Nice graphic on how much we spend educating each student in the US. My conclusion: We either spend too much, not enough, or it is just right. Confused? See why here...

Fact is, we know how much we SPEND on each student, but do we know how much is actually COSTS to educate each student?  Fundamentally different questions.

According to the graph below, in 1995 spending per student was approx $8,600 and in 2010 it was approx. $11,600 per student. That is an increase of 35% ($11,600 minus $8,600 = $3,000. $3,000/$8,600 X 100 = 35%) in 15 years. 

Source: Carpe Diem

 This is well above inflation during this period AND well above the percentage increase in the number of students from 1995 to 2010.  In 1995 there were 44,840,481 students in US public schools and in 2010 there were 49,373,307 students. That is a 10% increase in the number of students since 1995 (Data from HERE). 

A 35% increase in spending per student and a student population growth of only 10% in 15 years.

I really don't think we spend too little on primary and secondary education in the US. I just think collectively we make really bad decisions on how we allocate that money. Something about priorities being misplaced.  But that is just me...

Graphic showing Female leaders of countries around the world...Should be MORE!

Source: The Knowledge Effect via ChartPorn

See this graphic video of an American Bald Eagle being killed by a GREEDY energy company...This is different.

The "greedy" energy company is own that owns and operates wind farms.  Wind farms are very dangerous for the bird population (HT: Carpe Diem):

""The graphic video above shows a magnificent eagle getting killed by a wind turbine. According to a 2009 estimate from the U.S. Fish and Wildlife Service (reported on the American Bird Conservancy website here), those bird fatalities happen more than 1,200 times every day (440,000 deaths annually and 50 deaths every single hour of the day on average). For the millions of documented wind-related bird fatalities that have taken place in recent years, how many wind companies have been prosecuted? None - they get a pass.

In contrast, 28 migratory birds (including ducks) allegedly died after landing by mistake in oil waste pits in western North Dakota between May 20 and June 11, and seven oil companies are being charged by the U.S. attorney for North Dakota for violating the 1918 Migratory Bird Treaty Act.

As Jack Dini wrote in the Canada Free Press: "When it comes to protecting America’s wildlife, environmental organizations and federal law enforcement officials have a double standard: one that’s enforced against oil, gas and electric utility sectors, and another that exempts wind and solar power from prosecution despite evidence of a multitude of violations."

The number of new Female MD's = the number of new Male MD's...That IS news, but NOT the real news---check out this graphic...

One giant step forward BUT we have not moved...Over time the number of female doctors has increased, and in the latest reporting year, has just about reached parity with male doctors.

However, I am interested in the overall trend of the number of MD's created overtime---It is essentially constant.  What is up with that?  Has the population stayed level? No. Has the need for medical doctors decreased? No, again.  So, why is this the case? 5 extra credits points on the next test for the first person to get the correct answer...

Source: Matthew Iglesias

Pie Chart of Spending on various items in a persons persoan budget

Rising out of the dust of Creative Destruction: The resurgence of Vinyl Records. See the numbers...

Back to black:  Oddly, the hunger for records is widespread

ONE common trend in many Western countries, regardless of the health of their recorded-music markets, is clear: vinyl is back. Sales of LPs were up in both Britain and Germany last year. In America vinyl sales are running 39% above last year’s level (see chart). In Spain sales have risen from 16,000 in 2005 to 104,000 in 2010. That is an increase from a tiny base, but any rise in media sales in Spain’s ravaged market is noteworthy.
This is a second revival for vinyl. The first, in the late 1990s, was driven largely by dance music. Teenagers bought Technics turntables and dreamed of becoming disc jockeys in Ibiza. But being a DJ is difficult and involves lugging heavy crates. Many have now gone over to laptops and memory
These days the most fervent vinyl enthusiasts are mostly after rock music. Chris Muratore of Nielsen, a research firm, says a little over half the top-selling vinyl albums in America this year have been releases by indie bands such as Bon Iver and Fleet Foxes. Last year’s bestselling new vinyl album was “The Suburbs” by Arcade Fire. Most of the other records sold are reissues of classic albums. Those idiosyncratic baby-boomers who were persuaded to trade in their LPs for CDs 20 years ago are now being told to buy records once again.

