Tag Archive: Economics


3 Reasons President Obama Is Wrong About Stay-At-Home Mothers

 

 

 

 

 

 

” Charlie Spiering reports on a speech President Obama made in Rhode Island today. You know things are rough for President Obama this election season when he is relegated to a state so small CNN thinks it’s a city.

  Anyway, he was painting a picture of how he’d like to expand the administrative state to include government pre-school. Because public schools are doing such a good job generally. Anyway, he then took an absolutely bizarre swipe against stay-at-home mothers:

“ Sometimes, someone, usually Mom, leaves the workplace to stay home with the kids, which then leaves her earning a lower wage for the rest of her life as a result,” he said. “That’s not a choice we want Americans to make.”

  Here are three problems with his argument. “

 

 

 

 

 

 

 

 

 

About these ads

Hillary Clinton: Corporations And Businesses Don’t Create Jobs

 

 

 

” At a Democratic rally in Massachusetts, Hillary Clinton’s attempt to attack “trickle-down economics,” resulted in a spectacularly odd statement.

  Clinton defended raising the minimum wage saying “Don’t let anybody tell you that raising the minimum wage will kill jobs, they always say that.”

  She went on to state that businesses and corporations are not the job creators of America. “Don’t let anybody tell you that it’s corporations and businesses that create jobs,” the former Secretary of State said.

  Clinton’s comment will likely be used frequently to attack her as another big-government Democrat. She is seen by many as already running for president in 2016. “

 

 

    This is rich coming from a life-long lawyer and politician , two trades that have yet to produce a single honest job in the entire history of mankind … It takes a government to create a job …

 

 

Thanks to the Washington Free Beacon

 

 

 

 

 

 

 

 

 

Those Who Have Fared Worst Under This President Are The Ones Who Love Him The Most

 

 

 

 

 

 

” A paradox haunts America’s first black president. African-American wealth has fallen further under Barack Obama than under any president since the Depression. Yet they are the only group that still gives him high ratings. So meagre is Mr Obama’s national approval rating that embattled Democrats have made him unwelcome in states that twice swept him to power. Those who have fared worst under Mr Obama are the ones who love him the most. You would be hard-pressed to find a better example of perception-driven politics. As the Reverend Kevin Johnson asked in 2013: “Why are we so loyal to a president who isn’t loyal to us?”

  The problem has taken on new salience with the resignation of Eric Holder. America’s first black attorney-general has tried to correct the gulag-sized disparities in prison sentencing between blacks and whites. His exit leaves just two African-Americans in Mr Obama’s cabinet. Given the mood among Republicans, it is hard to imagine the US Senate confirming a successor to Mr Holder who shares his priorities.”

Financial Times

Houston Black Woman Epic Rant on Illegals – ” Why Can’t They Go Back ? ” – Bernadette Lancelin

 

 

 

 

Published on Jul 9, 2014

” Bernadette Lancelin is very upset that the unaccompanied minors flooding across the border aren’t being sent back home. Instead they are being put in detention centers around the country. Lancelin is out with the local news in Houston because a closed middle school that hasn’t been used in years is now on the list to become another detention center. And she, among others, is furious about it. It’s not right. Now billions of dollars want to be borrowed from the White House to help feed and house them.

  What about the kids here? In our neighborhood? In our country? Not just in this neighborhood but in our country.

All these kids? Really? Why can’t they go back?

  I’m sorry that their parents are in poor living conditions or surroundings or whatever’s going on out there. I don’t care.

  I care about what’s going on right here in my own back yard, my neighborhood.

  Am i the only one in this community that’s out here that watches the news this morning. Oh, my god! I feel alone right now this this, and I’m very saddened by it.”

 

 

 

 

   The above graphic says it all . No one has been worse for the black community than the “first black president” yet he has continued to command their undying loyalty . Maybe that is about to come to an end . Sooner our later everyone has to look beyond racial pride and see to their own best interests .

