News: Real Estate, Risk, Economics. Apr. 28, 2016

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Table of Contents
(Click to sections below.)

1) Grayson, Jolly debate campaign finance, climate change, other issues – Orlando Sentinel

2) Clean water crisis threatens US | TheHill

3) Danger Signs in the World's Top Housing Market – Bloomberg

4) More Jacksonville Properties Could be Converted Into Affordable Housing | WJCT NEWS

5) A real estate reach stretching far beyond Philly's borders

6) How tax falsehoods flourish – The Washington Post

7) What Would Happen If We Just Gave People Money? | FiveThirtyEight

8) World heading for catastrophe over natural disasters, risk expert warns | The Guardian

9) Japan government weighs shopping vouchers, promotions to boost consumption | Reuters

10) Flood Mapping Tools to Help Residents in South Dakota's Big Sioux River Basin

11) CADTM – What is to be Done with the Banks? Radical Proposals for Radical Changes

12) United States S&P Case-Shiller Home Price Index

13) Retrofitting in Utah, Nevada Spurred by Earthquake Report

14) Hey Dallas Millennials! Better get used to renting | HousingWire

15) Smart homes keep getting smarter | Miami Herald

16) Raising money for civic projects raises questions about democracy – The Washington Post

17) CMBS Risk Retention | Dodd-Frank Real Estate

18) Local real estate boom has unintended consequences | WHAS11com

19) In Baltimore, Hopes Of Turning Abandoned Properties Into Affordable Homes : NPR

20) Tick study eyes 5,000 properties in Dutchess

21) Report: Judge declares Seattle garbage check unconstitutional

22) Fair Housing Act: Criminal History-Based Practices and Policies | realtororg

23) LA Times – 80 attorneys in one courtroom help Porter Ranch residents defeat gas company in one battle

24) LA Times – Authorities euthanize dog that fatally bit a newborn baby

25) MBA to the next president: Here are 3 ideas to save the housing market | HousingWire

26) According to Wall Street Journal, "Seattle is the New San Francisco" – Curbed Seattle

27) Many Middle-Class Americans Are Living Paycheck to Paycheck – The Atlantic

28) America Is Finally Putting Home Foreclosure Crisis Behind It – Bloomberg

29) NYT Debate On If Banking Giants Still Too Big to Fail Ignores the Core Issue

30) United States Fed Funds Rate

31) An Analysis of the Buy & Hold Real Estate Market for Houston, TX

32) Weak US factory, consumer confidence data cloud growth outlook | Reuters

33) The basic economics of a guaranteed income – Equitable Growth

34) Millennials are increasingly rejecting voodoo economics – The Washington Post

35) What's Wrong with Monetarism? | Uneasy Money

  1.    Grayson, Jolly debate campaign finance, climate change, other issues – Orlando Sentinel

    This article appears to have been written by people who favor Jolly, or the Orlando Sentinel is backing him. Maybe it's both.

    Speaking of Jolly:

    Jolly said he wanted more transparency but added that "overregulation has so crushed small and medium institutions and left us with 'too big to fail.'"

    Honestly, over-regulation is definitely not what has caused "Too Big To Fail." Under-regulation is.

    Anti-trust was a big thing in the US once upon a time back when people clearly understood that laissez-faire leads directly to monopolies.

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  2.    Clean water crisis threatens US | TheHill

    Hundreds of cities and towns are at risk of sudden and severe shortages, either because available water is not safe to drink or because there simply isn't enough of it.

    The problem is being felt most acutely in the West, where drought conditions and increased water use have helped turn lush agricultural areas to dust.

    But dangers also lurk underground, in antiquated water systems that are increasingly likely to break down or spread contaminants like lead.

    … nonprofit group says the cost of just maintaining current systems and fitting them to the needs of a growing population would require $1 trillion over 25 years. Without that funding, customers will see drastic changes in their water services, including increased risks of lead contamination.

    Olson, of the NRDC, said that if water lines continue to be replaced at the current rate, it will take 200 years to replace all of them.

    A study last year by NASA asserted that climate change could increase the risk of decades-long "megadroughts" that could make entire regions of the country nearly uninhabitable. The droughts, NASA warned, could last for as long as 35 years.