What is going on? Oliver Goss of Record Pressing, a San Francisco vinyl factory, says it is a mixture of convenience and beauty. Many vinyl records come with codes for downloading the album from the internet, making them more convenient than CDs. And fans like having something large and heavy to hold in their hands. Some think that half the records sold are not actually played.
Vinyl has a distinction factor, too. “It is just cooler than a download,” explains Steve Redmond, a spokesman for Britain’s annual Record Store Day. People used to buy bootleg CDs and Japanese imports containing music that none of their friends could get hold of. Now that almost every track is available free on music-streaming services like Spotify or on a pirate website, music fans need something else to boast about. That limited-edition 12-inch in translucent blue vinyl will do nicely.

Best research EVER: Students yawn not because they are bored, but because their brains are ON FIRE with my lectures! That may be an overstatement, but the research conclusion is interesting...

Yawning is body's "thermostat"

""Yawning is not just a sign of tiredness or boredom – it is the body's method of keeping our brain cool, scientists have found.

When the head begins to heat up, yawning acts as a natural "thermostat" by allowing cool air to rush in and bring the brain back down to a healthy temperature, research suggests.

Brain temperature is influenced by the amount of processing the brain is having to do, the temperature of the blood and the rate at which it flows to the brain. ""

Is the US dollar a "safe-haven" currency anymore? King Dollar may be demoted to Prince in the future...

This article in the WSJ today emphasizes one of the determinants that cause an increase in the demand for a particular currency: A currency as a "safe-haven" against loss or depreciation. 

If a holder of a particular currency is unsure of its immediate or future value, they may elect to exchange it for a currency they believe will, at the minimun, maintain its value.

According to the article, there is not a firm consensus as to which currency is a dependable safe-haven. The dollar historically has played this role, but not so much today. 

Investors Show a Yen for the Dollar

""There may be no lack of investors seeking safety, but there is a shortage of safe havens in the currency market.

That was in evidence during Thursday's global rout in financial markets, when just about the only islands of strength were the U.S. dollar and the yen.

It isn't lost on investors that both the U.S. and Japan have significant fiscal and economic woes. But when markets turn scary, the ease of trading in both countries' currencies and in their deep underlying bond markets overwhelms those longer-term concerns.

The Swiss franc, long a traditional safe haven, has been largely taken out of the equation by the Swiss National Bank's efforts to cap the currency's rise, and it declined about 1% against the dollar Thursday. Even gold fell 3.7% on Thursday, as investors cut back on positions after the metal's long march higher. Currencies recently touted as safe havens, such as the Norwegian krone and Swedish krona, both lost about 2% against the dollar.

In times of trouble, "at the end of the day you just buy dollars," says Gravelle Pierre, founder of Iron Harbor Capital Management. ""

Amazing Graphic: Mark Zuckerburg wins in the Photo Storage game...The proportion is staggering! See here...

""...this year people will upload over 70 billion photos to Facebook, suggesting around 20% of all photos this year will end up there[7]. Already Facebook’s photo collection has a staggering 140 billion photos, that’s over 10,000 times larger than the Library of Congress..."

Source: HERE

Nice graphic showing Financial Capital Inflows into select countries...A great resource for Macroeconomics OR to impress your teacher/professor...

We just completed a unit on the Foreign Exchange Market in AP Macroeconomics last week. This week we are going to look at how the government tracks international flows of currency through "The Balance of Payments".

This interactive graphic shows the Financial Capital Inflows to select countries and the corresponding effects on the currency exchange rates with the US dollar from 2001 and 2011. It will be very helpful when we learn about the Financial/Capital Account side of the Balance of Payments.

Go HERE for the interactive. What do you notice about the relationship between financial capital inflows and the relative value of the currencies of the respective countries?

Source: Wall Street Journal

Where's the Beef? Well, it could be in a number of places if competition is not hindered by "rent-seekers"...

This is an excellent example of how the market responds (even if slowly) to consumer demands in the fast food industry. 

Entrepreneurs with a good idea and executed with persistence can build their own niche brands and, as an unintended consequence, influence the behavior of the large chains in the restaurant buiness.

This article focuses on the "tween" burger business (not fast food and not casual dining, i.e. Chilis, TGIFridays, etc) and how their success has impacted the big boys in the fast food business.

