Beer Monopoly

On the beer-related side of this article, the author writes, "In 1988, Miller and Coors lowered prices on their flagship beers, which led Anheuser-Busch to slash the price of Bud and its other brands in key markets. At the time, August Busch III told Fortune, “We don’t want to start a blood bath, but whatever the competition wants to do, we’ll do.” Miller and Coors promptly abandoned their price cutting."  This is not an illegal practice, however--and continues to this day.

What was more interesting to me is this: "It’s quite possible that the true monopolistic battles of the 21st century will not be among massive corporations but among the self-interested governments. We can only hope that they don’t engage in a trigger strategy of their own."  Because national governments legislate the anti-monopoly law their intra-national companies must abide by, what protects us against global monopolies?  Other thoughts on the article? 

Continuing on the sequester...

http://foxnewsinsider.com/2013/02/24/sen-tom-coburn-i-didnt-support-the-sequester-because-its-a-stupid-way-to-cut-spending/

 

I found this interesting article and video on the sequester. “The crisis is made up, it’s been created” he said. “I didn’t support the sequester because that’s a stupid way to cut spending. And I didn’t support increasing the debt limit because there is no such thing as a debt limit in this country because we always raise it.”

 

Found it pretty interesting and since we didn't get to share our powerpoints in class I wanted you guys to have the change to watch it and respond to his claim...

Price Formula for Patented Drugs

The Department of Pharmaceutical in India has developed a formula that they would like to implement to control the prices of patented drugs. The formulaic pricing will help control the pricing of patented drugs and get rid of the discretion that the companies have about their drugs. Do you think that this is a good idea? Is a formulaic approach to drug pricing and eliminating the generic going to work? Should the government step in and help price drugs? Here is the article.

Affordable Care Act and Massachusetts

In this article, Dr. Mulligan claims that Massachusetts' model of healthcare does not provide an accurate picture of what the Affordable Care Act will look like on a national level.  Thoughts? 

Also interesting, the "reader picks" comments (at the time of this posting) are by Massachusettsian skeptics of their current state system noting that it does nothing to quell costs of procedures (money going from government/insurance companies to hospitals) and salaries of doctors.  I'm under the impression that both of these will take losses; however, I'm interested to see how this pans out. 

Do you believe the ACA to be a necessary, and beneficial program?  What pressures will the ACA have on the economy? 

"Italian Deadlock Rekindles Anxiety About Euro Zone"

This Article about Europe is interesting. Maybe the euro-zone crisis is not over and Italy is showing it because of this political election? What are your thoughts on how the Eurozone is looking like it has not recovered and may be stuck in the recession because of their austerity measures?

The importance of profits?

From Slate's Moneybox: 

The International Federation of the Phonographic Industry reports today that last year "global recorded music industry revenues rose by an estimated 0.3 per cent to US$16.5 billion in 2012, the first year of industry growth since 1999" with digital revenue growing 9 percent.

That's good news for the music industry, but also a sobering reminder of the extent of the collapse. But what I think is really important to remember is that this epic decline of the music industry has occurred during a period of time when it's never been easier for music fans to find new music to listen to. It's a great example of how the health of an industry as a generator of profits can become completely detached from actual human welfare.

 

Beware claims of free markets

Every business owner dreams of monopoly--barriers to entry and higher prices. But what if you can get massive subsidies at the same time?  A study by Bloomberg estimates that the largest US bankers have gotten $83 billion dollars from the US government since the crisis.  (see here for the story) .   Since they published their report, critics have attacked the methodology  but not the substance of their argument. 

Two policy issues seem most important to me.  First, the financial sector is not as profitable as commonly assumed.  Second, "Others may come up with different numbers, but the conclusion is the same: Banks get a very big subsidy from taxpayers. This subsidy distorts markets and encourages banks to become a threat to the economy."

Shadow Banking in China

In this article, the FT reports on China's tightening of policies on shadow banking. 

