Relevant and even prescient commentary on news, politics and the economy.

UK Territories to sign OECD Tax Info-Sharing Agreement, Reveal Beneficial Owners

by Linda Beale UK Territories to sign OECD Tax Info-Sharing Agreement, Reveal Beneficial Owners The UK’s David Cameron announced  that Britain’s 10 crown dependencies and overseas territories–Cayman Islands, Bermuda, Jersey, Gilbraltar, Anguilla, Turks and Caicos Islands, Guernsey, Isle of Man, and the British Virgin Islands–would sign on to the OECD’s multilateral convention on Mutual Administrative […]

Wages falling

Real wages decline by Kenneth Thomas Speaking of inequality by Kenneth Thomas Wage stickiness coming unglued. And an op ed by David Cay Johnston this last week: Breaking news alert! Wages fell at the fastest rate ever recorded during the first quarter of this year, the government’s Bureau of Labor Statistics reported. Hourly wages fell 3.8 […]

Market Power, Minimum Wages, and the Sins of Friedmania

by Linda beale Market Power, Minimum Wages, and the Sins of Friedmania Two items caught my attention in today’s (June 22) newspapers and they represent diametrically opposed positions on what matters in society.  One, by Paul Krugman, deals with the problems of monopoly rents–especially in industries in which there is very little production in this […]

“Profits Without Production”

For me, Profits Without Production equates to Profits sans Direct Labor Input. In most manufacture in the US today, Direct Labor Input is an extremely small ~10% of the Cost of Manufacturing which will vary up and down dependent upon the industry. (For the accountants and the purists, this does not include customary or legislative […]

Fed Policy and Bond Yields

Update:  Charts and data after the read more. With the Fed completing a two day meeting and Bernanke holding a press conference today  it may be a good time to make a few comments about bond yields. In an open economy with a current account deficit the equilibrium interest rate is the one that attracts […]