How did the Pentagon's F-35 fighter jet program, which was originally thought up as a way to cut costs, end up becoming the most expensive weapons program in history?
Mackenzie Eaglen, a resident fellow at the American Enterprise Institute, says policymakers boxed themselves into this expensive fighter jet. "By canceling the F-22 air superiority fighter," Eaglen said, "it made the F-35 fighter the only fighter option available to the Pentagon."
Eaglen says the original concept behind the JSF program—that creating a single, unified aircraft for all branches of the military would lower costs—has been discredited. "It's never truly joint; these are fraternal twins," Eaglen said.
Ben FitzGerald, Senior Fellow and Director of the Technology and National Security Program at the Center for a New American Security, says today the debate all centers around one question: "how do we manage the cost."
Canceling the F-35 is no longer an option, he said, because the Pentagon has put all its eggs in one basket.
If you’ve been thinking about visiting Europe, but haven’t wanted to pay top dollar, now is a pretty good time to take out your wallet. With the dollar creeping up on the euro, American tourists are modifying their summer itineraries.
University of Texas-Austin student Neena Malhotra is taking advantage of the weaker euro. She’s planning on traveling to Germany, Switzerland, Italy, France and Spain.
The price of everything from paella to train tickets has dropped –
“And when looking at the prices to determine whether it is a good idea or not,” she says, “it seemed more feasible than it had another time we had tried to do it.”
According to TripAdvisor, the average nightly rate for a European hotel this summer is $133. That’s compared to $164 last year. And the average cost of a one-week European trip has dropped by 11 percent.
Kathryn O’Kane of Brooklyn had budgeted $200 plus a night in Madrid and Basque Country.
“We were pleasantly surprised to find hotels about $100 a night,” she says.
And with the extra pocket money, O’Kane says her family will be able to do a lot more shopping, and take advantage of opportunities to see Spanish Guitar or Flamenco. That will no doubt please a lot of local businesses in Europe.
The dollar’s surge will also benefit travel agencies and tour companies. Paul Wiseman is president of Trafalgar Guided Vacations.
“We're having a very good year to Europe,” Wiseman says. “We’re seeing double digit growth in Italy and Great Britain and I’m sure that’s on the back of a very strong U.S. dollar.”
But is a 90 cent cheaper café au lait enough to tempt people to go to Paris instead of Mexico?
Who better to ask than Paula Serrano, a travel agent in the city of Paris, Texas.
“No, [travel] has not picked up,” Serrano says. “I sell more Mexico than anything.”
After all, in Cancun a dollar gets you not just one, but fifteen pesos.
On Tuesday, JP Morgan and Wells Fargo begin a week of big bank earnings reports. But we got a preview of the state of the big banks last week, when GE announced it would wind down and sell off most of the assets of the seventh-largest bank: GE Capital.
"The primary lesson is: If you don't have to be a bank, don't be one," says Fred Cannon, global director of research at Keefe, Bruyette & Woods. Cannon also says the fact that GE is selling most of the financial assets to smaller institutions is an indication of what sector will see faster growth in the years to come.
But bank analyst Nancy Bush says there is one area where the so-called “universal banks” have an edge this quarter: Trading on the volatility in the currency and commodities markets.
Last week, one of my colleagues was sounding a little tense as he set out to work on his taxes. Radio producer Josh Woo fills in here as a director on the Marketplace Morning Report and the thing is during 2014 tax year, Josh won big on a TV game show. Four years earlier, Josh had also won prizes on another show, The Price is Right, and a dozen years before that, when just a kid, Josh won two grand on Jeopardy. With Josh's tax return now signed and delivered, I wanted to see if with all this experience, if he managed to avoid the classic mistake or forgetting to pay estimated tax on extra income.
Click on the multimedia player above to hear more on what Josh's big win means to him this tax season.
That's how now-official presidential hopeful Marco Rubio has been polling, on average, for the past few months. While he's a low-performer in the crowded GOP field, FiveThirtyEight argues Rubio belongs in contention with presumed GOP front-runners like Jeb Bush and Scott Walker. Rubio has a history of beating expectations and winning important party endorsements, says analyst Harry Enten, and he could be a very electable, middle-of-the-road option for voters.1: 1.05
That's the euro-dollar exchange rate this morning. If you've been thinking about visiting Europe, but haven't wanted to pay top dollar, now is a pretty good time to take out your wallet. The attractive exchange rate is making everything from paella to rail tickets cheaper.$2,815
The average tax refund at the beginning of April, about $20 more than this time last tax season. All told, the IRS refunded about $374 billion last year. So why do so many people overpay? Turns out it has a lot to do with taxpayer psychology. We looked into it as part of our series, "I've Always Wondered..."April 15, 2015
Speaking of taxes, April 15 is the IRS tax filing deadline. As if you didn't already know. Our own producer Josh Woo was the winner on Wheel of Fortune in the 2014 tax year. And with his tax return now signed and delivered, we look at what his game show victory meant for him this tax season.1995
The year Lynda Weinman started Lynda.com with her husband Bruce Heavin. Born out of Weinman's do-it-yourself web design books, Lynda was bought by Linkedin last week for $1.5 billion. The Wall Street Journal has Weinman's story, from doing special effects on "RoboCop 2" to shaping the current landscape of ed-tech.5.6 percent
That's how much Nokia's stock went down on the Helsinki Stock Exchange today after news broke that the company is looking to buy Alcatel Lucent of France. While negotiations could always break down, Alcatel stock is up 12 percent in Paris now. And there are a few strands of American DNA in there. Lucent is descendent of the old AT&T, bell labs, the people who invented the laser.