Shadow banking, in a nutshell, is the practice of a non-bank entity facilitating investments.  It is mostly off-balance sheet transactions; thus, mostly unknown to the uneducated investor and not held to the same standards as normal loans by regulatory bodies.  It makes up a huge volume of today's investment pool. 

This may be in poor form, but here's the Wikipedia on it for anyone who wants to know more.

What are your thoughts on this practice?  Should there be increased regulation on shadow banking practices?  It seems profitable and efficient for all parties involved; however, the lack of regulation on these non-banks acting as loan agents makes for "risky" business practices. 

Barnes and Noble Going Down?

This article talks about how Barnes and Noble is losing profit with the Nook and it's reading tablets/online store. Do you think that the company will "go away" like Borders did? Or are you hoping the store will stay in business? What are your thoughts on book stores and their importance?

House of Cards

Any TV lovers in the class? Here is a show I think you may like "House of Cards." But before you watch it (on Netflix) here's an article about it. If you took Econ 101 (or other class) with Hannah then you may remember watching a video with the same name.
Just an interesting qoute from the article: "In the real world, federal funding is a fast-dwindling resource, and populist pandering a bigger drag on problem-solving than any individual villainy"  - Powerful ain't it?
What do think of the show? Would you watched it? 

Less Innovation in the U.S.

The author of this article believes there must be steps to taken to “return to the productivity growth and broad economic inclusion of the past.”   

Do you agree with his premise and conclusion?  Is there less innovation happening in the United States today?  Has research and development--and subsequently, imagination, exploration, experiment and discovery--been sacrificed for necessary short-term gains in firms?  

How should the government, educators and/or individuals look to prop up innovation and long-term economic growth?   Is more corporate oversight by boards and government regulators necessary? 

Thoughts or comments?

Signs of Market Bubbles in Booms

This article speaks to how the adage "buy low and sell high" is not necessarily the case in current-day markets.  Confidence grows as the economy picks up.  From this, overvalued companies are sold for a "bubbled" amount of money.  Is this due to a lack of research or common sense in mergers or buy-outs?  More due to investment bankers pushing deals and not caring about the resulting profits or losses? 

Regarding the latter, the author states, "Most investment bankers, who earn millions on deals, do little to dissuade their clients from buying, even at market peaks.  'You can’t blame them,' Professor Rhodes-Kropf (a Harvard Business School professor) says. 'Their job at the end of the day is to facilitate a deal, not to do valuation. It’s not their place to tell you not to buy AOL at the height of the Internet bubble.'"  

Thoughts on this practice or on the article in general?  

Armed and Caffeinated

This article talks about how Starbucks is allowing people to carry guns in their stores. Do you think this is a good idea? Will this help keep us more safe from robberies and shootings? Should other businesses allow this as well?

Efficient markets, values, and prices

I just read this essay that adds some depth to the pricing exercise we did in class on Thursday.  You were assigning value and price to my "precious" items.  And we in no way came to an equilibrium price.  The author of the essay points out:

There is no unified theory in our popular understanding of value: there are the market values of goods and then there are our “values” which we consider to be some of the most personal and even sacred aspects of ourselves.   Once people emerge from the realm of necessity or being driven by what seems to them to be compulsions of various kinds, they may feel that they are then making decisions which draw to some degree on their ethical or personal values.   People often have the impression that most of their financial dealings have little to do with their personal ethics; the realm of market interaction is viewed for the most part as an area of life controlled by forces outside the self or motivated by our insistent drives for self-preservation and pleasure.

 You can read more at:
Via Government’s Fiscal Policy and Regulatory Oversight, Ethical Values Shape Monetary Value - New Economic Perspectives

How Federal Spending Would Be Cut Under the Sequester

This article talks about the various cuts that could be made under the sequester. What do you know about the sequester? Do you think the government is making the right department cuts? What else should we look at cutting in order to help balance our economy?

Delay the Budget Cuts?

