Recently released data from Freddie Mac revealed that nearly 50% of Americans, who have recently refinanced their homes to take advantage of lower interest rates to reduce borrowing costs, are taking cash out. This means that the home owner is increasing the principal balance, and reducing equity. This is the height of folly. Apparently, people … Continued
It is beginning to look like the answer is yes. Historically, conventional wisdom held that China’s low wage rates were the trump card in manufacturing location decisions. Things are changing. While low wages were certainly a major factor in China’s economic competitiveness, low taxes were also a material factor. Today in China, wages are going … Continued
Is China moving towards using coal to power cars and trucks? Consider: China is the world’s largest importer of oil. China is the world’s largest producer of coal. China has a chronic shortage of electricity. In 2016 57% of China’s electric generating capacity was coal fired. China continues to build new coal generated electricity capacity. … Continued
There has always been an underground economy, sometimes referred to as a shadow economy, and more recently described as the Gig economy, with the rise of such relatively new activities, such as home and ride sharing. Investopedia defines the underground economy as illegal economic activity. Transactions in the underground economy are illegal, either because the … Continued
It is probably difficult to overstate the importance of financial prudence and personal responsibility. We were well advised regarding the importance and practicality of not paying more than absolutely necessary in the book “The Millionaire Next Door: The Surprising Secrets of America’s Wealthy”, by Thomas J. Stanley and William D. Danko. However, there are times … Continued
This is a Latin phrase that means, “first do no harm.” Non-maleficence, which is derived from this maxim, is one of the principal precepts of bioethics that all healthcare students are taught in school and is a fundamental principle throughout the world. This approach to the practice of medicine enjoys widespread support and seems to … Continued
Wikipedia defines investment as the allocation of money (or sometimes another resource, such as time) in the expectation of some benefit in the future. Wikipedia defines education as the process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits. The foregoing suggests that, before investing a great deal of time and … Continued
The economy is continuing to add jobs and the U.S. April jobs report was generally positive. On the plus side, the unemployment rate of 4.4% would suggest that the country is at, or near, full employment. However, as noted previously, the labor force participation rate remains near record lows at 62.9%. This is troubling, as … Continued
Ford Motor Company recently fired its CEO, Mark Fields. Its decision to do so was based on the stock’s poor price performance and belief that the company was not agile enough in addressing structural changes occurring in the auto industry. Personally, I have no opinion as to whether Mark Fields was the source of the … Continued
Currently, U.S. jobs data suggests that overall unemployment is relatively low, underemployment remains an issue, labor force participation is relatively low and there appears to be a significant skills mismatch, which is likely to get worse. Anecdotal evidence suggests that millions of jobs stand empty because employers are unable to fill jobs that are in … Continued
According to Wikipedia, bitcoin is both a cryptocurrency and an electronic payment system invented by an unidentified programmer, or group of programmers, under the name of Satoshi Nakamoto. Bitcoin was introduced in October 2008 to a cryptography mailing list, and released as open-sourced software in 2009. The system is peer-to-peer, allowing users to transact with … Continued
It is generally accepted by economists that for every new job, some additional jobs are a natural consequence. However, not all new jobs are created equal. The oil industry has been advertising that every new energy job creates two more positions in the economy. Volvo Car Group’s new factory near Charleston SC, may do much … Continued
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