Tag Archives: slideshows

Jeffrey Lacker Says Real Wages are Going Up. Is He Right?

Mother Jones

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Binyamin Applebaum asks inflation hawk Jeffrey Lacker why inflation hasn’t risen if labor markets are tight, as he believes:

….There’s this confusion about real and nominal that I think infects the discussion, particularly of wages and slack. Real wages have accelerated over the last year because inflation has fallen and the rate of gain in nominal wages hasn’t changed much. The wage pressures we’ve been hearing about, they show up in the macro data as real wage pressures.

And the historical evidence suggests that there’s some lag before things accelerate as you reduce slack significantly. In 1966-67, we had unemployment at 5 percent, we pushed it to 4, and it was 1967 and 1968 when inflation took off. So there was a significant lag in the way that relationship seems to have worked in the past.

That got me curious: have real wages risen over the past couple of years? My preferred measure is production and nonsupervisory wages, and it looks like Lacker is right. Compared to CPI, the general trend is upward. It doesn’t look to me like it’s accelerating, but it does seem to be going up.

Continued – 

Jeffrey Lacker Says Real Wages are Going Up. Is He Right?

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The Minimum Wage Took a Beating Last Night

Mother Jones

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Nobody was in favor of raising the minimum wage last night:

Trump: Taxes too high, wages too high, we’re not going to be able to compete against the world….People have to go out, they have to work really hard and have to get into that upper stratum.

Carson: My first job working in a laboratory as a lab assistant, and multiple other jobs. But I would not have gotten those jobs if someone had to pay me a large amount of money….I would not raise it. I would not raise it, specifically because I’m interested in making sure that people are able to enter the job market and take advantage of opportunities.

Rubio: If I thought that raising the minimum wage was the best way to help people increase their pay, I would be all for it, but it isn’t. In the 20th century, it’s a disaster. If you raise the minimum wage, you’re going to make people more expensive than a machine.

So we have a billionaire who says people just have to suck it up and work harder; a neurosurgeon who doesn’t realize he got paid minimum wage for his jobs as a kid; and a senator who thinks it’s still the 20th century. But one thing is for sure: they’re in favor of cutting taxes on the rich and keeping wages low for the poor. Sweet.

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The Minimum Wage Took a Beating Last Night

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Pick Out Kevin’s Lunch Today

Mother Jones

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A few days ago, for no special reason, I began to wonder how many different fast food places I had eaten at during my life. So naturally I hopped over to Quick Serve Restaurant and took a look at the latest QSR 50, their ranking of the 50 biggest fast food joints. Then I went to lunch at Chick-fil-A, which was my 28th out of 50. Only 22 to go!

It’s getting close to lunchtime. Which fine dining establishment should I cross off my list today?

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Pick Out Kevin’s Lunch Today

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It’s Not Just Middle-Aged Men Who Are Dying Younger

Mother Jones

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That paper by Angus Deaton and Anne Case about middle-aged white men dying at higher rates seems to be having a second life, so I want to highlight something that I might have buried in my initial post about it: it’s not just middle-aged men. This is right in the paper, with a colorful chart and everything. Every single white age group, from 30 to 65, has seen a big spike in deaths from alcohol, suicide, and drug overdoses:

And it’s white women too:

The change in all-cause mortality for white non-Hispanics 45–54 is largely accounted for by an increasing death rate from external causes, mostly increases in drug and alcohol poisonings and in suicide. (Patterns are similar for men and women when analyzed separately.)

So why is everyone focusing solely on middle-aged men? Because that’s what the paper focuses on. However, the authors make it very clear that every age group is affected:

The focus of this paper is on changes in mortality and morbidity for those aged 45–54. However, as Fig. 4 makes clear, all 5-y age groups between 30–34 and 60–64 have witnessed marked and similar increases in mortality from the sum of drug and alcohol poisoning, suicide, and chronic liver disease and cirrhosis over the period 1999–2013; the midlife group is different only in that the sum of these deaths is large enough that the common growth rate changes the direction of all-cause mortality.

