Monday, October 23, 2017

Top Black Business and Black Economic Stories for the Month of October, 2017

Top Stories


Forbes report that Mented, a Cosmetics company, raised more than $1 million in venture capital financing.  Mented, which is short for pigmented and was found by two black women who met at Harvard business school.


The Colin Kaepernick foundation has almost reached his pledge to donate $1 million dollars to charity.  The money comes from his 2016 season salary plus football jersey sales.


New data show African American Student loan crisis
This story shows Blacks are more likely to have large student loan debt.  Also for profit colleges targeted African Americans contributing to the student debt crisis. 




Employment Discrimination and Harassment







Personnel Moves





Universal Basic Income

Stockton has a Black mayor

Cities and Urban Affairs



Black Celebrity Business News



Main Steam Economics

President Trump and the Republicans propose tax cut for corporations and the rich

GOP Tax Plan from the Washington Post

The Whitehouse Council of Economic Advisers tax study uses poor economic reasoning

Council of Economic Advisers Study on Tax Cuts and Wages

The Council of Economic Advisers study supports cutting the official corporate tax rate from 35% to 20%. The CEA says that the effort will boost middle class wages. Here are some initial problems with the study

There is a huge assumption that corporations would use the extra money from tax reduction to fund wages and investments rather than pay dividend to the rich. There are lots of reasons to doubt those assumptions

1) Corporations already have a record amount of cash holdings that they are not investing nor using for wages.  Reports say corporations are sitting on nearly $2 Trillion in cash.
2) There is no pressure to raise wages in the current globalized environment.
3) Most corporations don’t pay that actual 35% tax rate. Instead they pay an effective tax rate for about 18% on average.
4) Other countries would respond to our tax rate change, creating a race to the bottom. The only winner would be corporations. Ireland has been ripping of the EU for years with "shell" corporations.
5) And finally, there is no proven link between corporate tax rates and wages. Yikes.

Also, the study says the average tax payer would reap a $4000-$9000 dollar benefit.  So with 315 million people that

The figures are pure speculation.  Any realistic economic model would be too complex to making a prediction with any kind of accuracy.  Instead, a real model would produce an average number (say $6000) and a upper for lower range(like -$10,000 to $20,000). That's a range of $30,000 and some people would be losers under the plan.

The CEA is just producing economic cover for a tax proposal that benefits the rich. 



Richard Thaler wins nobel prize in economics. Dr. Thaler won for work in behaviorial economics.

We are more Homer than Spock. An interesting look at behavior economics.

Interesting / Other


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