What we’re reading (9/17)
“They're Ignoring That There's Too Little Money Now” (Real Clear Markets). “As Keynes had written more than a decade before, in the early twenties, the greatest monetary evil is this: the shortage of money and its deflation which quite vigorously savages labor most of all. The entire economy suffers, of course, but it is the unfortunate single worker who has no protection from these far-reaching and, from the worker’s perspective, incorporeal ills. Whenever money is too dear, the actual wealth of any nation is undercut because money rather than sustainable enterprise is prioritized. Heightened liquidity preferences reorient the very nature of business; risk taking, or animal spirits, diminish if not disappear near entirely.”
“The Housing Crisis Is The Top Concern For Urban Residents” (Vox). “Housing costs and homelessness in America’s cities are so bad that people in growing metro areas now appear more concerned about those issues than Covid-19, public safety, taxes, education, and jobs, according to a new poll by the Manhattan Institute and Echelon Insights. The poll surveyed 4,000 adults from August 11-20, sampling 200 people each in the ‘20 metropolitan areas with the largest numerical population growth from 2010-2019.’”
“Are 401(k)s Worth It?” (U.S. News & World Report). “401(k) plans typically come with a number of expenses which might include management fees and recordkeeping fees. ‘Plans are required to distribute fee disclosures annually,’ says Julian Schubach, vice president of wealth management at ODI Financial in Lynbrook, New York. Still, it can be difficult to find these communications. ‘Most participants have no idea what fees they are paying,’ Schubach says.”
“World Bank Cancels Flagship ‘Doing Business’ Report After Investigation” (Wall Street Journal). “The Doing Business report has been the subject of an external probe into the integrity of the report’s data. On Thursday, the bank released the results of that investigation, which concluded that senior bank leaders including Ms. Georgieva [current head of IMF; full disclosure: my former employer] were involved in pressuring economists to improve China’s 2018 ranking. At the time, she and others were attempting to persuade China to support a boost in the bank’s funding.”
“Bud Light hopes This Beer Is The Next Big Thing” (CNN Business). “Anheuser-Busch has announced the launch of Bud Light Next, the company's first-ever zero-carb beer. The beverage, which hits shelves in early 2022, comes as health-conscious customers have gravitated toward light beers in recent years — and beer in general is in the middle of a big resurgence.”
