Old People Distorting Understanding Of the Employment Situation

Written by Steven Hansen Ask 10 people what is the definition of unemployment, and you will get 10 different answers.  The tragedy is that it is likely no person’s definition will match the definition used in the creation of the headline unemployment rate from the Bureau of Labor Statistics (BLS).  And the methodology the BLS …

Student Loans Destroying Consumption

Written by Steven Hansen Over the long Christmas Holiday weekend, The New York Times published For Poor, Leap to College Often Ends in a Hard Fall.  The post is a anecdotal essay correlating being poor and the inability of those who are poor to become higher educated.  This post shows how easy it was for …

Productivity is Bad: The Economy Follows

Written by Steven Hansen Pundits seem to comment on elements outside their comfort zone (areas of real expertise). Everyone is guilty from time-to-time. I know my comfort zones, and one is in labor and labor dynamics which formerly was the major part of my last life. My least read analysis are ones on productivity – …

Is US Debt Caused by the Trade Imbalance?

Written by Steven Hansen ….. the fiscal (government) deficit in the US cannot go away unless we also deal with the trade deficit. As we will see, it is a simple accounting issue, and one based on 400 years of accepted accounting principles.  –  John Mauldin Trade deficit is currently a headwind to GDP.  This …

Visualizing the Fiscal Cliff As a Life Extinction Event

Written by Steven Hansen [This post is loaded with sarcasm] A meteor coming towards the US East Coast is unlikely to stir up more headlines than the Fiscal Cliff – expiring tax cuts and forced spending cuts “destroying” America if Congress and the President cannot agree on taxation and spending. Per the Congressional Budget Office …