Sunday, April 13, 2014
Total Taxes on Wages Are Rising
In response to the recent recession, a fiscal expansionary policy was put into place in many parts of the world including the United States, cutting taxes to increase spending and promote economic growth. However in the past few years the trend has reversed in an attempt to lessen the government debt in the United States. Income taxes are now nearly back to where they were in 2007 and the whole recession began. Many countries are looking into ways to shift the tax burden through methods such as fiscal devaluation where the employers costs are cut through reducing payroll taxes.. It seems like there is always a back and forth between which should be done in the economy, growth? or reducing the deficit? It is hard to say whether one is more important than the other, but aybe a new idea like fiscal devaluation will be able to help some economies.
http://www.nytimes.com/2014/04/12/business/economy/total-taxes-on-wages-are-rising.html?ref=economy
Herbalife under investigation
Herbalife is a popular weight loss healthy shake. They have items such as protein shakes, meal drinks, and pre workout powders. This successful business also has their company name over the largest MLS soccer team jersey the LA Galaxy. However, this promising company is now under investigation for how they sell and market their product. They are saying it is basically a pyramid scheme. They defend themselves claiming it is no different then any other companies using a multi level marketing style. The day the accusation came out Herbalife stock dropped by 30 percent and most likely will continue to fall. This article caught my eye because I had a few friends that sold Herbalife. It didn't seem as if they were getting ripped off by selling their product. On the other hand this investigation seemed to be very similar to a company known as Verve. I also had friends sell this and they did get ripped off. Verve is an absolute pyramid scheme and I bet if they ever get as big as Herbalife they would get probed as well.
http://money.cnn.com/2014/04/11/investing/herbalife-shares/
http://money.cnn.com/2014/04/11/investing/herbalife-shares/
N. Korea blasts reunification offer as 'psychopath's daydream'
South Korea's first female president, Park Geun-Hye, has recently announced a proposal to instigate unification between the the North and the South. She made her announcement on Saturday in Germany and even mentioned using Germany as her ideal economic model. Her step by step plan includes expanding the reunion of separated families, increasing cross-border economic exchanges, increasing cross-border cultural exchanges, and finally allow the South to provide humanitarian aid to the North.
However, North Korea's response to the South's president was slightly insulting. Pyongyang said that the South's idea to begin laying the groundwork for reunification was the "daydream of a psychopath."
Although this response seems a bit salty, it is not surprising to me whatsoever. The North has no intention of reunification and it has been clear from the start.
http://news.yahoo.com/n-korea-blasts-reunification-offer-psychopaths-daydream-031617683.html;_ylt=A0LEV1nvOEtTfyMA9IZXNyoA;_ylu=X3oDMTB0ZWo3dXFsBHNlYwNzYwRjb2xvA2JmMQR2dGlkA1ZJUDMzM18x
However, North Korea's response to the South's president was slightly insulting. Pyongyang said that the South's idea to begin laying the groundwork for reunification was the "daydream of a psychopath."
Although this response seems a bit salty, it is not surprising to me whatsoever. The North has no intention of reunification and it has been clear from the start.
http://news.yahoo.com/n-korea-blasts-reunification-offer-psychopaths-daydream-031617683.html;_ylt=A0LEV1nvOEtTfyMA9IZXNyoA;_ylu=X3oDMTB0ZWo3dXFsBHNlYwNzYwRjb2xvA2JmMQR2dGlkA1ZJUDMzM18x
"Firearms and Ammunition Industry Economic Impact Report 2013"
This article is from the National Shooting Sports Foundation website. The article shows the impact that the firearm business has on this countries economy. As the current presidential office continues to battle with the 2nd Amendment, a fear drives gun owners to purchase merchandise before it is deemed illegal. In 2013 the firearm industry was responsible for $37.7billion in total economic activity. As the battle between both sides of the gun rights issue continues, these numbers will continue to increase due to the fear that this industry could soon come to an unconstitutional halt.
Firearms and Ammunition Industry Economic Impact Report 2013
Firearms and Ammunition Industry Economic Impact Report 2013
Fed's Stein: Financial Stability Should Inform Policy
http://www.nytimes.com/reuters/2014/04/13/business/13reuters-usa-fed-stein.html?src=busln
This article talks about a Federal Reserve policy maker that thinks that Financial Stability should be looked at as well when making a monetary policy. It would take looking past just the interest rate, unemployment rate, and taking more supervision. The problem though is that he didn't mention a way that this could be gone about. Any ideas on how they could go about this?
This article talks about a Federal Reserve policy maker that thinks that Financial Stability should be looked at as well when making a monetary policy. It would take looking past just the interest rate, unemployment rate, and taking more supervision. The problem though is that he didn't mention a way that this could be gone about. Any ideas on how they could go about this?
The Great Moderation is Back
http://economix.blogs.nytimes.com/2014/04/11/the-great-moderation-is-back/?_php=true&_type=blogs&module=BlogPost-ReadMore&version=Blog%20Main&action=Click&contentCollection=Business%20Day&pgtype=Blogs®ion=Body&_r=0#more-173575
The Great Moderation was a term used to describe the period in the 1980s when the economy was in a period of relatively steady growth.
