Tuesday, April 19, 2011
Encore of corporate tax holiday unlikely to stimulate economy: study
A repeat of a corporate tax holiday that found little success in stimulating the economy in 2005 is still a long-shot to jump-start a stagnant U.S. economy, says a University of Illinois expert in corporate and international taxation.
How American consumers view debt: a case study
A new study published this month suggests that while younger Americans are more smitten with credit cards and debt than older Americans, the older generation helps enable their children by encouraging use of credit as a "safety mechanism."
Inflation Explained
An animated video discussing why economists continue to insist inflation isn't a problem, despite evidence to the contrary at grocery stores and gas stations.
The video, by Omid Malekan, depicts inflation as beneficial to the wealthy, whose stocks rise during inflationary periods, at the expense of lower-class Americans, who own fewer stocks and are more immediately affected by rising commodity costs that take up a larger percentage of their income.
"According to economists, if a fancy smartphone this year costs the same as it did last year but has more features, then it's deflating."
"But what about the people that can't afford a fancy phone?"
"Those people are just screwed."
The video, by Omid Malekan, depicts inflation as beneficial to the wealthy, whose stocks rise during inflationary periods, at the expense of lower-class Americans, who own fewer stocks and are more immediately affected by rising commodity costs that take up a larger percentage of their income.
"According to economists, if a fancy smartphone this year costs the same as it did last year but has more features, then it's deflating."
"But what about the people that can't afford a fancy phone?"
"Those people are just screwed."
http://omidmalekan.com/
The story of the bank bailouts, and what we've gotten so far in return
What the Federal Reserve is up to, and how we got here.
The story of the bank bailouts, and what we've gotten so far in return
What the Federal Reserve is up to, and how we got here.
U.S Multinationals Increasingly Hiring Abroad, Firing At Home
Large U.S. companies increasingly hire abroad and fire in America, according to new government data.
In the last decade, American multinational corporations, which together employ one-fifth of all U.S. workers, decreased domestic employment by 2.9 million workers while adding 2.4 million jobs overseas, the Commerce Department reported on Monday.
In 2009, a devastating year for the global economy, U.S. multinational companies' worldwide employment shrunk by 4.1 percent to 31.3 million workers. But the cuts were much sharper at home than abroad. Domestic employment by the same companies shrunk by 5.3 percent, leaving 21.1 million with jobs, while their overseas counterparts lost 1.5 percent of their workforce, with 10.3 million still employed.
"Emerging markets [are] growing at two-and-a-half times the speed of industrialized countries, which has made it imperative for companies to look abroad for opportunities," said Lynn Reaser, chief economist at Point Loma Nazarene University in San Diego.
For large American multinationals, the geopraphical calculus is simple: Follow the money.
"[The report] is not surprising at all. It is harder and harder for companies in the U.S. to find the right skilled labor at the right price point," said Dave Niles, president of SSA &Co, a global operations consulting firm.
Construction titan Caterpillar, with a market cap of $67 billion, has added more jobs abroad than in the U.S. -- a result of their sales growing faster overseas than at home, spokesman Jim Dugan told the Wall Street Journal
In the last decade, American multinational corporations, which together employ one-fifth of all U.S. workers, decreased domestic employment by 2.9 million workers while adding 2.4 million jobs overseas, the Commerce Department reported on Monday.
In 2009, a devastating year for the global economy, U.S. multinational companies' worldwide employment shrunk by 4.1 percent to 31.3 million workers. But the cuts were much sharper at home than abroad. Domestic employment by the same companies shrunk by 5.3 percent, leaving 21.1 million with jobs, while their overseas counterparts lost 1.5 percent of their workforce, with 10.3 million still employed.
"Emerging markets [are] growing at two-and-a-half times the speed of industrialized countries, which has made it imperative for companies to look abroad for opportunities," said Lynn Reaser, chief economist at Point Loma Nazarene University in San Diego.
For large American multinationals, the geopraphical calculus is simple: Follow the money.
"[The report] is not surprising at all. It is harder and harder for companies in the U.S. to find the right skilled labor at the right price point," said Dave Niles, president of SSA &Co, a global operations consulting firm.
Construction titan Caterpillar, with a market cap of $67 billion, has added more jobs abroad than in the U.S. -- a result of their sales growing faster overseas than at home, spokesman Jim Dugan told the Wall Street Journal
The End of the Dollar
The dollar is still the dominant reserve currency, but it faces clear competition. On this Global Roundtable, the panel considers what the future of the global monetary system will look like.
What Currency for the World?
http://bigthink.com/ideas/37964
Monday, April 18, 2011
Standard & Poors warning over downgrade for the US send markets tumbling
Stock markets tumbled around the world and gold hit a new record high amid signs the debt crisis that has gripped Europe for the past year has now spread to the US.
In a move that sparked turmoil on financial markets, Standard & Poor’s warned it could downgrade America’s pristine credit rating unless Washington tackles its soaring budget deficit.
The ratings agency said it would strip the US of its ‘AAA’ standing unless it begins implementing austerity measures within two years.
http://www.dailymail.co.uk/money/article-1378257/Standard-amp-Poors-warning-downgrade-US-send-markets-tumbling.html
In a move that sparked turmoil on financial markets, Standard & Poor’s warned it could downgrade America’s pristine credit rating unless Washington tackles its soaring budget deficit.
The ratings agency said it would strip the US of its ‘AAA’ standing unless it begins implementing austerity measures within two years.
http://www.dailymail.co.uk/money/article-1378257/Standard-amp-Poors-warning-downgrade-US-send-markets-tumbling.html
Sunday, April 17, 2011
Blind Tasters Can't Tell Cheap Wines From Expensive
People can't tell the difference between cheap and expensive wine, says psychologist Richard Wiseman after conducting a survey of 578 drinkers at the Edinburgh International Science Festival, reports The Guardian. The participants sampled a variety of red and white wines in a blind taste test with prices ranging from about $6 to $50. The results concluded that people could only tell the difference between cheap and expensive white wines 53% of the time, and 47% of the time for red wines.
In other words, it's about the same percentage as if they merely guessed. The Claret was the hardest to pinpoint, with only 39% getting it right, despite the price tag differences of about $5 for one bottle and $23 for the other. The Journal of Wine Economics backs up Wiseman's findings. Its 2008 study, "Do More Expensive Wines Taste Better?" reported that:
Individuals who are unaware of the price do not derive more enjoyment from more expensive wine. In a sample of more than 6,000 blind tastings, we find that the correlation between price and overall rating is small and negative, suggesting that individuals on average enjoy more expensive wines slightly less.
Maybe it's time to add some swill wine to that expensive Bordeaux collection.
Research: Most can't tell pricey wine from cheap
Do More Expensive Wines Taste Better?
Evidence from a Large Sample of Blind Tastings*
Individuals who are unaware of the price do not derive more enjoyment from more expensive wine. In a sample of more than 6,000 blind tastings, we find that the correlation between price and overall rating is small and negative, suggesting that individuals on average enjoy more expensive wines slightly less.
Maybe it's time to add some swill wine to that expensive Bordeaux collection.
Research: Most can't tell pricey wine from cheap
Evidence from a Large Sample of Blind Tastings*
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