1 of 3123

Tag Archives: markets

McDonald’s & The Minimum Wage (Video)

As we’ve said before, raise the minimum wage above what the real wage should be for an unskilled worker and one is just creating havoc in the economy. Margins are closed or erased. Stores close. Prices go up. Jobs are lost. And the tax base is often diminished. (Creating a heavier burden on the remaining businesses.)

It is true that one can not live on the minimum wage. But no skill or low skill jobs are stepping stones to higher wages. Such jobs are not an end point.

It should be noted that arbitrarily raising the minimum wage does increase the floor for many unions which base their wages off of the official minimum wage. And this, not a living wage for fast food workers, is a big part of what is behind the effort to raise the minimum wage dramatically.

Read More

California’s ‘Drought’ Has a Monetary Metaphor

Water policy in California is bizarre. I had no idea how bizarre until Jerry Brown declared his water emergency last week.

With 39 million people living in a semi-arid to desert environment (at least the southern 2/3 of California) doesn’t it stand to reason that at some point water might become a critical issue? A really critical issue? Doesn’t it also stand to reason that the people of California should be priority number 1 when it comes to water, not a politically powerful agriculture sector which only constitutes 2% of the California economy while taking 80% of the water? (Though there are of course apologists for ag.) But the “planners,” like they always do, thought they had the situation in hand.

Read More

India and its huge economic potential

India has long been mired in socialism. Bureaucracy ran and continues to run through the country’s massive system of governance. As I understand it, to get anything done in India for many years the paperwork had to be done in triplicate and processed a half dozen times. And then one got a new pile of paperwork.

But times are changing. India has opened up quite a bit over the last 2 decades, and it looks like even more light will be shining into the economy soon.

Read More

Can You Uber a Burger?

You sure can, and lots else besides.

With mobile computing markets for practically everything are much more dynamic and useful for the average person.

Read More

‘Weak and uneven’: IMF cuts global growth forecast (Video)

The CNBC guys poo poo the report, which is to be expected. David Faber particularly and he is on occasion very good. But the world is feeling wobbly to say the least. Post-2008 wobbly which is pretty wobbly. That the stock market has done as well as it has in the US, even considering all the juice from the Fed is pretty crazy, but a continued run is looking less and less like a prudent bet.

But that’s not new.

Read More

10 peaking megabubbles signal impending stock crash (?)

It’s been an interesting if not fun ride up in the markets. Through a 6-year economic slowdown stock markets have rallied and rallied and rallied. Everyone assumes that the Fed is backstopping the market, that it has to for political reasons. So people have piled in even though earnings and economic indicators have been generally lackluster. Sounds almost like “house prices never go down.”

But not quite.

Read More

1 of 3123