Author / Hoosier Econ

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Posts by Hoosier Econ

Located out of Central Indiana. Blogger of economics, politics and societal trends.
by Hoosier Econ

Medicaid Eating Up State Budgets

Medicaid spending in state budgets is becoming the largest line item costs in many state governments. State Budget Solutions had this national average stat:

Though the federal government provides some Medicaid funds via matching rates, this welfare program has been taking up a larger and larger share of state budgets in recent years. In fact, Medicaid is the largest category of state spending, accounting for 23.6 percent of state budget expenditures according to the National Association of State Budget Officers.  That percentage is likely to increase over time.

Indiana currently spends over 27% of their budget on Medicaid.

by Hoosier Econ

Thanksgiving Turkey Price is Rising

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EconomicPolicyJournal.com is reporting inflation now hitting turkey:

In the week ending last Friday, an 8 to 16 pound hen sold at wholesale for about $1.19 a pound and a 16 to 24 pound tom sold for about $1.17 a pound. Both price are sharply higher than the $1.03 average for hens and $1.04 average for toms in 2013. Last week. the price for fresh turkey was $1.44 a pound according to the USDA.

by Hoosier Econ

U-Haul Truck Rental Prices Shows Basic Economics

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Economist Mark J. Perry frequently gives updates on U-Haul “One Way” truck rental prices as a form of an economic indicator of where people are moving too. U-Haul truck rental prices show how prices are affected by demand. Here is an example that he posted in May of this year:

Check out the Amazing Price Differentials for One-Way U-Haul 26-Foot Truck Rentals:

Chicago to Houston: $2,588
Houston to Chicago: $473
Ratio: 5.5 to 1

Chicago to Dallas: $2,460
Dallas to Chicago: $636
Ratio: 3.9 to 1

Obvisously there is greater demand in people wanting to move out of Chicago then moving to it along with the fact that trucks leaving Chicago is massive. He also addresses “perfect price parity” for doubters of this economic data.

Here’s an example of almost perfect price parity, suggesting almost a perfect balance in one-way U-Haul 26-foot truck rentals in each direction.

Los Angeles to Chicago: $3,878
Chicago to Los Angeles: $3,869

Mark Perry can be followed at his website and Twitter page.

by Hoosier Econ

Walmart Challenges Amazon

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From Reuters –

Wal-Mart Stores Inc has informed managers of its roughly 5,000 stores across the United States that they can match prices with Amazon.com Inc and other online retailers, the head of the company’s U.S. business said on Thursday.

Greg Foran said the directive was meant to formalize a practice already in place in many stores. “About half of the stores were doing it anyway,” Foran said on a call with media following the reporting of its quarterly results.

by Hoosier Econ

Gasoline Taxes Paid by Consumers

Consumers of gasoline pay state/federal taxes when they purchase gas. The tax is per gallon. The federal tax on gasoline is 18.4 cents/gallon. State taxes vary greatly. The map below shows both state/federal. Just deduct the federal to see what you pay in each state.

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Map courtesy of the American Petroleum Institute. Click here for their interactive map.

by Hoosier Econ

Ball State Students Stumble Upon Economics

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Ball State athletics has an annual budget of over $17 Million a year. After revenue is collected from tickets, teams paying the University, parking, donations, etc it still has a budget shortfall of $11 Million. Enter the students. Fees are tact on to their tuition to make up this shortfall. Students did not realize this like this one:

“Wow, I wasn’t aware of that,” Ball State freshman Macon Shroyer from Selma

All the MAC schools are doing what Ball State is doing.

The vast majority of students in the Mid-American Conference, of which BSU is a member, are “flat-out stunned” to learn how much they pay in athletic subsidies, says David Ridpath, associate professor of sports administration at Ohio University, who surveyed 3,243 MAC students.

You can read the rest of the article here.

by Hoosier Econ

Live in Luxury While the World is Burning

Whether you believe in total economic collapse, government anarchy or the climate will implode there are options out there in how to make it through tough times. Many will have to become “Daryl” in order to survive, but those with money will have another option.

Via the Wall Street Journal (I encourage to click the link for more stories of buyers)

When Tyler Allen agreed to fork over $3 million in cash for a luxury condominium near Concordia, Kan., he wasn’t attracted by the indoor swimming pool, 17-seat movie theater, or hydroponic vegetable garden.
The real selling point of the 1,820-square-foot apartment: It will be buried 174 feet underground in a decommissioned missile silo sturdy enough to withstand a nuclear attack.

Mr. Allen, a 45-year-old Orlando, Fla., sports bar and nightclub owner, insists he isn’t a “tinfoil hat-wearing” type preparing for the end of the world. Rather, he cites growing security threats—such as a global health pandemic, cataclysmic weather and terror attacks. “There’s a Camp David for the president,” he says. “If you’re at a certain level where you can afford it, you can get that, too.”

The so-called Survival Condo complex boasts full and half-floor units that cost $1.5 million to $3 million each. The building can accommodate up to 75 people, and buyers include doctors, scientists and entrepreneurs, says developer Larry Hall.

Safeguarding your home is not just a niche anymore, revenue in the this type of business field is rising.

Spending on residential security rose from $7 billion in 2001 to $12 billion in 2011, and is projected to climb above $16 billion in 2016, according to Freedonia Group, a market-research firm based in Cleveland. That covers everything from routine security devices to the kind of reinforced chambers that gained widespread attention more than a decade ago and were featured in the 2002 film “Panic Room.”

Here are some photos:
prepping
prepping 2

by Hoosier Econ

$995 Million Divorce Settlement

Via Reuters –

An Oklahoma County judge has ordered oil magnate and Continental Resources Chief Executive Officer Harold Hamm to pay nearly $1 billion in a divorce judgment, according to a court filing made public on Monday.

Special Judge Howard Haralson found that Hamm should pay his ex-wife Sue Ann Hamm a total of $995.5 million, with about a third of the funds, or $322.7 million, to be paid by the end of the year, the filing says.

Hamm will then be required to pay the rest of the judgment, some $650 million, in installments worth at least $7 million per month, the filing says. Sue Ann Hamm has already been awarded around $25 million since the case was filed in 2012, the filing says.

by Hoosier Econ

Chart Showing Why Newspapers Are Failing

Pick up a newspaper today and it’s awful. The journalists are “Social Justice” evangelicals and the stories are stale. Economics plays into that because ad revenue is heading towards the Internet (blogs, podcasts and online news) and leaving scraps behind for newspapers. This leaves them to hire the undesirables in reporting. Here is a great graph illustrating newspaper demise.

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