As long as we have economic freedom and maintain conditions where competition is not limited/hindered, we will have more and better quality products available to choose from.


US burger chains beef up to keep up

""Top US fast-food restaurant companies are beefing up their hamburgers to keep up with an onslaught of competition from “better burger” chains, which have been gaining market share by offering premium meat and high-quality toppings.

McDonald’s started offering Angus beef hamburgers on fluffy buns, promising more thickness and juiciness. Rival Wendy’s now sells an eight-ounce hamburger, made from North American beef that is never frozen. And Burger King, trying to capitalise on greater health consciousness, is cooking “California” Whoppers, topped with fresh guacamole and ripe tomatoes.

Competition from better burger chains, which account for only about 3 per cent of the market, is good for the industry, according to Sara Senatore, restaurant analyst at Bernstein Research, because it gives consumers a new option priced between fast-food and casual dining. The focus on quality meats and toppings has forced industry leaders to sell healthier food.

“I think, given the demand environment, offering a premium-priced burger could make you raise your eyebrows a little bit, but it shows a continuing trend toward improved food quality,” Ms Senatore said. “All of the chains have ratcheted up the quality.”...

The writing is on the wall (or E-Reader) for the book publishing industry. Nice graphic showing price/profit differences between the two mediums.

Creative Destruction is working its way through the publishing industry, via technological advancement and book readers willing acceptance of the change.  The bottom line is, well, the bottom line $$: E-books are more profitable on a per unit basis.

You better go take a picture of your local bookstore to show to your grand kids someday---"Really, Grandpa/ma, they had buildings JUST for books?--That's crazy!"...(Don't laugh--when was the last time you went to a video store?)

Source: Wall Street Journal

World's Largest Employers (with governments included)...Do you see a trend here??

Source: The Economist

Who are the world's biggest employers?
ONE of the biggest headaches for policymakers in many rich countries has been how to create jobs during a period of fiscal austerity and anaemic growth. The private sector has been slow to generate jobs, and government-spending cuts usually end up cutting jobs. And governments employ a lot of people: in our chart of the ten biggest global employers, below, seven are government-run. America's defence department had 3.2m people on its payroll last year, equivalent to 1% of the country's population. China, the world's most populous nation and a big military spender, employs 2.3m people in its army. And the number of people working for the National Health Service in England is equivalent to over 2.5% of the country's population. The three private companies are Walmart, McDonald's and Taiwan's Hon Hai Precision Industry Company, a subsidiary of which is Foxconn, a secretive electronics manufacturer.

If you have never viewed on of my charts, this is THE one---"Pie Chart" of Girl Scout Coookie Sales...

Source:Wired.com

Here is my short take on why we are in between the proverbial rock and a hard place in terms of the economy...I think this is a worthy two cents...

I can see alot by looking at numbers. One source of our economic problems can be seen in just looking at one key government statistic.

Gross Domestic Product (GDP) is the sum total of a nations domestic output of finished goods and services. There are four major categories of expenditures: Personal Consumption Expenditures (what you and I purchase), Gross Private Investment (what businesses buy AND residential housing), Govenment Expenditures (what Federal, State and Local govts purchase) and Net Exports (exports minus imports). These categories are totaled below in (2), (7), (22) and (14). 

The recession officially started in the first half of 2008. Starting from left and going right, look at line 1.  Notice how total GDP declines, then recovers.  We are back to square one---Almost.

Look at the number in 2008 III and 2011 II.  Three out of the  four categories ARE back to 2008 levels or better.  How can that be and we have 9.1% unemployment vs 5% in 2008?

Source: Bureau of Economic Analysis (BEA)

Category Gross Private Investment is still in the red by approx. -$220 billion. Look at the subcategories on this line.  Non-residential structures (factories, office buildings, etc) and residential---the housing industry are still in a funk.  There is an acute lack of spending in these critical, job creating industries.

There is what is called "Excess Capacity" in the system---too many existing idle resources (factories, buildings, houses) in place that prevent new spending by businesses. In the simplest terms, we appear to have too many "structures chasing too few productive uses".

 If I own a business and want to expand, due to cutbacks in the last two years, I probably have extra space in my own  building or there is an empty one nearby.

Until this excess capacity is absorbed or becomes depreciated beyond productive use, seems we will be in slow period for an extended period of time.