Category: Economy

Understanding the middle class vote

With November 2nd just around the corner, President Obama and Republican presidential candidate Mitt Romney are doubling down on campaign efforts to gather support from a broad base of Americans. While the two parties typically cater to different demographics, this year both held conventions focused on reaching the ever growing number of self-identified independents, more specifically, the 35 percent within the middle class.

Vying for the votes of the same crowd, both parties attempted to surge ahead of the other coming out of their conventions by clearly distinguishing their roadmap for the nation from the other party. Republicans stressed that Continue reading

The Impact of Deficit Financing

More and more people have become familiar with the impact that Federal Reserve policy has on the economy. It’s easy to latch on to popular criticisms which deliberately leave out finer details for the purpose of saving time. We’ll now look into some of these finer details to more clearly understand the process by which the Federal Reserve finances the federal deficit, and then we’ll examine the consequences that deficit financing has on the economy.

The U.S. federal government ran a 1.3 trillion dollar deficit in 2011, and we should expect a similar number for 2012. In order for the government to borrow 1.3 trillion dollars, the U.S. Treasury must issue 1.3 trillion dollars of debt by selling notes, bills, bonds, and securities. The federal government then takes the money made from those treasury items and Continue reading

Corporations prey on the human condition

An article on Yahoo News caught my attention the other night as I was casually surfing the net for anything of interest. “Help Most Wanted: 5 Biggest Worker Shortages,”the piece headlines. Now, I’ll try to refrain from making any excessive commentary on Yahoo News itself, but I must mention that I hardly consider Yahoo’s content to be of any reputable quality, or credibility. On numerous occassions they’ve managed to get away with false data, warrantless claims, and idiotic and unqualified comments from their writers. In fact, to put it simply, I think their material is garbage. But enough bashing. Quality and credibility aside, take the topic they’ve presented for face value. You may need a few minutes to skim the piece before you can understand the details of my thesis.

If you’re finished reading, then the question I’m about to pose should already be lingering in your mind. It regards employment of different sorts, yes, but more generally you should be asking yourself Continue reading

Chik-Fil-A serves up controversy

The fast food industry has been politicized in ways you wouldn’t have imagined, but if you’ve been keeping up with the flak on Chik-fil-A, then you already know that the recent controversy isn’t over the chicken. It’s over homophobia.

Last month, Jim Henson Co., the company behind The Muppets and other iconic puppets, canceled its partnership with Chik-fil-A after the president of the fast food joint acknowledged that it had been endorsing anti-gay organizations. In response to the revelation, Lisa Henson, CEO of the Muppets company, ordered all payments from the former Chik-fil-A partnership to be donated to the Gay & Lesbian Alliance Against Defamation. The move sparked a renewed debate over First Amendment rights and gay marriage that has raged for weeks. Chik-fil-A has since issued a recall on its Muppet toys, citing potential safety hazards to children. A spokesperson for the company has assured that Continue reading

UC tuition freeze result of student entitlement?

As part of a 2012-2013 budget proposal sure to satisfy parents of college students, Gov. Jerry Brown has recently worked with Democratic leaders to guarantee to hold tuition rates flat for both the UC and CSU systems over the course of this year and the next. This guarantee comes on the heels of initiatives to cut state spending and reduce the state’s $15.7 billion deficit. The proposal will cost the state $125 million for each system and is contingent upon Brown’s November ballot measure to raise state taxes to account for the shortcomings.

For taxpayers, this decision has mixed implications. Most considerably is the notion as to whether it is appropriate for Californians to bare the brunt of higher taxes that could have Continue reading