 

 

 

 

 

 

 

 

 

Why It’s So Hard To Figure Out What The Stimulus Did

 

 

AEI/Jim Pethokoukis

 

 

” That’s why I think the best way to judge the stimulus as a whole is to say that we don’t really know how well it worked—but that it didn’t live up to some of the promises that were made when it was passed.

  In theory, fiscal stimulus juices the economy through a multiplier effect, in which one dollar of borrowed government spending produces more than a dollar of overall economic gain. With a multiplier of 1.5, a stimulus of $100 million would produce $150 million in economic activity. A multiplier of 2.0 would result in double the economic jolt of the initial cash infusion. The higher the multiplier, the bigger the boost.

  The problem, as I noted in my April 2013 story on the stimulus, is that no one really knows what multiplier effect of fiscal stimulus is. Reputable economists don’t even really agree about the possible range for the multiplier. Some economists think it could be in the range of 3.0 or even higher, given the right circumstances. The Congressional Budget Office puts the estimated multiplier for government purchases at somewhere between 0.5 and 2.5. A broad survey of estimates by University of California San Diego economist Valerie Ramey found that the range was usually between 0.8 and 1.5, although the data could support anywhere from 0.5 to 2.0.”

 

   The whole issue is quite confusing , even to trained economists , but one thing seems like a no-brainer to me . While the egg-heads debate the effective rate of the government “multiplier” and give it a possible effectiveness rating of up to 2.5 … meaning that every dollar the government spends produces as much as 2.5 dollars in economic activity , a simpleton like myself asks how can that possibly be ? 

 

  For every dollar the State spends is taken out of the economy by way of taxes , greases a few federal palms by way of wages and overhead and then is redistributed into the economy . By the time that original dollar is sent on it’s way to “stimulate” economic growth it’s value is not a dollar but probably less than fifty cents ( we could not locate accurate administrative costs , quickly enough for this post ) . 

 

 If it costs the tax payer 50 cents on the dollar for the Feds to be the middleman in a redistribution scheme of epic proportions how could said stimulus , which was nothing but redistribution , achieve ANY positive economic effects AT ALL  other than securing the jobs of the bureaucrats and administrators themselves ?

 

   I am not an economist but have been a businessman for thirty years and if I “stimulate” my vendors by paying more so they can keep their employees living in the comfort to which they’ve grown accustomed that lowers my profit margin and takes food off of my table . Who benefits ? Not the consumer/taxpayer that’s for sure .

 

 The idea that the State can “stimulate” growth is predicated solely on the notion that the government knows better how to spend the individual’s hard earned money and can do so more efficiently than the earner . If anyone believes that mail a letter , take a ride on Amtrak or visit your local VA hospital for much needed healthcare . Let us know how you make out .

 

 

 

 

 

 

 

 

 

 

 

 

MRUniversity Presents Video 1 of 245 From The Course: Development Economics

 

 

 

” Some basic data on development, both across countries today and through time. We make use in this video of the excellent tool Gapminder made famous by Hans Rosling.”

Read more and take the practice exam at MRUniversity.com

 

 

 

 

 

 

 

 

 

 

Published on Jan 10, 2014

” Mark Thornton explains what the latest government employment report really tells us. Thornton is a Senior Fellow at the Mises Institute. For more information, visit the Mises Institute online at Mises.org.”

 

 

 

 

 

 

 

 

10 Cities Where You’re Most Likely To Achieve The American Dream

 

e_rank_b

 

” A new study from The Equality of Opportunity Project has mapped the 10 best and the 10 worst cities for economic mobility in the United States. Researchers from Harvard University and the University of California at Berkeley used millions of anonymous earnings records to measure the chance that someone born into the bottom fifth of income earners reaches the top fifth. A full summary of their findings can be viewed here.

