No-deal Brexit? That’s no problem, at least for Britain’s wealthiest people. Their bigger fear is leftist firebrand Jeremy Corbyn.
For more than a year, some of the most affluent have prepared for a hard separation from the European Union, making clear they can take a chaotic Brexit in their stride. But the prospect of a Labour victory is turning out to be the more worrisome development. Read the rest of this entry »
Data suggest more opportunities are available to some groups that historically struggled to find jobs.
>Andrew Duehren reports: The unemployment rate among young Americans fell to its lowest level in more than 50 years this summer, though the share of young people looking for work remained well below its peak in 1989.
Of Americans between 16 and 24 years old actively looking for work this summer, 9.2% were unemployed in July, the Labor Department said Thursday, a drop from the 9.6% youth unemployment rate in July 2017. It was the lowest midsummer joblessness rate for youth since July 1966.
One of those finding work was Teandre Blincoe, 17, who placed in a job this summer in an information technology division at Humana, a health insurance company based in Louisville, Ky., by KentuckianaWorks, which has partnered with JPMorgan Chase & Co. to place low-income youth in summer jobs.
With his first job under his belt, Mr. Blincoe said he would feel more confident looking for employment in the future. “I have a really solid idea of how I can present myself and actually get a job.”
Low unemployment among young people shows that in a tight labor market more opportunities are opening to groups that historically have struggled to find jobs. Read the rest of this entry »
Marian L. Tupy writes: Marx’s disciples from Cuba and Venezuela to South Africa and Zimbabwe are committing the same mistake today.
Marxism was supposed to have brought about a lot of positive changes, including the creation of a classless society, where everyone lived in peace. To these ambitious goals can be added substantial reduction in the amount of labor required from the proletariat.
As Rodney G. Peffer from the University of San Diego put it in his 2014 book Marxism, Morality, and Social Justice:
Marx believed the reduction of necessary labor time to be…an absolute necessity. He [claimed] … that real wealth is the developed productive force of all individuals. It is no longer the labor time but the disposable time that is the measure of wealth.
Little did the German economist know that free markets would achieve his objective with aplomb.
The number of hours worked per day has fluctuated throughout human history. Based on their observations of extant hunter-gatherer societies, scholars estimate that our foraging ancestors worked anywhere between 2.8 hours and 7.6 hours per day.
Once they secured their food for the day, however, they stopped. The foragers’ workload was comparatively low, but so was their standard of living. Our ancestors’ wealth was limited to the weight of the possessions they could carry on their backs from one location to the next.
The total number of hours worked rose because people were willing to sacrifice free time in exchange for a more stable food supply.
About 12,000 years ago, people started to settle down, cultivate crops and domesticate animals. The total number of hours worked rose, because people were willing to sacrifice free time in exchange for a more stable food supply. Since artificial lighting was prohibitively expensive, daylight regulated the amount of work that could be done on any given day.
In summer, most people worked between six and 10 hours in the fields and an additional three hours at home. In winter, shorter days limited the total number of work hours to eight. For religious reasons, Sunday was a day off and a plethora of feasts broke the monotony of agricultural life.
Our expectations as to what constitutes a good work-life balance are obviously very different from those of hunter-gatherers and agriculturalists. It makes sense, therefore, to compare today’s workload to that at the beginning of the Industrial Revolution.
In 1830, the workweek in the industrializing West averaged about 70 hours or, Sundays’ excluded, 11.6 hours of work per day. By 1890 that fell to 60 hours per week or 10 hours per day. Thirty years later, the working week in advanced societies stood at 50 hours, or 8.3 hours per day. Read the rest of this entry »
These members of the ‘government within the government,’ as The New York Times‘ John Tierney describes them, produce one freedom-restricting, economy-hindering rule after another without much oversight.
Veronique de Rugy writes: The tyranny of the administrative state is real and hard to tame. Americans would be horrified if they knew how much power thousands of unelected bureaucrats employed by federal agencies wield. These members of the “government within the government,” as The New York Times‘ John Tierney describes them, produce one freedom-restricting, economy-hindering rule after another without much oversight. These rules take many forms, and few even realize they’re in the making — until, that is, they hit you square in the face.
Take the Consumer Financial Protection Bureau’s rule that effectively banned car dealers from giving auto loan discounts to customers on the claim that they might lead to racial discrimination (a dubious conclusion reached using flawed statistical models). Dodd-Frank, the legislation that created the CFPB, prohibited it from regulating auto dealers — so the CFPB quietly put out a “guidance” document to circumvent due process and congressional oversight.
