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Streets of Gold or Pathways to Poverty: Reviving America's Cities

Streets of gold look a little more like pathways to poverty . American cities have been on the decline for decades as investments diverted from urban areas to emerging countries that rolled out the red carpet . The infrastructure that was built when American cities were at the height of their economic might is still mostly intact waiting for visionary investors. Getting investment interest and better city governance can lead to mutual growth for business and job-hungry residents if the two can come to a mutual understanding . Pick any major city in the country and follow its historic rise and fall . You may notice that as people moved to the city , built homes , and invested their resources these collections of people grew in wealth and influence . The collective action of small and large investors created a synergy of growth that pushed profit margins to higher levels. Money , gove

The Benefits of Staying Home and Living Mooch Economics

Young people are staying home longer and delaying their inevitable jump out of the nest egg into real life. Some may wonder why this is happening when their Baby Boomers left home while still in their late late teens (18). If you think about why they are doing this and the benefits it brings them you can't blame them for smart  mooching economics. In the past young people couldn't wait to get out of the house in hopes of striking out on their own. Working for minimum wage they took their sleeping bags and roomed with their friends. Over time they got a better job, earned more money, and eventually found someone they wanted to marry. Not long after that they were buying their very first starter home. Those days are gone and they are not likely to become popular again soon. Over the Great Recession young people couldn't find employment, needed a degree, had material wants, and became influenced by other cultures. No longer was a healty person who was willing to work ensur

Is Europe Shrinking or Growing?

According to a European data analytics company called Markit Economics , Europe is still growing despite poor projections. Based upon a survey of purchasing managers and their prospects throughout 18 nations in Europe, their index of economic growth moved upward from 51.1 to 51.7 showing a higher rate of growth than previous expect. Some economists predicted a slight contraction but improvement in the market appears to have lowered the pressure by improving the situation. The study also shows that core countries like Germany and France are experiencing slower growth and waning job creation while those countries on the periphery are doing better. Combined Europe has a moderate rate of growth somewhere around .2 percent showing near stagnation. Such slow rates of growth give European officials pause in deciding their next course of action.  Selling prices for manufacturing and services is slowing.  Stagnating wages, lower oil prices, and lower demand are putting downward pres

China Stimulates Economy to Keep Deflation at Bay

Experts predicted the Chinese economy to slow down for the last five years but it never happened-until now. Instead, the economy continued to grow and develop moving from copying technology to inventing some of their own. As the world’s No. 2 economy it has recently recognized that significant slowing in Asia and Europe may be hampering its own growth and it is taking precautionary measures to prop up its position.  In an attempt to support development and investment it slashed interest rates at the time when American’s have weaned themselves off easy money policies. By injecting credit into their financial system they hope that their banks will lend more money and encourage higher levels of investment. The interest rate on the one-year loan has been reduced to 5.6% while the rate of pay on a one-year savings rate is now 2.75%.  A low interest and saving rate combination incentivizes borrowing money for growth while discouraging the hoarding of cash by more profitable busi

Is China’s at Risk for Deflation?

For the past two decades China has been growing at a remarkable pace year after year shocking economists and rewriting economic theory. It appears that the Bull Run has just about come to an end. According to the National Bureau of Statistics in Beijing the factory-gate prices fell for the 32 nd month in October. Likewise, consumer prices were also stagnant. Some economists are arguing low inflation, low capacity engagement, and high inventories may lead to deflation.  The Chinese government is debating infusing some of its own capital into the economy in much the same way as the U.S. and Europe. The methodology may be somewhat unique as expanding production without significant household consumption or willing international buyers can be difficult. China’s economy could be experiencing the first signs of “burn out” as consumers across Europe tighten their belts. As prices and products become cheaper there is some risk of deflation. Deflation is seen as a very destr