The first estimate on 3rd qtr 2009 GDP for the US is out from the Bureau of Economic Analysis via News Release: Gross Domestic Product. First glance it looks lovely - 3.5% growth after we've down for so long. But looks can be deceiving and this is Halloween season. One reason to be cautious is … Continue reading GDP 3rd Q: Looks can be deceiving, but sometimes it’s nice to hope.
From the FDIC (Federal Deposit Insurance Corp.) itself, a great brief history of banking failures in the 1920's and the Great Depression. see: FDIC: Managing the Crisis: The FDIC and RTC Experience. On average, more than 600 banks failed each year between 1921 and 1929. Those failures led to the end of many state deposit … Continue reading Banks Failures: The 1920’s and The Great Depression
via U.S. Bank Failures Exceed 100 for Year, First Time Since 1992 - Bloomberg.com. Oct. 24 (Bloomberg) -- U.S. regulators closed more than 100 banks in a single year for the first time since 1992, signaling the financial crisis hasn’t abated for lenders struggling with mounting losses tied to commercial real estate. Seven banks -- … Continue reading U.S. Bank Failures Exceed 100 for Year, First Time Since 1992 – Bloomberg.com
via National Journal Magazine - Is The American Dream A Myth?. In the generation after World War II, the median income roughly doubled, increasing faster for those on the lower rungs of the ladder than for those at the top. Since 1979, the median income has advanced much more slowly overall, and it has grown … Continue reading Is The American Dream A Myth?
Paul Samuelson is one of the great economists of the 20th century. He was one of the first ones awarded the Nobel Memorial Prize. His textbook on Principles was the standard text for at least 40 years and the model for all others. He speaks in a two-part interview on the current economic crisis, the … Continue reading To learn from history, first listen to those who lived it / made it/ studied it. – Interview w/ Samuelson
One of the political-economic legacies of the late 1970's and early 1980's was a belief in supply-side theories of tax cuts as an "engine of growth". Republicans have claimed this as a legacy from Ronald Reagan. In fact, however, the cutting of top marginal income tax rates was started by Jimmy Carter. Under Carter's administration … Continue reading Supply Side Arguments for Tax Cuts for the Rich Ignore both Theory and Evidence
One of the ways economists measure income distribution is through the use of "Gini coefficient". The Gini coefficient measures relative income distribution on a scale of 0-100. A Gini of 100 means 1 person has all of the income in a country and everybody else has zero. A Gini of zero means everybody in the … Continue reading Countries-with-the-biggest-gaps-between-rich-and-poor
My earlier post about sources 0f income for older Americans pointed out how it's really earned income, money from working a job, that separates the upper income quartile of older Americans from the other 75% of older Americans with less income. That alone blows a big hole in the image/myth of American retirement based on … Continue reading More on Employment & Older Americans: They’re Looking for Work
Retirement as depicted on TV and by banks & brokers in advertising doesn't really resemble reality. A fascinating new study of income sources among older Americans (age 50+, but particularly 65+) by Patrick Purcell at Congressional Research Service really shows this. Conclusion Americans aged 65 and older receive income from a variety of sources. Although … Continue reading Income of Older Americans – 2008
The real reason unemployment is so high is more because new jobs aren't being created, not that so many are being laid off. Normally, people are being fired/laid off/quit all the time and new jobs are being filled at the same time. The ratio of quits (what economists call fired/laid off/ quit) and hires is … Continue reading The Real Unemployment Problem