What we’re reading (9/6)
“Good News: There’s A Labor Shortage.” (David Autor, New York Times). “Many employers are alarmed about the current labor shortage — the phenomenon of a labor market with more job openings than unemployed workers. There are two supposed problems, they allege. First, that the labor shortage is caused by government benefits that discourage work. And second, that the shortage will harm the economy. Both claims are wrong.”
“Aluminum Hits Decade High After Guinea Coup Imperils Bauxite Supplies” (Wall Street Journal). “Aluminum prices rose to their highest level in 10 years Monday after a military coup in mineral-rich Guinea threatened to snarl the lightweight metal’s supply chain. Three-month aluminum forward contracts on the London Metal Exchange rose 0.9% to $2,757 a metric ton, their highest level since early 2011. Shares of mining companies and aluminum producers also jumped.”
“Your 401(k) Is Pocketing Fees On Your Investment. Many People Don’t Realize It.” (Washington Post). “Many people don’t realize they are paying multiple fees that generally fall under two categories: administrative fees and investment-related fees. Bundled into those charges are expenses for legal, accounting and record-keeping services. You might be paying for access to customer service help or investment advice. Funds that are actively managed might incur higher fees. If you work for a small company, your plan fees and expenses might be higher. ‘Fees remain a huge issue in the 401(k) industry,’ said Edward Gottfried, director of product at Betterment’s 401(k) business. ‘They’re frequently too high and rarely transparent enough to retirement savers.’”
“Renaissance Execs Will Pay $7 Billion to Settle a Decade’s Worth of Disputed Taxes. Here’s What Jim Simons Earned During That Period.” (Institutional Investor). “By any measure, Renaissance Technologies’ $7 billion settlement with the Internal Revenue Service is stunning and historical…[t]he dispute stems from the tax treatment of certain options transactions undertaken by Renaissance’s legendary Medallion fund from 2005 to 2015, according to the letter. No other Renaissance fund engaged in this practice. ‘The dispute turned on whether the options should be respected as separate instruments for tax purposes or, as the IRS contended, disregarded so as to treat the Medallion entities that held the options as if they actually held the individual securities positions in the option portfolios,’ Renaissance explained in the letter.”
“Lyft, Uber Say They Will Defend Drivers Sued Under Texas Abortion Law” (Los Angeles Times). “Lyft Inc. and Uber Technologies Inc. pledged to pay legal fees for drivers who are sued under Texas’ new restrictive abortion law, which threatens to hold anyone who helps a woman obtain the procedure legally liable.”
