Tuesday's Assorted Links
Credit card debt, recession predictions, starter homes, private school subsidies, and Chuck E. Cheese
Hi y’all! Here are five stories from this week that contained some neat applications of economic principles or are related to teaching:
Credit card debt hits record $1.14 trillion according to the New York Fed [CNBC | Original Report]
Bank of America CEO says research team no longer has any recession predicted [The Hill]
Mapping the cities and towns in America where $1 million starter homes have become the norm [Yahoo!]
Private school tuition hikes have surged in Oklahoma since the state tax credit began [The Oklahomian]
Chuck E. Cheese now offers a subscription program starting at around $8 per month, which includes 40 games per visit and 20% off food and drinks [Restaurant Dive]
Both Trump and Harris have proposed eliminating federal income taxes on tips—a move that seems like a win for millions of service workers. But is it really that simple? Public choice theory helps explain the economic and political implications of the policy, revealing how a small, politically significant group might benefit while the broader population bears the costs.
The Economic Logic Behind the "No Tax on Tips" Policy
Amid the flurry of campaign promises, both Donald Trump and Kamala Harris have recently championed a proposal to eliminate federal income taxes on tips—a move that, at first glance, seems like a straightforward populist play. After all, who wouldn’t want to give a financial break to America’s service workers, the waitstaff, bartenders, and hairdressers who often rely on tips to make ends meet? However, as with many policies that seem generous on the surface, this one is layered with economic and political implications that warrant a closer look.
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The housing story does show that "Luck" can play a role, lol.
I do thoroughly enjoy Tuesday's quick hits, even if I get to them a day or two late.
File the starter home and tuition stories under "completely unsurprising and, indeed, predicted by anyone who's been paying attention".
Anyway, I'm off to Chuck E Cheese 🕹️👾