With the stock market hitting all-time highs, everybody wants to know if we are in a giant bubble.
You can’t trade and make money if you’re not in the market. If the fear that we are in a bubble is keeping you out, then you’re not making money.
The honey badger doesn’t care. The honey (Read More….)
Amazon’s Amazon Prime membership continues to explode higher among US consumers. Amazon Prime had 40 million US members in Q3 2015. In Q3 2016, Amazon Prime membership has grown to 49.5 million US members. The incredible growth of Amazon Prime membership could lead more brands to sell over the Amazon platform. Rather than try to (Read More….)
Protectionist policies in the form of tariffs and quotas are coming from a Trump Administration. It seems appropriate then that we examine tariffs and quotas from a macroeconomics perspective.
The two most common ways of restricting trade are with tariffs and quotas. From a political point of view and to prevent a trade war, a (Read More….)
Pharmaceutical drug pricing is all over the mainstream financial media right now. Let’s examine the macroeconomics of what is happening.
The demand for pharmaceutical drugs is inelastic. People that need a pharmaceutical drug prescribed by their doctor will demand that drug regardless of price. As the price of the drug goes up, demand mostly stays (Read More….)
California, New Jersey, and New York have the most cities with rent control. Sanctuary cities in California like San Francisco and Los Angeles have some of the toughest rent controls. Rent controls hurt the local economy and make rental unit availability worse. Aggregate deadweight loss from rent controls across the country negatively impacts the US (Read More….)
Most government revenue comes from the taxation of transactions and labor. Taxes impact both the supply and demand curves. Taxes cause a buyer to pay more for something and suppliers to receive less. The loss of value for both buyers and sellers is called the deadweight loss of taxation. Taxation has an enormous impact on (Read More….)
ObamaCare has created massive shortages within the healthcare sector. In cities, it is common to wait many hours before being seen as hospitals have a shortage of beds. Doctors have stopped taking new patients as they are overwhelmed by the numbers of people coming to see them. Let’s examine what happened from a macroeconomics perspective.
We all love rising wages, but it is rising wages that will cause the next recession and Bear market.
Below is a chart of labor costs (red) versus corporate profits (blue).
A clear pattern emerges from the chart above. Profits rise after a recession as labor costs fall. When the labor market reaches (Read More….)