Thankfully, this time around, someone noticed. In recent weeks, the Senate passed a resolution of disapproval under the Congressional Review Act — a streamlined procedure for Congress to repeal regulations issued by various federal government agencies. The House is expected to follow suit soon and send the bill to the president’s desk, if it hasn’t already by the time you read this. Read the rest of this entry »
Weinstein Loses $1.4 Million on Hamptons Estate.
Disgraced producer Harvey Weinstein settled on a $10 million sale price for a Hamptons mansion he bought three years ago for $11.4 million
The hits just keep coming for publicly pilloried and legally embattled film and television super-producer Harvey Weinstein and his red carpet gown designer soon-to-be-ex-wife Georgina Chapman who took a staggering $1.4 million loss, not counting carrying costs, improvement expenses and real estate fees, on the sale of a bay front mansion in the sleepy Hamptons community of Amagansett, New York.
The May-December former couple, he’s nearly 25 years her senior, settled on a sale price of $10 million for the estate they purchased in June 2014 for $11.4 million from nine-time Tony winning Broadway producer Roy Furman (“Spamalot,” “The Book of Mormon” and the recent revival of “Hello, Dolly”). Read the rest of this entry »
Willie “Jack” Degel, long an outspoken critic of rising minimum wages and their effect on restaurants, talked himself into the firestorm when he inadvertently knocked both his customers and his employees during an interview on national TV.
“One could conclude that more restaurants are closing than opening.”
— James Famularo, senior director of Eastern Consolidated.
Degel, who owns Uncle Jack’s Steakhouse and starred in Food Network’s reality television show “Restaurant Stakeout,” first put his foot in his mouth when he was asked about how the rising minimum wage affects his eateries.
Degel said he can’t just pass the added cost to his customers because they are “not educated” about the economics of running a restaurant.
Degel’s Twitter feed blew up with hate tweets.
The businessman also said it was harder to keep his employees today because wait staff, like those at other restaurants, have a “sense of entitlement.”
After the comments, made on “Fox & Friends,” Degel’s Twitter feed blew up with hate tweets.
“Omg! I would never patronize a place that thinks so little of its staff,” jacottrell tweeted. “Calling your staff entitled and prefer when they were servants? Good grief man!”
“This makes me sad,” tweeted sdusn06. “We go have brunch there at least once a month Guess We will find another place.”
While Degel clearly fumbled the interview, many restaurant owners are feeling the pain of rising minimum wages.
Many eateries are seeing their profits squeezed, or worse, as wages rise.
The amount of vacant food service space in Manhattan has never been higher, according to real estate experts. Read the rest of this entry »
Corporations could repatriate as much as $400 billion in earnings and cash from abroad.
Companies could bring back as much as $400 billion, according to one estimate, as they take advantage of a one-time cut for repatriation of earnings and cash held overseas written into the GOP tax overhaul. That typically requires them to sell foreign holdings and buy assets denominated in dollars, which could boost the U.S. currency.
Gauging the dollar’s trajectory is crucial to both investors and corporations. The currency’s climb over the past several years has been blamed for pressuring profits among U.S. multinational companies and making exporters’ goods less competitive abroad.
Its trajectory also influences prices for raw materials like oil, copper and gold, which are denominated in dollars and become more expensive to foreign investors when the dollar rises.
Many investors expected the dollar to strengthen in 2017, boosted by the Trump administration’s fiscal-stimulus and infrastructure-spending pledges. Instead, the currency as of Friday had fallen nearly 7% against its peers, as key White House initiatives stalled.
A sobering reality has gripped Hollywood as domestic film industry revenue fell an estimated 16% during the all-important summer season.
The number of tickets sold in the United States and Canada this summer is projected to fall to the lowest level in a quarter-century.
The results have put the squeeze on the nation’s top theater chains, whose stocks have taken a drubbing. AMC Theatres Chief Executive Adam Aron this month called his company’s most recent quarter “simply a bust.”
Such blunt language reflects some worrisome trends. Domestic box-office revenue is expected to total $3.78 billion for the first weekend of May through Labor Day — a key period that generates about 40% of domestic ticket sales — down nearly 16% from the same period last year, according to comScore. That’s an even worse decline than the 10% drop some studio executives predicted before the summer began.
And the number of actual tickets sold this summer paints a bleaker picture, with total admissions likely to clock in at about 425 million, the lowest level since 1992, according to industry estimates.
No one can fully explain why. Studio executives, movie theater operators and analysts cited the usual explanations for the summer slump. There are the obvious reasons: Too many bad movies, including sequels, reboots and aging franchises that no one wanted to see. Some point to rising ticket prices, which hit a record high in the second quarter, according to the National Assn. of Theatre Owners. Then there are long-term challenges, including competition from streaming services such as Netflix and the influence of the movie review site Rotten Tomatoes. How about all of the above?
