Daily Digest

Image by EpSos.de, Flickr Creative Commons

Daily Digest 1/13 - It's Expensive To Be Poor, Does the U.S. Economy Need Bubbles to Live?

Monday, January 13, 2014, 12:32 PM

Economy

It's Expensive To Be Poor (jdargis)

Picking up on this theory, pundits and politicians have bemoaned the character failings and bad habits of the poor for at least the past 50 years. In their view, the poor are shiftless, irresponsible, and prone to addiction. They have too many children and fail to get married. So if they suffer from grievous material deprivation, if they run out of money between paychecks, if they do not always have food on their tables—then they have no one to blame but themselves.

If You Really Care About Ending Poverty, Stop Talking About Inequality (jdargis)

Harvard economist Raj Chetty, a principal investigator at the Equality of Opportunity Project, has pointed to economic and racial segregation, community density, the size of a community’s middle class, the quality of schools, community religiosity, and family structure, which he calls the “single strongest correlate of upward mobility.” Chetty finds that communities like Salt Like City, with high levels of two-parent families and religiosity, are much more likely to see poor children get ahead than communities like Atlanta, with high levels of racial and economic segregation.

Welfare Works (jdargis)

One key to the research is that Mothers’ Pension programs did not have the kind of bright-line eligibility criteria that we usually see in a more modest social assistance undertaking. States had different policies as to whether families disrupted by divorce or abandonment—rather than death or incarceration—were eligible. But beyond a broad directive that the money be directed to needy families, there was no sharp income cutoff.

Inflation Vs Deflation – The Ultimate Chartbook Of 'Monetary Tectonics' (sand_puppy)

How is gold impacted in this inflation vs deflation war? The key conclusion of the research is that, due to the fractional reserve banking system and the dynamics of the ‘monetary tectonics’, inflationary and deflationary phases will alternate in the foreseeable future. Gold, being a monetary asset in the view of Austrian economics, tends to rise in inflationary periods and decline during times of disinflation.

Did Banks Dump Structured Financial Products in Your Pension Fund? (westcoastjan)

In 2012 Warren won a Senate election in Massachusetts, began serving in 2013, and continues to advocate for consumer protection and meaningful enforcement. Senator Warren asked bank regulators that perpetuated serial monetary settlements—instead of prosecutions that would publicly expose malfeasance: “Tell me a little bit about the last few times you’ve taken the biggest financial institutions on Wall Street all the way to a trial.” [after a brief silence] “Anybody?”

U.S. Stocks Fluctuate as Investors Weigh Economic Growth (jdargis)

“I think the big anticipation right now is earnings and the outlook for the accompanying earnings for the year,” Gene Peroni, portfolio manager at Advisors Asset Management Inc. in Conshohocken, Pennsylvania, said in a phone interview. His firm manages about $13.2 billion in assets. “The market finished very strongly last month and it was a great year. The quiet we’re seeing here is an orderly correction, with some rotational movement in the market.”

Does the U.S. Economy Need Bubbles to Live? (jdargis)

There are three ways out: more regulation, more inflation, and more spending. The first is what economists call "macroprudential policy"—which is just another way of saying that we should make it harder to borrow during a boom. Summers, though, thinks it's a "chimera" that this alone can give us the "growth benefits of easy credit ... without cost." He might be right. A recent paper by Kenneth Kuttner and Ilhyock Shim looked at 57 countries, and found that, aside from limits on debt-service-to-income ratios, these kinds of policies don't limit household credit growth all that much.

Organic Mega Flow Battery Promises Breakthrough for Renewable Energy (Wendy SD)

A team of Harvard scientists and engineers has demonstrated a new type of battery that could fundamentally transform the way electricity is stored on the grid, making power from renewable energy sources such as wind and solar far more economical and reliable: a metal-free flow battery that relies on the electrochemistry of naturally abundant, inexpensive, small organic (carbon-based) molecules called quinones, which are similar to molecules that store energy in plants and animals.

Gold & Silver

Click to read the PM Daily Market Commentary: 1/10/14

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

3 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4149
Bond Rally Gives Italy Free Pass Skirting Reforms

Bond Rally Gives Italy Free Pass Skirting Reforms

rjs's picture
rjs
Status: Gold Member (Offline)
Joined: Aug 8 2009
Posts: 445
the discrepancy between the two BLS surveys..

i've been covering the unemployment report for several years and never saw anything like this before; there's been an ongoing discrepancy in the direction of the unadjusted employed number from the two surveys since July...from July to December, the unadjusted count of the employed from the household survey fell by 690,000, from 145113000 in July, to 144423000 in December...over the same time frame, the unadjusted non-farm payrolls from the establishment survey rose by 2,176,000, from 135577000 in July to 137753000 in December...

here are unadjusted non-farm payroll jobs monthly, as reported by employers (000's):
2013-07-01    135577
2013-08-01    136002
2013-09-01    136612
2013-10-01    137523
2013-11-01    137999
2013-12-01    137753
here's the raw unadjusted count of those who reported they were employed in the household survey (000's):
2013-07-01    145113
2013-08-01    144509
2013-09-01    144651
2013-10-01    144144
2013-11-01    144775
2013-12-01    144423

here's what the two look like next to each other on a chart:
http://research.stlouisfed.org/fred2/graph/?graph_id=144994&category_id=0

it doesnt show up in media or economic blog reports because everyone reports the seasonally adjusted data; which tends to re-align the two surveys

Poet's picture
Poet
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1891
Dollar Stores Are Now Getting Too Expensive For Many Americans

Dollar Stores Are Now Getting Too Expensive For Many Americans

"As poor Americans come under more and more pressure, more and more of Family Dollar’s revenue is tied to low-margin sales of necessities like food."

Poet

 

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments