Wall Street’s bonuses fell nearly 25 percent last year, according to a New York City watchdog agency (Reuters). Though the decrease was smaller than expected, the report predicted it is likely to deal a blow to the economies of New York City and New York State.
Meanwhile, the Wall Street Journal reported that top auto executives at Ford Motor Co., which avoided the government bailouts, are earning big rewards. Ford granted seventeen of its top executives stock valued at over $55 million.
Corporate regulation and taxation. Read more from top economists and business experts on solutions for addressing corporate tax reform.
Education and Human Capital
Parents and Teachers Present Diverging Markers
In 2011’s MetLife Survey of the American Teacher the good news is parent and community engagement reached a new high. Compared to twenty-five years ago, more parents speak with their children every day about school (64 vs 40 percent) and more visit their child’s school at least once a month (45 vs 16 percent). But, teacher satisfaction plummeted; “very satisfied” teachers fell from 59 percent in 2009 to 44 percent today, while the percentage likely to quit teaching rose from 17 to 29 percent. Layoffs and budget cuts during the recession are suspected root causes.
Education and human capital. Read more from experts discussing ways to improve U.S. education and immigration policies.
Apple Facing Antitrust Suit over E-Books
The day after the announcement of Apple’s new iPad, the Wall Street Journal reports that the Justice Department warned Apple and five large book publishers that it is preparing an antitrust case regarding e-book pricing. Apple and these publishers entered into agency agreements in which publishers set e-book prices and Apple received a 30 percent cut. This was a response to Amazon’s strategy of selling new best sellers for $9.99, which publishes feared would make customers accustomed to low e-book pricing. The end result was higher e-book prices, though the courts will have to decide if illegal collusion occurred.
Innovation. Read more on how the U.S. capacity to innovate could play a chief role in economic growth.