What is clear: This summer was marred with multiple high-profile films that flopped stateside, including “The Mummy,” “Baywatch,” “The Dark Tower” and “King Arthur: Legend of the Sword.” Sequels in the “Alien,” “Transformers” and “Pirates of the Caribbean” franchises also disappointed. (International ticket sales are helping to ease some of the pain.) Read the rest of this entry »
As HBO’s blockbuster series Game of Thrones returns for its seventh season, Reason offers its own freedom-filled parody. A libertarian paradise north of the wall? What’s happened to Westeros’ social security trust fund? Should it take low-income Dothraki four years to get a hair-braiding license?
Written and produced by Austin Bragg, Meredith Bragg, and Andrew Heaton. Shot and edited by Bragg and Bragg. Starring Andrew Heaton, Austin Bragg, and Remy.
“Up until now, the company had not indicated that layoffs would happen if targeted numbers weren’t achieved,” Grant Glickson, president of the NewsGuild, told Media Ink.
As part of the NYT’s ongoing restructuring of its editing ranks, 109 copy editors have had their jobs eliminated. There are estimated to be about 50 new jobs available in the restructured editing operation that the Times envisions for its digital- and video-oriented future.
When the downsizing was first revealed in late May, a memo from Baquet and Managing Editor Joe Kahn portrayed the cuts as a “streamlining” of the editing process and indicated that some of the savings would be used to hire up to 100 more journalists.
But in a mid-June meeting with department heads, Baquet admitted that journalists could be targeted in a new round of layoffs once the editing ranks are culled. Read the rest of this entry »
Cowen believes McDonald’s digital ordering upgrades will drive the fast-food chain’s sales higher.
McDonald’s shares hit an all-time high on Tuesday as Wall Street expects sales to increase from new digital ordering kiosks that will replace cashiers in 2,500 restaurants.
Cowen raised its rating on McDonald’s shares to outperform from market perform because of the technology upgrades, which are slated for the fast-food chain’s restaurants this year.
McDonald’s shares rallied 26 percent this year through Monday compared to the S&P 500’s 10 percent return.
Andrew Charles from Cowen cited plans for the restaurant chain to roll out mobile ordering across 14,000 U.S. locations by the end of 2017. The technology upgrades, part of what McDonald’s calls “Experience of the Future,” includes digital ordering kiosks that will be offered in 2,500 restaurants by the end of the year and table delivery.
“MCD is cultivating a digital platform through mobile ordering and Experience of the Future (EOTF), an in-store technological overhaul most conspicuous through kiosk ordering and table delivery,” Charles wrote in a note to clients Tuesday. “Our analysis suggests efforts should bear fruit in 2018 with a combined 130 bps [basis points] contribution to U.S. comps [comparable sales].” Read the rest of this entry »
Paul Bedard writes: In the latest sign that Washington operates in an alternate economy, journalism jobs around the country dove 22 percent in the last 10 years, but they spiked a whopping 38 percent in the nation’s capital, according to a new economic study. What’s more, salaries for Washington journalists rose 7 percent while diving nationally.
While 12,000 reporting jobs were eliminated in most markets in the last decade, the Washington journalism market expanded from 2,190 to 3,030. That is more than five journalists for every single House and Senate member.
In New York, by comparison, the drop was historic, from 5,330 jobs in 2005 to just 3,478 in 2015, said the study from Apartmentlist.com.
The study reviewed rents in major cities and showed how rents have spiked while the salaries of reporters hasn’t. That gap may be responsible for the shift by reporters, even award-winning journalists, to better paying public relations.
“Our analysis illustrated that reporter salaries are growing slower than rents in most metros. Nationwide, reporter salaries declined by 7 percent over the past decade while rents increased 9 percent. If this trend continues, publications will struggle to hire and retain talent,” said the report provided to Secrets. Read the rest of this entry »
Today is the 116th anniversary of the birth of F. A. Hayek, one of the greatest scholars of the 20th century.
David Boaz writes: Back in 2010, as the tea party movement was on the verge of delivering an electoral rebuke to President Obama’s big-government policies, the New York Times derided the movement for reviving “long-dormant ideas [found in] once-obscure texts by dead writers.” They meant Hayek especially. But a more astute journalist might not have regarded Hayek as obscure.
