November 14, 2022

14 15:29:00 Noviembre 2022

If our politicians actually had any interest in economic efficiency, they would be engaged in an all out push to downsize the financial industry and free up hundreds of billions of dollars for productive uses.

Who to Believe? NYT Says Young People Can’t Buy Homes, BLS Says Ownership Rate Is Way Up

November 12, 2022

12 16:55:00 Noviembre 2022

It seems the New York Times views government data with the same suspicion that people used to view the data disseminated by the Soviet Union in Stalin’s day. It ran yet another piece telling its readers that young people have been priced out of the housing market and may never be able to own a home.

“For most younger Americans, the entree to homeownership, a rite of passage for many adults, has been blocked by forces beyond their control. They have been competing in a market unlike any other, one defined by the largest run-up on home prices in modern history blunted only by the steepest climb in home mortgage rates in decades. As first-time buyers scramble to cobble together money for down payments and closing costs, they are competing in a market with an anemic inventory against investors and repeat home buyers flush with cash.”

The Bureau of Labor Statistics see things somewhat differently. Here’s the picture on homeownership for people between the ages of 25 and 34. It shows the homeownership rate for this group rising from 41 percent in 2019 to 44 percent in 2021.

The quarterly data, which is released by the Census Bureau, shows the homeownership rate for households under age 35 have continued to rise for the first three quarters of 2022. To be clear, the recent run-up in mortgage rates is certainly making it difficult for young people, and everyone else, to buy homes. But this comes against a backdrop of rapid increases in homeownership for young people, as well as Blacks and Hispanics. The assertion in this article, that homeownership has become out of reach for most young people is 180 degrees at odds with the reality.

It seems the New York Times views government data with the same suspicion that people used to view the data disseminated by the Soviet Union in Stalin’s day. It ran yet another piece telling its readers that young people have been priced out of the housing market and may never be able to own a home.

“For most younger Americans, the entree to homeownership, a rite of passage for many adults, has been blocked by forces beyond their control. They have been competing in a market unlike any other, one defined by the largest run-up on home prices in modern history blunted only by the steepest climb in home mortgage rates in decades. As first-time buyers scramble to cobble together money for down payments and closing costs, they are competing in a market with an anemic inventory against investors and repeat home buyers flush with cash.”

The Bureau of Labor Statistics see things somewhat differently. Here’s the picture on homeownership for people between the ages of 25 and 34. It shows the homeownership rate for this group rising from 41 percent in 2019 to 44 percent in 2021.

The quarterly data, which is released by the Census Bureau, shows the homeownership rate for households under age 35 have continued to rise for the first three quarters of 2022. To be clear, the recent run-up in mortgage rates is certainly making it difficult for young people, and everyone else, to buy homes. But this comes against a backdrop of rapid increases in homeownership for young people, as well as Blacks and Hispanics. The assertion in this article, that homeownership has become out of reach for most young people is 180 degrees at odds with the reality.

• Affordable Care ActHealthcareUnited StatesEE. UU.

The Crushing Health Care Cost Burden that Never Came (Corrected)

By Dean BakerDean Baker

November 11, 2022

11 15:42:00 Noviembre 2022

We have dodged the health care horror story that was projected in the 1990s by the Peter Peterson gang and more recently by CBO. And, that is very good news.

• Economic PolicyGlobalization and TradeGlobalización y comercioInequalityLa DesigualdadUnited StatesEE. UU.WagesWorkersSector del trabajo

The Case for the Trumpers’ Anger

By Dean BakerDean Baker

November 08, 2022

08 15:03:00 Noviembre 2022

Imagine the lowest paid workers, the people cleaning toilets in office buildings or bussing dishes in restaurants, earned $52,000 a year if they worked a full-time job for the whole year. … That’s a very different world than the one we have.

• IMFFondo Monetario InternacionalUnited StatesEE. UU.WorldEl Mundo

Bangladesh is Richer than Denmark: Amazing Things You Can Learn at NPR

By Dean BakerDean Baker

November 07, 2022

07 18:57:00 Noviembre 2022

Denmark’s per capita income (the most basic measure of economic well-being) is almost 10 times as large as Bangladesh’s. How did NPR get things so badly wrong?

• Economic Crisis and RecoveryCrisis económica y recuperaciónInflationJobsTrabajosUnited StatesEE. UU.Wages

What’s the Problem with 3.9 Percent Annual Wage Growth?

By Dean BakerDean Baker

November 06, 2022

06 14:36:00 Noviembre 2022

The data we got from the October jobs report is certainly consistent with a pause by the Fed. Everyone recognizes that the full effects of rate hikes are not felt for many months.

• COVID-19CoronavirusEconomic Crisis and RecoveryCrisis económica y recuperaciónIntellectual PropertyPropiedad Intelectual

Washington Post Misleads Readers: China’s COVID-19 Problem Is Not Its Refusal to Use Pharma’s Vaccines

By Dean BakerDean Baker

November 06, 2022

06 06:38:00 Noviembre 2022

It should not be surprising that The Washington Post would use an editorial criticizing China’s zero Covid policy as an opportunity to push mRNA vaccines.

• InflationUnited StatesEE. UU.Wages

Contrary to What the NYT Tells You Wage Growth Has Slowed Sharply to Near Noninflationary Levels

By Dean BakerDean Baker

November 04, 2022

04 14:01:00 Noviembre 2022

The reality is the opposite of what this piece implies, wage-inflation has not been persistently high, but rather has slowed sharply.

• BudgetHealth and Social ProgramsLos Programas Sociales y de SaludUnited StatesEE. UU.

Washington Post Says Voters Want Cuts to Social Security and Medicare

By Dean BakerDean Baker

November 03, 2022

03 14:21:00 Noviembre 2022

The Post does not present any evidence that a substantial segment of the population would be happy with cuts to Social Security and Medicare, which polls consistently show enjoy strong support across the political spectrum.

• Economic Crisis and RecoveryCrisis económica y recuperaciónEconomic GrowthEl DesarolloInflationUnited StatesEE. UU.