JP Morgan Estimates That New iPhone Could Boost GDP By 0.5 Percent

Call me skeptical given that it comes from JP Morgan (I distrust any mainstream Wall St. analysts given their track record) but if this is true, that would be crazy. Tim Reid, at Reuters:

Feroli laid out his math. J.P. Morgan's analysts expect Apple to sell around 8 million iPhone 5s in the fourth quarter. They expect the sales price to be about $600. With about $200 in discounted import component costs, the government can factor in $400 per phone into its measure of gross domestic product for the fourth quarter. Feroli said the estimate of between a quarter to a half point of annualized GDP "seems fairly large, and for that reason should be treated skeptically." But, he added, "we think the recent evidence is consistent with this projection." Again, that's crazy - but cool if true.

Why You Should Listen to Warren, Not Buffett

John DeFeo, writing for The Street:

The reason for Elizabeth Warren's newfound internet stardom is simple. She was able to articulate -- in a few words -- what the Democratic Party has been unable to communicate for years.

The Limping Middle Class

Robert Reich, writing for the New York Times:

Look back over the last hundred years and you’ll see the pattern. During periods when the very rich took home a much smaller proportion of total income — as in the Great Prosperity between 1947 and 1977 — the nation as a whole grew faster and median wages surged. We created a virtuous cycle in which an ever growing middle class had the ability to consume more goods and services, which created more and better jobs, thereby stoking demand. The rising tide did in fact lift all boats. As John Gruber points out, the accompanying infographic to this article is absolutely fantastic.