    And even if greenhouse gas emissions were entirely eliminated by the middle of this century, the chance of a megadrought would remain over 60 percent, NASA said.

    The risks are particularly high in the Southwest and Central Plains, where booming cities like Phoenix and Las Vegas are surrounded by desert.

    Earlier this year, the White House called for $25 million for desalination research to make the process of turning salt water into drinking water cheaper and more efficient.

    But many are skeptical that seawater is the answer. In addition to its immense costs and energy requirements, draining the oceans could have disastrous consequences for marine life.

    Money is not the issue. Creating the money and spending it on something this productive would not result in inflationary pressures unless the projects are not properly planned to ramp up resource allocations.

    As for the comment that "draining the oceans could have disastrous consequences for marine life," there are issues at the water intakes for water plants, but there is no issue with "draining the oceans." The idea is, frankly, nonsense. We're already looking at rising sea levels globally.

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  3.    Danger Signs in the World's Top Housing Market – Bloomberg

    At first glance, the world's best-performing housing market bears few of the usual hallmarks of a bubble about to pop.

    Reliance on mortgages is low, and Turkish homeowners reliably repay their loans, helped by house prices that rose faster than in any other country last year. The risk, at a time when construction has grown to make up a bigger share of the country's investments than in China, is with the builders rather than the buyers.

    The share of Turkey's borrowing represented by developers is higher than at any time in the last decade, and represents almost a fifth of all corporate loans, according to the nation's banking association. An increasing portion of those debts is going bad, with the industry's portion of non-performing loans nearly doubling in the past five years.

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  4.    More Jacksonville Properties Could be Converted Into Affordable Housing | WJCT NEWS

    Right now, the only entities that can receive the free properties to develop into affordable housing are called Community Housing Development Organizations. Jacksonville has five of them. CHDOs are nonprofits that have to adhere to Housing and Urban Development standards. Developers also must build the affordable homes in specified areas.

    Council on Tuesday will vote whether to allow anyone to develop donated houses, as long as they have an affordable-housing proposal approved by the city. They could be for-profit companies or individuals.

    Brown supported the Council committee's amendment of the bill Monday to hold other developers to the same building standards as the CHDO. Building requirements include 8-foot-high ceilings, fresh paint and security lighting.

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  5.    A real estate reach stretching far beyond Philly's borders

    GoldOller's total portfolio has an occupancy rate of 97 percent, with "3.5 percent rent growth in our markets," Hollinger said. "Yields have been double-digit since day one," and tenant-retention rates of 55 percent "exceed submarket averages."

    The key: "Buy right," looking at 100 properties before you settle on one, he said. Then create "a life experience for residents with all sorts of activities and curb-appeal clubhouses."

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  6.    How tax falsehoods flourish – The Washington Post

    Jared Bernstein:

    My last post was based on testimony before the Joint Economic Committee, part of which drilled down on this false notion that tax cuts generate anywhere near enough growth to offset the revenue they lose. While there are certainly conditions under which tax cuts can generate some degree of growth, the empirical record fails to find economically large, lasting, offsetting growth effects that occur through the supply-side channels of greater labor supply and capital investment.

    Art Laffer, a progenitor of supply-side theory, was one of the Republicans' witnesses, and as you'd expect, he disagreed strongly with my attack on his life's work.

    Why does Art Laffer continue spreading what has already been roundly debunked?

    Why do politicians continue echoing the debunked nonsense?

    There's money, power, and control (even egos, huge egos) involved.

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  7.    What Would Happen If We Just Gave People Money? | FiveThirtyEight

    I've written often about this issue, but here's a fairly lengthy article about it.

    Basic income is not a single idea but a family of closely related ideas, which go by an assortment of names: universal basic income, unconditional basic income, social dividend, guaranteed annual income, citizen's income, negative income tax, etc. But the core motivation — to address social ills by just giving people money — has a long history.

    Families receiving MINCOME had fewer hospitalizations, accidents and injuries, Forget found. Mental health hospitalizations fell dramatically. And the high school completion rate ticked up during the years of the experiment, with 16-to-18-year-old boys, in particular, more likely to finish school. Younger adolescent girls were less likely to give birth before age 25, and when they did, they had fewer kids.

