Economists are infamous for using the ceteris paribus assumption when formulating predictions on economic movement. While this holding all other things constant can be useful in examining particular sources of economic change, it can also be a downfall and lead to partial equilibrium thinking where one assumes a certain outcome based on all other things constant when in reality those other things may not truly be constant. While the assumption can be effective in the short term, it can be damaging in the long term if it fails to adjust as expected. Instead of investing more research into the reason Continue reading The Economist Just Called out Economists
In August of 2015, President Obama and the Environmental Protection Agency (EPA) released a proposal called the Clean Power Plan. Its aim is to reduce carbon pollution from power plants by generating a fair, flexible and strong national standard for clean energy and lower pollution. Just recently, on October 23rd, the EPA released its final rule for Obama’s Clean Power Plan, which is set to go into effect on December 22nd. The rule details expectations for states to regulate their carbon dioxide emissions by examining performance rates of pre-existing fossil fuel-fired electric generating units (EGUs). While many are on board Continue reading What Happens if We Burn the Trees?
Like Seattle, Portland and San Francisco, Shanghai has been experiencing massive increases in housing prices over the past couple of years. Many salespersons are saying that it feels a lot like a bubble, but in a recent article by the Economist, it is noted that the sharp rise in prices does not match the local economic trends and that a bubble is a misdiagnosis of the problem. Instead, the real problem comes from a shortage in land supply. The city is a large contributor to China’s overall GDP and thus, most people living in the cities surrounding Shanghai will commute Continue reading Did Shanghai Have a Housing “Bubble”?
Janet Yellen is the first woman to hold the position as Chair of the Federal Reserve and is making waves; not only having increased the key interest rate for the first time since 2006, but in her logical, simplistic & informative explanations of the US economy as well. In May of 2015 the Chairwoman addressed the Providence Chamber of Commerce with a predicted outlook for the US economy. She started off talking about how since the recession in 2008, the economy has made significant gains and is regaining its strength, however there was still work to be done regarding the Continue reading Let Janet Yellen Tell You How It Really Is
As of 2015, America’s workforce was made up of 53.2% men and 46.8% women, and over the past 20 years, this 7-10% gap in genders represented in the workforce has remained fairly consistent. There has been a lot of research done as to why this gap between involvement exists, part of it is due to there being less women in the manual labor, science, technology, engineering and mathematics fields, while another aspect is the ever so present gender pay gap. The causation of the gap in gender in the workforce is multi-dimensional though, often the focus of the conversation is set on identifying the Continue reading The Benefits in the Long Run of Investing in On-Site Child Care Outweigh the Costs
Last week there was a massive recall on the Samsung Galaxy Note 7 phones after reports were filed of the phone overheating and “exploding.” Two and a half million phones were recalled, and one million of those phones were recalled from the United States. The call was made by the Samsung voluntarily, urging consumers to power down their devices and return them as soon as possible. This recall has had a large impact on consumers beyond just halting their social media presence. Airlines like United Arab Emirates and Virgin Australia have banned the use of the Samsung phone while flying. Continue reading Did Samsung just Lose its Consumers to Apple?
On September 9th, North Korea completed their fifth and largest nuclear test, just fifty miles from the Chinese border. The test was the second this year and a clear example of the increased pace in nuclear trials that Kim Jong Un has been pushing since he inherited power in 2011. The US has attempted to slow this rapidly increasing progression of tests by imposing sanctions and as of July 2016 deploying an advanced missile defense system in South Korea, however, the tests have continued to ensue and now the US is considering placing an embargo on North Korea. According to Continue reading The Game Behind North Korea’s Fifth and Largest Nuclear Test