With the economic recession still fresh in our minds, very few would relate our current times to the Great Moderation. However, Jason Furman, the head of the President's Council of Economic Advisers argued that the Great Moderation is currently in progress.
He argues that over the last five years, there has been a pattern of steady growth, even the great recession does not alter this, as he states that economic volatility is still lower on average compared to earlier decades.
The Great Moderation was a term used to describe the period in the 1980s when the economy was in a period of relatively steady growth.
With the economic recession still fresh in our minds, very few would relate our current times to the Great Moderation. However, Jason Furman, the head of the President's Council of Economic Advisers argued that the Great Moderation is currently in progress.
He argues that over the last five years, there has been a pattern of steady growth, even the great recession does not alter this, as he states that economic volatility is still lower on average compared to earlier decades.
Health reform: Medicare, the opera
This article talks about how this past month has been a good month for Obama care, in that about 7 million Americans have signed up for various healthcare plans. It also discusses how because of this, the country has it's lowest rate of uninsured individuals.
The article continues on to discuss that this may not be a good thing for democratic political elections. Many elderly Americans are on Medicare, and they can still vote. But, Obamacare cuts Medicare spending, meaning that the elderly are getting less coverage. It continues on to talk about how both democrats and republicans believe that Medicare spending should be cut some, but the republicans will not mention this in their platform because the Medicare citizens are more likely to vote against Medicare cuts.
The article continues on to discuss that this may not be a good thing for democratic political elections. Many elderly Americans are on Medicare, and they can still vote. But, Obamacare cuts Medicare spending, meaning that the elderly are getting less coverage. It continues on to talk about how both democrats and republicans believe that Medicare spending should be cut some, but the republicans will not mention this in their platform because the Medicare citizens are more likely to vote against Medicare cuts.
Stay-at-home moms on the rise
http://money.cnn.com/2014/04/08/news/economy/stay-at-home-moms/index.html?iid=SF_E_River
The amount of stay-at-home moms has been steadily on the rise over the past 15 years, which comes as a surprise to many. Today, 29% of mothers in America stay at home--meaning aren't included in the labor force. It is often thought that stay-at-home moms are only able to do so due to their spouse being wealthy, but in reality over a third of these moms live under the poverty line, while 49% have a high school diploma or less. These numbers point to the notion that there are not enough jobs in the economy, because of the fact that many of these stay-at-home mothers are not choosing to not work, but are actually unable to find work, and do not have an excessive amount of time to continue searching for a job over a long period of time--hence why they are not included in the labor force.
The amount of stay-at-home moms has been steadily on the rise over the past 15 years, which comes as a surprise to many. Today, 29% of mothers in America stay at home--meaning aren't included in the labor force. It is often thought that stay-at-home moms are only able to do so due to their spouse being wealthy, but in reality over a third of these moms live under the poverty line, while 49% have a high school diploma or less. These numbers point to the notion that there are not enough jobs in the economy, because of the fact that many of these stay-at-home mothers are not choosing to not work, but are actually unable to find work, and do not have an excessive amount of time to continue searching for a job over a long period of time--hence why they are not included in the labor force.
Minnesota to increase minimum wage
Minnesota is the next state to join the trend of increasing the minimum wage. State officials approved the raise last Thursday. The increase will raise the minimum wage to $9.50 and is set to begin in 2016. However the change does not apply to every company or business. the bigger the company, the more they have to pay closer to that $9.50 mark. Some smaller employers who are exempt from certain federal labor laws can pay a lower rate. That will increase to $6.50 hourly in August, $7.25 the following year, and then $7.75 a year later. The minimum wage will also be set at $7.25 for workers at larger businesses if they are under the age of 18 and as a temporary training wage for those 19 and 20 years old. That rate is also the federal minimum. Obama also commented on this raise "I urge Congress to follow Minnesota's lead, raise the federal minimum wage, and lift wages for 28 million Americans,"
http://money.cnn.com/2014/04/10/news/economy/minnesota-minimum-wage/index.html?iid=SF_E_LN
http://money.cnn.com/2014/04/10/news/economy/minnesota-minimum-wage/index.html?iid=SF_E_LN
http://money.cnn.com/2014/04/11/investing/herbalife-shares/index.html?iid=HP_River
Herbalife shares plunge
Herbalife shares plunge
Herbalife's shares ended the day 14% lower after the publishing of a Financial Times article about the company. This article contains an allegation by hedge fund manager Bill Ackman that the company operates as a pyramid scheme. An unnamed law enforcement official confirmed to CNN on Friday that the U.S. Attorney's Office and FBI have been investigating Herbalife for several months. Herbalife has strongly defended itself against Ackman's claims, saying its business model is no different from other multi-level marketing firms. Herbalife claims that it has no knowledge of any ongoing investigation. The company's stock price fell last month after it announced that it was the subject of a civil inquiry by the FTC.
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