News

12 million Americans could lose their unemployment aid the day after Christmas if Republicans and Democrats don’t agree on a new COVID-19 stimulus bill

About 12 million Americans could lose necessary jobless benefits one day after Christmas if Congress doesn’t reach a deal and pass a stimulus bill during the so-called lame-duck session, a new report found. Some 7.3 million gig and self-employed workers are relying on the Pandemic Unemployment Assistance program, and 4.6 […]
12 million Americans could lose their unemployment aid the day after Christmas if Republicans and Democrats don’t agree on a new COVID-19 stimulus bill
News

As the pandemic, fires, and inequity all rage, free market icon Milton Friedman’s declaration that the sole responsibility of business ‘is to increase its profits’ sounds emptier than ever

In 1970, Milton Friedman wrote an influential essay in The New York Times Magazine declaring the primary purpose of a company is to maximise profits for its shareholders. He disagreed that businesses had any responsibility to provide employment, eliminate discrimination, or avoid pollution, among other ‘catchwords of the contemporary crop […]
As the pandemic, fires, and inequity all rage, free market icon Milton Friedman’s declaration that the sole responsibility of business ‘is to increase its profits’ sounds emptier than ever
News

A top economist compared Black Lives Matter leaders to ‘flat-earthers and creationists,’ saying ‘sensible adults’ need to take charge of the conversation

A prominent economist compared the leaders of the Black Lives Matter movement to “flat-earthers and creationists,” saying it was time for “serious adults” to take over the discussion of police reform. In a series of tweets on Monday, Harald Uhlig, professor of economics at the University of Chicago, said BLM […]
A top economist compared Black Lives Matter leaders to ‘flat-earthers and creationists,’ saying ‘sensible adults’ need to take charge of the conversation
Markets

Larry Summers says the US relief package would be hard to execute by the most competent government, calling the US government one ‘run like a highly opportunistic family real-estate business’

https://www.facebook.com/plugins/video.php Former US Treasury Secretary Larry Summers is worried about the execution of the US relief package that he says would be enormously difficult for the most competent of governments. Instead, he adds, “We have a government that is run like a highly opportunistic family real-estate business where people who […]
Larry Summers says the US relief package would be hard to execute by the most competent government, calling the US government one ‘run like a highly opportunistic family real-estate business’
Markets

The legendary economist who predicted the housing crisis says the stock market is probably far from the bottom — in a video interview from his bee yard

https://www.facebook.com/plugins/video.php Economist Dr. Gary Shilling says the global economy was already in a recession before the coronavirus pandemic started. Shilling expects this recession to run at least through the end of the year and says the stock market is probably far and away from the bottom. Shilling thinks one of […]
The legendary economist who predicted the housing crisis says the stock market is probably far from the bottom — in a video interview from his bee yard
Strategy

Renowned economist Paul Krugman identifies 2 ‘zombie ideas’ that are persisting during the pandemic, and it’s our job to stop the spread of misinformation

Paul Constant is a writer at Civic Ventures, a cofounder of the Seattle Review of Books, and a frequent cohost of the “Pitchfork Economics” podcast with Nick Hanauer. On the latest episode of “Pitchfork Economics,” economist and Nobel Laureate Paul Krugman spoke out against what he calls “zombie ideas” – […]
Renowned economist Paul Krugman identifies 2 ‘zombie ideas’ that are persisting during the pandemic, and it’s our job to stop the spread of misinformation
Markets

Coronavirus spared some assets, a recession isn’t certain, and there could be some winners, top economist says

The coronavirus won’t necessarily cripple the world economy, according to Boston Consulting Group’s chief economist, Philipp Carlsson-Szlezak. The epidemic hasn’t hit all assets equally, a global recession isn’t guaranteed, and there could be some winners, he told Business Insider. “History tells us not to draw a straight line between financial […]
Coronavirus spared some assets, a recession isn’t certain, and there could be some winners, top economist says
Strategy

Right now, the hottest economic battles are over the minimum wage and income inequality. But in 10 years we could be fighting over data inequality.

