Every wonder what happened to all that TARP money the government invested to secure the US financial system. Well it looks like they might make money from the investments. They a pretty good web site detailing all of the investments and the returns. TARP Web Site
Slate also has an article about TARP breaking even. Here
Monday, August 31, 2009
Thursday, August 27, 2009
Saturday, August 8, 2009
Okun's Law
Again unemployment is the big topic this week. Jobs will be on the radar for the foreseeable future. No one really has any idea how to create or sustain good jobs so the area is ripe for discussion.
One interesting topic continues to arise relating to unemployment: That is Okun's law, which states that every 1% increase in unemployment will lead to a 2% drop in GDP.
One interesting topic continues to arise relating to unemployment: That is Okun's law, which states that every 1% increase in unemployment will lead to a 2% drop in GDP.
Sunday, July 26, 2009
Is healthcare a true market ??
(Opinion) (Draft) Well, it is a little late, but the US is starting to debate whether the US healthcare system is a true market or not. And if they are subject to market force, will they respond in the optimal way. Can we design the right incentives ??
Many economists, both on the left and the right, believe that markets allocate goods in the most optimal fashion compared to other systems(such as cronyism, a dictator or communism)
However, the real question is whether there is a working "market" for healthcare ??
From econ 101, we define markets as 1) having lots of buyers and sellers with no buyer or seller being able to influence the market. 2) Perfect information. 3) 4). In real life there are few, if any, perfect markets, but it does not matter. Goods and services are allocated very efficiently.
However, in health care, there is notable lack of market fundamentals.
I don't believe the healthcare system can work as efficiently as government run program.
1) Size matters
2) Profit is the wrong incentive in healthcare
2) Profit costs someone
3) Government is efficient enough
Other examples: Police, Army, Courts
v2
Many economists, both on the left and the right, believe that markets allocate goods in the most optimal fashion compared to other systems(such as cronyism, a dictator or communism)
However, the real question is whether there is a working "market" for healthcare ??
From econ 101, we define markets as 1) having lots of buyers and sellers with no buyer or seller being able to influence the market. 2) Perfect information. 3) 4). In real life there are few, if any, perfect markets, but it does not matter. Goods and services are allocated very efficiently.
However, in health care, there is notable lack of market fundamentals.
I don't believe the healthcare system can work as efficiently as government run program.
1) Size matters
2) Profit is the wrong incentive in healthcare
2) Profit costs someone
3) Government is efficient enough
Other examples: Police, Army, Courts
v2
Kaiser Family Foundation
The Kaiser Family Foundation is a non-profit foundation focused on US health care system research. It collects, analyzes and publishes statistics and polls on US health system.
Probably the best site on the web for true health care information.
Probably the best site on the web for true health care information.
Organization for Economic Cooperation and Development
The Organization for Economic Cooperation and Development or OECD is the leading source for comparison statistics on the the world's developed economies. It collects information on economic, finance, trade, development, healthcare, agriculture, tax and technology indicators. Key members include US,France, Germany, Japan, UK, Italy, Canada, Mexico and Australia.
When a country joins the OECD, it is considered to have "arrived" in terms of 1st world development. Mexico was admitted in 1994; Korea and Poland were admitted in 1996. BRIC (Brazil, Russia, India and China) countries have been invited to join.
The organization has a reputation for promoting free market policies.
Headquarters is in Paris, France.
OECD Link
When a country joins the OECD, it is considered to have "arrived" in terms of 1st world development. Mexico was admitted in 1994; Korea and Poland were admitted in 1996. BRIC (Brazil, Russia, India and China) countries have been invited to join.
The organization has a reputation for promoting free market policies.
Headquarters is in Paris, France.
OECD Link
Presidential News Conference on Healthcare
I listened closely to the President's news conference on Healthcare. It was quite a masterfully performance compared to his predecessor. Obama comes off as very "teacher" like when he is explaining his point of view.
I am happy he continues to mention a government option to compete with private healthcare insurance. He continues to bring up the poll tested, feel good answers answers like: "it won't add to the deficit","We will pay for it by getting ride of waste", and "everyone can used the doctor of their choice." And he wants to cover everyone.
There was no mention of mandated coverage for small businesses. We will have to wait and see on that one.
I also like how he, in the great political tradition, completely dodged the question about what the American people would have to give up. The answer is simple: either pay more or give up the gold-plated healthcare we currently have. And who knows, we might be healthier in the long run if healthcare is limited by price or policy. At least we won't be broke.
The preseident and many healthcare economists and cost analyst frequently reference the OECD's health care data set. You can view some of the OECD Healthcare Data Here
I am happy he continues to mention a government option to compete with private healthcare insurance. He continues to bring up the poll tested, feel good answers answers like: "it won't add to the deficit","We will pay for it by getting ride of waste", and "everyone can used the doctor of their choice." And he wants to cover everyone.
There was no mention of mandated coverage for small businesses. We will have to wait and see on that one.
I also like how he, in the great political tradition, completely dodged the question about what the American people would have to give up. The answer is simple: either pay more or give up the gold-plated healthcare we currently have. And who knows, we might be healthier in the long run if healthcare is limited by price or policy. At least we won't be broke.
The preseident and many healthcare economists and cost analyst frequently reference the OECD's health care data set. You can view some of the OECD Healthcare Data Here
Tuesday, July 21, 2009
Bad for Economy; Good for Economists
Well, the economy is still bad. The next national unemployment situation release is August 7th, 2009 by the BLS. This next report could be critical. May's report was for a loss of 322,000 jobs but June's unemployment report showed an acceleration of 467,000 job losses. If the new report of losses is above 467,000 (June), consumer confidence will take a hit. Above 322,000 is still very bad but less of a danger to the economy. My guess is for something around 350,000.
And the big question is when we will start with job creation ? When the the job numbers go positive ?? And in which sectors ??
We will also get a preview of unemployment situation on July 29th, 2009 with the release the Local Area Unemployment Statistics (LAUS)which measures unemployment in the 310 largest metropolitan areas in the US.
Meantime, it is a great time to be an economist or economic commentator. Business is booming. Economists and economic stories are the stop stories now. Check the Economist cover story on economics. And Jack Welch has been replaced by Paul Krugman as the economy's chief commentator. Economic news is top of mind right now. People are starting to understand some of the basic principals of economics. Soon everyone will have a basic understanding of economic issues. And the country will better for it.
v2
And the big question is when we will start with job creation ? When the the job numbers go positive ?? And in which sectors ??
We will also get a preview of unemployment situation on July 29th, 2009 with the release the Local Area Unemployment Statistics (LAUS)which measures unemployment in the 310 largest metropolitan areas in the US.
Meantime, it is a great time to be an economist or economic commentator. Business is booming. Economists and economic stories are the stop stories now. Check the Economist cover story on economics. And Jack Welch has been replaced by Paul Krugman as the economy's chief commentator. Economic news is top of mind right now. People are starting to understand some of the basic principals of economics. Soon everyone will have a basic understanding of economic issues. And the country will better for it.
v2
Tuesday, July 14, 2009
Bureau of Labor Statistics
The Bureau of Labor Statistics the main US government collector of economic and labor statistical data. The BLS is part of the United States government department of labor and is based in Washington, DC. The BLS collects and employment data for the united states including the "official" unemployment rate and the consumer price index.
www.bls.gov
www.bls.gov
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