    The program brought most recipients above Canada's poverty line. And the employment effects in Dauphin were modest. "For primary earners — those with full-time jobs — there was virtually no decline" in work, Forget said. "Nobody was quitting their jobs." Cash from the government eased families' economic anxiety, allowing them to invest in their health and plan over a longer horizon.

    It's not just governments and charities attracted to the idea of basic income. The private sector is curious, too. Silicon Valley in particular. These enthusiasts are motivated less by an interest in improving the welfare state and more by a desire to guard against much bigger economic changes coming down the pike. In a much-written-about 2013 paper, two Oxford economists estimated that 47 percent of all U.S. jobs were at risk of computerization. Increasingly, technologists envision basic income as a "hack," or fix, to the system — it offers a way of coping with an economic future dominated by automation, a fallback plan for when m ost human labor isn't valued or needed.

    From Switzerland to the Netherlands to Kenya to Silicon Valley, a mixture of insecurity and curiosity are driving interest in basic income, but its dominant ideology — and appeal — is utopian. The core existential struggle lurking in the debates over basic income centers on what meaning work holds in our lives. Straub, the Swiss referendum organizer, remembers his great-grandfather working 10 hours per day, six days per week. That kind of toil is no longer necessary, nor desirable. The dream of a world where we produce more than we need has come true.

    I always have to add this: We don't need to raise taxes to pay for it!

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  8.    World heading for catastrophe over natural disasters, risk expert warns | Global development | The Guardian

    "If you see that we're already spending huge amounts of money and are unable to meet the humanitarian need — and then you overlay that with not just population growth … [but] you put climate change on top of that, where we're seeing an increase in the frequency and severity of natural disasters, and the knock-on effects with respect to food security and conflict and new viruses like the Zika virus or whatever — you realise that the only way we're going to be able to deal with these trends is by getting out ahead of them and focusing on reducing disaster risk."

    Failure to plan properly by factoring in the effects of climate change … would result in a steep rise in the vulnerability of those people already most exposed to natural hazards. …

    "As the odds of any one event go up, the odds of two happening at the same time are more likely. We'll see many more examples of cascading crises, where one event triggers another event, which triggers another event."

    "The tsunami early warning system worked well for three or four years — and worked well institutionally — but afterwards, it started to fade so the equipment hasn't been well maintained and the institutional capacity-building was not kept alive. In educational terms, the topic [has] faded out of awareness."

    … "Every time there's a mega disaster, there are lessons learned — or at least there's a lot of attention in the scientific and political realm. The key question is always, how do you keep up the awareness after a couple of years?"

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  9.    Japan government weighs shopping vouchers, promotions to boost consumption | Reuters

    There is also lingering speculation that Abe will cancel a nationwide sales tax increase scheduled for 2017 and focus more on fiscal spending to raise GDP and rebuild areas damaged by an earthquake in southern Japan earlier this month.

    He better, but he better do more than that.

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  10.    Flood Mapping Tools to Help Residents in South Dakota's Big Sioux River Basin

    "With our model, we'll be able to move those buttons and say `what if this happened, what if that happened," Cowman said.

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  11.    CADTM – What is to be Done with the Banks? Radical Proposals for Radical Changes

    Due to the copyright ( https://creativecommons.org/licenses/by- nc-nd/4.0/ ), I won't reproduce any of the article here since this is a commercial blog.

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  12.    United States S&P Case-Shiller Home Price Index | 2000-2016 | Data | Chart

    Case Shiller: not the best index, but still …

    House prices across 20 major metropolitan areas in the United States rose 5.4 percent year-on-year in February of 2016, easing from a 5.7 percent increase in January and lower than market expectations of a 5.5 percent rise. Portland (+11.9 percent), Seattle (11 percent) and Denver (+9.7 percent) recorded the highest increases.

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  13.    Retrofitting in Utah, Nevada Spurred by Earthquake Report

    Salt Lake City alone has more than 30,000 residential URMs (unreinforced masonry)…not likely to withstand the impact of any significant tremor….

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  14.    Hey Dallas Millennials! Better get used to renting | HousingWire

    According to Metrostudy's 2016 first-quarter survey of the DFW metro area's housing market, homebuilding is booming in the area with first-quarter new home starts up more than 39% from last year, but none of that growth is coming at entry-level prices.