In other words, the phenomenon they describe applies to all white men and women between the ages of 30-65. The only difference among midlife white men is that declining overall mortality has turned into increasing overall mortality. Among other groups, declining mortality presumably turns flat, or perhaps declines less rapidly—though the authors don’t say.

In other words, midlife men make for a more dramatic chart because the line actually changes direction. But there’s nothing magic about zero. If you go from a slope of -5 to -1, that’s still a lot even if the line hasn’t changed direction. What’s more, whatever it is that makes the change in overall mortality bigger for midlife men, it’s not the suicide, alcohol, and drug overdoses that the authors focus on. The chart above makes that clear. In fact, the midlife group appears to have seen a smaller growth in those things than both the younger group and the older groups. This would be clearer if the chart were drawn differently, but since the authors don’t include a table with raw data, I can’t do that.

Bottom line: There’s been a sharp increase in death by suicide/alcohol/drugs among all whites of all age groups from 30-65. Whatever the reason, it’s not something that applies solely to middle-aged white men.

Originally posted here: 

It’s Not Just Middle-Aged Men Who Are Dying Younger

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Congratulations on a Great Century, Gravity

Mother Jones

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Science News has a big package in the current issue about Gravity’s Century. I’d just like to add a personal note of congratulations to this. I think gravity has had a great century. It has kept me from floating into space for 57 years. It’s kept our atmosphere intact so we can all breathe. It’s remained weak enough that Earth hasn’t spiraled into the sun. It’s helped produce thousands of adorable kitten videos. And black holes! Those are just awesome.

All in all, terrific job, gravity. You deserve all the kudos you’re getting. What’s more, I hope this makes up for our inexcusable neglect of your first big century in 1787. We’re really sorry about that. You deserved better. I guess we were busy with the whole Constitution thing and it slipped our minds. It won’t happen again, I promise.

On the constructive criticism side, though, what’s with all the fancy math? It makes you seem a little elitist. A little KISS could go a long way. Just a thought.

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Congratulations on a Great Century, Gravity

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Midget Nerd? Seriously?

Mother Jones

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I guess you don’t need me to tell you about Bush 41’s opinion of Dick Cheney and Don Rumsfeld. Poor Jon Meacham spent years writing a biography of Bush, and all anyone cares about is a few quotes calling people “iron-asses,” an epithet Bush applied to Rumsfeld and, apparently, the entire Cheney family. Especially Lynne.

But did Bush really call Michael Dukakis “midget nerd”? What is this, junior high school?

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Midget Nerd? Seriously?

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Obamacare Co-Op Closures: A Headache, Not a Catastrophe

Mother Jones

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Six years ago the Obama administration backed away from offering a public option in Obamacare. In its place, we got nonprofit co-ops. Paul Krugman was not impressed:

Let’s be clear: the supposed alternative, nonprofit co-ops, is a sham. That’s not just my opinion; it’s what the market says: stocks of health insurance companies soared on news that the Gang of Six senators trying to negotiate a bipartisan approach to health reform were dropping the public plan. Clearly, investors believe that co-ops would offer little real competition to private insurers.

Well, both Krugman and the market were right: co-ops never signed up all that many patients, and now they’re failing. By next year there could well be none left.

This has led to a round of breathless news reports. The failures have “handed Republicans a new weapon in their campaign against the health law.” Patients are “scrambling” to find new coverage. The closures have left behind a trail of “human wreckage.”

Fair enough, I suppose. Co-ops probably were never a good idea, and their bankruptcies really are causing a lot of grief for the people who had signed up with them. Still, in the midst of all this, it’s worth pointing out what we’re talking about:

Roughly 500,000 co-op customers will have to switch insurance plans.
That’s out of 30 million people who already switch insurance plans each year.1
And because of Obamacare, co-op customers can shop for a new plan pretty easily.

It’s not unfair to make political hay out of this, especially if you thought co-ops were a bad idea to begin with. But the bottom line is that instead of 30 million people switching plans, about 30.5 million will switch plans next year—and they’ll be able to do it more easily than they could in the past. It’s a headache, but hardly a catastrophe.

