Economic Trends
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Why Are Mortgage Rates So High?
“Interest rates on mortgages were 2.66 percent just two and a half years ago. Why the sudden increase in rates? The Federal Reserve increased the money supply and generated the worst inflation in many years.” ~ Gerald P. Dwyer
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Inflation is Back on Target
“People have renegotiated their wages and purchase orders with those new expectations in mind. To course correct at this late stage would amount to a very painful contraction.” ~ William J. Luther
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In Defense of Cash Grabs
“It doesn’t have to make sense to the outside observer, because ‘the system’ is not something a single mind designed but the unintended consequence of innumerable individual choices in response to (sometimes badly distorted) incentives.” ~ Art Carden
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The Opportunity Costs of FTC Merger Meddling
“Success is never guaranteed in a market economy, and business failure is not uncommon for industry leaders. Blockbuster and Kodak had near monopolistic status in their respective sectors but that couldn’t save them from tech innovations that took them down.” ~ Kimberlee Josephson
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In Defense of Interchange Fees
“Interchange fees, long derided as a cost center for vendors that accept credit cards, may serve as a check on hyper-politicized consumer businesses.” ~ Dave Birnbaum
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US Credit Rating Downgraded, Again
“The reduction of the US credit rating is overdue in light of the long and enthusiastic abandonment of fiscal soundness in Washington DC, recently abetted by monetary policy authorities.” ~ Peter C. Earle
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Business Conditions Monthly June 2023
“At present we continue to believe that the US will enter a recession by September 2024, but will adjust our perspectives if and when necessary as new data and facts become available.” ~ Peter C. Earle
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In Defense of Tipping, Part I: Principal-Agent Problems
“Tipping turns out to be an ingenious mechanism for solving principal-agent problems in a number of service-oriented industries.” ~ Anthony Gill
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The Charge to Change Capitalism and Why the Profit Motive Must be Preserved
“Replacing rather than embracing shareholder primacy is truly a troubling matter given that shareholder primacy is a means for holding business leaders objectively accountable for the management of strategic investments and business operations.” ~ Kimberlee Josephson
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No Place to Lay Your Head: How Economic Policy Makes Housing Unaffordable for Young Working Families
“There’s artificial scarcity in housing markets, but in that case it’s the planners themselves who put housing in such short supply – and at consequent high prices.” ~ H. Shelton Weeks and Victor Claar
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Where Have All the Workers Gone? Zoning and Its Unintended Consequences.
“Regulations such as the Endangered Species Act, wetlands regulations, and coastal zone management laws may have desirable end goals from one point of view, but invariably make housing more expensive.” ~ Craig Richardson
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The Battle for Business Autonomy
“Business leaders must be prepared for congressional hearings more than competitive pressures and entrepreneurial aspirations increasingly require prior approval or must adhere to the scrutiny of external assessment bodies.” ~ Kimberlee Josephson
