When Uncle Sam’s income (i.e. tax revenue) is less than his spending he runs a budget deficit. The Treasury Department sells Bills, Notes and Bonds (i.e. “Treasuries”) to cover the shortfall. Who are the buyers? Who enables the federal credit card? Historically the gap was filled from overseas. Individuals would buy Treasuries due to [...]
So here we are again. Loathe to comment for fear of legitimizing a non-event yet silence brings accusations of laxity. Woe is us! By now we’re all aware of a two-day slide that knocked 1,300 points off the Dow. Big Media loves it. Article after article. Talking head after talking head. Lots of folks rewriting [...]
The prevailing narrative is that the Trump tax cuts (which cut the corporate rate from 35% to 21%) have been a boon for shareholders. Companies flush with cash have showered riches on their shareholders through increased dividends and stock repurchases. Is this true? Maybe. In dollar terms it’s certainly true. Spending by S&P 500 companies [...]
Rather than reforming its fiscal policy to incentivize job creation and stem the tide of wealth leaving the state NJ seems intent on covering bullet holes with Band-Aids. Governor Murphy’s latest move to raise taxes will likely prove counterproductive. Contained in the recent budget deal is an increase in the state’s personal income tax from [...]
Really enjoyed this graphic: So many applications to life. Knowing what we know, knowing what we don't and knowing there's so much more to learn. It's so important to know where we stand. We are what we are...not what we think we are.
Unmitigated gall. Nothing else can explain the hypocrisy. On the heels of the grandstanding announcement to put Wall St execs in prison (“coincidentally” timed for the 10-year anniversary of the Bear Stearns collapse) The Commonwealth of Massachusetts – home to the outspoken Elizabeth Warren – announced a program to fund housing down payments with taxpayer [...]
It’s time to don the professorial robe for another lesson in econ 101. Today we deal with something we all know and love – money. In both a literal and figurative sense here’s the CliffsNotes version of the three basic functions of money: https://www.cliffsnotes.com/study-guides/economics/money-and-banking/functions-of-money See a problem? For a currency to serve as money it [...]
What's the benefit to individuals and society of giving and receiving holiday gifts? The heavyweights of economic thought duke it out for our enjoyment.
Ostensibly written to explain economic events this article is one of the best you’ll ever read. Understanding what we tell ourselves and why is the first step down a path of better life decisions.
This chart does a nice job showing the prior laws, the competing Senate/House proposals for change and how things were resolved during the reconciliation process to create the new laws to go into effect beginning in 2018. Missing from the chart is discussion of the changes to §529s. Previously distributions in order to qualify for [...]