productivity

Why CAPEX Might Not Increase

By
By

We’ve previously discussed the expansion of stock buybacks in a few articles, notably: Are Stock Buybacks Good Or Bad?, Do Stock Buybacks Deserve The Blame For Everything? and Stock Buybacks Harm US Competitiveness. The capital returned to shareholders has been elevated during this market cycle. This trend has caused some economists and investors…CONTINUE READING

Effects Of US Skills Gap

By
By

One of the most critical questions politicians, economists and most importantly the workforce itself are concerned with is the lack of wage growth. As you can see from the chart below, the labor market seems to be tight according to the jobless claims to labor force ratio. Despite the lowest…CONTINUE READING

Here’s Why Startups Are Dying In The US

By
By

While recent small business surveys show small business confidence is high and many small businesses don’t list large competitors as a major threat, there has been a long-term trend of startups losing market share to mature firms, with large businesses improving their profit margins. This is an explanation for how…CONTINUE READING

How The Federal Reserve Decides Policy

By
By

The Federal Reserve has a dual mandate to form an economic environment which keeps prices stable and has maximum stable employment. The Dual Mandate Bullseye chart does a great job of showing the policy objective the Fed has. As you can see, the x axis has an unemployment gauge and the…CONTINUE READING

Declining Global Trade Signals Recession

By
By

Economic growth is driven by growth in the labor force and growth in productivity in the long run. Short run gains can be had by credit growth. However, if the debt gets too large, there is a painful deleveraging process where the chickens come home to roost. The best lever…CONTINUE READING