    "Demand for homes in Dallas-Ft. Worth persists, but builders, developers and municipalities must work together to deliver attainably priced homes," Shipp concluded. "Land prices, development costs, fees and home-building costs cannot be controlled. The only way to provide new homes below $300k will be by increasing home density and decreasing home square footage."

    Wrong. Subsidizing development is better than relying solely upon increasing density and decreasing square footage. We can build up and don't have to live in mansions, but there are health limits to take into account, both physical and mental.

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  15.    Smart homes keep getting smarter | Miami Herald

    A recent study by Coldwell Banker Real Estate, the Smart Home Marketplace Survey, revealed that almost half of all Americans either own smart-home technology or plan to purchase it this year. …

    … the technology is becoming much more accessible and desirable to people of all ages, with a broad spectrum of lifestyles and incomes.

    Lindsey Turrentine, editor-in-chief of CNET, recently stated that the next major step in smart-home technology will be the utilization of the hub platform to control multiple devices with seamless voice activation, making it easier to do much more than ever before.

    40 percent of those over 65 who own smart home products currently have smart temperature products, compared to only 25 percent of Millennials (ages 18 to 34).

    Home buyers are most attracted to smart security and temperature.

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  16.    Raising money for civic projects raises questions about democracy – The Washington Post

    Why is society willing to turn civic decision-making over to the "popular whim and fancy" rather than public officials responsible for balancing public needs, asked Mark Rosenman, professor emeritus of Ohio's Union Institute and University.

    "The reality is it allows government to back away from its commitment to the common good .?.?. and denies those resources to the common good in a way that's studied and considered," he said in an interview.

    While Rosenman believes encouraging volunteer work and donations to established charities is a good thing, he said "these schemes" of civic crowdfunding lead to a breakdown of democracy by "privatizing public policymaking."

    If we had enough democracy, we wouldn't need this crowdfunding.

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  17.    CMBS Risk Retention | Dodd-Frank Real Estate

    By forcing CMBS issuers to hold on to some of the bonds they issue, the rules are designed to discourage risky lending of the kind that proliferated during the housing bubble.

    But, but, but let's forget about that and instead blow more bubbles. Rah-rah.

    They just keep whittling and whittling away at Dodd-Frank, just the way they chiseled away at all the New Deal regulations that would have kept us from crashing.

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  18.    Local real estate boom has unintended consequences | WHAS11.com

    Louisville is experiencing a real estate boom putting homes in high demand with some selling in as little as 24 hours.

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  19.    In Baltimore, Hopes Of Turning Abandoned Properties Into Affordable Homes : NPR

    Baltimore's poorest neighborhoods have long struggled with a lack of decent housing and thousands of abandoned homes.

    Things recently took a turn for the worse: Five vacant houses in the city collapsed in high winds several weeks ago, in one case killing a 69-year-old man who was sitting in his car.

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  20.    Tick study eyes 5,000 properties in Dutchess

    The scientists will evaluate two tick-killing methods. One is a bait box that attracts the rodents and sprays them with a tick-killing agent. The other is a naturally-occurring fungus that kills the tiny arachnids.

    A type of insect-killing fungus, Metarhizium anisopliae, ….

    I hope the fungus works well and that the ticks don't mutate resistants.

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  21.    Report: Judge declares Seattle garbage check unconstitutional

    The Seattle Times reports that King County Superior Court Judge Beth Andrus declared Wednesday that Seattle's ordinance that allows garbage collectors to look through people's trash to ensure food scraps aren't mixing with trash is "unconstitutional and void."

    I don't see it.

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  22.    Fair Housing Act: Criminal History-Based Practices and Policies | realtor.org

    We covered this before, but it's worth revisiting.

    Criminal History-Based Housing Policies and Practices

    Do's Don'ts

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  23.    LA Times – 80 attorneys in one courtroom help Porter Ranch residents defeat gas company in one battle

    Two months after the Aliso Canyon gas leak was capped, the sprawling scope of litigation against Southern California Gas Co. was on display Wednesday in a downtown Los Angeles courtroom.

    About 80 attorneys — from 73 law firms, representing thousands of plaintiffs in 131 legal actions — introduced themselves to Superior Court Judge John Shepard Wiley Jr. and argued for extending the gas company's relocation program.