Paul Constant is a writer at Civic Ventures, a cofounder of the Seattle Review of Books, and a frequent cohost of the “Pitchfork Economics” podcast with Nick Hanauer. They recently interviewed Kevin Kelly, the futurist cofounder of Wired Magazine and bestselling author, who predicts that the “economics of data ownership” […]
Right now, the hottest economic battles are over the minimum wage and income inequality. But in 10 years we could be fighting over data inequality.
Markets

Here are one bank’s 10 ‘outrageous’ predictions that could shake markets in 2020

Saxo Bank, a Danish investment bank, published its 10 “outrageous” predictions for 2020 on Tuesday. The report doesn’t reflect the firm’s official market forecasts for next year, but rather focuses on “unlikely but underappreciated events” driven by disruption. The predictions range from macroeconomic forecasts to major shifts in specific industries. […]
Here are one bank’s 10 ‘outrageous’ predictions that could shake markets in 2020
News

Parents choosing high schools for their kids place more value on the students already enrolled than on the school’s effectiveness, according to a study by MIT economist Parag Pathak

MIT professor Parag Pathak recently published a research paper focused on what parents value when selecting a high school for their kids. Pathak’s work has found that parents focus more on the quality of the students enrolled at the school then they do on the school’s actual effectiveness, which is […]
Parents choosing high schools for their kids place more value on the students already enrolled than on the school’s effectiveness, according to a study by MIT economist Parag Pathak
News

Canice Prendergast, an economist who helped modernise Feeding America’s distribution system, stays focused on impediments to getting food to the right people

Food manufacturers’ waste and oversupply are important sources of provisions for food banks that nourish America’s poor, such as those that form the Feeding America network. As food manufacturers get better at managing inventory, and more secondary food markets spring up thanks to the internet, economists and others working in […]
Canice Prendergast, an economist who helped modernise Feeding America’s distribution system, stays focused on impediments to getting food to the right people
News

2 reasons to pay attention to this year’s Nobel Prize in economics: One of the honorees is only the 2nd woman ever to win it, and the team’s work focuses on helping the world’s poorest people

Esther Duflo is only the second woman to be awarded the Nobel Prize in economics. Duflo was honoured along with her husband and MIT colleague Abhijit Banerjee and Harvard’s Michael Kremer for their work on poverty. This year’s honorees were also notable as their work focuses on developmental economics and […]
2 reasons to pay attention to this year’s Nobel Prize in economics: One of the honorees is only the 2nd woman ever to win it, and the team’s work focuses on helping the world’s poorest people
News

The Trumponomics experiment is failing before our eyes

Economic data is pointing toward a recession, and no one should be surprised. Yes, it’s late in our economic cycle, and that matters. But President Donald Trump’s policies are also very much to blame here. Trump promised to buck economic thought and go full protectionist. Economists warned him this would […]
The Trumponomics experiment is failing before our eyes
Markets

UBS says Trump’s trade war is pushing the world into recession like a ‘frog getting boiled’ — and the bank slashed its global growth forecasts

UBS slashed its global growth forecasts, saying that the global economy is “much closer” to a recession. UBS described August’s trade-war escalation as a “game-changer,” bringing tariff volumes closer to what the bank modelled as a worst-case scenario. The report likened the situation to “like the frog getting boiled” in […]
UBS says Trump’s trade war is pushing the world into recession like a ‘frog getting boiled’ — and the bank slashed its global growth forecasts
Markets

Trump’s Treasury said it was ‘deeply disappointed’ in China in a report dishing out economic advice to 9 trading partners

The Trump administration proposed numerous economic reforms to China and eight other trading partners on its watchlist. The US Treasury made the recommendations to countries that “merit close attention to their currency practices and macroeconomic policies.” Its advice ranged from making it easier for South Korean firms to fire people […]
Trump’s Treasury said it was ‘deeply disappointed’ in China in a report dishing out economic advice to 9 trading partners
Markets

