Some economists are warning that the Los Angeles City Council’s approval of what is essentially a $1.20 per year increase in the minimum wage for the next five years will be so inflationary that rents and other prices will rise.
U.S. public sector unions are politically powerful because they collect and spend at least $4.0 billion in dues each year. But California unions are overwhelmingly powerful because although the state has just 11 percent of the nation’s population, California’s public
In a huge victory for farmers and their workers, California’s 5th District Court of Appeal ruled last week that the state’s “Mandatory Mediation and Conciliation” process, which allows a mediator to impose a binding contract on farm companies and agricultural unions when the negotiation process breaks down, is unconstitutional.
Twitter Inc. (TWTR – NYSE) mission statement is: “To give everyone the power to create and share ideas and information instantly, without barriers.” To meet that mission, the company is spending $6 million to open the new Twitter NeighborNest to teach tech skills near their headquarters on South Market Street in downtown San Francisco.
There is plenty of room to debate the benefits of the U.S. Federal Reserve’s monetary policy. But Senators Elizabeth Warren (MA-D) and David Vitter (LA-R)’s bipartisan bill, the “Bailout Prevention Act of 2015,” would further restrict the Fed’s emergency lender-of-last-resort
With temperatures dropping into the high teens, and about 7 inches of snow falling for the next three days, Mammoth Mountain is on track to get its most snow since December 2014. The unseasonal snowfall in the Sierras will not break the drought, but the National Climate Prediction Center’s decision to raise the probability of El Niño to 90 percent has insurance companies scrambling to model losses they expect to suffer from El Niño flood damage.
Grocery stores are responding to the massive loss of consumer dollars by going all-in for organic foods, which Consumer Reports estimates cost 47% more. Despite clever marketing, most health experts doubt organics are worth the premium price.
On Tuesday, the Los Angeles City Council passed a minimum wage law by a 14-to-1 vote margin that continually cranks-up wages for the next five years to $15 an hour. Meanwhile, employers are responding by investing in machines over people.
Federal Reserve Chairwoman Janet Yellen recently joined the rising chorus of economists and former Fed officials warning about the risks of irrational exuberance by bond and stock investors paying bubble-inflated prices. Conspicuously silent about the risks of stock investing over the last 6 years, Yellen’s comments quickly tanked the bond market. But with the NASDAQ tech-heavy index up 500% since the bottom of the last crash, Yellen seems to be warning this bubble could pop.
The leftist Greek government’s debt re-negotiation strategy was aimed at stretching the crisis out and making the risk from a messy “Gr-exit” so big that the European Union would grant huge concessions to avoid a Greek collapse that would topple falling
In a surprise move, Xiaomi just announced on its Facebook page that it is coming to U.S. and Western markets with a plan to attack Apple’s ecosphere.
With cap-and-trade cash flow doubling this year and growing rapidly into the future, a newly approved “Scoping Plan” requires “maximizing” investments in “disadvantaged communities” that just happen to vote overwhelmingly for Democrats.
The National Climate Prediction Center has raised the probability of an El Niño in the Northern Hemisphere lasting through this summer to 90 percent, and added that there is a a greater than 80 percent probability it will last through all of 2015.
The Center for Jobs & the Economy has published a study entitled, “Economic Tale of Two Regions: Los Angeles County vs. Bay Area.” Their research, which compiles data to track jobs created in the past 24 years, reveals that the two regions have been at opposite ends of the wage spectrum. The Bay Area experienced high-wage growth that lifted the middle-class, while Los Angeles slumped toward a two-tier economy as higher-wage jobs shriveled and were somewhat replaced by lower-wage jobs.
Buying AOL, Inc. was a deal Verizon had to make, given that Verizon’s bundled telephone, Internet and pay-TV services seem headed toward serious decline.
Long-shot presidential candidate Governor Jerry Brown offered to have California tax-payers double the federal Earned Income Tax Credit for many Californians this week. Though the credit is considered by the IRS Inspector General to have an “improper payment rate” of 22 to 26 percent, Brown wants to give away an additional $380 million in state funds to deflect what Breitbart News has reported as the fact that “California might be 7th Largest Economy, but is 1st in Poverty.”
Craig Stevens of Newport Beach pleaded not guilty to wire fraud Monday in federal court in Santa Ana in connection with charges of selling $4.27 million of fake In-N-Out Burger franchises, according to a report by the Los Angeles Times.
The highly respected Colorado State University forecast for the coming season looks for only 7 named tropical storms and only 3 hurricanes, about 40% less than average. Coupled with the expectations of global cooler weather and more precipitation from El Niño, climate change “scientific experts” may need to develop more new models.
If Robin Leach visited the headquarters of Uber today, it would be all “champagne wishes and caviar dreams” as the ride-hailing service that just closed a $2.8 billion venture capital deal three months ago at a $40 billion valuation is on track to slurp up another $2 billion of venture capital pixie dust at a valuation of $50 billion or higher.
In a devastating precedent that could redefine history, a Manhattan federal judge ruled that Nomura Bank and Royal Bank of Scotland willfully misled Fannie Mae and Freddie Mac into purchasing mortgage bonds that contained numerous fraudulent misrepresentations and underwriting errors.
David Rosenberg, former Chief Economist for Merrill Lynch, recently made the comment that the current global interest rates, at below 2 percent, have only been this low once or twice in the last 500 years. The globalization cycle over the last two decades pushed up total world debt to $223.3 trillion, over three times the world GDP of about $75 trillion. But the current low rates indicate that individuals and corporations no longer have the moral willingness to take on more debt.
California’s cap-and-trade tax is creating a luscious honey-pot of cash to sooth state politicians’ spending fantasies. In expectation of the cash available from the “May Revised Budget” to be released this week, lawmakers and their interest-group fellow travelers are outlining ambitious proposals that include funding port improvements, paying for heavy-duty trucks and ferries, nurturing urban rivers, sponging up carbon in soil and increasing subsidies for bus riders.
When Tesla Motors Inc. CEO Elon Musk unveiled a line of home and commercial battery packs a week ago, he said Tesla was “trying to change the fundamental energy infrastructure of the world.” Although the system Musk announced was better than the competition, the cost was assumed to be too expensive except for home solar systems. But now it turns out that Tesla’s new batteries do not even make economic sense to back-up rooftop solar systems–at least not yet.
California schools are about to suffer a 235% increase in the percentage of their annual budgets that are devoted to teacher pensions managed by the California State Teachers Retirement System (CalSTRS). The stunningly higher costs will slash the number of classroom teachers in all predominantly middle-class schools, but exempt inner-city school districts with high “English learners and recipients of subsidized meals.”
Leaking information to reporters in Silicon Valley is an everyday occurrence. But a former employee at Yahoo is being sued for actually leaking passwords to confidential computer files inside the company to help a financial industry journalist write an unauthorized biography titled: “Marissa Mayer and the Fight to Save Yahoo!”