It’s also so precise.
Category Archives: Economic theory and policy
America’s gross national debt exceeded $31 trillion for the first time on Tuesday
How much is $31 trillion? Written out, that comes to 31,000,000,000,000, or 31 × 1012. A mere one percent of that is $310 billion, which was the federal deficit alone in 2019.
For more, see: https://the-pipeline.org/the-column-repeal-the-16th-amendment
The article blames it on Modern Monetary Theory but no one ever looks at modern economics which bases growth on demand. It’s Keynesian theory with its underlying premise that growth occurs because of the demand side. It comes from Y=C+I+G and without that there’s nothing left.
Money is an incidental in understanding how an economy works
If you want to understand how economies work never NEVER think of economic activity in terms of money. Economic activity depends on resources – land, labour and capital. If you think in terms of money you will never get it. Money is sometimes scarce but productive resources always are.
Activity isn’t intended to create “jobs”, it’s to create useful products that can be produced at a profit.
Ignorance of economics edition
Any two five eleveness
That’s “anyone for tennis” during inflationary times.
And if you think that’s clever, well I thank you, and if not you can blame it on Victor Borge.
How can real wages go up if productivity does not?
And how can productivity go up if we don’t leave it to the private sector?
Cannot happen. And as long as “growth” is based on the public sector neither value added per employee (ie productivity) or real wages can go up – on average that is – then earnings will collapse although those who get paid by governments will do all right relatively.
It’s going to be bad for a long long time, longer than you can imagine. Average earnings will simply have to stagnate.
We are getting poor at a slower rate!
Glorious Inflation News, Comrades! You’re Getting Poorer Slightly Less Quickly from https://pjmedia.com/vodkapundit/2022/08/10/glorious-inflation-news-comrades-youre-getting-poorer-slightly-less-quickly-n1619852n
Do you see what’s peculiar about celebrating a lower rate of inflation?
U.S. Labor Productivity Suffers Biggest Crash Ever Recorded, Labor Costs Soar Most Since 1982.
Definitely getting poor(er).
People are being fleeced
Fed committed to getting inflation to 2% target, Barkin says. “The Federal Reserve is committed to getting inflation under control and returning it to the U.S. central bank’s 2% target, Richmond Fed President Thomas Barkin said on Wednesday, the latest in a litany of policymakers voicing determination to rein in price increases running at the highest pace in four decades.”
Prices will already have moved up more than 10%. The price increase is permanent. You won’t get your purchasing power back when the inflation RATE goes down unless your income goes up at the same rate.
People are so trusting and so stupid.
The rot is setting in
From Kurt Schlichter:
“If you peasants can be convinced to settle for less, that would sure be convenient for our garbage ruling caste since it has proven itself utterly incapable of even marginal performance in achieving merely the bare minimum standards of its job. Do you have security? How about prosperity? Does the future look bright? No.”
People are beginning to notice. It took only 700 years to get back to where they were after the Roman Empire had fallen. The elites never noticed a thing.
And after a while no one else will notice either.
Source: Townhall Everything Is Worse and You Are Just Supposed
to Take It
Free markets are about to end and so is our prosperity
No one any longer knows now a market economy works. How a necessary feature is a private sector setting prices process. Without that the market will not function. It cannot be run by governments.
Why that is can be found almost in my book alone:
Also from Mises and Hayek but you have to read them closely.
We are about to bring the market economy to an end and no one will be able to bring it back.