There are a couple of things I found interesting about this article. Mainly, the headline states that "Americans" back spending cuts but the percentage that were polled was only a little above majority (54% for delay, 40% for a decision). That being said, it seems like the country is split on another thing, to delay the cuts or not. What is your opinion on delaying the cuts? The article provides a few arguments from both sides.

More Good News for the Auto Industry?

This article presents some more news of growth in the Auto Industry. I think most, if not all, of us would agree that this is good news for the economy because of the creation of jobs and a higher productivity for the U.S. The question is, do you think this enough good news for Investment to finally start to increase at a higher rate? What were your thoughts on Ford's new strategy for their European plants? How might that affect the European economy? How might the movements of foreign factories back into the U.S. affect our economy? If any, what future roles or policies should the U.S. government have in preventing another downturn in the Automobile industry?

Sony's PS4 is Finally Out!

Check out this article from Bloomberg News that highlights Sony's announcement to release the PlayStation 4.  It has been seven years since Sony's last video-game console and this new release is being made in hoping to increase sales and gain shareholder confidence.  According to the article this new console could be the game changer in the gaming industry with new social gaming features making sharing games as easy as clicking a button. What do you think about Sony's big move?   For those gamers out there, are you interested in buying a PS4?

It Takes a B.A. to Find a Job as a File Clerk

This article definitely relates to all of us as we are all in college trying to earn our degrees. I found it quite shocking that all of the people in the article including the runner, file clerk, and paralegal all had college degrees for positions that don't normally require them. With the way the economy is going do you think a college degree is really the new high school degree? Are you nervous about finding a good job once you get out of college? Would you be willing to accept a lower position like the people in this article until you could work your way up? Do you think this will change in future years or do you think it will become more and more difficult to find a good job once graduating from college?

Obama’s Deficit Commission Leaders Offer New Debt Plan

As I read this article I was relieved to see that some of the policy makers also had a problem with how our divided Congress is handling debt negotiations. Bowles and Simpson propose this plan to not only share what they think a good solution should be for spending cuts, but they are also proposing it to get the Repubicans and the Democrats to start to compromise and budge. What are your thoughts on their plan? Do you think this will push Congress into better negotiations? How do you think this will influence President Obama?

Immigrants and Jobs

As we progress through the recent changes due to immigration reform, statistics like the ones in this article provide insight into how they might affect our economy. I thought this article brought up some good points for both sides (or all of the sides...) of the arguments for and against different aspects of immigration reform. What are your thoughts? How much weight do you think should be put on these sorts of statistics? Did any of these numbers surprise you?

Abuse Worries Grow on Phone Aid for Poor

This article talks about the poor receiving phone aid services, but in the past couple of years these services have been abused.

"Regulators looking into the burgeoning federal program to provide subsidized phone service for the poor are finding growing cause for concern.

Last year, the government spent an estimated $2.2 billion on the Lifeline program, up from $819 million four years earlier."

Did you know that phone services were provided for the poor and do you think this is a good idea? What do you think the government could do to prevent these people that are not qualified from receiving these services?

Strong Win to Let Correa Deepen Hold on Ecuador

I take the opportunity of my last comment to publish about Ecuador. Yesterday, Ecuador lived its election in which Rafael Correa won again. His populist economic policies have created a risk confidence among investors and the private sector. This is regrettable when one knows that Ecuador as other Latin American countries, unlike the US and Europe, could succeed.
My country has enough resources and skills people that could be used to promote the development. However, the interest game has deteriorated the economy. I encourage you to read this article and comment about the Ecuador situation and how it can affect the economy. How can people wake up on the dream of the populism?

PS. Since Rafael Correa granted assylum to Julian Assange in the Ecuadorian embassy in London, WikiLeaks has become a important resource to promote the "good" image of Rafael Correa. Here you can see how WikiLeaks has stopped denouncing irregularities to enter to the interest game of the power.  

