Maggie's Farm

I'm curious about the birth/death calculation. It plays a very large role in the statistics we see from the government each month.

At Zerohedge and ShadowStats, they have openly questioned the methodology utilized to determine birth/death. There is an assumption that the government is using outdated models to determine this. It wouldn't surprise me at all.

I heard the author of the A&P book on NPR several weeks ago and picked it up. Reading "The Big Roads" now, and will move to that shortly. Looks intriguing. The funny part is the author seems opposed to big businesses, but admits that A&P (and, by default, WalMart) have provided huge benefits to the American consumer by standardizing the shopping experience to the point that most shoppers have a relatively good idea about exactly what they are going to get - something that was a dicey proposition before the arrival of the large stores.


Regarding home ownership, I purchased my first home when I was very young (a condo in the NYC area). Best investment I ever made. When I married and started a family, I began to rent it out. The mortgage is more than covered by the rent, today.
As a friend of mine, a lawyer who does closings, says "home ownership is not for everyone. In fact, it's not right for about 40% of the people I've seen buying." Her point is that it's a commitment many people don't understand.
I've run the figures many times, and home ownership is a much better investment than renting and investing the difference in most economic environments. Few people have the discipline to invest the difference (which is really the key to make a rental a better "investment"), and even if they do, renting only beats ownership on short, early, timeframes in the mortgage cycle.

The reason home ownership is considered a 'good thing' by many is that you used to buy a home and live in it for 40-50 years or pass it on to your offspring. Over time, the equity accrues to the first generation, but the largest benefit typically accrued to the second.

Another reason ownership is a good idea (if you know what you're getting into) is that you have to rent from an owner. While owning may seem like 'renting from a bank', the reality is that renting goes on forever, whereas the bank payments end eventually (and quicker if you make early payments like I do).
Meanwhile, while you pay the rent, your landlord pockets the difference. So, as an owner, they are seeing a very nice benefit (where I smarter, I'd have bought more condos in the 1980's and lived off the rent!).

There are benefits to renting and owning. It all depends on your age, location, income, job stability, and financial wherewithal. When I saw my rental payments potentially doubling, I chose to purchase, and it took 10 years before my mortgage payments matched the rents I would have had to pay. That was an easy calculation.