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Daily Digest 4/14 - CA Cycles Of Drought, Low Wages Cost Taxpayers Billions

Tuesday, April 14, 2015, 9:39 AM

Economy

Poverty-level wages cost U.S. taxpayers $153 billion every year (Arthur Robey)

From 2003 to 2013, wage growth remained flat or negative for the entire bottom 70 percent of workers in the United States, Jacobs said. Over the same time, the share of non-elderly Americans receiving health insurance from an employer fell almost 10 percentage points, from 67 percent to 58 percent. Despite modest pay raises at some of the country's largest and most profitable employers, including Walmart and McDonald's, wages continue to lag far behind inflation.

Groupthink is killing the economy: We need a Copernican revolution in economics: Prof. Steve Keen (Tony K.)

"Indeed, the current economic situation is in many ways better than what we have experienced in years. Against that background, we have stuck to the rebalancing scenario. Our central forecast remains indeed quite benign: a soft landing in the United States, a strong and sustained recovery in Europe, a solid trajectory in Japan and buoyant activity in China and India. In line with recent trends, sustained growth in OECD economies would be underpinned by strong job creation and falling unemployment.” (“OECD forecasts gentle turn for global economy”)

Big Companies Pay Later, Squeezing Their Suppliers (Nervous Nelly)

Bea Chiem, a credit analyst who follows food companies at Standard & Poor’s, offered several reasons that companies might use the tactic: “Their recent performance has been soft, many are in the middle of restructuring and all are trying to balance the need for cash for their business and shareholder returns.”

The Ultimate Middle East Dilemma: Time For Us To Stop Intervening? (Tyler K.)

Today, there is a natural “Arab Spring” occurring in that region. Countries that have largely been run by dictators — or similarly corrupt democracies — are looking to revolution as a means of creating some better religious/political alignment.

Fundamentally, there isn’t a huge difference between what they’re doing now, and what we did in the late 1700s.

Doug Casey: ‘We’re in for a world of trouble’ (Herman J.)

“The fact that the current system, as corrupt as it is, is going to go downhill – and I think we’re going to have a disaster – doesn’t mean things are going to get better. They’re probably going to get even worse.” To emphasize this point, Mr. Casey used the history of France and Russia as examples, reminding the listener that both of these countries experienced long periods in which things went from bad to worse to even worse.

Out of the ashes (jdargis)

So, would a society starting over on a planet stripped of its fossil fuel deposits have the chance to progress through its own Industrial Revolution? Or to phrase it another way, what might have happened if, for whatever reason, the Earth had never acquired its extensive underground deposits of coal and oil in the first place? Would our progress necessarily have halted in the 18th century, in a pre-industrial state?

The Real History Of Fracking (Evan K.)

The History of Fracking can be traced back to 1862. It was during the battle of Fredericksburg VA., where civil war veteran Col. Edward A.L. Roberts saw what could be accomplished when firing explosive artillery into a narrow canal that obstructed the battlefield. This was described as superincumbent fluid tamping.

On April 26th, 1865, Edward Roberts received his first patent, for an “Improvement” in exploding torpedoes in artesian wells. In November of 1866, Edward Roberts was awarded patient number 59,936, known as the “Exploding Torpedo.”

In California, a Wet Era May Be Ending (jdargis)

California could get relief as soon as next winter, particularly if another strong El Niño were to occur. But what adds to the worry, scientists say, and what Mr. Brown referred to in announcing the water restrictions, is the potential effect of climate change.

Gold & Silver

Click to read the PM Daily Market Commentary: 4/14/15

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

sand_puppy's picture
sand_puppy
Status: Diamond Member (Offline)
Joined: Apr 13 2011
Posts: 1756
USA on the verge of energy independence!! Yay!!

U.S. on verge of energy independence: Peter Kenny

I am so happy that energy independence has finally been reached!  What a relief!

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1513
$70,000 minimum wage

This ought to be fun to watch unfold over the next 3+ years:

http://www.nytimes.com/2015/04/14/business/owner-of-gravity-payments-a-credit-card-processor-is-setting-a-new-minimum-wage-70000-a-year.html?_r=0

The idea began percolating, said Dan Price, the founder of Gravity Payments, after he read an article on happiness. It showed that, for people who earn less than about $70,000, extra money makes a big difference in their lives.

His idea bubbled into reality on Monday afternoon, when Mr. Price surprised his 120-person staff by announcing that he planned over the next three years to raise the salary of even the lowest-paid clerk, customer service representative and salesman to a minimum of $70,000.

If it’s a publicity stunt, it’s a costly one. Mr. Price, who started the Seattle-based credit-card payment processing firm in 2004 at the age of 19, said he would pay for the wage increases by cutting his own salary from nearly $1 million to $70,000 and using 75 to 80 percent of the company’s anticipated $2.2 million in profit this year.
saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4061
Getting paid to take a loan

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