Breaking Down Election Statistics

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Since the surprising Presidential Election results became official a myriad of theories have come to light trying to explain how or why Donald Trump was victorious. They range from believes that Hillary Clinton never really had a chance to win because a third straight Democratic term was historically unlikely to suggestions that white coastal elites shamed Midwesterners so much (through social media particularly) that it turned them against Democrats – in Congressional and Senate elections as well as the Presidential one. Other theories include 1. America is racist (Obama winning twice, not once, but twice!! makes this one far-fetched in Continue reading Breaking Down Election Statistics→

The Father of Capitalism and Freedom

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Milton Friedman, who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory, and the complexity of stabilization policy, came up as a relevant figure in the past weeks. He is the father of the “laissez faire” libertarian mindset that challenges what he regards as “naive Keynesian” theory. Keynes was by no means a leftist and some would even say he came to save capitalism with his theory that free markets could not be counted on to provide full employment, later creating new rationale for large-scale government intervention in the economy. Friedman is remembered by his passionate belief Continue reading The Father of Capitalism and Freedom→

An Unexpected Alignment

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Since the night Donald Trump was elected on the 9th, much of the country has been wondering what the future holds. A wall? A Muslim registry? But for Janet Yellen the question may be, “a job?” The native New Yorker and Chair of the Board of Governors of the Federal Reserve System was cast in a negative light throughout Trump’s campaign. Trump and his advisers criticized Yellen for playing the “political” game when implementing monetary policies.  This criticism makes sense for Trump as his campaign was based around the idea that growth will come from fiscal policies rather than monetary. Now Continue reading An Unexpected Alignment→

The Problem with the Electoral College

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It seems that while Hillary Clinton will win the popular vote, Donald Trump has won the election due to the Electoral College. Out of 57 Presidential elections, there have been 4 instances where the candidate that won the popular vote lost the election because of the electoral college. This happened in 1876, 1888, 2000, and now 2016, which is a failure rate of 7%. Another interesting quirk of the electoral college is that it gives disproportionately more votes to smaller states and takes votes from bigger states. This seems to benefit the GOP because many of the states that typically vote Continue reading The Problem with the Electoral College→

Cuban Real Estate: Untapped Territory

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To follow up Obama’s restoration of trade relations with Cuba about a week ago, it seems worthwhile to look at other aspects of Cuba’s changing economy. The state of the real estate market in Cuba, specifically in Havana, has been on the rise as Americans and foreigners have begun to look for ways to purchase Cuban property. Some of the houses in Cuba are still owned by the government, but since 2011 the state has allowed homeowners to buy and sell property. Cuba law also prohibits nonresidents from purchasing property. But this doesn’t stop foreigners from getting a piece of Continue reading Cuban Real Estate: Untapped Territory→

Silent Majorities Aren’t Silent Forever

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Yes, this is an Economics blog. But even an econ enthusiast like myself can recognize when to put economics in the backseat for a moment in the face of something much more important. And what can I say, the surprising election seems to be a bit more important. To seemingly all (though in reality only most) pollsters and experts this election was headed in one direction – a clear cut victory for Hillary Clinton. As late as Tuesday morning Nate Silver of Five Thirty Eight gave Clinton a 71.4% chance to win the election. He also gave Clinton an 83.5% Continue reading Silent Majorities Aren’t Silent Forever→

Is a Recession Nearing?

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In light of today’s big event, it is worth discussing what the winner will be faced with in the White House. There are two possible scenarios when looking at the movement of the economy- they will either face a recession in office, or have the longest economic expansion in US. History. Although the ladder seems quite more appealing, economists predict that the likelihood of a recession in the next four years at 60% You might be thinking if we know a recession is likely to come – how can we prevent it? The problem is that there are a number Continue reading Is a Recession Nearing?→

Pioneering Climate Change: Initiative 732

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[Written by Max Coleman] On Tuesday October 25th, the Economics Department hosted a talk about Washington Initiative 732, a carbon tax initiative which is on the ballot for November 8th. We heard from Yoram Bauman, a University of Washington professor and “standup economist,” about why we should vote yes on I-732.  Professor Bauman was one of the key economists and activists within CarbonWA, the group which brought I-732 to the ballot in its current form: “This measure was designed to impose a carbon emission tax on certain fossil fuels and fossil-fuel-generated electricity, reduce the sales tax by one percentage point, Continue reading Pioneering Climate Change: Initiative 732→

Volkswagen Still OK Even After Huge Settlement Approved

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After burning both their customers and the environment in the carbon emissions scandal, a federal court has agreed that $15 billion was the right number to reimburse all of the owners that qualified for the settlement. In September, the customers were given the choice to either have Volkswagen buy the car back or have them fix the computer that was cheating the tests that determined how much emissions were being put into the environment during the tests. According to the Associated Press, that choice is expected to go through in the next month or so. All of the money won’t go Continue reading Volkswagen Still OK Even After Huge Settlement Approved→

The Scoop on Obamacare

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The Affordable Care Act, also known as Obamacare, was signed into law by president Obama in 2010. Our system differs from places with free healthcare such as Australia and the UK, because they pay higher taxes. But shockingly we as a nation spend the more money per capita on healthcare than Germany, the UK, or Canada. As of 2013, the US spent 18% of its GDP on healthcare costs. According to Forbes Writer, Jeffrey Dorfman, Obamacare does little if anything to reduce total expenditures on health care – mostly it just shuffles around who pays for what. Simply put, millions of Continue reading The Scoop on Obamacare→