People’s Economics – Open Markets

Market day. The open stalls bubble with activity as vendors show off their products. Small handwritten signs tell you what it will take to make them yours, but you know that’s just a starting point. You can offer less, especially to the quieter booths away from the activity. But have cash on hand to make the trade quickly once you have a mutual agreement on what everyone considers fair.

That’s the common view of what a “free market” is, and it’s something everyone around the world has experience with. It seems perfectly natural, an essential part of being human. It can’t possibly need interference from other people to make it work, can it?

Yet as the world comes closer together, the definitions of nearly everything wind up befuddled in language, definitions of fairness, and sometimes the simple lack of a personal connection.

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Inflation is Hip

Inflation is certainly surging, it remains to be seen how much of a problem that is. What we do know is that some regions of the nation, particularly cities where businesses have embraced technology, are surging ahead quickly. Some a bit too quickly.

In a nation already divided, the success of some cities is only accelerating the divide. If they become too successful their high cost may ultimately slow growth. But for now, the benefits of the recovery are heavily centered on a few places.

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Renewing Our Cities

American cities are booming, or at least some of them are. The process of re-invention has been difficult and uneven for the economy as a whole, and old industrial cities are no different. The keys to successful cities? Reinvention, inclusion, diversity, and education.

That is the conclusion of a report from the Brookings Institution entitled “Renewing America’s economic promise through older industrial cities.” An analysis of the legacy industrial base shows that some cities have been successful, others have not. The differences? In large part, a willingness to embrace change and diversity, giving it the space and tools they need to blossom.

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Jobs Are Good!

Good news! The economy added 313k jobs in February!

Like all news, we need some kind of reality check first. Did it really? The long and short of it is that, as always, the ADP employment report is less noisy and thus more accurate. It had a gain of 263k jobs in February, which is probably the right number. Still very good news all around.

But is good news actually bad news? Along with the jobs report we have the increase in wages, which stands at a modest 2.6% over the last year. Does that mean inflation is tamed? We will see what the markets think.

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A Big Week

We have in front of us a big week. This may determine the course of the next year or so in the stock market, the economy, and in politics.

A lot is about to happen. Let’s run it down, day by day.

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