The Daily Economy
Greek Financial Crisis: What Would Aristotle Do?
A common put-down of economists is that they know the price of everything but the value of nothing. This pithy comment encapsulates two very different views of money, and can be helpful in understanding how to resolve the Greek financial crisis.
A Good Week for the Economy
The economy appears to be picking up more momentum, as consumer sentiment saw a marked gain amid a week of data releases that underscore renewed economic growth. Today, the University of Michigan released its survey that showed the overall consumer sentiment index at 96.1, up from 90.7 in May. Bob Hughes, senior research fellow at…
The Uber Model Has Its Limits
Will the “sharing economy” fundamentally change the way we work? Platforms like the taxi service Uber, and the vacation rental service AirBnB, sever traditional bonds between a company and its employees, instead providing platforms where customers and independent contractors match themselves for the service in question. Service providers can make themselves available at times of…
Home Ownership Down, While Rentals Soar
Here’s an interesting piece in The New York Times about how Americans are increasingly putting the dream of home ownership aside and renting their homes.
Lending a Hand to Small Business Owners in Africa
Operating a small business is one way poor people in less developed countries support themselves and their families. Learning Initiatives, a non-profit non-governmental organization, has developed a highly successful program where U.S. high school students, working in teams, provide advice to a small business in Africa, such as a fish farm or an auto repair…
A Crossroads for the Affordable Care Act
Both The New York Times and The Wall Street Journal weighed in this morning with pieces about preparations being made in case the Supreme Court strikes down Afffordable Care Act subsidies in states that have not established their own insurance marketplaces. If they lose their subsidies, millions of Americans are expected to discontinue their policies,…
Americans Paying More to Eat at Restaurants
As the economy gathers strength, Americans are seeing higher prices at restaurants and drinking establishments. Over the last 12 months, prices of food away from home – restaurants — have increased by 3 percent, while prices for food purchased at the grocery store have increased by a more modest 0.6 percent, according to an review…
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Why We’re Still Waiting for Liftoff at the Fed
With few expecting the initial interest rate increase in June, it was no big surprise yesterday that no actions were taken at the FOMC June meeting. The meeting statement contained no language change about the central bank’s plans.
Retention Campaigns Can Have the Opposite Effect
Knowledge at Wharton recently published some interesting research about consumer behavior surrounding retention campaigns. The conclusion was counterintuitive: By offering rewards to large numbers of current customers, a cell phone company actually drove more customers away than those who didn’t get offered the rewards
It’s Getting Better All the Time
The economy is improving after a weak first quarter. We have a time-tested model to help predict recessions, and this month it tells an encouraging story.
Projecting a Consumer Spending Rebound
The Wall Street Journal reported a bright outlook for consumer spending in the months ahead. They could have read it here first: Back in April, the American Institute for Economic Research projected that a consumer spending rebound was on its way.
A Receding Risk of Recession
In the June edition of Business Conditions Monthly, the American Institute for Economic Research’s bird’s-eye view of the economy, we see a falling probability of recession.
