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March 2013

Dow hits a new record, so what?

Start whistling a happy tune because happy days are here again. Right? The Dow Jones industrial average closed at a record high again. On Tuesday, it topped off at 14,559.65. The more relevant index, Standard & Poor’s 500 index, closed just 2 points shy of its all-time high of 1565.15 set in October 2007, Reuters reported in Tuesday’s story, “Wall Street climbs on economic data; S&P near record close.” There …Read More

Is the market’s record high just another bubble?

The Dow Jones Industrial Average hit a new all-time high on March 5 of 14,254, surpassing its old peak of 14,164 set on Oct. 9, 2007, and has continued to advance to still higher levels. From this indicator alone, one would think that “we’re back!” Unfortunately, a review of the underlying fundamentals tells a different story, at least about the state of the economy. With weak fundamentals and high and …Read More

Where burden of higher minimum wage falls

In an era in which unemployment is the biggest problem facing the economy, raising the minimum wage likely is to exacerbate the issue. Economics 101, taught at every college and university in the free world, instructs us that free markets clear where demand and supply intersect. However, if artificial constraints are imposed and raise the price of the good or service, the demand for the good or service (in this …Read More