Revenue Sharing, The Yankees and Hypocrisy

Those damn Yankees!¬†Recently, the Yankees president Randy Levine made comments complaining about the revenue-sharing agreement used in Major League Baseball (MLB) which forces higher-revenue teams to pay lower-revenue teams millions of dollars to help balance the wealth around the league. “What is very burdensome to us, and is unfair, is the amount of money we have to pay in revenue sharing compared,¬† for example, to teams in our market that pay 10 times less than us,” Levine said (Fox Sports). As mentioned in the excellent New York Times article on this subject, Levine is referencing to the New York Mets, Continue reading Revenue Sharing, The Yankees and Hypocrisy

Many Mouths to Feed

Those that live in poverty spend differently than those with a higher income. In general, poorer individuals have a higher marginal propensity to consume and spend a majority of their income on food. The ability to afford food provides greater health and well being. Poorer countries often use subsidies to make food prices artificially low, but governments may find that subsidizing food costs for buyers can have significant benefits. Subsidizing food costs can push the supply or demand side of the market. When food subsidies go to farmers supply is pushed out; when they go to consumers, demand shifts out. Continue reading Many Mouths to Feed