Enter

Archive for the ‘Economy’ Category

All Else Equal, Tax Season a Good Time to Right-size your W-4 Withholdings

In Economy on April 12, 2015 at 1:39 PM

Here is a macro scenario for households looking to improve their financial positions – an “Operation Twist” on W-4 tax withholdings in order to free up cash for individuals. Imagine you are like the approximately 82 percent of households overpaying your tax withholdings to an April 15th refund of $3,000 yearly. You may believe you had completed your IRS W-4 withholding form correctly upon first glance. However, given this typical scenario, you, like the majority of Americans, have not. According to the back of my napkin, if you take 82 percent of the latest U.S. Census Bureau estimate of 118 million households in the country and multiply by the $3,000 estimated average refund, then the total dollar amount over-withheld from yearly paychecks in the U.S. is $290 billion.
Read the rest of this entry »

Advertisements

Modern Times: An Inquiry on “VAT” Internationally and in Caribbean Islands

In Economy on May 20, 2014 at 12:46 AM

Internationally, largely the preferred tax revenue arrangement today in developed and developing nations has been the value-added tax (or “VAT”) arrangement. Large nations and small nations, large firms and small firms, producers and consumers of all wealth varieties, therefore, have already adopted or, at least, considered adopting such an approach to funding “the price of civilization.” More than 160 countries worldwide have enacted a VAT, according to Michael Graetz, law professor at Columbia University. Despite its prevalence, however, VAT is very rarely referred to, much less rigorously discussed, in places like the United States or The Bahamas, until recently at least. Read the rest of this entry »

Inquiry Into Financial Industry Labor Feedbacks in the United States

In Economy on January 15, 2014 at 2:35 AM

January 15, 2014

The objective of this study is to better examine and document a long time-series of American labor ratios pertaining to the financial industry relative to the overall economy. For example, how many individuals are employed, whether full-time or part-time, in the financial industry relative to the total of all industries? And how has that percentage evolved over time? Results follow after the break.
Read the rest of this entry »

Matters of Principal and Interest

In Economy on July 26, 2013 at 1:05 AM

July 26, 2013

Here is the math regarding your savings (see attachment).

If you invest $1,000 each year for forty years in an index-fund earning 3% yearly, then your total net return will be $37,663.30 at retirement.  If you invest $1,000 each year for forty years in a day-trading fund earning 3% yearly (one that assumes a typical 2% yearly fee), however, then your total net return will be $12,554.43.
Read the rest of this entry »

Germany’s Wanderjahr in the Labor Market and Lessons for the United States

In Economy on September 5, 2012 at 4:09 AM

Germany endured a large loss of 9 percent of GDP in 2009; however, somehow the country still managed to increase employment in that same year by 22 thousand individuals to the surprise of many. That is a 0.05 percent rise in Germany’s total employment level. What policy brought about this imperious, though seemingly small, violation of Arthur Okun’s law? And, why in Germany? Answer: work sharing, or what German’s refer to as Kurzarbeit.
Read the rest of this entry »

Federal Receipts and Outlays Divided by National Income

In Economy on April 16, 2012 at 1:31 AM

Federal receipts and outlays divided by national income. What is the U.S. plot line and summary story judging from the available data? Here are the compiled statistics, courtesy of the FRED storehouse, as lodged on-line and provided by the Federal Reserve Bank of St. Louis. Read the rest of this entry »

Labor, Trade & Federal Budget Balances Aggregated by Country

In Economy on November 22, 2011 at 4:53 AM

Courtesy of Jeffrey Sachs of Columbia University, we may now consider a new analytical measure to compare America’s progress on jobs, trade exports and federal budget balances against the rest of the World, namely a revised ad-hoc Misery Index. The Index directs us to add: (1) the unemployment rate; (2) the current account deficit/GDP percentage; and (3) the federal budget deficit/GDP percentage. Read the rest of this entry »

Inquiry into Debt/GDP Feedbacks in the United States

In Economy on March 31, 2011 at 1:10 AM

What is the effect of United States government borrowing load applied to own-real income growth percentages? If we are to evaluate economists Carmen Reinhart, Maryland University, and Kenneth Rogoff, Harvard University, and their widely-cited, and now seemingly conventional, insight that debt levels breaching the implosive debt-to-gross domestic product limit of ninety percent literally imply significantly reduced real income growth for a country, then the United States audience should now be a captive audience in high-drama suspense mode. Read the rest of this entry »

Fiscal Policy Review: Raising & Lowering Taxes in War and Recession, 1913-present

In Economy on April 18, 2010 at 11:08 PM

Raising and lowering of the highest marginal tax rate is considered here-in relating to the U.S. from 1913 to present day. Against the backdrop of 8 years of war in Iraq and 9 years in Afghanistan, more specifically considered are the precedents of past presidential administrations established in the context of cutting and lowering the highest marginal taxes in war-time and recession-time. Read the rest of this entry »

O is for Operation Iraqi Freedom: Lining Up Statistics on War Casualties

In Economy on April 9, 2010 at 1:40 AM

Operations and conflicts involving United States military might have been ever-enduring in the American esprit de guerre for years upon years since Revolutionary War time period ‘til to-day in Iraq and Afghanistan. O is the one current, explicit war however; so, here, constructed and resolved are economics journal-inspired recession bars and categorical aids applied, charting and comparing the scale and progression of the current principal wars at hand, mainly Operation Enduring Freedom and Operation Iraqi Freedom.
Read the rest of this entry »