Category Archives: economics

The TRUMP VIRUS

There is perhaps nothing more shocking than the lies Donald Trump and his surrogates on the campaign trail tell about the administration’s disastrous response to the Covid-19 pandemic. The virus has crippled the nation and killed at this writing 230,000 Americans. For the latest in the death toll, check the site of Johns Hopkins University Medicine.

The Covid Disinformation Campaign

On March 26, 2020, Trump said, “Nobody would have ever thought a thing like this could have happened.” But the record shows he was warned repeatedly, first about the generic pandemic threat and then about this specific threat itself. You can watch his string of denials as they happened for yourself.

Trump was handed a pandemic game plan by the Obama national security team titled, “Playbook for Early Response to High-Consequence Emerging Infectious Disease Threats and Biological Incidents.” The Obamas even staged a crisis management exercise as part of the transition. Trump ignored the drill and the plan. Trump disbanded the national security team in place to handle just this kind of crisis. Trump withdrew American epidemiologists already on the ground in China who could have provided early intelligence on the spread of the virus. Trump ignored a 2017 Pentagon report on the impact a pandemic could have on American military readiness.

How do you feel?

Frightened? Anxious? Confused? All of the above? Join the club.

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Updates and tidbits

Back from Space

SpaceX’s Dragon Demo-2 flight has ended with the successful return to earth of NASA astronauts Bob Behnken and Doug Hurley after spending more than two months on the International Space Station. As I wrote at the time of their launch, this flight marks the return to America of the ability to send humans into space.

After the retirement of the Space Shuttle in 2000, Americans who wanted to go the the ISS had to buy a seat on a Russian rocket. NASA began, during the Obama-Biden administration, what is called the “Commercial Crew” program effectively outsourcing this task to private industry. SpaceX is the first to successfully demonstrate this capability. This flight was named “Demo-2.” The first regularly contracted flight of the Crew Dragon is set to take four astronauts, three Americans and one Japanese, to the space station later this year.

As they left the capsule Behnken and Hurley thanks the SpaceX team. The SpaceX communicator said, “Thanks for riding SpaceX.” For America’s space program, a new day has begun.

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apple 1 – eu 0

It was a win for Apple. A loss for the European Union. And a case study for the rest of us.

The news story itself is simple. In 2016, the European Commission ordered Apple to pay Ireland 13 billion euros ($14.9 billion) for ten years of back taxes. The Commission claimed Apple benefited from illegal state aid via two Irish tax rulings that artificially reduced its tax burden for over two decades, to as low as 0.005% in 2014.

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Medicare for All: The Possible Dream

Oh, “The Impossible Dream”. How were we to know that David Brooks, a true compassionate conservative torn asunder by the Trump led takeover of the Republican agenda, is a Luddite at heart?

New York Times columnist Brooks is one of my favorite writers. I never miss a column. And I never miss his Friday joint appearances with liberal syndicated writer Mark Shields on the PBS NewsHour. Brooks usually writes from a unique perspective, but his recent effort branding Medicare for All “The Impossible Dream” seems to have been written from the Twilight Zone.

The Blank Slate

“If America were a Blank Slate,” Brooks writes, “Medicare for all would be a plausible policy, but we are not a blank slate.” The problem, Brooks goes on to explain in detail, is that Medicare for all would require vast segments of America to “transition”, and that would, according to Brooks, be unacceptably disruptive.

The devil is in the details and in truth, as Brooks admits, we don’t know just what Medicare for all means or how we would plan to get there. He tends to cherry pick the proposals to focus on the most disruptive versions. But there is nothing in the history of this great nation to suggest that we will be unable to face whatever challenges the endeavor might raise.

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Financial Market Reporting, Part 9: Exchange Traded Funds

In my recent post on mutual funds, I noted that John Bogle disrupted that industry with Vanguard, a mutual fund company that specialized in low cost index funds designed to mimic rather than outperform major market indexes. The other mutual fund companies responded with their own index funds, and there is intense competition between them

Mutual fund shares vs. ETFs

Exchange Traded Funds, ETFs, are another refinement of the fund category. They will certainly figure into your reporting on the fund asset class because they are by some measures the most popular of all exchange traded securities.

For my primer on ETFs, see businessjournalism.org.

Financial Market Reporting, Part 8: Mutual Funds and Index Funds

In a previous post about indexes, I identified the Dow Jones Industrial Average and the Standard and Poor’s 500 as the two most frequently referenced. They originated as short-cuts that summarized market trends, and are often used as a benchmark against which investment performance can be judged.

There has been an explosion in the number of indexes in recent years. There are hundreds if not thousands available, enough to slice and dice the markets in as many ways as can be imaged. Some are broad-based, like the NASDAQ Composite with more than 3,000 stocks. Others might track a region, like the EURO STOXX 50, based on 50 large companies in the Eurozone. Some follow companies of a certain size, like the Wilshire US Small Cap. And still others focus on an industry, such as the NYSE Arca (originally AMEX) Semiconductor Index.

Continues at businessjournalism.org….

Trump and the Employment Report, fact and fiction, Pt. 2

Numbers are funny things. Even though they appear to be absolute, a clever manipulator can twist them to make pretty much any point he wants to make. Take President Trump’s statement from February: “Ninety-four million Americans are out of the labor force.” It might seem preposterous but it is correct, as the great sage Obi-Wan-Kenobi once said, “from a certain point of view.”

It is the number you get if you take the total U.S. population 16-years of age and older and subtract the people the BLS says are in the labor force. That number includes everyone who is retired, and most high-school, college, graduate or vocational school student. It also includes the disabled, homemakers, some self-employed and those living off their investments.

My guide to reporting the employment report continues at businessjournalism.org….

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