Nearly everyone agrees that job growth is essential to economic progress. Those who want something, from voters (votes) and/or government (tax breaks and other subsidies), tend to buttress their arguments with the promise of new jobs. Be careful, new jobs aren’t always “net” new jobs. Investors and taxpayers might want to take a closer look … Continued
A minimum wage is the lowest remuneration that employers can legally pay workers, a concept that remains controversial. Proponents tend to argue that increasing the minimum wage reduces poverty, while opponents believe that increases in the minimum wage reduce employment opportunities. This debate continues and is unlikely to be resolved. The federal minimum wage of … Continued
This concept was the basis for the statement “a rising tide lifts all boats” which, according to Wikipedia, is the idea that an improving economy will benefit all participants, and that economic policy, particularly government economic policy, should focus on broad economic efforts. The phrase is commonly attributed to John F. Kennedy, who used it … Continued
The day after the election, the S&P 500 index rallied about 2.2%. If you had $100,000 invested in the S&P 500 index, your portfolio would have appreciated $2,200 on that day. On the other hand, the yield for a current 5-year brokerage CD is 0.5%. If you invest $100,000 in this CD, the total return … Continued
In our blog of 9 Oct 2020, (Productivity: The Key to Economic Growth), we commented on the importance of productivity, defined as economic benefit per worker. Historically, the U.S. has done a relatively good job regarding productivity. Moreover the increasing adoption of direct human/robotic interaction, as discussed in our blog of 15 Oct 2020, (Cobots), … Continued
It is generally accepted that the U.S. has a significant infrastructure problem. Addressing this problem has the potential to provide a significant number of jobs and be an important part of an economic recovery. Politicians on both sides of the aisle have periodically called for supporting infrastructure projects, particularly those that are “shovel ready”. Investopedia … Continued
It is clear that the world is racing to develop coronavirus vaccines. While pinpointing a date is speculative, it is likely that substantial progress, and perhaps FDA approval, will come during the first half of 2021, with widespread availability before the end of 2021. The big unknown is, to what extent people will step up … Continued
As the world struggles to identify potential solutions to Covid-19, herd immunity appears to be the most promising opportunity to mitigate some of the worst effects of the pandemic. According to Wikipedia, “herd immunity is a form of indirect protection from infectious disease that occurs when a large percentage of a population has become immune … Continued
Financial modeling has long been used by financial analysts and corporate executives in an effort to organize historical data in a manner that can be helpful in projecting possible outcomes for future events. Models are also used as a method of assessing the impact of recent events on potential developments in the future. Models relating … Continued
Cobots are robots intended for direct human/robotic interaction within a shared space, or where humans and robots are in close proximity. According to Wikipedia, cobots were invented in 1996 and have been successfully deployed to support human activities, in contrast to robots that typically work separately from humans. Their 1997 U.S. patent entitled “Cobots” describes … Continued
Productivity describes various measures of the efficiency of production. There are many different definitions of productivity. Perhaps the most common, and probably the easiest to understand, is an aggregate labor productivity measure, such as GDP per worker. In other words, how much economic benefit is derived from the contribution of each worker. In order for … Continued
It is generally accepted that small business is a significant driver of job growth in the US. While precise data is not available, it has been suggested that, historically, startups have accounted for approximately 20% of job creation. Currently, small businesses appear to be suffering more than larger concerns, probably due, at least in part, … Continued
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