How to kiss babies, Donald Trump style

Politicians have a long history of trying to be elected by kissing babies. However, with about four million babies being born in the U.S. each year, there isn’t enough time in the current presidential race to kiss enough newborns to make any real difference. So Trump is trying to find another way to convince Americans he cares about babies. Continue reading

Does The Federal Reserve Know More Than Other Government Economists?

The U.S. Federal Reserve has a complicated mandate. The legislation governing this agency states the Fed is supposed to “promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.” It does this by controlling or influencing interest rates and controlling the U.S.’s money supply. The Fed has pushed down interest rates close to zero for many years to increase the number of employed people and reduce unemployment. By pushing interest rates down, it has explicitly ignored two of its three mandates. The key question for the Fed is when should it stop focusing on employment and refocus its attention on stable prices and moderate long-term interest rates? Continue reading

Cops May Feel the Biggest Impact from Driverless Car Revolution

Recently, the McKinsey Global Institute published an article that predicted self-driving cars will disrupt major parts of the economy. Positive numbers from the article, such as 90% of all accidents would be prevented and commuters would gain 50 minutes a day of free time were trumpeted in the news. The press also focused on industries that would be harmed by self-driving cars. The two largest industries McKinsey pointed out that would be hurt are auto insurers and auto repair shops. McKinsey, however, missed one of the key impacts of self-driving cars in their study. Self-driving cars will have a tremendous impact on police forces around the world. Continue reading