March 2015

Consumer Spending a February Debbie Downer for Economic Growth

The February personal income and outlays report shows a -0.1% change in real consumer spending, which is not good news for economic growth.   Not adjusted for inflation consumer spending rose a scant 0.1%.  Real personal income isn't any better with no change for the month.

Job Polarization and Wages (A Visualization)

Economists refer to "job polarization" in the labor force when middle-class jobs (requiring a moderate level of skills) appear to disappear relative to those at the bottom (requiring fewer skills) and to those at the top — requiring greater skills; or those who are better networked and know people in a position of influence. (Below is a simple animation to show how job polarization might look).

Attention Populist Conservatives: Beware Ted Cruz

Attention populist conservatives who really want to stick it to the Establishment: perhaps, just perhaps, the best way to do that is not by supporting a candidate who GRADUATED FROM HARVARD LAW SCHOOL!

It is possible that Ted Cruz’s anti-Establishment conservative rhetoric is entirely sincere.

It is possible that Ted Cruz is not sincere and that his feisty populist conservative persona is a role he is playing, but one that he is playing primarily for his own benefit.

Existing Home Sales Bubble Up 1.2% from the February Northeast Frozen Tundra

NAR's existing home sales bounced up slightly for February with a 1.2% sales increase.  This is surprising sales increased at all, even with seasonality adjustments, considering America's East was stuck in either a snow bank or an ice cube for the month..  This makes sales 4.7% higher than February of last year.  Sales by volume was 4.88 million in February.

Robert Reich's "iEverything" — the Job-Killing iRobot

From his blog: "It’s now possible to sell a new product to hundreds of millions of people without needing many, if any, workers to produce or distribute it ... The ratio of producers to customers continues to plummet ... New technologies aren’t just labor-replacing, they’re also knowledge-replacing ... When more and more can be done by fewer and fewer people, the profits go to an ever-smaller circle of executives and owner-investors ...

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