So does college pay off?

I know there are doubters that are getting louder… but at the end of the day lifetime earnings add up. Below is the differential in wages by educational attainment among those employed.  It’s not only the wage differential in itself that matters, but you have to also consider the significantly lower unemployment rates for those . . . → Read More: So does college pay off?

Money Is Power

The central bank is still up to its regular shenanigans.  Here’s the proof:

Now, however, is the first time in more than half a century that the average American is both earning less and worth less than four years earlier, at least after inflation is factored in. [Emphasis added.]

Inflation is a sure way . . . → Read More: Money Is Power

In Praise of Deflation

First, some neo-Keynesian nonsense:

It’s counterintuitive that falling prices can be bad. After all, nobody ever complained about stuff being cheaper. The problems, though, are twofold. First, if prices fall across the board, so too will wages — but debts won’t. Borrowers will have a harder time making their payments. More of them will . . . → Read More: In Praise of Deflation

If Only There Were Some Way to Fix This

Here’s a summary of a recent paper:

The trends in offshoring and international trade that we have described are likely to accelerate. China currently employs around 120 million people in the manufacturing sector and, although some reports indicate that wages are rising in China, those wages are still only a tiny fraction of wages . . . → Read More: If Only There Were Some Way to Fix This

Are Federal Employees Underpaid?

I think not:

The wages of federal workers are 2 percent higher than similar private-sector workers, on average.

The benefits of federal workers are 48 percent higher than similar private-sector workers, on average.

The total compensation (wages plus benefits) of federal workers is 16 percent higher than similar private-sector workers, on average.

I guess . . . → Read More: Are Federal Employees Underpaid?

ECONomics

This is what happens when you drop out of econ 101 halfway through:

When you make a few hundred dollars an hour, it costs you more to mow your own lawn than it does just to pay someone to do it for you. Of course, this simple math is something that most of the . . . → Read More: ECONomics

Spot The Fallacy (Labor Edition)

From ASI:

Economist Diane Coyle has noted that migrant workers in the UK tend to be either very highly skilled or low skilled, which suggests that they are filling gaps in specific areas of the labour market, not taking jobs from the native or resident population. And Bryan Caplan explains that by doing low-skilled . . . → Read More: Spot The Fallacy (Labor Edition)

Rick Rule: Oil Will Be Major Economic Driver

Global Resource Investments Founder Rick Rule likes to look for unpopular investments because that usually means the prices are cheap. Today, that means oil, natural gas, uranium and geothermal. In this Energy Report exclusive excerpt from his talk at the Casey Research Conference in Baton Rouge, Rule explains the global forces that will . . . → Read More: Rick Rule: Oil Will Be Major Economic Driver

Inflation v Deflation - Which Door do you Pick?

As the debate between inflationistas and deflationistas appear about to rev up again, I thought that I would try to pen to virtual paper and sketch my thoughts on the matter.

The specific catalyst for looking into this is naturally in part the fact that oil looks set to do a round of catch-up . . . → Read More: Inflation vs. Deflation – Which Door do you Pick?

Other Alpha Sources for August 6, 2010

Team Macro Man has a nice perspective on what deflation might mean in the OECD context and it is difficult to disagree with the underlying rationale.

One sector that is glaringly not singing to the Deflationistas’ hymn sheet is commodities. While a rapidly-growing global population continues to compete, like bacteria on a Petri dish, . . . → Read More: Other Alpha Sources for August 6, 2010