Economics

Salinas Dispatch: A Silver Lining in the Golden State

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From a distance, a crisis often takes on ideological colorings. This is true in California, where the ongoing fiscal meltdown has devolved into a struggle between anti-tax conservatives and free-spending green leftist liberals.

Yet more nuances surface when you approach a crisis from the context of a specific place. Over the past two years my North Dakota-based consulting partner, Delore Zimmerman, and I have been working in Salinas, a farm community of 150,000, 10 miles inland from the Monterey coast and an hour's drive south of San Jose.  read more »

The Dollar: Running on Reserve

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During the recent financial crisis, I didn’t meet anyone else who was invested in stocks and bonds. I guess I was the only one. Everyone else was holding “cash,” as they often quietly boasted. But even if your money is kept under a mattress, cash is best understood as a zero-coupon bond, in most cases drawn against an overdrawn nation-state.

Cash may be king, but the sovereign looks more temporary than a Romanov heir living in a rented villa in the south of France.  read more »

Follow the Money: Special Inspector General for the Bailout

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The House Committee on Oversight and Government Reform held a critically important hearing on July 21 titled "Following the Money: Report of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP)." Sadly the mainstream media under reported the meeting.  read more »

The Blue-State Meltdown and the Collapse of the Chicago Model

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On the surface this should be the moment the Blue Man basks in glory. The most urbane president since John Kennedy sits in the White House. A San Francisco liberal runs the House of Representatives while the key committees are controlled by representatives of Boston, Manhattan, Beverly Hills, and the Bay Area—bastions of the gentry.  read more »

Solar Gains On The Green Competition

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The living room of my electrician friend Harry Gres was filled with solar panels which were destined for his roof to demonstrate the advantages of his new eco-business venture. In the spirit of Herbert Hoover's campaign pledge of a car in every garage, Harry envisions solar panels on every roof (including garages).  read more »

The Next Global Financial Crisis: Public Debt

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The cloud of the global financial meltdown has not even cleared, yet another crisis of massive proportions looms on the horizon: global sovereign (public) debt.

This crisis, like so many others, has its root in the free flow of credit from the preceding economic boom years. The market prices of assets were rising steadily. Rising valuations, especially where they were based on improving revenues from robust economic activity, led to rising income streams for governments. This encouraged governments to borrow more, perhaps often to expand services – and the bureaucracy required to offer services – although sometimes to improve infrastructure.  read more »

Tracking Business Services: Best And Worst Cities For High-Paying Jobs

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Media coverage of America's best jobs usually focuses on blue-collar sectors, like manufacturing, or elite ones, such as finance or technology. But if you're seeking high-wage employment, your best bet lies in the massive "business and professional services" sector.

This unsung division of the economy is basically a mirror of any and all productive industry. It includes everything from human resources and administration to technical and scientific positions, as well as accounting, legal and architectural firms.  read more »

Washington, DC: The Real Winner in this Recession

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No matter how far the economy falters, there is always a winner. And no city does better when the nation is at the brink of disaster than Washington, DC. Since December 2007, when the current recession formally began, the nation has lost approximately 6 million jobs. Only two states, Alaska and North Dakota, have lost a smaller percentage of jobs than Washington, DC, which has seen a job loss of 0.6%, or 4,400. Simply put, Washington has done better in this recession than 48 of the fifty states when it comes to job performance.  read more »

Recession Analysis: When will the job market fully recover?

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No one knows this answer for sure, but the data show some interesting trends for what's possible. This analysis takes two approaches to answer this question, including:

  • Total employment: suggests recovery in 2012

  • Employment growth rates: suggests recovery in mid-2010 ... but ...

This is a work in progress. Tomorrow the future will change.

Current status  read more »

Telecommuting And The Broadband Superhighway

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The internet has become part of our nation’s mass transit system: It is a vehicle many people can use, all at once, to get to work, medical appointments, schools, libraries and elsewhere.

Telecommuting is one means of travel the country can no longer afford to sideline. The nation’s next transportation funding legislation must promote the telecommuting option...aggressively.  read more »