Road to Ruin: Tesla vs. Auto Dealers

Tesla Motors, the famed electric vehicle startup from billionaire Elon Musk, is feeling the full brunt of auto dealers associations wielding antiquated regulations. On March 11th, the state of New Jersey, facing complaints from the New Jersey Auto Dealers Association, banned Tesla from selling its electric cars directly over the internet from the factory to… Read More

The Great Manufacturing On-shoring

Tim Worstall at Forbes brings up an important point about the recent increases in wages and working conditions in China for major American tech companies. These manufacturers would allow wages and conditions to stagnate to maintain a competitive cost edge over other firms, but the inevitable Chinese labour shortages have increasingly given employees the upper… Read More

Economists Agree: Corporate Taxes Should Be As Low As Possible

While President of the United States, Harry Truman made a remarkably succinct observation on economists. He said, ‘Give me a one-handed economist! All my economists say ‘On the one hand on the other’. Economists tend to be a divided¬†bunch¬† – Winston Churchill once said ‘If you put two economists in a room, you get two… Read More

Strategic Defaults Can Definitely Depress Local Housing Prices

I’ve been away on vacation, but a quote in an article from three weeks ago on CNN caught my eye. It has something that is very important to address when looking at strategic defaults. But don’t expect a few depressed mansions to bring down the neighborhood. A single foreclosure in an otherwise wealthy area is… Read More

The Economic Impact of the Canada-U.S. Border

Make no mistake, lowering the barriers to trade between the Canadian and American borders could bring huge economic gains for Canada. As it stands, trade between Canada and the U.S. is far below its potential level. Although NAFTA eliminated a huge swath of tariffs and duties, other barriers to trade remain. The border between Canada… Read More

Opposing Political and Economic Forces Set to Tear Eurozone Apart

Nouriel Roubini has criticized the European Central Bank for being a lender of last resort – a buyer for European bonds when interest rates become unsustainably high. However, politics is stopping the use of monetary policy, which could soften the economic blow to countries facing severe austerity measures. In a NY times piece today, a… Read More