“the company’s market share decreased by 10 percentage points following its merger in 2014, sitting at around 70 percent in 2024. Live Nation’s FY 24 net profit margin of 2.8 percent—considerably lower than the total U.S. market’s net margin of 8.7 percent—suggests that the firm lacks pricing power. Moreover, the profits Live Nation makes have little to do with the secondary ticket market: “Revenue from fees on concert ticket resale is less than 2% of Live Nation’s revenue,” the company said in a reply to Blackburn and Luján on Friday.
…
so long as artists set prices below the market rate, brokers will find a way to get tickets to those who value them the most, with or without Ticketmaster.”
“Under Milei, inflation has dropped massively. The poverty rate has gone down. Public spending has plummeted, and budget surpluses have appeared. Housing supply in Buenos Aires has totally turned around following the repeal of rent control laws.
…
But “the policy of managing the currency has become a trap,” adds The Economist. “Even after he partially floated the peso in April alongside an IMF [International Monetary Fund] bailout, he has sought to maintain its level artificially high. Defending the exchange rate has cost Argentina billions of dollars in scarce foreign-currency reserves and has pushed interest rates sky-high, creating a drag on growth. Jobs, rather than inflation, are what now worry voters the most.”
Milei had to get a credit swap from the U.S., to the tune of $20 billion (which he must pay back, though the terms of the deal have not been made clear to the public). He secured a similarly massive IMF bailout back in April. He keeps needing emergency credit lines to keep the peso strong, but it’s not clear that this policy is totally working. It makes sense why he would pursue it in the first place: Prices have historically spiraled out of control, and the central bank is not trusted by the people. In order for some of Milei’s less-popular social safety net cuts to be palatable, the people needed to feel like there was some legitimate stability and predictability in their monetary system, lest they revert to favoring Peronism.
…
“Under the exchange rate system that Milei implemented earlier this year, the peso floats freely within a band,” writes Lorenzo Bernaldo de Quirós for the Cato Institute. “When a government tries to maintain a fixed but adjustable exchange rate, it creates perverse incentives. If markets perceive that the currency is overvalued, expectations of devaluation are created, prompting speculators and citizens themselves to take their capital out of the country to avoid losses. To defend the exchange rate, the central bank must use its international reserves, but these are finite.” Reserves are limited; speculators can easily take advantage.”
One reason the U.S. is behind China in rare earth metals is that China can tell companies what to do for the good of the country, while Congress and presidents have allowed companies to chase short-term profits at the expense of the country.
“In 2023, California passed a law requiring a $20 per hour minimum wage for all fast-food restaurants with more than 60 locations nationwide.
…
New research suggests that the mandate has also resulted in fewer jobs for struggling entry-level workers.
The law went into effect in April 2024 and increased the hourly pay of an estimated half a million workers across the state. But without the law in place, thousands more workers would likely have been employed.”
“Not even shutting down the government can stop Republicans from forcing their way into corporate boardrooms these days.
The federal government is, at the moment, incapable of completing its most basic and routine task—passing a budget—and yet it is simultaneously expanding its portfolio to include a 10 percent ownership stake in an Alaskan mining company.”
“New York’s experiment with delivery driver wage mandates hasn’t gone well. Pay went up after the 2023 rule kicked in, but so did prices—and many drivers left the market altogether. The city saw an 8 percent drop in its delivery workforce, while food delivery costs rose 10 percent, including a 12 percent jump in restaurant prices and a staggering 58 percent spike in app fees. Tips, meanwhile, plunged 47 percent. Platforms even started capping drivers
…
Seattle followed suit in 2024 with a $26-an-hour minimum wage for delivery drivers—and immediately watched the system collapse. Apps tacked on a new $5 delivery fee, and with taxes added, customers were soon paying bills with nearly 30 percent of the cost unrelated to the food itself. DoorDash saw 33,000 fewer orders in just the first two weeks, wiping out about $1 million in restaurant sales.
Counter to the law’s intention, many Seattle delivery drivers saw their earnings slashed by over half. “Demand was dead,” according to one such driver. A recent report from gig companies found that, following the ordinance taking effect, delivery orders dropped 25 percent, and driver pay fell 28 percent per hour logged on.”
“”The most persuasive case against protectionism is not the standard one that undergraduate students are taught in their introductions to international economics, which goes like this: Tariffs distort the allocation of resources and impose a ‘deadweight burden,'” Mokyr wrote in the June 1996 issue of Reason. “The standard argument is certainly correct, but somehow it has failed to persuade many people since it was first enunciated by Adam Smith and David Ricardo.”
The better argument, instead, is that “protectionism and insularism impede innovation, depriving our children of the comfort and security that progress and economic growth bring,” he said. “Free trade and international competition not only lead to a better allocation of resources; they ensure that countries do not lull themselves into the technological lethargy that is the archenemy of economic growth.””