 

 

Upward Mobility in the 50 Biggest Cities: The Top 10 and Bottom 10 
Rank Odds of Reaching Top Fifth
Starting from Bottom Fifth
Rank Odds of Reaching Top Fifth
Starting from Bottom Fifth
1 Salt Lake City, UT 11.5% divider 41 Milwaukee, WI 5.6%
2 San Jose, CA 11.2% 42 Cincinnati, OH 5.5%
3 San Francisco, CA 11.2% 43 Jacksonville, FL 5.3%
4 Seattle, WA 10.4% 44 Raleigh, NC 5.2%
5 San Diego, CA 10.4% 45 Cleveland, OH 5.2%
6 Pittsburgh, PA 10.3% 46 Columbus, OH 5.1%
7 Sacramento, CA 10.3% 47 Detroit, MI 5.1%
8 Manchester, NH 9.9% 48 Indianapolis, IN 4.8%
9 Boston, MA 9.8% 49 Charlotte, NC 4.3%
10 New York, NY 9.7% 50 Atlanta, GA 4.0%

 

 

 

 

 

 

 

 

How Much Would War In Syria Cost?

 

 

 

” The United States in August and September began considering in earnest whether or not to become militarily involved in Syria. There are many tough and contentious questions about that decision, but one fact is undeniable: It would be expensive.

In a 2010 paper, Stephen Daggett of the nonpartisan Congressional Research Service estimated the costs of all major U.S. wars expressed in contemporary dollars, from the American Revolution through the current conflicts in Iraq and Afghanistan. With the caveat that comparing war costs over a 230-year period is “inherently problematic” because the definition of war has varied and official numbers have included and measured different things over time, and also “because of the difficulties in comparing prices from one vastly different era to another,” Daggett nonetheless concludes that the trend is clear: Wars aren’t cheap.

According to his estimates, the American Revolution cost $2.4 billion (all numbers are in constant FY2011 dollars), World War I cost $334 billion, World War II cost $4.1 trillion, and the Iraq and Afghanistan wars combined have cost around $1.1 trillion and growing.

The price tag on the proposed intervention in Syria is unclear. According to a Congressional Research Service report published in September, “the cost of any military intervention could range widely depending on the type and length of U.S. military actions, the participation of U.S. allies, and Syrian and Syrian-allied responses.” Estimates range from $500 million initially to train, advise, and assist opposition forces in a safe area outside Syria, to as much as $12 billion dollars a year to use military force to establish either a no-fly zone that would prevent the regime from using its aircraft or a buffer zone to protect border areas next to Turkey or Jordan.

If history is any guide we can expect that direct military spending will be grossly underestimated.”

 

Grossly underestimated indeed … as with the costs of any government action.

 

 

 

 

 

 

 

Video 5 Of 60 From The Course: International Trade

 

 

 

 

” What are the benefits of product variety and how does trade affect variety? This video takes a closer look at how trade leads to variety for the consumer and higher productivity for the producer, too. This video also explains why consumers and producers can’t have exactly what they desire in a good by examining the trade-off between variety and average cost. You’ll also learn how the market manages the trade-off between variety and average cost via theories of monopolistic competition. “

 

 

    Check out Marginal Revolution for a wide variety of online courses to educate yourself in matters of economics , property rights , foreign policy , media , finance and much much more . You’ll be glad that you did .

 

 

 

 

 

 

 

The Mises View: “Fama, Hansen, and Shiller” | Mark Thornton

Published on Oct 14, 2013

” Mark Thornton discusses the three American winners of the 2013 Nobel Memorial Prize in Economic Sciences. Thornton is a Senior Fellow at the Mises Institute. For more information, visit the Mises Institute online at mises.org.”

 

 

 

 

 

 

 

 

 

Meet Nobel Laureates Hansen , Shiller & Fama

 

 

 

 

 

Lars Peter Hansen Nobelist

” Hansen’s work is the most technical and most difficult to explain to a layperson. The brief version is that in 1982 Hansen developed the Generalized Method of Moments a new and elegant way to estimate many economic models that requires fewer assumptions and is often more powerful than other methods.”