1Mostly against their will. About 68 percent are forced to switch because they changed jobs or their employer decided to change carriers. Another 16 percent switched because their plan was too expensive. Less than 10 percent switched because their new plan offered better service.

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Obamacare Co-Op Closures: A Headache, Not a Catastrophe

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Sarcasm Turns Out to Be Great Creativity Tool. You’re Welcome.

Mother Jones

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A new paper suggests that sarcasm is underrated:

Studies 1 and 2 found that both sarcasm expressers and recipients reported more conflict but also demonstrated enhanced creativity following a simulated sarcastic conversation or after recalling a sarcastic exchange.

Um, yeah. I remember that part. It’s why my boss once told me I had to give her a dollar every time I said something sarcastic. It was the best she could do since HR told her shock collars violated OSHA regulations. Anyway, onward:

Study 3 demonstrated that sarcasm’s effect on creativity for both parties was mediated by abstract thinking and generalizes across different forms of sarcasm. Finally, Study 4 found when participants expressed sarcasm toward or received sarcasm from a trusted other, creativity increased but conflict did not. We discuss sarcasm as a double-edged sword: despite its role in instigating conflict, it can also be a catalyst for creativity.

I would tell you more, but the abstract is all I have access to. Besides, I have a funny feeling that if I read the actual paper I’d find myself underwhelmed by the methodology. If you’re looking for a justification for your witty repartee—and aren’t we all?—maybe it’s best just to let things stand where they are.

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Sarcasm Turns Out to Be Great Creativity Tool. You’re Welcome.

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Trump’s Insults Are Weak, Lack Energy

Mother Jones

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Me, yesterday, on how Donald Trump is likely to attack rising star Marco Rubio: “The obvious route for Trump is to mock Rubio’s inability to balance his own checkbook, but I’m hoping for something more original.”

Trump, today: “He is a disaster with credit cards. All you have to do is look.” And: “He certainly lives above his means — there is no question about that.”

That’s really disappointing. Trump also went after Rubio on immigration and for not showing up to vote in the Senate. Bo-o-o-o-ring.

There’s just no creativity here anymore. Remember when he called Jeb Bush “low energy”? That was great. Or that he couldn’t imagine anyone voting for Carly Fiorina’s ugly mug? Good times. It makes me wonder if Trump is really giving his all for America these days. Even the cover of his new book looks phoned in. I mean, is that supposed to be Blue Steel or Le Tigre? I can’t tell.

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Trump’s Insults Are Weak, Lack Energy

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Tyrant Obama Issues Rule Creating Death Panels, No One Cares

Mother Jones

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This happened last Friday and I completely missed it:

Six years after legislation to encourage end-of-life planning touched off a furor over “death panels,” the Obama administration issued a final rule on Friday that authorizes Medicare to pay doctors for consultations with patients on how they would like to be cared for as they are dying.

The administration proposed the payments in July, touching off none of the rancor that first accompanied the idea during debate on the Affordable Care Act in 2009….“We received overwhelmingly positive comments about the importance of these conversations between physicians and patients,” Dr. Conway said. “We know that many patients and families want to have these discussions.”

Huh. It turns out that Republicans never really had any problem with this at all.1 I guess that whole “death panel” thing was just a big misunderstanding. The Wall Street Journal explains what happened:

Since 2010, legislation that would allow reimbursements to physicians for advance planning discussions has gained bipartisan support….The climate has changed in part because of lobbying and education campaigns by medical groups.

Yeah, that must be it. I’m glad we got that straightened out.

1Except for Sarah Palin, of course, who offered her familiar common-sense take: “Government needs to stay the hell out of our ‘end-of-life’ discussions,” she said in a long, um, commentary on Facebook. “I’m so angry at democrat and republican politicians who just rolled their eyes when I, and many others, rose up with warnings that each step forward taken by champions of this socialist program would jerk back two steps from every free American and our God-given rights.” Etc.

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Tyrant Obama Issues Rule Creating Death Panels, No One Cares

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