With regard to international trade, misconceptions often cloud our judgement. One such misconception is that the U.S. manufacturing base has been decimated due to trade. Actually, the opposite is the case. The U.S. currently produces over $2 trillion worth of manufactured goods, which is nearly double the value produced in the 1980s. The U.S. is
President Trump recently announced tariffs on aluminum and steel. Economists almost uniformly agree that tariffs are an ineffective way to create jobs. Tariffs subsidize inefficiency, to the detriment of the economy. As pointed out by Bloomberg View, the U.S. steel industry produced three-quarters of the world’s steel after World War II. However, the industry clung
Detroit was one of the cities competing to attract Amazon.com’s second headquarters (H2Q) but did not make the final cut. The two reasons given for why Detroit was not chosen are: a lack of workplace talent in Detroit, and an absence of regional transit. Both reasons are extremely dubious. I suspect the real reason is
Bitcoin has been a wild ride. In 2010, one Bitcoin was worth $0.01, rising to $200 in 2013. It then fluctuated between $200 and $1,000 from 2013 to early-2017, until exploding to $17,500 in mid-December, 2017. As of February 9, 2018, the price had fallen to $8,400. Bitcoin is a decentralized, electronic currency that is
Although the national economy was strong in 2017, this prosperity was not evenly distributed. According to the United States Bureau of Economic Analysis, average personal income was approximately $50,000. However, in 86 percent of American counties, average personal income is less than this. There is just a small percentage of counties with above average personal
The U.S. economy improved in 2017. After growing at a sluggish 1.2 percent in the first quarter, the economy grew at a solid 3.1 percent in the second quarter, and 3.3 percent in the third. Third quarter growth was surprisingly strong, given the hurricanes. The New York Federal Reserve estimates fourth quarter growth at 3.2
With an average premium of $2,394 per year, Michigan has the most expensive auto insurance in the nation. The next most expensive state, Louisiana, has an average premium of $1,921 per year. Detroit is, by far, the most expensive city to purchase auto insurance with an average yearly premium of $7,415 – 60 percent higher
A tax system should satisfy three criteria: it should raise sufficient revenue for the government to conduct its operations; it should minimize the economic distortions associated with taxation; and, it should minimize the costs taxpayers pay simply to comply with the tax code. Details that have emerged from the Trump tax plan present a mixed-bag.
As part of a tax reform package, the President and Congress have expressed a desire to sharply cut personal and corporate income tax rates in order to spur economic growth. The reality of the federal government’s fiscal situation presents a challenge to this. Even at current tax rates, the federal government is projected to run
Although many people perceive that our infrastructure is decaying, the reality is more nuanced. State trunkline highways – roads designated with an “I,” “U.S.,” or “M” – carry 53 percent of all traffic and 66 percent of all commercial truck traffic. Of these roads, 85 percent are rated as being “fair” or “good” condition, with
Many people feel that Michigan’s government does not function well. Often blamed for this are term limits, and the fact that Michigan is one of only four states with a full-time legislature. Although it is always tempting to find a convenient scapegoat, this blame is misplaced. In Michigan, legislators are limited to three (3) two-year
Little Caesar’s arena will open with a Kid Rock concert in September and will then be home to the Detroit Pistons and the Red Wings during their respective seasons. With $300 million public money being used to construct the arena, how much economic impact can the State expect as a result? Unfortunately, not much. The