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  24.    LA Times – Authorities euthanize dog that fatally bit a newborn baby

    The pit bull mix that fatally bit a 3-day-old infant last week was euthanized Wednesday, authorities said.

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  25.    MBA to the next president: Here are 3 ideas to save the housing market | HousingWire

    … more than 11 million households, a record, spend more than 50% of their income just on rent. Some 21 million households, another record, pay in excess of 30%.

    With such high rent burdens, many of these families struggle to pay for necessities like medical care and nutritious food.

    … Congress should increase federal support for the Low Income Housing Tax Credit program by at least 50%. Since its creation in 1986, the Housing Credit has leveraged nearly $100 billion in private investment to finance the construction and preservation of 2.8 million rental homes. It's time for Congress to strengthen this successful and battle-tested supply-side program.

    While the Section 8 project-based and housing choice voucher programs are a critical source of assistance, funding for these programs has remained relatively flat while rents have risen and project maintenance costs have increased. The result is a net loss of tens of thousands of affordable rental units each year, further limiting the options for far too many families in need. Unfortunately, fewer than one in four households eligible for federal rental assistance actually receives it today. Delivering relief to these unassisted families through alternative approaches like a renters' tax credit should be considered.

    Issue debt-free money, and pay for it all.

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  26.    According to Wall Street Journal, "Seattle is the New San Francisco" – Curbed Seattle

    Those of us who have been here know just how quickly the housing market and economy changed around Seattle. We've been in a market where housing prices are high, inventory is low and bidding wars are the norm for so long it's hard to remember a time when Seattle was just another mid-tier major city trying to scrape by. According to the Wall Street Journal, those days are probably never coming back.

    With high home prices, low inventory and heated bidding wars, Seattle is the new San Francisco.

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  27.    Many Middle-Class Americans Are Living Paycheck to Paycheck – The Atlantic

    A long excerpt from a long but important article:

    Neal Gabler:

    … Nearly half of American adults are "financially fragile" and "living very close to the financial edge." …

    Part of the reason credit began to surge in the '80s and '90s is that it was available in a way it had never been available to previous generations. William R. Emmons, an assistant vice president and economist for the Federal Reserve Bank of St. Louis, traces the surge to a 1978 Supreme Court decision, Marquette National Bank of Minneapolis v. First of Omaha Service Corp. The Court ruled that state usury laws, which put limits on credit-card interest, did not apply to nationally chartered banks doing business in those states. That effectively let big national banks issue credit cards everywhere at whatever interest rates they wanted to charge, and it gave the banks a huge incentive to target vulnerable consumers just the way, Emmons believes, vulnerable homeowners were targeted by subprime-mortgage lenders years later. …

    It is ironic that as financial products have become increasingly sophisticated, theoretically giving individuals more options to smooth out the bumps in their lives, something like the opposite seems to have happened, at least for many. Indeed, Annamaria Lusardi and her colleagues found that, in general, the more sophisticated a country's credit and financial markets, the worse the problem of financial insecurity for its citizens. Why? Lusardi argues that as the financial world has grown more complex, our knowledge of finances has not kept pace. Basically, a good many Americans are "financially illiterate," and this illiteracy correlates highly with financial distress. A 2011 study she and a colleague conducted measuring knowledge of fundamental financial principles (compound interest, risk diversification, and the effects of inflation) found that 65 percent of Americans ages 25 to 65 were financial illiterates.

    … Real hourly wages—that is, wage rates adjusted for inflation—peaked in 1972; since then, the average hourly wage has essentially been flat. (These figures do not include the value of benefits, which has increased.)

    Looking at annual inflation-adjusted household incomes, which factor in the number of hours worked by wage earners and also include the incomes of salaried employees, doesn't reveal a much brighter picture. Though household incomes rose dramatically from 1967 to 2014 for the top quintile, and more dramatically still for the top 5 percent, incomes in the bottom three quintiles rose much more gradually: only 23.2 percent for the middle quintile, 13.1 percent for the second-lowest quintile, and 17.8 percent for the bottom quintile. That is over a period of 47 years! But even that minor growth is somewhat misleading. The peak years for income in the bottom three quintiles were 1999 and 2000; incomes have declined overall since then—down 6.9 percent for the middle quintile, 10.8 percent for the second-lowest quintile, and 17.1 percent for the lowest quintile. The erosion of wages is something over which none of us has any control. …