Who was Hayek? He was an economist born and educated in Vienna. After the Nazi conquest of Austria, he became a British citizen and taught there and at the University of Chicago for most of his career. He was awarded the Nobel Prize in Economics in 1974. President Ronald Reagan called him one of the two or three people who had most influenced him, and so did some of the dissidents behind the Iron Curtain. President George H. W. Bush awarded him the Medal of Freedom. Margaret Thatcher banged his great book “The Constitution of Liberty” on the table at Conservative Party headquarters and declared “This is what we believe.” Milton Friedman described him as “the most important social thinker of the 20th century.”
But respect for Hayek extended far beyond libertarians and conservatives. Lawrence H. Summers, former president of Harvard and a top economic adviser to Presidents Clinton and Obama, called him the author of “the single most important thing to learn from an economics course today” — that markets mostly work without plans or direction. He is the hero of “The Commanding Heights,” the book and PBS series on the battle of economic ideas in the 20th century. His most popular book, “The Road to Serfdom,” has never gone out of print and saw its sales explode during the financial crisis and Wall Street bailouts. John Cassidy wrote in the New Yorker that “on the biggest issue of all, the vitality of capitalism, he was vindicated to such an extent that it is hardly an exaggeration to refer to the 20th century as the Hayek century.”
In much of his work Hayek explored how society can best make use of “the dispersed bits of incomplete and frequently contradictory knowledge which all the separate individuals possess.” Read the rest of this entry »
No one has been identified yet. These disclosures likely will trickle out once the people affected are told.
“A necessary component of managing change involves constantly evaluating how we best utilize all of our resources, and that sometimes involves difficult decisions,” ESPN President John Skipper says in a memo to staffers.
Changes in ESPN content must “go further, faster…and as always, must be efficient and nimble,” he says.
That means “we have been engaged in the challenging process of determining the talent—anchors, analysts, reporters, writers and those who handle play-by-play—necessary to meet those demands. We will implement changes in our talent lineup this week. A limited number of other positions will also be affected and a handful of new jobs will be posted to fill various needs.”
ESPN said in March that the layoffs announced today were a possibility.
Small businesses employ over 57 million Americans. And yet, the government’s taxes and regulations overwhelmingly favor big businesses at the expense of small ones. Why? Find out in this short video.This video is part of a collaborative business and economics project with Job Creators Network and Information Station. To learn more, visit informationstation.org.
The free market needs and deserves a moral defense.
[VIDEO] Charles Krauthammer on Trump Budget Proposal: Cuts Dead on Arrival, Entitlements Are What MatterPosted: March 17, 2017
Charles Krauthammer dismissed Trump’s budget as “dead on arrival” and pointed out that entitlements are what matter, even if proposed cuts focus on domestic discretionary spending such as public broadcasting:
“This is a budget, like every other one I’ve seen in decades that I’ve been here, it is dead on arrival at Capitol Hill. Capitol Hill is a huge morgue of presidential budgets. There is not one that actually croaked into life. They all come in dead. They are wish lists. They are expressions of one’s interests, and a way to respond to promises. The beginning of this, the premise of this is defense. In the eight years under Obama, we had a real destruction of the defense budget. Obama came in, it was about 4.6 percent of GDP. When he left, it was 3.2 percent. To put it in context, under the sainted John Kennedy it was around 10 percent. We are at the lowest ebb since about Pearl Harbor, and you can see it in the readiness, so that had to be done.”
“All the real stuff, where the money is — the Willie Sutton bank money — is in entitlements, which isn’t even in here. The problem is it’s not in here because we’ve got a president who promised in the campaign, unlike just about every other Republican opponent, he wasn’t going to touch a hair on the head of entitlements. So if you don’t, it all has to come out of the domestic discretionary spending, and when you do that, you end up with these cuts which are never going to happen, and you get the old perennials. Big Bird is going to get roasted again, or at least proposed to be. I guarantee you, he will or she will — I’m not sure which it is these days — it is going to escape unscathed.”
Source: National Review
The U.S. stands to lose 80 million jobs to automation.
Thomas Phippen reports: The robotic labor revolution is coming quickly, and the workforce may not be able to adapt without long periods of unemployment, according to economists at the Bank of England.
“Economists should seriously consider the possibility that millions of people may be at risk of unemployment, should these technologies be widely adopted.”
“Economists should seriously consider the possibility that millions of people may be at risk of unemployment, should these technologies be widely adopted,” BOE economists Mauricio Armellini and Tim Pike wrote in a post on Bank Underground, a blog for bank employees, Wednesday.
Artificial intelligence (AI) “threatens to transform entire industries and sectors,” the authors write, arguing that with the speed of industries adopting technological developments won’t give the labor force time to adjust. Read the rest of this entry »