The Obama Administration and Brain Research

With all of the changes in Health Care under the Obama administration some people were concerned about how medical research would be affected since it was one of the many things under consideration for government spending cuts. This article talks about one of the research projects that is planned to be supported by President Obama's administration. Some see this project as controversial. Others are encouraged by it. Do you think this is a promising project? How do you think this project will affect the economy? What are your opinions on the topic of this project as opposed to other potential projects in areas related to cancer or other diseases? Are you excited about this project?

Should Pepsi Change Its Name?

What do you guys think, should Pepsi change its name to one that is more relevant to the bigger percentage of products that they actually sell, since the actual pop only makes up 11% of sales? Did you know that Pepsi made most of their money from other snacks? What should it's new name be? Read this article to find out more.

Obama Faces Risks in Pipeline Decision

Canada and the United States have some important agreements among them not only in terms of trading partner, but also in aspects related to Iran and Afghanistan. For instance, "Canada is counting on the pipeline to propel more growth in its oil patch, a vital engine for its engine. However, this aspect is critical because President Obama's decision faces a dilemma between alienating environmental advocates who overwhelming supported him during the election or causing a deep and perhaps lasting rift with Canada. For both of them, it is clear that the rejection of the United States would be viewed as an unneighborly act and could have retaliation. Basing on this, what do you think that President Obama should do in this situation? One has to take into account that the Pipeline oil is a very important resource for the United States. So, the agreement on the oil resource could help the nation to  increase its income, which is not negligible. However, the environment has been an important topic when one analyzes the climate change, but beyond this is the pressure of the interest game that has to face President Obama. At that point, What is more rewarding in crisis time, in the economy, and in reality?
The following article gives us the vogue dilemma in Washington D.C.

Maybe the world economy needs some other type of policy

From the Washington Post (see link here)

The flood of dollars, euros, yen and pounds pumped into the global economy by major central banks in recent years has yet to pay off in the form of job creation, investment and stronger economic growth.  It has kept banks afloat, let corporations build large cash reserves and restructure debt and, arguably, staved off a worldwide depression. But the ultimate aim — strong and self-sustaining growth in the world’s core industrial economies — remains out of reach, and analysts are wondering whether central banks are at the limits of what they can do to help. 

Richard Koo and others are arguing for new paradigms and new policies. Think of stepping off the known world into the unknown.  Here be dragons.

Incomes Flat in Recovery, but Not for the 1%

 Incomes rose more than 11 percent for the top 1 percent of earners during the economic recovery, but not at all for everybody else, according to new data.

The numbers, produced by Emmanuel Saez, an economist at theUniversity of California, Berkeley, show overall income growing by just 1.7 percent over the period. But there was a wide gap between the top 1 percent, whose earnings rose by 11.2 percent, and the other 99 percent, whose earnings declined by 0.4 percent.

The disparity between top earners and everybody else can be attributed, in part, to differences in how the two groups make their money. The wealthy have benefited from a four-year boom in the stock market, while high rates of unemployment have continued to hold down the income of wage earners.

“We have in the middle basically three decades of problems compounded by high unemployment,” said Lawrence Mishel of the Economic Policy Institute, a left-of-center research group in Washington. “That high unemployment we know depresses wage growth throughout the wage scale, but more so for the bottom than the middle and the middle than the top.”

Excluding earnings from investment gains, the top 10 percent of earners took 46.5 percent of all income in 2011, the highest proportion since 1917, Mr. Saez said.

http://www.nytimes.com/2013/02/16/business/economy/income-gains-after-recession-went-mostly-to-top-1.html?ref=business&_r=0

What do you guys think about this huge inequality in income distribution? What should we do?

Investors Exit Fund Dogged by Probe

In order to regain the confidence of investors, bankers, and so on, "Clients of SAC Capital Advisors LP moved to pull $1.7 billion from the hedge-fund firm, or roughly a quarter of outside investors' money, as an insider-trading investigation weighed on confidence in the money manager". However, some investors decreased because they are waiting if this policy will be consistent over the time. 

The following article explains the strategy of the SAC. What do you think about it? D you think that it is know to do in order to regain the confidence of the investor?