The recession in German manufacturing is worse than we thought

The recession in German manufacturing is even worse than initial estimates, according to new purchasing managers’ index data. German factories are now reducing jobs. This could be as bad as it gets – new data from China suggests new trade orders are on their way. The German manufacturing sector “is […]
The recession in German manufacturing is worse than we thought
Markets

The Australian dollar is on the charge as markets pare RBA rate cut bets

The Australian dollar is rallying following the release of Australia’s jobs report for February. Australian unemployment fell to the lowest level since June 2011 last month. The Australian dollar is on the charge in Asia following the release of Australia’s jobs report for February. While employment growth slowed to 4,600 […]
The Australian dollar is on the charge as markets pare RBA rate cut bets
News

$20 billion alternative investor shares his favourite long-term themes

Rishi Kapoor is the CEO of Investcorp, a Bahrain-based alternative investment firm with over $US20 billion under management and a long-term investment outlook. In US real estate, Kapoor likes warehouses and distribution centres in urban hubs that will support the massive shift to e-commerce. Kapoor also like multi-family residential in […]
$20 billion alternative investor shares his favourite long-term themes
Tech

Apple should give the iPhone XS and iPhone XR a permanent price cut

Apple has reportedly cut production for the iPhone XR, iPhone XS, and iPhone XS Max twice in the past two months to accommodate lower-than-expected demand for the new phones. Apple has about nine months before it unveils its next-generation iPhones. The company has ample time to improve demand for its […]
Apple should give the iPhone XS and iPhone XR a permanent price cut
Strategy

After a disastrous Uber ride last year, the company’s chief economist examined the economics of apologies — and discovered there’s something more important than ‘I’m sorry’

A team of economists studied how Uber customers respond to different types of apologies after they have bad experiences with the company. The idea for the study came when one of the researchers, who was Uber’s chief economist, had a terrible Uber ride and noticed he never received an apology. […]
After a disastrous Uber ride last year, the company’s chief economist examined the economics of apologies — and discovered there’s something more important than ‘I’m sorry’
Tech

The pace of tech adoption is picking up in the AI age, and there’s a risk some companies — even nations — will be left behind

The World Economic Forum’s “Annual Meeting of the New Champions” was held last week in Tianjin, China, bringing together scientists, entrepreneurs, and global industry executives. Artificial intelligence, machine learning, manufacturing automation and recognition technologies are far beyond conceptual ideas: they are increasingly well-developed and in widespread use across a range […]
The pace of tech adoption is picking up in the AI age, and there’s a risk some companies — even nations — will be left behind
Strategy

Wealthy venture capitalist and political activist Nick Hanauer says there have been 3 fundamental failures of capitalism over the past 40 years

Nick Hanauer is a wealthy, Seattle-based venture capitalist and progressive political activist. He successfully lobbied for a raise in Seattle’s minimum wage, and has been outspoken about raising it throughout the country. He believes that there are three foundational mistakes in the way capitalism has been practiced in the US […]
Wealthy venture capitalist and political activist Nick Hanauer says there have been 3 fundamental failures of capitalism over the past 40 years
Strategy

Here’s what we’ve learnt a decade on from the GFC

A little more than a decade on from the the collapse of Lehman Brothers, the largest bankruptcy in history, many of the world’s advanced economies are only now beginning to recover fully. I was on the faculty at the University of Chicago at the time and, like many, followed the […]
Here’s what we’ve learnt a decade on from the GFC
Markets

Trump’s tariffs will hit US allies hardest

US President Donald Trump’s decision to levy import tariffs on steel and aluminium typifies the administration’s scattergun approach to trade policy: many victims, a lot of friendly fire and hitting all the wrong targets. It is unclear whether the new tariffs will affect Australian steel imports. Australia exports relatively small […]
Trump’s tariffs will hit US allies hardest
Strategy

