Republican Keynesians

According to Bartlett, Republicans are anti-Keynesians until they are running for office.

Quote from the piece:

In 2001, George W. Bush responded to the recession that began in March by proposing another tax rebate of $300 to $600, even though extensive research by the economists Alan Blinder and Franco Modigliani and Charles Steindel showed that the 1975 rebate had very little impact on growth.

Are tax rebates “Keynesian”? I supppose they are if they aren’t accompanied by cuts in spending elsewhere. Like the article mentioned, I also wondered about the effectiveness of one time rebates in stimulating the economy. It seems to me we need long-term solutions that provide stability and help people make long-term choices. That can’t be done with an extra $300.

The agreement among Apple and five publishers allowed the publishers to set the price of their wares in Apple’s eBookStore; in return Apple would get a very rich 30% slice of the revenues. These publishers agreed not to sell their e-books at lower prices elsewhere. The deal meant that participating publishers would have to persuade Amazon to charge the Apple price or forgo selling their books on Amazon, which happens to be a humongous marketplace.

I understand what Forbes is saying but, isn’t this considered price fixing? What gives Apple the right to tell publishers that they can’t sell their books for less elsewhere? What’s to stop Walmart or Target from doing the same thing?

I know publishers need to make money but I think it is pure craziness to have to pay nearly the same price for an e-book as a physical copy of the book.

One last thing before we leave this topic. Check this out (bold mine):

Traditional publishers are fighting for survival. Authors can sell their writings directly online, with no middleman necessary. Amazon, in fact, happens to have a burgeoning service to help these scribblers do just that.

What’s up with calling authors who bypass traditional publishers “scribblers”? How many highly successful books were passed up by traditional publishers? Hmmm…

Happy Memorial Day. Remember those who made it possible.

49.1%: Percent of the population that lives in a household where at least one member received some type of government benefit in the first quarter of 2011.

This number is misleading because it includes those receiving social security benefits even though they already paid at least something into the system.

I’m also not sure where he got 49.1% unless it’s overlap.

Still…

That number is concerning.

I’m sure it will come down some by the time Generation X retires and they means test us out of our benefits because we sacrificed and saved on our own.

I’ll admit that I’m late to the Twitter game. To me it seemed like a bunch of noise. But, I forced myself to use the site and I have to say, it is useful.

I’ll be writing more about Twitter in the near future. I’ll share the little bit that I have learned and highlight some of the people I follow. I hope it’s an interesting series.

Stay tuned…

Given a dizzying number of features and restrictions, contracts for some annuities — variable and otherwise — can run 300 pages or more. And because each comes with its own small twists, these products can be very difficult to compare.

That—and the fact that annuities tend to pay a lot higher commissions than comparable mutual funds—is the main reason I’m not a fan of annuities.

That said, Barron’s has their annnual list of the 50 top annuities out today.

The market has changed:

“We’ve seen investment options in variable annuities diminished, guarantees brought down substantially and fees going up,” says Nigel Dally, an analyst at Morgan Stanley. “Protracted low interest rates and high volatility in the stock market have made it far more expensive for annuity companies to support their products.”

My thought: Stick with low-cost fixed immediate annuities. Put a portion of your assets in one or two fixed immediate annuities to give you some dependable monthly income and invest the rest of your assets in a conservative portfolio of stocks and bonds. It’s not rocket science but advisors try to make it that way to confuse and scare the hell out of people.

As far as the rest of annuities are concerned: BUYER BEWARE!

Happy Saturday!

College in 18 years…

In 18 years, the average sticker price for a private university could be as much as $130,428 a year (See chart.) The situation isn’t much better if you go the public route. Sending your child to a state university could set you back at least $41,228 a year.

Seems unreal. But…

I remember looking at one of my old spreadsheets from the early 2000s where I used $13,000 as the cost of one year at the University of Texas. It’s now around $25,000 a year. Unbelievable.

Maybe it might be wise to consider some college alternatives.

The Gents Place Puts a Modern Twist on Barbering

My introduction to the Gents Place was through a Facebook ad that offered a free cut, shampoo and hot towel treatment—a $35 value—in exchange for my name, phone number, e-mail address and preferred social network. Who could resist? While waiting for my turn at the shop in downtown Leawood, Kans., I took advantage of the Wi-Fi access to catch up on the news on my iPad. Since the chop was free, I opted for a $10 add-on, a lathered neck shave with a straight razor. Ah, nice.

When I got home I mentioned the experience to my Facebook followers. Next day I got a message via LinkedIn from Davis, the 29-year-old founder of the Gents Place. He personally connects with every new client who provides a contact via LinkedIn, Google+ or Twitter. “I realized pretty early on that our business is social, by its very nature,” he says. There’s no better way “to connect like-minded guys in the local community and create long-term relationships.”

Think about how social networking could impact other “old line” businesses…