Professor Mark J. Perry's Blog for Economics and Finance
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NPR publicized a show that made sh*t up? Why I never! There's a couple of leftist zombies here at my job, who love to spend hours a day telling everyone what they heard on NPR (did they mention they listen to NPR?) that day. This particular story was the topic of conversation for over a week. I must have heard the phrase "so I was listening to NPR this morning..." about 14 times in one day. This is why I never listen to NPR.
aig-you mean the national propaganda resource?yeah. i'm with you. it's pretty intolerable and the fact that they can make me pay for it through the CPB galls me no end.it's like paying public unions to take time off for union business.
In public union negotiations, everyone is represented except the taxpayers, the people who pay the bills.
5. "This American Life" retracts its radio story on the production of Apple's iPad and iPhone in China using outsourcing giant Foxconn, for “significant fabrications.”No kidding. Anyone who has actually seen the Chinese factories knows that the story was just the usual BS that has been pushed by the unions and protectionists for more than a decade. 3. Manufacturing renaissance: Cheap, abundant natural gas will allow U.S. steelmakers to cut costs and lower selling prices at home, and could help drive greater U.S. steel exports. There is a conflict here. Gas can't be CHEAP and ABUNDANT at the same time. The shale producers need a price that is at least three times higher than current levels. (Is that CHEAP?) And if you look at the actual production data you find that the sweet spots have already been tapped. New production is coming from more expensive marginal formations that have lower EURs and higher depletion rates. 4. Larry Kudlow reports that a new Joint Economic Committee study shows that a 10-15% appreciation of the dollar to pre-recession levels would lower gas prices by 42 cents per gallon. ???? Why is this news? If the USD went up in value it would be able to buy stuff for less. But isn't that called 'deflation' by people like Kudlow and others who keep cheering the Fed's USD destroying monetary inflation?
"4. Larry Kudlow reports that a new Joint Economic Committee study shows that a 10-15% appreciation of the dollar to pre-recession levels would lower gas prices by 42 cents per gallon."Does that mean that if a dollar cost 10-15% more, a gallon of gas would cost 10-15% less?Who would have thought!Just how much taxpayer money did that Joint Economic Committee study cost, again?
AIG: "This is why I never listen to NPRWell, it sounds like there's no need. You will get the condensed version at work whether you want it or not.
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Jorod: "In public union negotiations, everyone is represented except the taxpayers, the people who pay the bills."Hmmm. Does that mean the people we elect to do that job aren't doing it?
Basic economics 101: When the supply of a commodity increases (decreases) and becomes more (less) abundant, prices decrease (increase), ceteris paribus. Production of natural gas is at an all-time high, and real prices are at an all-time low. Abundance/increased supply = low/cheap prices = basic economics.
Mark J. Perry: "Production of natural gas is at an all-time high, and real prices are at an all-time low. Abundance/increased supply = low/cheap prices = basic economics."Well, yes, but is that increased production a result of lower production costs? If not, what IS driving it, and how long can it last?
"This is why I never listen to NPR."You're missing very good stuff. "This American Life," which ran the show about working conditions in Apple suppliers in China, is a particularly good show.What's more, their retraction today was very good. It left little doubt in my mind that Ira Glass, the chief narrator, is committed to telling the truth. (As far as it's possible for him or anyone to see it.)I don't share anyone at NPR's politics, with the slight exception of P.J. O'Rourke, who at one time (not recently!) was on the "Wait, wait, Don't Tell Me!" quiz show.But I certainly wouldn't mind having lunch or a drink (soda for me) with Ira Glass. I'd be very interested to see if I could convince him to look at the world in a more libertarian perspective. He seems like a good man. And like I said, his performance today was impressive.
"...a 10-15% appreciation of the dollar to pre-recession levels would lower gas prices by 42 cents per gallon."It may fall more than 42 cents, because U.S. income will fall and unemployment will rise, as the U.S. falls deeper into depression, from about $200 billion in lost exports and about $1 trillion of lost wealth in the stock market.Oil was $10 a barrel in the late '90s before peak oil.
Peak: "It may fall more than 42 cents, because U.S. income will fall and unemployment will rise, as the U.S. falls deeper into depression, from about $200 billion in lost exports and about $1 trillion of lost wealth in the stock market."Wow! so money equals wealth now? How much would the dollar have to depreciate to create full employment?Any gains from cheaper imports if dollar appreciates?
Ron, it's not really about "money." It's about raising actual output towards potential output to get out of this depression.Closing the output gap will create about $1 trillion a year in real wealth.
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Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan.
Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
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