Tenure: Economic Anomaly That Protects Laziness
Professor Mark J. Perry's Blog for Economics and Finance
From economic theory we know that monopolists, when insulated from market competition, can get away with charging high prices and offering poor service. A single child has a form of "monopoly power" on his or her parents' time, affection, attention and financial resources, and without competition from rival siblings, can often exercise that monopoly power by behaving selfishly and narcissistically. Of course the parents can play a role by pampering their only child, but the stereotypical outcome is that only children (monopolists) become "spoiled."
The volume of weekly rail traffic continues to register improvements over last year, and the gains in Week 45 (November 8- 13) announced today by the American Association of Railroads were 5.8% for carloads (297,269), and 11.9% for trailers and containers (232,888 intermodal units) compared to the same week of 2009.
The Conference Board's Index of Leading Indicators increased again in October, marking the fourth straight monthly gain in the gauge of future economic activity, and the 17th increase out of the last 19 months going back to April 2009 when the recession was winding down. Back-to-back monthly gains of 0.5% in the Leading Index in September and October suggest that the economic recovery will stay on track through the end of this year and continue to improve through next spring. According to the Conference Board, "the indicators are suggesting a mild pickup this spring."
According to the Cleveland Fed's report today, its median CPI measure of prices increased by only 0.50% in October over the same month last year, the same as the year-over-year rate for each of the last three months (August - October). October marked the 26th consecutive month that the median CPI annual inflation rate dropped or stayed the same, and the 0.50% inflation rate in six out of the last seven months is the lowest year-to-year inflation rate in the history of the Cleveland Fed's series back to 1984 (see chart above). In contrast, the regular CPI from the BLS increased by 1.2% over the last year (October 2009 to October 2010), and has held steady at between 1.1 and 1.2% for the last five months.
1. Company parties stage a comeback as economy recovers and dark mood eases. Source.
1. Passenger traffic at Los Angeles International Airport (LAX) increased by 4.1% in September above last year, and 5.2% above September 2008. The 4.7 million passenger count in September was the highest for that month since the 4.8 million passengers in September 2007.