On gay rights and immigration, Republicans running for president, like Florida Sen. Marco Rubio, are trying to navigate a tricky course between their party and the country at-large.
The GOP still has the health care law in its sights, but now also promises to do away with Obama's opening to Cuba and nascent deal on nuclear development with Iran.
The Fed came out with a warning this week about the bond market. Fed executive Vice President Simon Potter expressed concerns that extreme volatility like the October “flash crash” could become more common, perhaps the result of high frequency trading, or more surprisingly, too much regulation. Simon Potter doesn’t know exactly what caused the October spike. It could be because of high speed trading. Or because reforms enacted by regulators after the financial crisis, like increasing the amount of capital banks hold, could have unintentionally created more volatility.
The bond Flash Crash happened past October, actually wasn’t a crash at all, it was the opposite, a spike. In a 15 minute period, the yield on the 10-year treasury jumped more than two percent, which may not sound like a lot, but statistically speaking it was a price swing that should only happen once every 1.6 billion years.
Rancher Cliven Bundy successfully stood down Bureau of Land Management agents near Las Vegas. He's considered a symbol for a national movement to wrest Western lands from U.S. agencies' authority.
Cancer treatment is increasingly expensive, even for patients who have insurance. Some doctors advocate discussing the costs of cancer treatment as they would hair loss, pain or other side effects.
In a small community in southeastern North Dakota, tension between compassion and faith is ever-present in residents' attitudes toward same-sex marriage.
The sheriff's office says Robert Bates, who was volunteering on an undercover operation, mistakenly pulled out his handgun instead of his stun gun and shot the suspect as he struggled with deputies.
Rubio spoke to NPR about his run for president, Indiana's religious freedom law, the president's deal with Iran and immigration.
Alaska Airlines Flight 448 returned to Seattle, after the pilot heard "banging from beneath the aircraft." It turned out that a ramp agent had fallen asleep in the cargo hold.
The Florida senator could be the youngest Republican in the presidential field, but he is fully confident he has the experience to lead.
French-style eaux de vie have made a comeback in the U.S. thanks to the farm-to-table movement. Dozens of distilleries are now crafting dry, fragrant spirits from fruits that might have been wasted.
Three of the Blackwater security guards were found guilty of manslaughter and voluntary manslaughter, while a fourth was convicted of first-degree murder.
As of the first week of April, 2015, 99 million taxpayers had filed their individual returns with the IRS. Of those, more than 77 million—or approximately 77 percent—had received refunds. The average refund was running $2,815, about $20 higher than the same time in 2014.
Overall, 118 million American taxpayers (including individuals and businesses) received tax refunds in 2014 (for the 2013 tax year); they got a total of $373.5 billion back from the IRS. All told, the IRS collected $3.1 trillion in gross taxes in 2014, including business and individual income taxes, estate, gift, excise, and employment taxes.
Listener John Thomas of Nevada asked this question: “I’ve always wondered why so many people seem to overpay their taxes and then have to claim a refund. I’m wondering whether there’s a conspiracy there with the government encouraging people to overpay, because they get free money essentially until people get their refund.”
CPA Rich Sotta in Portland, Oregon, says a lot of his tax-preparation clients intentionally have too much withheld, knowing from prior years’ experience that they will get a substantial refund—often several thousand dollars or more. “It’s so they don’t have a huge tax bill they have to pay in April,” says Sotta. “It’s peace of mind knowing that they’re getting refunds.” He says some taxpayers want a buffer in case their tax situation changes and their tax bill goes up unexpectedly—for instance, if they have sources of income that fluctuate year-to-year.
Sotta says, it’s true, letting the government over-withhold is like giving the government an interest-free loan. But, he says, “if you aren’t of the habit of being able to budget for yourself, I think it’s a way of saving.” Otherwise, he says, those people would fritter away the extra income in their paychecks away.
That predictable April refund windfall can be used by taxpayers to make a big-ticket purchase, take a vacation, pay down debt or build savings.
Hersh Shefrin, a professor of behavioral finance at Santa Clara University, says research shows most taxpayers who receive refunds do indeed devote a substantial portion to intended uses like this, rather than splurging and spending most of it right away.
Shefrin says the refund also triggers a response in our brains: “It lights up the reward centers—the nucleus accumbens is the area that gets activated. And there is a dopamine rush when the check actually arrives and you open it. It has a positive hedonic effect.”
Shefrin says engineering a large refund through over-withholding can also be evidence of smart, self-aware financial planning. “People recognize they have difficulty accumulating enough savings on their own. So they look for ways to help themselves counter the temptations of everyday life.”
Roberton Williams, a fellow at the Urban Brookings Tax Policy Center, dismisses the idea of an IRS conspiracy to get American taxpayers to over-withhold, in order to make more money available for government spending. He says if the IRS encouraged more withholding, some taxpayers could wind up in trouble in April if their tax bills were higher than expected.
Williams acknowledges that if the government wasn’t getting more than $300 billion in tax withholding payments that it will ultimately refund, it would have to borrow more. But, right now the government’s borrowing costs are low, less than 1 percent. “Essentially, what the taxpayers are doing is giving the government a short-term loan,” says Williams. “That makes it easier for the government to cover its bills in the short run, it doesn’t have to borrow as much. But in the long run, it all washes out.”
Retailers rely on systems that require workers to be ready to work a shift — whether or not they end up working. The state attorney general is looking into the way big retailers handle scheduling.
The Magna Carta is sometimes called England's greatest export. Issued by an embattled King John 1215, the document is now on display at the British Library and is pulling in large crowds.