Here is one reason why wages are not rising – the uberfication of the economy, which has actually preceded Uber for decades; outsourcing is very similar in its effects. Structural changes like these have profound impacts on the prospect of wages, prices and hence monetary policy, bond yields and equity valuations. But these effects are […]
Entries Tagged as 'Economy'
October 20th, 2017 · Comments Off on The Uber Economy
October 17th, 2017 · Comments Off on A Tax Cut For Shareholders
The proposed tax cuts aren’t likely to do much for the economy or the middle class. But they are an important factor in keeping the markets up and are likely to give the stock market another fillip. One could have too much of a good thing though, tax cuts could very well put upward pressure […]
October 4th, 2017 · Comments Off on Why Business Investment Isn’t Booming
The best way to grow the economy, and thereby top line growth and increase competitiveness is to stimulate business investment. Business investment has been sub-par for a while, despite record low funding cost and record returns on capital. We look at some possible explanations, capacity utilization, payout ratios and increasing concentration. Source: Why Business Investment […]
October 3rd, 2017 · Comments Off on It’s The Economy, Stupid!
Globalization and other forces of structural change do not necessarily have to ravage economies. An interesting example is that of the German Mittelstand small and medium sized industrial companies which have thrived in the face of globalization. Domestic policies and institutions can shape outcomes to a considerable degree. Source: It’s The Economy, Stupid | Seeking […]
September 22nd, 2017 · Comments Off on Amazon Has Become A Macro Phenomenon
Has Amazon become so big that it is starting to affect how the US economy behaves? The evidence is somewhat mixed, Amazon probably exerts downward pressure on prices, but not on wages. At least, not yet, because we are likely to be close to an inflection point where the automation of the whole logistical trajectory […]
July 12th, 2017 · Comments Off on Some Weird Facts About The U.S. Labor Market
Whether the US labor market is tight or still has considerable slack is one of the most important economic puzzles right now. For instance, it determines whether the Fed should tighten further, or not, and this is likely to have a considerable impact on investor returns. We discuss some curious reasons behind the decline in […]
June 29th, 2017 · Comments Off on The IMF Blasts The U.S.
The IMF has become pretty critical of the US economic model, arguing it isn’t addressing rising inequality, stagnant wages, declining participation and social mobility and high poverty levels. While this critique is by no means exclusive of the present government, the IMF does warn that many proposals are liable to make these things worse. The […]
June 26th, 2017 · Comments Off on What’s Behind Declining Economic Dynamism?
Several measures like new company formation show a worrying decline in US economic dynamism. Demographics and changes in retail and house ownership explain part of this. Regulation and increasing economic concentration are also to blame. Source: What’s Behind Declining Economic Dynamism? | Seeking Alpha
June 22nd, 2017 · Comments Off on The Wrong Kind of Entrepreneurs Flourish in America – Bloomberg
Because it’s just a transfer from one person to another, rent doesn’t necessarily make an economy less efficient — it’s just often unfair. But Robert Litan and Ian Hathaway, writing in Harvard Business Review, have a more dire hypothesis. They surmised that many American entrepreneurs are no longer looking for ways to produce more useful […]
June 1st, 2017 · Comments Off on PIMCO: 5 key policy areas will test markets over the next 5 years
Pimco analysts Richard Clarida, Andrew Balls, and Daniel Ivascyn cite “insecure stability” as a key factor that will affect policy decisions around the world. “Over our five-year secular horizon we believe that the global economy will be ‘driving without a spare tire’ as the Fed raises rates and shrinks its balance sheet,” write the Pimco […]