    … The American Psychological Association conducts a yearly survey on stress in the United States. The 2014 survey—in which 54 percent of Americans said they had just enough or not enough money each month to meet their expenses—found money to be the country's No. 1 stressor. Seventy-two percent of adults reported feeling stressed about money at least some of the time, and nearly a quarter rated their stress "extreme." Like financial fragility itself, that stress cut across income levels and age cohorts. Not surprisingly, too much stress is bad for one's health—as, of course, is too little money. Thirty-two percent of the survey respondents said they couldn't afford to live a healthy lifestyle, and 21 percent said they were so financially strapped that they had forgone a do ctor's visit, or considered doing so, in the previous year.

    … wages continue to stagnate; that the personal savings rate remains low; and that a middle-class life seems increasingly hard to maintain.

    The answer is a guaranteed living-income paid for via debt-free money.

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  28.    America Is Finally Putting Home Foreclosure Crisis Behind It – Bloomberg

    Though the data suggests that the recovery is well under way, the country's housing markets "still have a ways to go," said Sam Khater, deputy chief economist at real estate data provider CoreLogic. While most foreclosure or distress metrics are the lowest in nine years, they are still above the late 1990s when the market was "last normal," he said.

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  29.    NYT Debate On If Banking Giants Still Too Big to Fail Ignores the Core Issue

    Stephen Lendman:

    They're more dangerous than standing armies ….

    … said Thomas Jefferson.

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  30.    United States Fed Funds Rate

    As widely expected:

    The Federal Reserve left the target range for its federal funds rate unchanged at 0.25 percent to 0.5 percent for the third time during its April 2016 meeting. Policymakers said labor market conditions improved but economic activity appears to have slowed although concerns regarding risks from global economic and financial developments to the US economy eased.

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  31.    An Analysis of the Buy & Hold Real Estate Market for Houston, TX

    A marketing piece? Well, maybe a bit, but he does have a point or two.

    Louis Conrad:

    Part of the reason Houston is a great city for buy and hold investors is because Houston is a well-rounded place to live with several up and coming neighborhoods to choose from.

    As a buy and hold investor where "cash flow is king," Houston's "hottest" neighborhoods, which offer a concentration of jobs and are still walkable with entertainment and things to do, are great locations to buy property at a relatively low price.

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  32.    Weak U.S. factory, consumer confidence data cloud growth outlook | Reuters

    Orders for long-lasting U.S. manufactured goods rebounded far less than expected in March as demand for automobiles, computers and electrical goods slumped, suggesting the downturn in the factory sector was far from over.

    Tuesday's report from the Commerce Department also implied that business spending and economic growth were weak in the first quarter. Prospects for the second quarter darkened after another report showed an ebb in consumer confidence in April.

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  33.    The basic economics of a guaranteed income – Equitable Growth

    By increasing the post-tax returns of employment, the Earned Income Tax Credit increases the labor supply and reduces hourly wages. The result, as a paper by University of California, Berkeley economist Jesse Rothstein shows, is that low-wage workers don't receive the full value of the Earned Income Tax Credit because some of that value is captured by employers through lower wages. For every $1 spent on the program, after-tax incomes only go up by $0.73. But with a negative income tax, every $1 spent actually increases incomes by $1.39.

    How does that happen? Because a negative income tax doesn't require someone to work in order to get it, the reduction in the amount of work people are willing to do (labor supply) ends up boosting wages. So programs like a negative income tax or a universal basic income would likely reduce the amount of labor supply and boost wages.

    Will the reduction be because workers already employed work fewer hours (a reduction on the intensive margin) or because workers drop out of the labor force (a reduction on the extensive margin)? There isn't a sufficient amount of good and recent research on basic income to know how large the effects are or which effect would be larger. There's also the possibility that making the program not phase out and getting rid of many antipoverty programs with drop-offs in benefits at certain levels would produce some offsetting increases in labor supply. But we just don't know enough yet.