.

Japan remains mired in recession

http://www.ft.com/intl/cms/s/0/e505f51e-7642-11e2-9891-00144feabdc0.html#axzz2KtVwXYuw

This article in the Financial Times depicts how recent efforts to stimulate the Japanese economy have yet to show any real progress.  Some economists project that we will start to see some positive growth in the coming year, yet others believe that we will actually see a contraction.  Is there much hope for Japan in the near future? Is there anything they should be doing differently?

Slower Growth of Health Costs Eases Budget Deficit

Slower cost growth would have ramifications far beyond the deficit. According to calculations by White House economists, slowing the annual growth rate of health care costs by 1.5 percentage points might increase economic output by 2 percent in 2020 and 8 percent in 2030. It might also lead to higher wages for workers and more room for productive investments in the budget.

A sharp and surprisingly persistent slowdown in the growth of health care costs is helping to narrow the federal deficit, leaving budget experts trying to figure out whether the trend will last and how much the slower growth could help alleviate the country’s long-term fiscal problems.

In figures released last week, the Congressional Budget Office said it had erased hundreds of billions of dollars in projected spending onMedicare and Medicaid. The budget office now projects that spending on those two programs in 2020 will be about $200 billion, or 15 percent, less than it projected three years ago. New data also show overall health care spending growth continuing at the lowest rate in decades for a fourth consecutive year.

Health experts say they do not yet fully understand what is driving the lower spending trajectory. But there is a growing consensus that changes in how doctors and hospitals deliver health care — as opposed to merely a weak economy — are playing a role. Still, experts sharply disagree on where spending might be in future years, a question with major ramifications for the federal deficit, family budgets and the overall economy.

Part of the slowdown stems from “the recession and the loss of income and wealth” causing people to cut back on health care, Douglas W. Elmendorf, the director of the Congressional Budget Office, said last week. But he added that a “significant part” of the slowdown “probably arises from structural changes in the health care system.”

http://www.nytimes.com/2013/02/12/us/politics/sharp-slowdown-in-us-health-care-costs.html?hpw&_r=0

What do you guys think about cutting off health care budget? Do you really think it will help solve budget deficit problem? 

In addition, what do you think about the government control of health care? I personally think US health care system is not good enough considering its economic strength, since it is privatized - I mean, the government doesn't have full control of health insurance, right?

 In Korea, everything related to medical care is really, really cheap because insurance controlled by the government covers much more than what I have to pay. For example, just going to see a doctor to get prescription drug when you have a cold or to a dentist for regular checkup is around $3 to $6, which I guess is much cheaper than what I have to pay in US. 

What do you think about privatized medical insurance? Is it for middle class? lower class? or maybe top 1%? 

I don't know well enough to discuss about it, but wanted to ask your thoughts about advantage of privatization, as I heard that Korean medical system can be privatized soon due to FTA with US. 

In an Age of Spending Cuts, Making the Case for Government

"Mr. Speaker, Mr. Vice President, members of Congress, fellow Americans, 51 years ago John F. Kennedy declared to this chamber that "the Constitution makes us not rivals for power but partners for progress." "It is my task," he said, "to report the state of the union; to improve it is the task of us all." With these words, President Obama began his speech yesterday. That was the way that he announced the end of the politics of austerity and suggested a balanced approach between the government and the market. 

The following article analyzes the Obama's speech. I encourage to read the article and comment about the impact that the Obama's speech caused in the economy. He said that it is time to promote economic growth. However, do you think it's time to cut the politics of austerity? Do you think its time to have an active government role when one knows that the government is facing a serious problem in its budget? 

EU and US announce trade deal talks

http://www.ft.com/intl/cms/s/0/23f35c94-75da-11e2-b702-00144feabdc0.html#axzz2KihaIslX

This article in the Financial Times highlight trade talks between the US and the EU.  If these negotiations are successful (leading to lower tariffs, less "red tape," etc...), how do you think the US GDP would be affected? Would the exports outweigh the imports, or would we see a decrease in net exports?

