Middle Class Dismissed

Bernanke’s Bust: Median Household Income Is Lower Today Than in 2009

"Median household income is a good test of a household’s economic well-being. Half of households earn more. Half earn less. With mean average income, the incomes of the rich skew the figure upward. Not with median income. After four years of the Federal Reserve’s tripling of the monetary base, Americans are worse off today. What’s that? Worse than in the supposed bottom of the recession? Yes. This report tells the story. Household income is down 4.4%." Continue reading →

Continue ReadingBernanke’s Bust: Median Household Income Is Lower Today Than in 2009

Credit crisis begins to cripple Chinese cities

"Worried lenders in the informal sector raised interest rates for small and medium-size businesses, setting off a much broader wave of defaults in recent weeks, as owners found themselves unable to repay billions of dollars in bad debts, many of them handwritten and hard to enforce in court. State-owned banks have long been allowed to lend only at low, regulated rates barely above the inflation rate, with the total value of loans controlled by quarterly quotas. These loans go overwhelmingly to large state-owned businesses, government officials and politically connected individuals, who then relend the money at much higher interest rates." Continue reading →

Continue ReadingCredit crisis begins to cripple Chinese cities

Thanks shallot! Indian police foil onion heist

"Indian police have foiled a bid by robbers to make off with a truck laden with onions, in an unusual crime apparently motivated by rocketing prices of the staple food. The humble root vegetable, an essential ingredient in Indian cooking, has a surprisingly weighty track record of political influence. In 1980, Indira Gandhi exploited rising onion prices to storm back to power, appearing at campaign rallies waving huge strings of them with the message that a government that can not control onion costs has no right to govern. And in 1998, a six-fold surge in the cost of onions was held partly responsible for the electoral defeat of the ruling Delhi state government." Continue reading →

Continue ReadingThanks shallot! Indian police foil onion heist

Wanted: A Boring Leader for the Fed

"Quantitative easing has amounted to an audacious experiment in trickle-down economics. Among other things, it has artificially boosted the stock market in the hope that enriching a few — the top 1 percent of American households owned 42 percent of the nation’s financial assets in 2010 — will help the many. Meanwhile, retirees who don’t dare buy stocks have seen their modest bank deposits stagnate with interest rates near zero. Economists hate to admit it, but the profession is as much faith as science. Counting on monetary policy to secure full employment is like attempting vascular surgery with a dull ax." Continue reading →

Continue ReadingWanted: A Boring Leader for the Fed

Welfare Recipients Can Now Earn More Than Teachers

"A mother with two children in New York, for instance, is able to collect $38,004 per year in welfare handouts. This is greater than the starting salary of a teacher in the state. In 33 states, welfare recipients make more than they would at an $8 per hour job. In fact, in 12 of those states, welfare recipients make more than they would at a $12 per hour job. Where is the incentive to work? Michael Tanner, a senior fellow at CATO, said, 'There is no evidence that people on welfare are lazy. But they’re also not stupid. If you pay them more not to work than they can earn by working, many will choose not to work.'" Continue reading →

Continue ReadingWelfare Recipients Can Now Earn More Than Teachers

Worth $355 million, Rep. Darrell Issa is the richest member of Congress

"Republican Darrell Issa of California was 2012′s richest member of Congress, worth at least $355 million, according to a ranking published Tuesday. The congressman, who made his fortune in car security systems, topped the annual list of the 50 wealthiest lawmakers published by The Hill newspaper, a trade publication about Washington politics. The rankings were based on financial disclosure forms filed by members of Congress. Outside of Congress, President Obama and his wife Michelle Obama were worth between $1.8 and $6.8 million in 2012 according to figures published in May." Continue reading →

Continue ReadingWorth $355 million, Rep. Darrell Issa is the richest member of Congress

Health Insurance Costs: $16,351 a Year per Family

"This is what the typical premium costs for families whose health insurance is paid for by their employers. The main advantage is that this is not taxable income. For workers whose employers provide health insurance coverage, this is a huge tax loophole. Here is a chart on what it costs families. The costs have skyrocketed over the last decade. Health insurance is regulated heavily by state governments and the federal government. Costs are rising relentlessly. ObamaCare will make them rise even more. When the government comes to help you, beware. 'Keep your hand upon your wallet, and your back against the wall.'" Continue reading →

Continue ReadingHealth Insurance Costs: $16,351 a Year per Family

Spanish banks’ bad loan ratio rises to record in June

"The overall bad debt ratio for Spanish banks was up from 11.2 percent in May and has been steadily increasing since a drop-off at the end of last year when rescued lenders transferred toxic property assets to Spain's so-called bad bank. Spanish lenders' earnings were gutted last year by steep government-enforced provisions on properties and loans to developers, in the wake of a 2008 real estate crash. Those unable to cope were bailed-out with European funds, and most of their real estate loans were transferred to a government-backed bad bank." Continue reading →

Continue ReadingSpanish banks’ bad loan ratio rises to record in June

Texas begins replacing paved roads with gravel due to lack of funding

"The Texas Department of Transportation began converting more than 80 miles of paved roads to gravel on Monday, according to the Texas Tribune. The speed limit on the new gravel roads will be reduced to 30 mph. Texas lawmakers approved $225 million for the repair of roadways and bridges within the state highway system this year. Texas lawmakers also approved a ballot measure that would provide $1.2 billion a year for state transportation projects. But the Texas Department of Transportation said $400 million was needed to repair immediate damage caused by energy sector traffic across the state." Continue reading →

Continue ReadingTexas begins replacing paved roads with gravel due to lack of funding

Peter Schiff: The GDP Distractor

"Over eons, small creeks can carve large canyons through solid rock. The same phenomenon may be at work in our economy. A minor, but persistent under bias in the inflation gauge used in the Gross Domestic Product (GDP) may have created a wildly distorted picture of our economic health." Continue reading →

Continue ReadingPeter Schiff: The GDP Distractor