>> Click Here for Historical Wall Post Listing <<
Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries (and sometimes longer ones) of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number included.
This feature is published every day late afternoon New York time. For early morning review of headlines see "The Early Bird" published every day in the early am at GEI News (membership not required for access to "The Early Bird".).
Every day most of this column ("What We Read Today") is available only to GEI members.
To become a GEI Member simply subscribe to our FREE daily newsletter.
The rest of this post is available only the GEI Members. Membership is FREE - click here.
Articles about events, conflicts and disease around the world
Soaring home prices not a 'bubble': Realtors (CNBC) The U.S. housing market is booming (compared to 2009-2013 at least) and realty persons are excited. What you don't get from this article is that median house prices are nearing a record but median real household income is down over the past 9 years and are lower today than since sometime in the last century. That indicates real constraints for housing sales volumes. (See next article.) But not to worry for realtors. Here is Lawrence Yun,chief economist for the NAR (National Association of Realtors), comparing apples (today's market) to oranges (2006 market):
The Median Household Income Rose in April (Doug Short, Advisor Perspectives dshort.com) "Middle America" is losing ground:
Other Economics and Business Items of Note and Miscellanea
The Obama Administration Is Still Using Economics, Not Scare Tactics, to Sell Climate Change Action (New Republic) The EPA (Environmental Protection Agency) is out with a peer-reviewed study on Monday that says the United States would see benefits in the hundreds of billions of dollars if the world takes aggressive action on climate change. See Climate Change in the United States: Benefits of Global Action.
Inequality: The Rhetoric and Reality (Foundation for Economic Education) The author, James A, Dorn, argues for refraining from government action (as through tax policy, for example) to reduce income inequality. He says:
The Crowding-Out Tipping Point (Foundation for Economic Education) Econintersect: This is a mixture of good philosophy and bad empiricism. For example, excessive debt is decried philosophically (good) and then characterized with a crude empiric which ignores the role of private debt in creating and limiting economic growth (bad). In most developed countries private debt is significantly greater than government debt and any, even crude, empirical treatment must include that data set. And the crowding out hypothesis is an unfortunate citation because government spending (or investment) crowding out private spending (or investment) occurs in only specific and uncommon situations. These situations must involve competition for a scarce resource. Perhaps the biggest resource factor would be labor, so scarcity of labor would be necessary and simultaneous increase in government employment would have to be occurring for crowding out of private employment opportunity to occur. There have been rare occasions when (1) unemployment has been less than 3%, (2) the civilian labor force participation rate has been 2/3 or greater (66.67%) and (3) government employment was increasing all at the same time. See the three graphs below. The third graph is especially informative as regards government crowding out private economic growth. The most rapid periods of GDP advancement have coincided with periods of outsized government employment growth. That doesn't prove that government growth directly creates GDP growth (we don't think that is likely) but it is a strong indication that for labor there is no case for government crowding out private endeavors. There is far more at play here than a simple crowding out effect. Finally, Dorn makes a statement which is valid (regarding "the market") only for a free market, not one in which a very few dominate in control.
Econintersect Behind the Wall
|.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet|
|Asia / Pacific|
|Middle East / Africa|
This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved