By Sydney Eisenberg Published November 19, 2018
Toward the end of the week of November 5th, a series of wildfires began to tear through Northern and Southern California. Over a quarter of a million people have been forced to evacuate as the fires rage through the state, threatening everything from personal homes to famous Hollywood sets.
By Abigail Cundiff Published November 18, 2018
The US is experiencing a historically tight labor market, which has resulted in increased wages and benefits for low-skilled employees. This trend, however, is ultimately unsustainable.
By Dylan Nezaj Published November 18, 2018
Congress has not sufficiently addressed the funding shortfall to be faced by the Social Security Administration in the coming decades. There are numerous policy measures that can be pursued, however. The combination of such measures that Congress adopts should reflect what we think constitutes a fair share of burden, will test our commitment to social insurance, and may redefine the very nature of one of America’s greatest policy endeavors.
By Abigail Cundiff Published May 6, 2018
Involuntary part-time (IPT) employment, assumed to be a temporary trend, may be less temporary than previously thought. New research suggests that this post-Great Recession trend could be here to stay, proving problematic for the future of many American workers.
By Sydney Eisenberg Published May 6, 2018
Search. Add to Cart. Checkout. “Your [insert item name here] will arrive in 2 days!” In a digital world, we can do almost all of our shopping with the click of a button. Depending on what site you shop from, you may not even have to pay sales tax! However, what seems like a lucky break to online consumers is soon going to pose a major question in Congress following the recently argued Supreme Court Case South Dakota v. Wayfair, Inc.
By Keenan Ashbrook Published May 6, 2018
It is widely acknowledged that American cities are facing a housing crisis. Forty million Americans now spend what the Department of Housing and Urban Development considers to be an unaffordable amount (30 percent of income or more) on housing. The average rent for a studio apartment now exceeds $1,700 in Chicago, $2,000 in Boston and Washington D.C. and $3,000 in New York and San Francisco.
By Dylan Nezaj Published May 6, 2018
Amidst China’s continuing efforts to achieve the status of a global economic superpower, the Trump administration is focusing its efforts on reinvigorating a dying coal industry. In so doing, Trump is further enabling China to outcompete and surpass the US as the leader in the development of the energy sources of the future.
By Brad DeSanctis Published May 6, 2018
American political discourse is saturated with policy issues, from gun policy to abortion, tax reform to healthcare, immigration to foreign policy. But one realm of policy stands out from the rest. Left unaddressed, it is slowly killing the core ethos of America: the American dream. The problem is economic inequality.
By Basirat Owe Published May 6, 2018
President Trump’s candidacy was fueled by xenophobia. A major factor behind these sentiments is the belief that immigrants are “stealing” jobs from native-born Americans. To address that assumption, he seeks to enact prohibitive immigration policy (i.e., the construction of a border wall, increased border control and deportation).
By Brad DeSanctis Published November 15, 2017
Infrastructure: it's what politicians can't stop talking about, but can never start doing anything about. America's infrastructure is deteriorating, while spending is declining. But despite lots of talk, there is little reason to expect federal action anytime soon.
By Brad DeSanctis Published October 19, 2017
With 6.6 million Americans severely rent-burdened, many U.S. cities are struggling with rising rents and affordable housing. A patchwork of federal, state, and local policies, both old and new, attempt to address the issue.
By Abigail Cundiff Published October 19, 2017
America is experiencing a period of growth but it' not uniform. About 1/5 of the US population lives in a distressed community. Many poorer Americans face uncertain futures and it is necessary to bring these distressed communities up to speed with the rest of America in order to truly benefit citizens of all socioeconomic classes.
By Sydney Eisenberg Published October 19, 2017
On October 1st, 2017, Stephen Paddock fired into a crowd at a country music festival in Las Vegas, Nevada. As news of the catastrophe spread, gun stock prices started to rise, and bump stock mechanisms quickly ran out of stock at major retailers across the country.
By Dylan Nezaj Published October 19, 2017
Trump's lambasting of the North American Free Trade Agreement (NAFTA), an integral trade deal which governs trade between the United States, Canada and Mexico, betrays either a false understanding of the economic status quo, or a manipulation of the truth through campaign rhetoric. If the latter is the case, Trump's current course of action is another one of many desperate attempts to live up to his grandiose campaign promises.
By Raphael Gendler Published October 19, 2017
President Trump's executive orders aim to make healthcare cheaper and increase market competition, but will result in expensive and weak care for individuals who need it most.
By Berke Gursoy Published April 2, 2017
Why then is NAFTA under such attack? The answer is due in part to the very nature of trade agreements. The benefits of trade are dispersed and appreciable only over time while its costs are sometimes ideating and are highly concentrated in specific industries such as auto manufacturing. As such, attacking trade agreements is politically very easy, since the vast majority of people whose standard of living has been improved are unaware of it while those who have bared the cost care very much.
By Sarah Fox Published April 2, 2017
In the wake of the Trump presidency, clothing retail stores have been faced with an unique struggle. In the last few months, many stores have mixed Ivanka Trump's clothing lines with other products, or in some cases dropped it entirely, provoking outrage from both Ivanka and Donald Trump and impacting the clothing retail market.
By Shivani Sanghani Published April 2, 2017
Mr. Trump's growing focus on hindering trade resonates insidiously if strictly pursued, driving policy changes that could disrupt industrial real estate markets throughout the US, Cushman & Wakefield reported in a logistics and industrial research briefing on April 19. Although unlikely, a trade war with China or withdrawal from the North American Free Trade Agreement remain possibilities.
By Brad DeSanctis Published April 2, 2017
President Trump has used economic metrics and corporate job announcements to paint his presidency as an instant success. But while this president is far from the first to make these claims, he does not deserve credit for the current state of the economy. In fact, the overall ability of the presidency to impact the economy is overstated.
By Keenan Ashbrook Published March 14, 2017
Now a noted liberal activist, Michael Moore first gained widespread recognition with his 1989 film Roger & Me, which explored the effects of auto plant closures in his home city of Flint, Michigan. In the hopes of attracting tourists and generating economic growth to blunt the impact of the plant closures, Flint city officials supported the construction of a theme park, shopping center, and luxury hotel, all three of which promptly went bankrupt as Flint became a posterchild for post-industrial economic malaise. The failure of Flint's efforts should serve as a cautionary tale for those who would attempt to cover over structural economic problems with superficial development, infrastructure, and "quality of life" projects.
By Berke Gursoy Published October 31, 2016
Tax Policy isn't the most discussed or most controversial issue dividing the two candidates in this election, but for the American people, it may prove the most important outcome of the election. The tax plans of Clinton and Trump reflect those of their respective parties orthodox, and therefore represent two distinct visions of the American economy. Trump proposes across the board tax cuts centering on the wealthy in addition to easing the corporate tax rate and removing the estate tax. Clinton proposes maintaining the tax rate with increased taxes on the rich, maintaining of the corporate tax rate while eliminating certain loopholes and increasing the estate tax. They are opposites in policy and effect, Trump's is the tried and tested Republican policy of promoting short term growth at significant long-run cost, Clinton's is to cut into short-term growth for long term gain. With this information it is each American's decision over what policy would be best for them and the economic health of the nation as a whole.
By Mason Miller Published February 28, 2016
Even if you don't typically follow macroeconomic trends or commodity pricing, you've been hearing for months now that oil prices are plunging to historic lows. Exactly why prices are falling is complicated and not fully understood. If you've been paying attention, you may be able to point to Saudi Arabia and U.S. shale production as reasons for the decline - but that's a topic for another article. More interesting and important are the oil glut's implications for the world economy. They are many, and together they pose a huge threat to an already unstable world.
By Tony Zhou Published February 28, 2016
This blog post examines current United States foreign development aid policies and finds two critical deficiencies: 1.) A fostering of aid dependence in recipient economies and 2.) A bureaucratic inefficiency in implementation. In addition, studies show that in some cases, the overall effect of these two deficiencies may nullify or even reverse prior progress seen in developing regions. Lastly, this blog post emphasizes the importance of addressing the previously mentioned deficiencies in the upcoming years.
By Jady Wei Published February 28, 2016
For over a decade, nations in the Middle East have relied on their oil reserves as a primary means of economic income and revenue. The recent February 16th accord between Saudia Arabia and Russia proved that the deal on oil supply control, which has meandered on for almost 15 years, has finally reached an agreement. The statement made by the two leading nations in global oil reserves is a portent for the freeze of oil production at January levels, if other nations were to agree on joining the accord. Subsequently, this may galvanize a path towards shoring up oil prices, as the nations aim to restore the Middle East's monopoly on the oil price market.
By Jill Sternthal Published February 28, 2016
Many of the highest-earning Americans pay the lowest percentage of their income in federal taxes, revealing a flaw in our system of taxation. Despite this inefficiency, no recent policy has been passed to address this issue. With the 2016 presidential election 9 months away, candidates' proposed tax policies would either ameliorate or exacerbate this system of inherent wealth inequality.
By Hanna Blunden Published February 28, 2016
Speaking to a post-recession society, rhetoric used frequently throughout the current presidential race works to remind Americans that the state of our current financial system still threatens our economic security. "Too big to fail" banks have emerged in the wake of the Great Recession as the unelected barons of the American economic prosperity, whose gargantuan spheres of influence permeate every sector of the economy, and whose demise could mean the end of it. The robust nature of these financial institutions remains a clear and insidious liability to American economic stability, thus the policy currently proliferating their existence and prevalence, must be reformed.
By Jack Polizzi Published November 11, 2015
When it comes to the landmark trade deal, information is in short supply and it can be difficult to understand what the deal is really about and what its practical effects will be. To be an informed citizenry and make sure Congress represents the views of constituents as effectively as possible, it is essential to understand some of the key points of the largest trade deal in world history.
By Jady Wei Published November 10, 2015
Many countries, including the U.S., view China's lowering of interest rates as a clear indication that China's economy is still in a deteriorating and volatile state. Moreover, the Chinese government appears to be aware of that, through the numerous incidents of rate reduction. The Chinese market is not as stable as the government strives to convey.
By Daniel Oudolsky Published November 10, 2015
In this blog piece, the author describes what exactly Basic Income (BI) is in the context of our current economic discourse, and argues how the implementation of a basic income by our policy makers will lead to positive consequences for American families, businesses and the country as a whole.
By Mason Miller Published November 10, 2015
Our Presidential candidates have started to release their ideas about tax reform. But how securely are they anchored in reality?
By Puneet Brar Published November 10, 2015
United States is the second largest emitter of carbon dioxide in the world, only recently preceded by China, without even accounting for the carbon that is emitted due to offshore production of our consumer goods. Various fragmented polices have been enacted to reduce carbon emissions; however, they have all reported only limited success. Implementing a universal carbon tax will be extremely beneficial and be a lot more simplified than implementing other forms of carbon reduction policies.
By Hanna Blunden Published November 10, 2015
The College For All plan proposed by Presidential Candidate Bernie Sanders would not just have great social benefits, but great economic ones as well. The state-offered free higher public education option for all would eliminate the necessary evil of student debt. Indeed those who still chose to attend private school would still face these financial boundaries, but the option for a debt free college education would undoubtedly be there. With such a broad path to a debt free high education, future generations of college graduates would have significantly greater economic capabilities that would create substantial growth in the American economy.
By Tony Zhou Published November 10, 2015
This blog posts analyzes the domestic economic impact of illegal immigration, which is reflected in three different aspects: the general effect on the growth of the U.S. economy, the particular effect on the U.S. government budget, and the effect on the U.S. job market. Results from studies find that while illegal immigration may cause a deficit in the government budget, illegal immigration is still beneficial to the overall growth of the economy and the health of the job market. This blog concludes by advocating for policies of openness and acceptance toward current illegal immigrants.
By Yibo Sun Published November 9, 2015
Due to decline in fertility and rise in life expectancy, the world population is aging unprecedentedly. Significant economic implications of this phenomenon have started to attract people's attention. Extensive discussions and debates have generated various ideas of how to face this aging world, but there is still a long way to go.
By Jill Sternthal Published November 9, 2015
The mid-September meeting of the Federal Reserve resulted in no new increase to the federal funds rate for the ninth ongoing year. With many people believing that the economy is recovered from the fiasco of 2008, market players are wondering how much longer until the Fed will take off the financial training wheels.
By Ignacio Garcia Conway Published November 9, 2015
As Puerto Rico's fiscal crisis worsened, the government needed to act quickly. Public pressure was high, and approval ratings were at an all time low. In February of 2015, governor Alejandro Garcia Padilla addressed to the people of Puerto Rico his game changing solution to the crisis: tax reform.
By Victor Zhao Published March 13, 2015
Walmart, a company notorious for its ruthless commitment to cutting costs, has recently voluntarily decided to raise the minimum wage for its employees to $10/hour. The move is part of a growing national sentiment and campaign to increase the official minimum wage set by federal law of $7.25/hour.
By Kartik Ramkumar Published March 10, 2015
Over the last 15 years, Financial Reform has experienced quite a turbulent journey. The repeal of Glass-Stegall, the financial crisis, and the implementation of Dodd-Frank spelled great changes for the financial world. Recently, in the news, however, we saw that Congress is working toward challenging certain aspects of Dodd-Frank. But why is this important?
By Sang Hyun Park Published March 10, 2015
The housing giants are back in business. Fannie Mae and Freddie Mac's consistent earnings since the bailout has made a convincing case for its continued operations despite Congress' initial plan to wind them down. With the two enterprises thriving once again, policymakers will need an answer soon as legal challenges mount against their conservatorship.
By Anita Li Published March 10, 2015
ï»¿While most places have yearned for the arrival of high spending travellers, some Hong Kong residents are upset by the influx of visitors from Mainland China. New tensions between Hong Kong and Mainland China have emerged over parallel trading, leading to a series of protests. ï»¿
By Stephanie Hahm Published March 10, 2015
Even with the growing popularity of mobile phones, business marketing strategies have been stagnant, as advertisements are still primarily distributed through billboards, commercials, mail, and e-mail. However, an underutilized but extremely effective approach is using SMS mobile marketing. With data that shows extremely high open rates and the ability to easily evaluate the efficacy of SMS marketing, companies should be quick to realize the potential of this strategy.
By Abigail Hiller Published March 10, 2015
When you think nonprofit, your local YMCA or Salvation Army likely comes to mind. The good guys: using their money to further a worthy cause. Oftentimes, with nonprofit status comes tax exemption - an attractive prospect for a company. This is where things get murky. The NFL, FIFA, and Ikea are all able to take advantage of the legislation that grants nonprofits tax exemption.
By Stephanie Hahm Published February 22, 2015
As more and more people carry smartphones, mobile traffic has been increasing exponentially. Knowing this, mobile applications have become much more personalized, and firms have catered their business models to exploit the immediacy of the services that these apps provide. This article investigates the app-based transportation company Uber as a case study for the rising trend that will transform our current economy.
By Alex Pundyk Published February 22, 2015
How one of the smallest economies in the European Union poses its most substantial financial risk, and the political perils therein; as negotiations within the European Union continue to offer hope of economic salvation for Greece and the Euro zone, the more interesting question becomes how the political fabric of Europe will be changed.
By Jacob Barnes Published February 22, 2015
President Obama has proposed a series of reforms to the American tax system in his promotion of "middle-class economics," including increases to capital gains rates and expansion of the earned income tax credit. Will these proposals make it past Congress?
By Gabe Kaufman Published November 9, 2014
Michael Sandel's book, "What Money Can't Buy: The Moral Limits of Markets" is one of my favorite books because of its sheer novelty. Unlike most suspicious of market operations, Sandel is, for the most part, okay with capitalism. What is different, then, is that he argues that we live in a market society instead of a market economy and that this market society is corrosive to our moral lives because not everything should and can be commodified.
By Alex Pundyk Published November 9, 2014
Following the formal recognition by Secretary of State Chuck Hagel of climate change as a threat to American national security, we are provided governmental confirmation of the widespread and interconnected consequences of global climate change. Among the foremost policies devised to chokehold carbon pollution by manufacturers, "Fee and Dividend" allegedly offers the most economically beneficial system of taxation and redistribution of fees. But can the economic conjectures of climate scientist's fare against the contestation of scholars of the international political economy?
By Stephanie Hahm Published November 9, 2014
The current US prison system is broken. Though levels of crime have gone down dramatically, the incarceration rate has been increasing. The biggest problem, however, is the cost that goes behind everything. Our state and federal governments should make changes not only to alleviate budget pressures, but to also improve inmates' futures after imprisonment.
By Hamdan Al Yousefi Published November 9, 2014
Quantitative Easing has pumped trillions of dollars into the economy, acting as a lifeline during the recession. But as the Fed announces its intentions to stop the supplement it is questionable how the economy will react.
By Abigail Hiller Published November 9, 2014
Inequality is a hot-topic of today, and is only going to become hotter if continues to increase dramatically. Inequality persists in both income and wealth. Income is the flow that accrues to the stock of wealth. Recent research has explored just how greaty wealth inequality exceeds income inequality.
By Jacob Barnes Published November 9, 2014
The results of a recently published survey conducted by the Pew Research Center show US economic optimism to be on the rise. While this may be a step in the right direction, the glass remains half empty for almost 4 in 5 Americans.
By Nicole Feibelman Published November 9, 2014
By Nicole Feibelman, 11/9/14 The last time Congress voted to raise minimum wage was five years ago. Since then, the US has endured recessionary pressures and faced increases in the cost of life essentials such as gas, college tuition and groceries. Yet the wages of the bottom fifth remain stagnant even though Americans are working harder, more productively, and with more education than ever.
By Hunter Bosson Published November 9, 2014
The regulations and restrictions placed on Fannie Mae and Freddie Mac are being relaxed and even abolished at an alarming rate. Politicians claim cheaper credit for mortgages will help the American economy and people with little regard for the potential risks. For all its good intentions, deregulation is an increasingly troubling trend.
By Jordan Jackson Published November 9, 2014
Angela Merkel has headed the European economic recovery initiative for over a decade now with austerity - a prevailing model that has seen the German economy stabilize in the wake of the crisis. However, as infrastructure and GDP slows in Germany, is austerity still enough to fend off a recession. The remedy may now rest in stimulus.
By Alison Schonberg Published November 9, 2014
With oil at a record low $85 per barrel, large exporters are struggling to meet budget demands. In particular, countries with state-owned oil companies, dependence on export-revenue, and high market share are most likely to lose-out during this period of weak profits. Among these oil giants, only one seems properly equipped to survive - Saudi Arabia. With high foreign reserves, the exporter can survive longer than its opponents, manage huge budget deficits, and handle potential exchange rate crises.
By Jacob Barnes Published October 24, 2014
The U.S. Department of Labor announced on Tuesday the complete extension of Fair Labor Standards Act (FLSA) protection to home health care workers will be delayed until at least 2016.
By Victor Zhao Published October 24, 2014
If the study of economics is about maximizing utility from scarce resources, then parking defies every rule in the economics toolkit. A tremendous amount of land and money is spent building spaces for parked cars on the road and in lots; yet, lack of parking is a perennial complaint for many, particularly those in urban or even suburban areas. The problem is not the lack of parking spots but rather their cost - free. The solution to the parking problem is to view it from an economic perspective and allow the fundamental facilitator of economic activity - prices - to produce a market clearing outcome.
By Abigail Hiller Published October 24, 2014
Today, the health of our planet has become a priority to many. As has the creation of jobs in our economy. Most consider there to be a trade-off between the two. But, this is not necessarily true; green initiatives are shown to provide the economy with jobs.
By Nicole Feibelman Published October 24, 2014
Despite their intention of alleviating student debt, Government grants are losing power and woefully being exploited by private universities, inducing a cyclical increase in student expenses.
By Kelly McClure Published October 24, 2014
The misclassification of Day Laborers as Independent Contractors generates a climate of exploitation. Not only are workers deprived of legal rights such as worker's compensation, but employers who misclassify workers are able to exploit the market. By paying lower wages (wage theft) these companies create unfair market conditions in which they evade paying taxes, avoid liability for worker injuries and often expose workers to hazardous working conditions with few repercussions.
By Hunter Bosson Published October 24, 2014
After years of relative unresponsiveness by financial regulatory institutions, progress is finally being made. Firms that claimed exemption from regulatory standards and inspections are finally coming within the regulatory framework in an increasingly global movement. The financial industry and the world economy is becoming a safer place because of it.
By Jordan Jackson Published October 24, 2014
With questions raised on oil revenues, readiness to address the Eurocrisis, as well as economic stability at a level to effectively "go it alone," a YES vote in the Scottish referendum for independence would have been bad for the U.K and very bad for Scotland.
By Gabriel Kaufman Published October 24, 2014
Thomas Piketty's book, "Capital in the Twenty-First Century" is for sure going to be a classic. As a treatise that deals with some of the most pressing economic and social issues of our time, this work systematically describes a problem, namely economic inequality, and proposes a solution: a progressive tax on capital.
By Alison Schonberg Published October 24, 2014
In recent weeks, the Eurozone has turned upside down. Weak figures for German industrial production, GDP growth, and investment climate have triggered fears of a double-dip recession, in which the former currency leader could drag down already tepid growth among its trading partners. If Germany stands by austerity policy, and its rigid balanced-budget requirement, it could perpetuate a vicious cycle of contractionary policy, more severe recessions, and weak demand throughout the Eurozone.
By Alex Pundyk Published October 24, 2014
An amassing Islamic State of Iraq and Syria has drawn widespread dissent from the allied nations of NATO and the fear and fascination of "infidels" around the world. To assess ISIS as a state competing on a global scale, we must determine its financial sources, assess its political goals, and contextualize its economy. We may then decide the political responses warranted by such rampant radicalism, and escalating violence.
By Stephanie Hahm Published October 24, 2014
The Common Core, the newest educational initiative for K-12 students, is a switch that students, teachers, and policymakers have been recently debating about. One of the main arguments from opponents of the Common Core is the price tag to transition from the current expenditures to match the new educational standards. But is the price required a big enough obstacle to detract states from implementing it?
By Hamdan Al Yousefi Published October 24, 2014
With the Greek economy still suffering the effects of the 2008 recession more and more people are taking liberties and exploiting loopholes to improve their financial situation "” namely tax evasion, creating a shadow economy and depriving the government of tax revenue, adding a burden to the government's debt repayment.
By Josh Mark Published April 24, 2014
A new study published by the Brookings Institute suggests that money can in fact lead to happiness. This is not due to the increased ability to buy material items, but rather because of increased life expectancy. After all, you can't be happy if you're not alive.
By Lorenzo de Simone Published April 24, 2014
Google's first-quarter earnings released this week surprised many on Wall Street. After traditionally gushing out profits, the tech giants have currently struggled to retain this momentum and are now being accused of 'binge buying', buying that has little to do with its core business of Internet search and advertising. The company has however also found new revenue steams and has intensified its innovative efforts.
By Victor Zhao Published April 24, 2014
Net neutrality is an issue of economic fairness. Only by preserving open, equal access for all its users can the Internet's democratic potential be fully realized. Despite the federal court decision striking down its proposed rules, the FCC must continue to advocate for, and work towards, the goal of keeping the Internet open for all.
By Jihee Lee Published April 24, 2014
Janet Yellen, the chairwoman of the Federal Reserve, announced the Fed's plan to reinforce the regulation addressing the major financial vulnerabilities highlighted by the 2008 financial crisis, increasing reliance on short-term borrowing and high leverage.
By Lorenzo de Simone Published April 10, 2014
In the aftermath of the European economies sovereign debt crisis and the global financial crisis that severely damaged the United States economy, which is still today struggling to regain full employment, attention has now shifted towards China and the potential of a serious financial fallout.
By Dylan Scott Published April 5, 2014
Conflict is brewing within the Democratic Party and the source of the party's internal conflict is predictably its oddest bedfellow"”the mega donors that fill campaign coffers and command party leaders' attention. Amidst the populist surge that has slowly overtaken the Democratic Party, it is easy to forget about the close ties between Democrats and the super rich.
By Josh Mark Published April 5, 2014
One of the most contentious debates in American society today is that regarding the citizenship status of illegal immigrants. Opinions from the left and the right offer opposing views regarding the economic impact of a decision to offer citizenship to the immigrants. Without taking sides, I hope to shed some light on the debate from both sides of the political spectrum.
By Abshir Esse Published April 5, 2014
Nearly six years have lapsed since the start of the quantitative easing program and a couple it is clear that the economic stimulus facilitated by the Federal Reserve was absolutely necessary and these actions have proved efficacious in stabilizing the economy.
By Victor Zhao Published April 5, 2014
Basic microeconomic models of supply and demand hold that price floors are fundamentally distorting to efficient markets. Artificially raising the price of a good above the market-clearing, equilibrium price creates an excess of supply to demand and deadweight loss to the overall economy. Applying this logic to the labor market would seem to indicate that a high minimum wage is a recipe for unemployment, as it would lead to greater supply (workers willing to work) than demand (open positions companies are looking to fill). This analysis, however, fails because the labor market is fundamentally different. The inefficiencies and friction of the labor market, as well as the societal benefits of higher wages, makes raising the minimum wage a sound economic policy.
By Daneille Charpentier Published November 3, 2013
While Cuba's plans to scrap its two-currency system may reduce economic volatility and streamline its economy, the unification of the two currencies' exchange rates will lead to short-term economic disorder.
By Hilary Gelfond Published November 3, 2013
As part of the Affordable Care Act, states are given the opportunity to expand their Medicaid programs to include individuals between 19 and 65 years of age with incomes up to 138% of the federal poverty line (FPL). Despite the opportunity to significantly decrease the proportion of uninsured citizens, 22 states have opted out of receiving virtually "free" money from the federal government. More significantly, the states with the greatest proportion of uninsured poor non-elderly are also the ones who will not expand their Medicaid enrollment. While critics of the program lament that their autonomy in Medicaid decision-making might be breached and that costs will increase, further inspection reveals that there will be little impact from the Medicaid expansion on state budgets.
By Joshua Mark Published November 3, 2013
January 1st, 2014 marks a historical day for the United States health care system. In just over a month, the Patient Protection and Affordable Care Act is set to take effect, and insurance exchanges are set to open across the country. Additionally, twenty-one states plan to expand Medicaid to those currently uninsured with incomes below 138% of the Federal Poverty Level (FPL) with other states currently in deliberation. The federal government is projected to pay for 93% of the increased costs (the costs resulting from increasing coverage from 100% of the FPL to 138% of the FPL) from 2014 until 2022, and 90% of those increases thereafter. Politics of the Affordable Care Act aside, I'd like to look into the opportunity cost of a state's decision to reject federal funding for Medicaid expansion.
By Scott Gelber Published November 3, 2013
Crowfunding is a popular way for people to raise money for businesses, campaigns, and other ventures. The SEC recently has allowed crowdfunding to be used to fund real estate projects. In this article, the benefits and risks of the type of fundraising will be analyzed.
By Marc Getzoff Published November 3, 2013
The massive expansion of the technology sector in the developed world has been nothing short of extraordinary. Large technology corporations such as Apple and Microsoft produce products that are commonplace worldwide and have revenues that can compete with the top businesses in the world. What is often most shocking about these technology firms is that they usually start from practically nothing and become so large they face charges of creating monopolies on their respective industries such as Microsoft with computer software.
By Joshua Mark Published October 15, 2013
Social Security accounts for $768 billion, or 35% of federal expenditures per year. This program, for the purposes of this blog post, uses money collected though taxes to provide monetary assistance for Americans over the age of 65 in the United States. The program ensures financial stability in the final years of life, during which the elderly seldom have a significant income. While the underlying values of the program are clearly laudable, the program itself may not be the most cost-effective, or realistic way to protect the elderly from financial instability looking forward.
By Lorenzo de Simone Published October 13, 2013
Brazil has been at the forefront of growth in a period where major economies have stagnated. However, recent unease due to a sluggish economy suggests that government reform must take place in order for Brazil to relive the period of 'economic miracle'.
By Marc Getzoff Published October 13, 2013
Economic uncertainty, a looming debt crisis and a divided government that is currently not working (literally!). Those words have often characterized regimes and nations that have fallen into economic calamity. One example is Russia in 1998 as it defaulted on its debt amidst inflation and government division. Today, we find ourselves describing the United States of America with those very words.
By Danielle Charpentier Published October 13, 2013
Wall Street maintains stability in the face of the first government shutdown in 17 years. However, a continued shutdown could agitate investment sentiment and decrease consumer confidence, potentially resulting in international economic stagnancy.
By Dylan Scott Published September 29, 2013
During the State of the Union Address on January 8, 1964, President Lyndon Johnson outlined what would become known as the War on Poverty, proclaiming, "This administration today here and now declares unconditional war on poverty in America. I urge this Congress and all Americans to join me in that effort...." Johnson undertook a noble mission in that address, one that inspired a generation of lifelong activists committed to eliminating poverty through direct assistance programs for the poor. However, fifty years later, there is little evidence to show that this approach has lowered poverty rates at all.
By Hilary Gelfond Published September 29, 2013
With tax reform becoming an increasingly relevant topic on the political agenda, this article, the first in a series about the reform movement, will explore the role of revenue creation in tax policy. The determination that tax reform should include a revenue component is proven through snapshots in history form the 1986 Tax Reform Act and the political arguments for and against the policy.
By Michael Crovetto Published September 29, 2013
In the past few months, some of you may have had a difficult time trying to come by inflated balloons. What's a birthday party without those cheerful floating bags of air? Helium, the key ingredient to those colorful adornments, has recently experienced a shortage. While helium may be one of the most abundant elements on Earth, after these past few months it no longer seems so. The element often associated with high-pitched humor, is in a situation which is no laughing matter.
By Austin Opatmy Published May 1, 2013
In the United States, two main fields have dominated news headlines: insider trading, and foreclosure violations. There have recently been multiple prosecutions for insider trading. SAC Capital, faced with two separate allegations of insider trading, has paid over $600 million in fines, a record-breaking amount.
By Michael Crovetto Published May 1, 2013
With countries seemingly going bankrupt daily in Europe, and the threat of congressional incompetence killing the American economic recovery, it should come as no surprise that countries in South America are experiencing struggles as well.
By Malavika Madgavkar Published May 1, 2013
Economist Douglass North argues that the key to sustained economic growth is efficient economic institutions. By efficient, he means that they provide incentives for individuals to engage in economic activity that is socially beneficial. Until recent times, according to North, governments mainly hindered economic growth because they were extractive institutions, which focused on maximizing the ruler's wealth and not the nation's.
By Scott Gelber Published May 1, 2013
Last week the 30 year fixed rate reached its highest level in more than six months showing signs of recovery in the housing market. Although the housing market has been in recovery for the past couple months, increased interest rates may be seen as a threat to the growth of the housing market.
By Said Israilov Published May 1, 2013
According to recently released data, the U.S. economy is showing persistent signs of recovery despite across-the-board spending cuts. Partly driven by improvements in the housing market, the US economy added an estimated 200,000 jobs a month since last November - nearly enough to shrug off defense and infrastructure spending cuts.
By Hilary Gelfond Published May 1, 2013
This past Tuesday, the American Society of Civil Engineers (ASCE) released its 2013 Report Card for American Infrastructure. With an average grade of a D+, the ASCE estimates the America needs to spend $3.6 trillion on infrastructure improvements by 2020, $1.6 trillion more than current funding.[i] However, creaky bridges, congested roads, outdated school buildings, and unreliable energy grids have a greater impact on American wellbeing besides the obvious safety hazards.
By Kyle Datoush Published May 1, 2013
Recent legislation regarding gun control that has been put forward has been anything but "common sense," to use New York Governor Andrew Cuomo's phrase. The New York Secure Ammunition and Firearms Enforcement Act of 2013 (NY SAFE Act) is a prime example of legislation that was hastily passed and has gone beyond what is necessary to address gun control.
By Dylan Scott Published May 1, 2013
In order to learn more about the impact of entry regulations on small businesses, I watched a presentation by experts on food industry regulation at the American Enterprise Institute. The discussion introduced ideas about the nature of anti-competitive regulation that appear applicable to many industries.
By Victor Zhao Published May 1, 2013
By now, we are more than familiar with proclamations of wasteful government spending; Republicans have been on the drumbeat about the size of the federal budget deficit for seemingly forever (actually, since Barack Obama replaced the last Republican president in the White House). But it isn't just the Republicans who are guilty of this; Democrats, too, including President Obama, have made a premature pivot to deficit reduction, by proposing cuts in a number of social programs funded by the federal government.