    If wages were to go up, prices would go up. If nothing else were to change, incomes would have to be indexed to general price-inflation. Then there are the issues of special needs because people vary widely in terms of physical and mental health and capacity. Universal, single-payer health coverage would go a long way in alleviating problems. We simply need a society where collectively, we watch out for each other as if each of us is just as important as the other, as in love thy neighbor as thyself.

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  34.    Millennials are increasingly rejecting voodoo economics – The Washington Post

    The new New Deal generation only even more aware via better communication tools: Internet and social, etc.:

    … today's 18-to-29-year-olds are more likely to believe "basic health insurance is a right for all people," "basic necessities, such as food and shelter, are a right that government should provide to those unable to afford them," and "the government should spend more to reduce poverty."

    Just 35 percent of respondents said they agreed with the statement that tax cuts are an effective way to increase growth ….

    We The People should eliminate poverty and definitely could via debt-free money and full democratization of the economy, which would mean full transparency.

    The benefits of technological advancements, etc., should accrue to the population at-large rather than a handful of those at the top of a corrupt economic and financial pyramid.

    Plutocracy is the enemy of humanity.

    We cannot be free without transparency.

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  35.    What's Wrong with Monetarism? | Uneasy Money

    David Glasner:

    While Keynes believed that in a deep depression only fiscal policy would be effective, Friedman believed that, even in a deep depression, monetary policy would be effective.

    Keynes was correct in that.

    … if the point of a gold standard is to prevent the quantity of money from growing excessively, then, why not just eliminate the middleman, and simply establish a monetary rule constraining the growth in the quantity of money. That was why Friedman believed that his k-percent rule — please pardon the expression — trumped the gold standard, accomplishing directly what the gold standard could not accomplish, even indirectly: a gradual steady increase in the quantity of money that would prevent monetary-induced booms and busts.

    … the mistake could have persisted as long as it did was the result of the analytical distraction of the money multiplier: one of the leading fallacies of twentieth-century monetary thought, a fallacy that introductory textbooks unfortunately continue even now to foist upon unsuspecting students.

    The money multiplier is not a structural supply-side variable, it is a reduced-form variable incorporating both supply-side and demand-side parameters, but Friedman and other Monetarists insisted on treating it as if it were a structural — and a deep structural variable at that — supply variable, so that it no less vulnerable to the Lucas Critique than, say, the Phillips Curve. Nevertheless, for at least a decade and a half after his refutation of the structural Phillips Curve, demonstrating its dangers as a guide to policy making, Friedman continued treating the money multiplier as if it were a deep structural variable, leading to the Monetarist forecasting debacle of the 1980s when Friedman and his acolytes were confidently predicting — over and over again — the return of double-digit inflation because the quantity of money was increasing for most of the 1980s at double-digit rates .

    Money can be created and then just sit there or be put into bottomless pits: wild speculation on things that do nothing but enrich the hoarding rich (no trickledown) or fail. This is why the Fed's gigantic balance sheet didn't cause an equally massive recovery, super overheat the economy, and hyperinflation (if left unchecked by Volcker-level interest-rate rises). This is also why democracy must be part of any equation used to control the money supply. Spending must be targeted to those things the people want, as in their hierarchy of needs and then wants. First the poor are lifted.

    That's key. Neither Keynes nor Friedman could see these things. I've been hammering on them for more years than I can remember. It is, however, catching on, albeit way too slowly. We need it yesterday. Bernie Sanders doesn't know it either. Very, very few people do. Frankly, I think only Billy Mitchell and handful of other top left-MMTers do.

    So while I agree with DeLong and Krugman (and for that matter with his many laissez-faire dogmatist critics) that Friedman had Keynesian inclinations which, depending on his audience, he sometimes emphasized, and sometimes suppressed, the most important reason that he was unable to retain his hold on right-wing monetary-economics thinking is that his key monetary-policy proposal — the k-percent rule — was empirically demolished in a failure even more embarrassing than the stagflation failure of Keynesian economics. With the k-percent rule no longer available as an alternative, what's a right-wing ideologue to do?

    A right-wing ideologue is to open his or her eyes to the other options, such as those I've outlined and discussed in my comments above and also here:

    "Monetary-and-Banking-Reform Platform for The United States": http://propertypak.com/introduction-home  /articles/monetary-and-banking-reform-p latform-for-the-united-states/

    Add your comment. Including the article/link number will help.



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