Category / Government

by Hoosier Econ

Inflation Watch: McDonald’s Prices Up 3% Year To Date

mcdonalds

Bloomberg is out with a write up showing McDonald’s is facing rising costs which means prices have had to be raised. McDonald’s is a good inflation watch company since millions of people visit it everyday.

While the company still offers several items for $1, its menu is quietly getting more expensive. McDonald’s said its prices were up about 3 percent through the end of June compared with 12 months earlier. That’s more than the 2.5 percent gain in prices for food Americans purchased away from their homes in the year through August, according to the Bureau of Labor Statistics.

Prices being raised across the country are not done yet.

U.S. restaurants plan to boost prices 2 percent during the next six months, more than the 1.7 percent average increase from the prior 12 months, according to an October survey by restaurant researcher MillerPulse in Atlanta.

This follows the trend repeated often on this blog. Costs of goods are rising, yet many so called “experts” are saying inflation is tamed or barely nudging up. My most recent post, Consumer Price Index Shows Inflation on Many Items shows beef is up double digits. Do not think McDonald’s is the only restaurant in the burger chain feeling it. In September I showed Five Guys Burgers are also raising prices (Inflation Hits Five Guys Burgers)

by Hoosier Econ

Consumer Price Index Shows Inflation on Many Items

grocery

Consumer Price Index numbers were released Wednesday. Buried in the report were serious rises in year to date price increases. Here is list of price increases in the last 12 months:

Milk 8.7%
U.S. meat 13% (beef and veal prices up 18% and pork prices up 11.4%)
Butter 24%
Clothing 3.7%
Women’s Outerwear 11%
Children’s Footwear 7.8%
Prescription Drugs 3.8%
Lodging Away From Home 5%

Here is the complete article showing prices increases and decreases.

by Hoosier Econ

Cost of Caring for Illegal Immigrant Children

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One of the ealry known costs in caring for illegal immigrant children placed in adoptive homes is $192 Million. The Washington Times is reporting the placement agency who won the contract bid is in charge of 66,000 illegal children.

The 150-page request for transportation proposals, posted online at government contractor website fbo.gov, was issued by U.S. Immigration and Customs Enforcement to MVM Inc., a large security contractor founded by a former Secret Service agent and based in Ashburn, Virginia.

MVM Vice President Christopher McHale confirmed in an email that his company did win the contract, which the website says is worth $192 million, but he declined to talk about any of the details.

Here are the requirements in the contract when harboring the children:

Want to bid for a contract to care for the illegal immigrant children coming across the border? Make sure your staff members get Hepatitis vaccines and regular TB tests and can speak foreign languages — probably Spanish but maybe Mandarin, suggesting a surprising number of the children are coming from China.

The federal government guarantees the children three meals a day, and they must take account of health, religious observance or vegetarian diets. The children also have a right to second helpings, according to contract documents issued last month seeking a transportation company to ferry the children within Texas.

This does not account for the costs local taxpayers of school districts have occurred since the federal mandated taking in the illegals since their arrival.

by Hoosier Econ

Example of the Stupidity in Socialism

Check out CNBC and their write up of Venezuela’s economic downfall. One thing that stuck out and why Socialism is one of the dumbest philosophies people cling onto:

Venezuela produces 2.6 million barrels per day and gives away at NO COST 1.2 million of those barrels for free to places like Cuba.

by Hoosier Econ

Indiana Gets “AA+” Grade From Fitch Ratings

Fitch Ratings assigns an ‘AAA’ implied GO rating to the state of Indiana and affirms the ‘AA+’ rating on outstanding Indiana appropriation-backed debt issued by the Indiana Finance Authority (IFA), the Indiana State Office Building Commission, and the Indiana Transportation Finance Authority.

The IFA was established in 2005. The state’s debt structure formerly was diffuse with state appropriation-backed debt issued through several commissions and authorities. The IFA is the successor agency to the former agencies.

The Rating Outlook is Stable.

Read the rest at HeraldOnline.com

by Hoosier Econ

What Percent of Drivers in the US are Uninsured?

As of 2013, an estimated 14% of drivers nationally are uninsured, according to the industry-funded Insurance Research Council

by Hoosier Econ

Michael Jackson Still Owes Taxes

jackson

The King of Pop may be gone but his estate is still being hounded by the IRS. According to Forbes, they are going for more blood:

In a previously unreported court filing, the government says that IRS auditors originally thought the King of Pop owned only 50% of certain master recordings at his death in June 2009, when he really owned 100% of them. That 100% interest was worth $91 million by the IRS’ figuring, compared to the $11 million reported on the Jackson estate tax return.

The change brings the IRS’ valuation of Jackson’s estate and lifetime taxable gifts up to $1.178 billion, compared to the $7 million the estate reported. The IRS now wants a total of $525.6 million in tax and $205.1 million in gross valuation misstatement and negligence penalties. (Any interest owed will be on top of that.) Of course both the IRS and the estate’s values are best regarded as opening bids in what could be a long negotiation. A trial, if there is one, is far off.

by Hoosier Econ

Detroit: Land of the Wheelchair Ramps

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The Associated Press has come out with a story over Detroit going on a wheelchair ramp installation binge:

Along one half-mile stretch of crumbling sidewalks in Detroit, there are 52 new sets of wheelchair ramps. Some provide access to an empty lot where a middle school was razed in 2009. On many corners, sidewalks end after the ramps.

The ramps are being built as part of a decade-long effort to force Detroit into compliance with the Americans with Disabilities Act. But the efforts are facing criticism as the bankrupt city installs ramps in areas with little traffic while well-traveled areas, including some near downtown, still don’t have them.

This is a perfect example of the insanity that has gripped the nation in the past  decades from the “Regulation Industrial Complex”. I fully grasp the legality of the lawsuits but Detroit is a physical and financial mess. This is the furthest of things to do in order for the city to get going again. Of course this type of action comes with a price tag:

The city has spent $30 million over eight years to install 25,000 ramps, and officials estimate that $60 million more must be spent to build another 50,000

Here in a few years Detroit will be the world’s most compliant wheelchair ramp city. Hopefully the users who go there to enjoy them take their firearms when they end up the run down drug infested neighborhoods.

by Hoosier Econ

US Troops Fighting Ebola Getting $400 Extra Per Month

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Mark this story up as insane.
The President of the United States has gave the command to put US Troops in harms way combating Ebola in Liberia. A total of 4,000 will end up there. Here is what they will receive for their efforts via the Military Times:

U.S. troops deploying to West Africa for the Ebola mission could earn up to $400 a month in special pays, according to Defense Department officials. One would be hardship duty pay-location of $150 a month for those troops in Liberia and Sierra Leone. This entitlement is retroactive to the day of arrival after 30 days in theater. The second would be family separation allowance (for members with dependents) of $250 a month. This entitlement is retroactive to the day of arrival after 30 days in theater.

by Hoosier Econ

United States Goverment YTD Interest on Debt Payments

The final 2014 fiscal year interest on debt payment was tallied.
September Interest on Debt payment $19,594,265,555.11
Fiscal YTD payments & total for 2014 $430,812,121,372.05
2014 total is $15 Billion higher then 2013 total and $70 Billion higher then 2012 interest on debt payments.