2 formerly obese economists who lost a combined 120 pounds in 18 months say ‘meta-rules’ were a key part of their success

Christopher Payne and Rob Barnett are formerly obese economists and the authors of “The Economists’ Diet.” In explaining how to lose weight, they recommend using “meta-rules,” or guidelines that apply on all occasions, to lose weight. The idea is to minimise decision-making and save yourself some mental energy. “Unless it’s […]
2 formerly obese economists who lost a combined 120 pounds in 18 months say ‘meta-rules’ were a key part of their success
US

Portfolio manager says recent volatility is not a turning point for US stocks

US Bank senior portfolio manager Eric Wiegand sat down with Business Insider’s Sara Silverstein to discuss the recent stock market meltdown which he says does not mean the markets have turned. Following is a transcript of the video. Sara Silverstein: What is going on in the markets? Eric Wiegand:It’s – […]
Portfolio manager says recent volatility is not a turning point for US stocks
Markets

We talked to Charles Schwab’s investment strategist about what 2018 holds for equities, the Fed, and bitcoin

Business Insider recently spoke with Jeffrey Kleintop, Charles Schwab’s chief investment strategist, about what 2018 holds for equities, investment opportunities, and bitcoin. Schwab manages $US320 billion in assets. Kleintop thinks equities can continue to rally in 2018 because of continued earnings growth fuelled by the expansion of global economies. He […]
We talked to Charles Schwab’s investment strategist about what 2018 holds for equities, the Fed, and bitcoin
Strategy

The behaviours that affect weight can be explained by economic theories — according to formerly obese economists who lost 120 pounds in 18 months

Many people struggle with losing weight. In “The Economists’ Diet,” two formerly obese economists say it all comes down to understanding fundamental economic theories. Their tips include weighing yourself every day and minimising variety in your diet. If you’ve been struggling to lose weight, Christopher Payne and Rob Barnett have […]
The behaviours that affect weight can be explained by economic theories  —  according to formerly obese economists who lost 120 pounds in 18 months
Tech

Singapore is on the brink of a ‘demographic time bomb’

Singapore’s low fertility rate and ageing population have put the country on a dangerous path. If the course doesn’t reverse, experts say it could become a “demographic time bomb.” These “time bombs” result in shrinking economies and breakdowns in the social fabric. Over the last decade, low fertility and widespread […]
Singapore is on the brink of a ‘demographic time bomb’
News

9 of the biggest problems baby boomers face right now

Baby boomers were born in the prosperous years following World War II. As they age, they are now facing financial, health, and economic challenges. Some of their most pressing problems are saving enough for retirement and caring for elderly parents. Baby Boomers are facing a slew of challenges. Boomers, or […]
9 of the biggest problems baby boomers face right now
Markets

PODCAST: Weak wages, global uncertainty, and the crypto craze

The fragility in the Australian consumer sector was underscored this week by yet another weak set of wages data, with the wage price index coming in well below what the market was expecting, sending the Australian dollar tumbling. It’s our starting point for this week’s episode of our Devils and […]
PODCAST: Weak wages, global uncertainty, and the crypto craze
US

The biggest problem in a market where everything is expensive

Business Insider CEO Henry Blodget looks at President Donald Trump’s claims that he’s responsible for the record-setting stock market, and finds that the S&P 500 rose just as much over the first 11 months of Barack Obama’s second term. Blodget also provides a bearish argument, which suggests that high valuations […]
The biggest problem in a market where everything is expensive
News

Here’s what economics has to say about same-sex marriage

Love and companionship make most people happy and generally represent two of the key reasons why couples marry. In the economists’ view, love and companionship are a particular type of commodity: they cannot be purchased or traded on a market, but they can be produced by a household to generate […]
Here’s what economics has to say about same-sex marriage