Fewer Americans are moving

According to data from the U.S Census, fewer Americans are moving than at any point in the past 70 years. It doesn’t matter if we are talking about moving to the next town over or moving across the country, Americans have opted to stay put.

• In 1948, 13.6% of Americans made short-haul moves within the same county. By 2016 that number has fallen by half to 6.9%.
• In 1948, 6.4% of Americans made long-haul moves to a different county or state. In 2016, only 3.9% of Americans made long-haul moves.

There has been no shortage of discussion of the economic impact of the oncoming wave of automation that is expected to take place over the next several decades. At a national level, some estimates have the total number of jobs lost in the U.S due to automation between 40 and 75 million.

In smaller countries that have a homogenous economy, it’s a little easier to digest national-level numbers like jobs and employment. The U.S, on the other hand, is a massive country with distinct regional cultures and economies. …

One of the reasons I’ve always been drawn to economics as a discipline is that it helps reveal connections that we would otherwise never know existed. The global economy is so interconnected that one seemingly insignificant change to a part of the supply chain in a different continent can have direct impacts at your local grocery store.

Take for instance the recent changes to fuel standards in maritime shipping containers and why that means you’ll be paying more for bananas.

What are the changes?

Have you ever wondered how all the imported products like bananas make it into the country? They arrive on a…

I recently wrote about the paradox of stagnant household wealth over the past decade despite low-interest rates, low unemployment, and soaring stock and real estate prices.

Everyone should be a lot wealthier than they were 10 years ago. Only they aren’t.

I concluded that there are two reasons the average person has not been able to ride the hot economy to a higher net worth.

1. Low-interest rates have encouraged people to increase their total debt which has negated the gains from rising home prices.
2. Over 50% of Americans have zero dollars invested in the stock market, meaning they have not…

What is stagflation?

A country is said to be experiencing stagflation when it is experiencing low levels of economic growth, high levels of unemployment and high levels of inflation. This is where the term “stagflation” comes from, it refers to a situation of a stagnant economy and high inflation.

What is stagflation so bad?

Stagflation brings serious economic pain.

Think of what your life would be like if you lost your job today, knowing you are facing a very weak labor market while at the same time the prices of food, energy and other essential goods begin to increase.

Odds are you would not be very happy. Nobody…

Economists view themselves as superior and therefore do not collaborate with sociologists and other social scientists nearly as much as they should.

Let me start by saying I think economics is a necessary and underrated discipline. I have two degrees in economics (Bachelor and Masters). The study of economics has changed my life and expanded my mind more than I can say in this article and the professors I’ve studied under are the most brilliant people I’ve ever met.

With the caveats out of the way let me be blunt. If economists wish to remain relevant, they must evolve.

The Fundamental Flaw of Modern Economic Theory

The…

Our tastes are largely determined by our income. When we are in our early 20’s and have very little disposable income we are more than satisfied with pizza and beer as a 2-course meal on a Friday night. As our income increases, so does our spending.

Not only do we spend more money when we make more money, but we also buy different types of goods as our income increases. Economists breakdown goods into three categories

1. Normal Goods
2. Luxury Goods
3. Inferior Goods

Normal Goods

These are goods in which our demand increases as our income increases. …

What Tariffs are Currently in Place?

The U.S recently increased tariffs for the third time in the past year. There are now 25% tariffs on $250 billion worth of Chinese goods.

In response to U.S Tariffs China has responded with tariffs of its own (that’s how trade wars work). China has imposed tariffs which range from 5%-25% on $110 billion worth of U.S goods with Soybeans being their primary target.

The Justification for the Trade War

Trump justified the Trade war by arguing that Americans were losing because of their trade deficit with China which currently stands at over $28 billion per month. This simply means that the value of U.S imports…