Job Advice, Saving Money, and the Planet

Jon Brooks gets a job! And this is how he did it. Job seeking advice is abundant this time of business cycle.

Also, remember that you need to save money for retirement. After you find a job, that's something you need to think about. That way, you can become the richest man in the world.

I can't say that I agree, but a couple of ecologists are worried about how our current economic model interacts with the world. I can't say I agree, but it's worth thinking about, certainly. Change isn't necessarily a bad thing.

Happiness, universities, Africa, and income gaps

What makes you happy? And, how much is your happiness worth?

The success rate of universities and their prices are brought to question. Do "better" universities have more of an incentive to graduate their students (who might be in wealthier families or are well-connected)? James Hamilton pointed out that students seem to prefer prestigious research universities. Seems to me that the job market prefers students from prestigious research universities.

As much as Africa is progressing, they don't have very many trade links, and are disconnected from the global economy.

Some money news. Poverty is up, and income is down.

Oil, government, manufacturing, and low wage workers.

BP found a lot of oil in the Gulf of Mexico. Good news for Houston, and anyone who pays for gas. Though, keep in mind, that this is just a drop in the bucket for worldwide supply, and the oil is harder to get than ever.

The Wall Street Journal actually has an article about government helping the economy.

Growth in manufacturing too? Interesting. Cash for Clunkers may have helped that, but I don't know if it'll hold in the long term.

Low wage workers reportedly are often cheated, as a result getting paid less than the minimum wage. This is widespread, not just affecting undocumented workers.

Unemployment rate <10%, income distribution, IV, the recession's end, and unemployment again

Nate Silver makes the claim that the unemployment rate won't hit 10%. Bold, considering there are many expecting it to go well above 10%.

People in the top .01% have 6% of the nation's income, the highest ever. It's interesting how it was so low for so long.

The Economist has an interesting article on instrumental variables. The gist: they attain more accurate answers to less broad questions. Instrumental variables are tools, however. We should never rely on one tool in our toolbox--that has always led us astray. That's just like articles bashing macroeconomics due to "bad" econometric forecasting.

According to this graph, a lot of economists seem to think that the recession is over. That's the WSJ, though, so take that with a grain of salt. The more interesting part, in my opinion, is that the unemployment predictions, on average, don't hit 10%. More predictions here.

Healthcare, financial crisis, stimulus, and jobs.

Instead of the UK and Canada, Jonathan Cohn compares our future healthcare system to France and the Netherlands--whose plans he says is actually more similar to our proposed plans. It's a worthwhile read, I think.

Justin Fox points to an investment banker who says that the fault of the financial crisis should fall onto the people who bought toxic assets, not the people who created them. They should never believe that you can make a return on a riskless security. I still think there were many people at fault--after all, the true risk was not properly assessed by ratings agencies.

The French think they've done fiscal stimulus better than the Americans. Could be. Certainly, our more "free" system carries with it more risk and uncertainty. It's harder to get effective government action done here.

Catherine Rampell at Economix points out that the problem with the job market is a hiring slowdown, not layoffs.

Bernanke, job growth, healthcare, and fairness

FreeExchange voices their support of Bernanke. I think there hasn't been enough air time given to exactly what he has done and how it has helped the economy in the past year. In a similar vein, the NY Fed has provided a timeline of the financial crisis.

Michael Mandel reports on job growth over the past ten years. The graphs certainly do highlight the stark picture. Outside of healthcare, education, and the government, no sector has grown. Wow.

Donald Marron says that health is an R&D problem. There are a variety of problems with the current system, and a variety of solutions, and we're not sure how effective each solution would be. Marron seems to think we should take baby steps, and evaluate the progress of solutions as we go. An economist who wants more data? Shocking.

Fairness in economics. National economic policy isn't based solely on economic principles, nor are traditional mathematic economic principles the only factors that affect the economy. How people feel about their individual situations also affects their economic behaviors, including how fair they feel they are being treated. In short, we should take some lessons from sociology and psychology. Of course, this harkens back to a famous Keynes quote:

"The study of economics does not seem to require any specialized gifts of an unusually high order. Is it not, intellectually regarded, a very easy subject compared with the higher branches of philosophy or pure science? An easy subject at which few excel! The paradox finds its explanation, perhaps, in that the master-economist must possess a rare combination of gifts. He must be mathematician, historian, statesman, philosopher—in some degree. He must understand symbols and speak in words. He must contemplate the particular in terms of the general and touch abstract and concrete in the same flight of thought. He must study the present in the light of the past for the purposes of the future. No part of man’s nature of his institutions must lie entirely outside his regard. He must be purposeful and disinterested in a simultaneous mood; as aloof and incorruptible as an artist, yet sometimes as near to earth as a politician."

Maternity leave, Jamaica, Zimbabwe, the world, Venezuela, and the US federal budget

The Economic Policy Institute points out that the United States is severely lacking in maternity leave benefits. I wonder how that affects our national birth rate.

I've heard a lot about problems in Jamaica recently--I was surprised, and I think this article reflects why I was surprised. Socialism doesn't work.

The IMF provides an update on Zimbabwe. As you might expect, things aren't going so well there.

Simon Johnson reminds us that the rest of the world matters, too. Since the US economy is 20-25% of world output, they have an impact on us.

Speaking of the rest of the world, there's apparently some research showing how Venezuela's Chavez has hurt his opposition. This isn't a surprise to those who have been following Venezuela, but it's nice to see the research.

Lastly, the Obama Administration takes a jab at trimming the federal budget.

Hurricane claims, grocery stores, inventive cities, recession news, and Venezuela

2008 hurricane claims put Texas home insurance companies in the red. Ouch. Hurricanes continue to affect us. I guess whoever designed the hurricane insurance plans didn't know how much risk was actually involved, or those insurance companies didn't properly prepare themselves for such a situation.

Grocery stores are doing well during the recession.

Houston is one of the world's most inventive cities. We're pretty creative people! I don't think a lot of people believe this, though.

Productivity and labor costs are up. You might expect this from a recession, as companies try to focus on efficiency to weather the rough times.

Venezuela is seizing the assets of more oil service companies. I would have ended my operations there some time ago.