negative impact on economic growth. One of the reasons behind this inequality is due to the fact that there is a loss of educational opportunities for people who are underprivileged and does not have access to a better education. According to the OECD, the wage gap between 34 countries that are a part of the organization is at it's highest, with the wealthiest 10% of people making almost 10 times the amount of the poorest. Economists say that to fight this rise in inequality, they suggest getting rid of tax breaks that only really benefit the wealthy, and have higher top rates of income tax. 

The Fed Prepares to Make a Mistake

http://www.economist.com/blogs/freeexchange/2014/12/monetary-policy

      This article discusses the extremely low inflation rates in our current economy and how these could potentially harm us in the future. As we discussed in class, the Fed uses inflation as a monetary policy to offset a shock. However, these persistent low rates of inflation essentially remove this option from the table. If we were faced with another negative shock, the Fed would have a hard time increasing the interest rate without causing deflation. In addition, the real interest rates would fall below zero thus requiring the Fed to use unconventional methods such as quantitative easing. What's clear, is that the Fed needs to do something about low inflation rates now to safeguard us from potential shocks in the future.

Labor Market Woes Remain

http://www.usnews.com/opinion/economic-intelligence/2014/12/04/job-growth-rises-but-labor-market-woes-remain

          U.S. economy added 208,000 jobs in November says a recently released employment report. The Bureau Of Labor Statistics added that although this is a good sign but it does not look like there labor market is gaining any steam. 
         The article talks about how there is a need to shift focus to wage growth, labor force participation rates, the quality of jobs being created, long-term unemployed workers and the skills gap.
         The labor participation rate currently is 62.8% , which has not been seen since the 1970's. October 2014, the bureau calculates that there are nearly 800,000 “discouraged workers” across the country who have given up finding a job. If this continues it seems as if the unemployment would rise as job opportunities decrease.

Tesla's stock plunges along with oil prices

       According to a recent CNN Money article, low oil prices may have already started to affect electric car sales. Shares of Tesla have decreased more than 25% from their all-time high in early September. During the same time frame, crude oil prices also dropped over 30%. The shares of SolarCity, the solar panel that Tesla's CEO is chairman of, have fallen more than 30% as well. The article notes that the decision for many people to buy Teslas is based more on environmental concerns rather than economic ones. The author suggests that someone who is willing to fork over the money for a Tesla probably isn't extremely worried about gas prices. The decline in Tesla stock prices may be partially due to low expectations of investors, according to the article. Overall, falling oil prices definitely aren't helping electric car companies, but it's not likely that oil prices are the only reason that Tesla's stock is down.

http://money.cnn.com/2014/12/08/investing/tesla-stock-oil-prices/index.html?iid=HP_River

The new economics of oil: Sheikhs v shale

OPEC stated goal is to keep oil prices stable in the international economy, though they definitely haven't been doing a good job as oil as fallen from $115/barrel to around $70 in a short time. This is partly due to a slow world economy, but mainly to the increase in supply of oil from North Dakota and Texas. Oilmen in the US have worked to improve drilling of oil from shale, which was previously believed to not give oil. This has raised America's oil production to nearly 9m barrels a day, only 1m b/d behind Saudi Arabia's output. There is now a surplus of oil.

These low prices should boost the global economy according to the author. A typical American "might be $800 a year better off--equivalent to a 2% pay rise." Countries that import a lot, like Euro zone, India, Japan, and Turkey are also benefiting. The author argues global GDP should rise because "this money is likely to be spent rather than stashed in a sovereign-wealth fund." The falling prices should lower inflation even more, "and so may encourage central bankers toward looser monetary policy."

However, not everyone benefits. "Oil-producing countries [like Venezuela, Nigeria, and Russia] whose budgets depend on high prices are in particular trouble."The overall economic effect seems to be positive, but it will only last as long as the prices stay low. Saudi Arabia has adopted a strategy: "let the price fall and put high-cost producers out of business." This will decrease supply and cause prices to rise. This is already happening and "a rash of bankruptcies is likely" which will hurt shale-oil's reputation.

In the short run, many shale-oil wells may close, but some will persist into the future. The technology is new, and rapidly improving in efficiency. The cost has fallen from $70/barrel to $57/barrel in the past year. The firms who survive will have more shall to exploit, and not only in the US. The investment in shall oil is also much smaller the investment for conventional oil fields.

Overall the changes in oil economics should produce more stability. According to the author "America's shale is a genuine rival to Saudi Arabia as the world's marginal producer. That should reduce the volatility not just of the price but also of the world economy." This is an interesting case in which we can see many of the macroeconomic principles we have learned at play.

Source: http://www.economist.com/news/leaders/21635472-economics-oil-have-changed-some-businesses-will-go-bust-market-will-be

Who's hiring? Almost everyone

http://money.cnn.com/2014/12/05/news/economy/jobs-hiring/index.html?iid=SF_E_River

It seems like everywhere you look businesses are hiring. About 70% of U.S. industries added jobs in November.  That explains how the U.S. economy added 321,000 jobs in November, blowing past even the most optimistic expectations. The government's monthly jobs report released Friday showcased that 2014 is heading to become the best year for job growth this century.  HIring was more widespread in November than any time since early 1998. By comparison: this time five years ago, 86% of U.S. companies were cutting jobs.  

Consumers are spending again in a year of strong economic growth, driven by low energy prices and pent-up demand for cars and homes. Job openings are almost at a 13-year high as companies try to meet the latest wave of demand. Businesses are asking their employees to work longer hours and moving some part-time workers to full-time status. Employers say they expect to be adding jobs in 2015 as well.  Very few are cutting staff. Those include department stores and electronics chains that are losing ground to online shopping or other competitors. Also trimming jobs are textile and clothing manufacturers and coal mining companies. Some government employers, including local schools and state governments, are also cutting jobs. 

It's great to see that employment is increasing.  This article shows that consumers confidence has a big impact on how the economy recovers. Things such as low gas prices make people feel better about the economy and leads to spending more and employers employing more.  Hopefully several factors that increase consumer confidence continue to do so.