Need help crafting a Valentine Day's card?

Look no further than these graphs:

14 Economics Valentines - Business Insider

North Korea’s Lesson: Nukes for Sale

THE most dangerous message North Korea sent Tuesday with its third nuclear weapon test is: nukes are for sale.

The significance of this test is not the defiance by the North Korean leader,Kim Jong-un, of demands from the international community. In the circles of power in Pyongyang, red lines drawn by others make the provocation of violating them only more attractive.

The real significance is that this test was, in the estimation of American officials, most likely fueled by highly enriched uranium, not the plutonium that served as the core of North Korea’s earlier tests. Testing a uranium-based bomb would announce to the world — including potential buyers — that North Korea is now operating a new, undiscovered production line for weapons-usable material.

http://www.nytimes.com/2013/02/12/opinion/north-koreas-lesson-nukes-for-sale.html

How will this affect weapons market? change in investor confidence?

Maybe not really relevant and I don't know about stock market, but I actually found this graph very interesting in one Korean blog.

This graph is showing changing KOSDAQ value -Korea Securities Dealers Automated Quotation, basically, electronic stock market, just like NASDAQ- of Feb 12th in Korean time, when the news about Nuclear test was released.

Orange line for individual investors, green line for institutional investors and blue line for foreign investors.

Foreign investors start to sell stocks about 10 billion dollars around 12 pm and quickly rebuy them half an hour later. Blog was saying that 3rd nuclear test had less impact on foreign investors than 1st and 2nd nuclear tests due to investors' learning effect.

What do you guys think about investor confidence here? Do you think there was any impact on US stock market? 

Europe’s labour market reforms take shape

http://www.ft.com/intl/cms/s/0/9c2c864c-742f-11e2-a27c-00144feabdc0.html#axzz2KihaIslX

This article by Tony Barber at the Financial Times highlights how the the Spanish auto industry is starting recover and create thousands of new jobs thanks to wage increase limits and revamped working conditions.  Although, according to Mr. Barber, this will not make much of a dent in Spain's 26 percent poverty rate, it is a sign that the nation's economy is recovering quickly.  While the labor market is not the only factor in economic reform and will not necessarily provide long-term economic prosperity, should other struggling European nations mimic Spain's labor negotiations?

G-7 Nations Pledge to Avoid Currency War

The constant announcements of Japan, about the exchange rate, have worried the world because it could cause a currency war. That is why in order to avoid it the G-7 Nations Pledge to Avoid Currency War. G-7 nations argue that the disorder movements and the excess of volatility could have negative effects for the stable economy and the global financial system. 

The following video explains the situation of the Japan and the consequences of a currency war. 

Do you think that this announcement will be enough to stop the currency war? What are your suggestions to stop a currency war? What are the possible consequences if the currency war take place? 

Battling College Costs, a Paycheck at a Time

“You have two choices,” Ms. Mendoza says of students whose families could not or would not contribute to their college costs. “You either work, or you acquire debt.”

No one tracks how many students are trying to work their way through without parental assistance or debt, but plenty work long hours while also attending classes full time. As of 2010, some 17 percent of full-time undergraduates of traditional age worked 20 to 34 hours a week, according to the National Center for Education Statistics. About 6 percent worked 35 hours or more.

Students who work fewer than 30 hours a week (excluding federal work-study jobs) while in college were 1.4 times more likely to graduate within six years than students who spent more than 30 hours a week in a job, according to an article by Pilar Mendoza, an assistant professor of higher education administration at the University of Florida, in The Journal of Student Financial Aid last year. Their grades are likely to be better, too, since they have more time to study.

Do you think work-study over 30 hrs per week is worth no debt and prolonged graduation? Considering the inflation rate?

