Growing Growth

By Econ70 | 03/03/2015

While Q4 GDP was revised down to 2.2% from just 2.6%, things are better than they appear. The revision was entirely due to slower inventory accumulation. Excluding inventories and trade gets at real domestic demand, and it grew at a solid 3.2% while household spending was revised down just 0.1% to a healthy 4.2%. This…

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Net Neutrality

By Econ70 | 03/02/2015

Net neutrality is a fight over who pays for Internet infrastructure. Now, large content providers (Netflix) help pay, but under the new FCC rules they won’t be allowed to. Thus, households will pay more. But as they are more price sensitive than content providers, usage will probably fall. As for future Internet investment, in the…

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