Discussion: (7 comments)
Comments are closed.
A public policy blog from AEI
View related content: Carpe Diem
1. Graphic of the Day I (above). Amazon and Facebook were in the news this week for “joining an exclusive club open to only the richest companies in the world: both crossed the half-a-trillion mark.” Those two companies join Apple ($785 billion as of today), Alphabet/Google ($652 billion), and Microsoft ($564 billion) in the exclusive club of companies whose market capitalization tops $500 billion. To put the size of that market cap into perspective, consider that the entire Mexican stock exchange has a current market valuation of $438 billion, Thailand’s publicly traded stocks are worth $468 billion and the Russian stock exchange has a market cap of $554 billion! Together, the five US companies in the “$500 billion” club have a combined value of nearly $3 trillion, see table above. To put that into perspective, just those five US companies, as a separate country or stock exchange, would be the eight largest stock market in the world (see table above), and 40% larger than No. 9 Canada’s entire stock market and almost 50% (and $1 trillion) larger than the German stock exchange!
2. Graphic of the Day II (above) shows the global stock market rally that started about a year ago — the world market cap reached a new all-time high in June of $78.1 trillion, which was a 17.6% year-over-year gain from June 2016. Since the recession-related bottom of $27 trillion in early 2009, the world stock markets have increased in value by almost three times to top $78 trillion for the first time last month.
3. Graphic of the Day II (above) illustrates graphically the non-effectiveness of “government stimulus” programs when the government stimulates one sector of the economy (or one group of people) with subsidies, favorable tax treatment, or other forms of pork, by un-stimulating another sector (or group of people) with higher taxes. However, they left out the part about how the government usually takes a cut of the transfer, so it’s like a transfer of water with a leaky bucket (or sand with a leaky shovel).
In May, the Congressional Progressive Caucus introduced the Raise the Wage Act of 2017, which would hike the federal minimum wage by 107 percent to $15 an hour. However, a new Employment Policies Institute (EPI) analysis shows that the majority of the bill’s cosponsors have unpaid interns who earn $0 an hour. Specifically, at least 174 of the 184 bill cosponsors – or 95% — hire unpaid interns. (This figure should be considered conservative; members who advertise limited paid stipends were counted as paying their interns, even if they have unpaid interns on staff.) Of those that do offer a stipend, Senator Bernie Sanders is the only member who pays an hourly wage. However, Senator Sanders’ office only pays interns $12 an hour, short of his $15 demand from the private sector.
Q: Who’d a-Thunk It? Hypocrisy on Capitol Hill?
5. Graphic of the Day III (above). Self-explanatory.
6. Graphic of the Day IV (above) shows the new EIA forecast that projects US oil production to average 9.9 million barrels per day in 2018, which would surpass the previous record of 9.6 million barrels per day set back in 1970. Amazingly, more than 25% of that record crude oil output next year will come from just one oil field — the Permian Basin in West Texas, where oil production is forecast to top 2.5 million barrels per day by next month. Carpe oleum.
7. Inconvenient Weather Fact – It’s now been more than 5,000 days (13.75 years) since Hurricane Wilma (October 16-27, 2005), the last major hurricane (category 3, 4 or 5) that made landfall in the US. That marks the longest “hurricane drought” since the mid-1800s. Al Gore constantly lectures us about the increase in “extreme weather” due to global warming. But it apparently hasn’t affected the frequency of major hurricanes yet – in fact, we’re in a period of reduced frequency in that type of extreme weather?
8. Who’d a-Thunk It I? Demand Curves Slope Downward? And they might even be steeper than politicians’ estimates?
Exhibit A: In June 2017, sales of naturally and artificially-sweetened beverages in Philadelphia subject to the city’s beverage tax plummeted to be more than 40% below their estimated pre-tax quantities. That wasn’t what Philadelphia’s political leaders were expecting to happen.
9. Who’d a-Thunk It II? The Seattle Mayor Didn’t Like the Minimum Wage Study from a Team of Researchers at the Local Research University So He Shopped Out-of-State for One He Liked Better? With taxpayers’ money, of course.
10. Markets in Everything: On-demand shuttle bus service “Chariot” in New York City. Can Ford Motor Company fix New York City’s transportation crisis with “microtransit” approach?
Comments are closed.
1789 Massachusetts Avenue, NW, Washington, DC 20036
© 2018 American Enterprise Institute