I personally think it's better to get a full-time job after graduation and pay off the debts. What do you guys think?

http://www.nytimes.com/2013/02/10/business/college-costs-battled-a-paycheck-at-a-time.html

Wider Trade Deficit

"Emerging markets such as China and Latin America will grow faster than their industrialized counterparts"

As China's growth and imports are rapidly increasing, the US will have to bump up its exports this year by 50% to keep the trade gap stabilized. Seeing as this is not feasible with our current resources, the U.S. will absorb more imports, but have less demand for its exports.

 Will this have a noticeable drag on our economy?

Companies fret over uncertain outlook

Despite the stocks have risen,  investors are less optimistic about the global economy and the current forecasts. As one can see in the Figure 1, the earning has reached 7.3% while the revenue rose 5.9%. However, those figures have not helped to improve the investor expectation. "Companies warn that the current quarter will be more challenging. That is why the earnings of S&P companies will, probably, rise just 1,7%". The main  cause is that companies fret over uncertain outlook although they know that the economy is improving. So, many executives see shrinking economies in Europe and US. 


                          Figure 1

http://online.wsj.com/article/SB10001424127887324906004578290272098212876.html?mod=WSJ_hp_LEFTWhatsNewsCollection

All in all, I am wondering how the policymaker can help to recover the investor confidence in the market?  Keeping in mind that investors are ignoring the economic indicators.   

Venezuelan devaluation sparks panic

http://www.ft.com/intl/cms/s/0/12e9f32e-739e-11e2-9e92-00144feabdc0.html#axzz2KbSakgJt

In an effort to relieve pressure on their fiscal deficit, the Venezuelan government announced a devaluation of their currency.  The article explains how this may be advantageous to the state's deficit by increasing its revenues by approximately 4 percent.  It also briefly mentions that the move will spur an already high inflation rate, however does not elaborate.  Does the devaluation seem to be an appropriate action? Also, does this action bring into play the possibility of hyperinflation, or is this fear a severe overreaction?

In Medicaid, a New Health-Care Fight

Medicaid is set to begin from 2014. States have option to participate in Medicaid, but if they don't choose to participate then the state's employers have various issues to deal with.

"If the state doesn't expand the Medicaid coverage then by default that population becomes the responsibility of their employer," said Michael Folks, Captain D's general counsel and a senior vice president.

What are your views on Medicaid? (LINK)

President Focuses on Middle Class

In the next state of the union address, President Obama looks to speak heavily on the middle class and what needs to be done to stimulate the economy with through the the middle class. Obama claims that only a "thriving middle class" will stimulate the economy over the long term. Do you agree with President Obama's stance on this?

In this article from the New York Times, the author claims that he feels that President Obama will address some of his new proposals, that build off his earlier reports of strengthening the middle class. Do you have any ideas of what these new proposals will be? If so, do you think these are the right way to go about stimulating the economy? what do you think should be done?

Trade Deficit Narrows, Countering a Report of a Contraction

Last time US saw a trade surplus was about three decades ago. This article indicates that there were some positive signs for America last quarter. Trade deficit was narrowed to $38.5 billion. Trade deficit can be overturned by focusing on domestic industries and production. But is it really worth to focus on decreasing imports by switching the priority to domestic industries?

Millionaires Consider Leaving California over Taxes

In this article from the New York Times, Many of the upper class people on California are considering leaving due to the raise in taxes on the wealthy. In California, federal state income tax has risen to 51.9% on earnings over $1 million put forth by congress near the end of 2012. Many of the wealthy people from California, like Tiger Woods, have already moved and others are considering doing the same.

Do you agree with the California laws of taxing the rich more heavily than the poor? or do you agree with taxes being equal for all?

No Use For the Penny?

Three days ago Canada cut the use of the penny. Many economists including Gregory Mankiw says we should too. The reason is that the penny is , "a waste of time", losing its usefulness,  and people would much rather round up to the nickel.

"When people start leaving a monetary unit at the cash register for the next customer, the unit is too small to be useful,"
 
 What do you think? Is the penny a necessity or a sentimental attachment? What may be some aftereffects if we do get rid of it?