 

 

Robert Shiller, Nobel Laureate

” Robert Shiller spent much of his career at Yale University.  He is a famous economist for his analysis of speculative bubbles and price overreaction to new information, first in stock markets and then later in real estate markets.  He has been a leading candidate for a Nobel Prize for some time now.

Here is Shiller’s home page.  Here is Shiller on Wikipedia.  Here are short columns by Shiller on Project Syndicate.  He also writes regularly for the Sunday New York Times, and some of his columns are here.  Here is a 2005 David Leonhardt profile of Shiller.”

 

 

Eugene Fama, Nobel Prize Laureate

” Fama has been long-deserving for some time now.  He won basically for his empirical work on asset prices.

Here is Fama on Wikipedia.  Here is Fama on scholar.google.com.

Fama teaches at the Booth School of Business at the University of Chicago and he is very much in the classic mold of a Chicago School economist.  I feared that with the financial crisis Fama would be too unpopular a pick, because many people misinterpret “efficient markets theory,” so this was a prize which valued the economic impact of the research over the trendiness.  That said, giving the prize to Shiller as well is a nod in the direction of behavioral finance and inefficient markets theory, so the committee covered all the bases.”

 

 

 

 

 

 

 

 

 

 

 

Obama Blames Five Years of a Bad Economy on “Phony Scandals” and “Distractions”

 

 

” President Obama did his best to shift his administration’s focus to the economy today during a speech at Illinois’ Knox College by blaming the anemic economy on Republicans and “phony scandals.” 

As predicted, Obama gave America the same speech he’s been giving for five years, saying the country needs more infrastructure spending due to crumbling roads and bridges, that we must fight poverty, that CEOs are making too much money while the poor suffer etc. He even went so far as to tout “saving the auto industry” one week after Detroit filed for bankruptcy.

Funny, I’m not sure the IRS targeting American citizens (with the help of one of Obama’s political appointees) for political purposes or four dead Americans killed in Benghazi count as “phony” but hey, “what difference, at this point, does it make?” “

 

 

 

 

 

 

Mercatus Center Policy Guide

image

” The Mercatus Policy Guide is intended to summarize and condense the best research available on the most pressing topics. It serves as a starting point for discussion, not a comprehensive overview of economic policy. Anyone who wants to go deeper into these studies should consult the references listed at the back. Mercatus scholars are available to further explain the results of their studies. We hope the guide will prove to be a valuable tool in your evaluation of economic policy.”

Where Are We Now? – A World View

 

 

 

Wondering why the money world got its knickers in a twist last week? The answer is simple: the global economy is breaking apart and its constituent major players are doing face-plants on the downhill slope of a no-longer-cheap-oil way of life.  Let’s look at them case by case.

     The USA slogs deeper into paralysis and decay in a collective mental fog of disbelief that its own exceptionalism can’t overcome the laws of thermodynamics. This general malaise precipitates into a range of specific quandaries. The so-called economy depends on financialization, since it is no longer based on manufacturing things of value. The financialization depends on housing, that is, a particular kind of housing: suburban sprawl housing (and its commercial accessories, the strip malls, the box stores, the burger shacks, etc.). Gasoline is now too expensive to run the suburban living arrangement. It will remain marginally unaffordable. Even if the price of oil goes down, it will be because citizens of the USA will not have enough money to buy it. Lesson: the suburban project is over, along with the economy it drove in on.

     But so is the mega-city project, the giant metroplex of skyscrapers. So, don’t suppose that we can transform the production house-building industry into an apartment-building industry. The end of cheap oil also means we can’t run cities at the 20th century scale. That includes the scale of the buildings as well as the aggregate scale of the whole urban organism. Nobody gets this. For one thing, there will be far fewer jobs in anything connected to financialization because that “industry” is imploding. The recent action around the Federal Reserve illustrates this. When chairman Bernanke’s lips quivered last week, the financial markets had a grand mal seizure. He floated the notion that his organization might “taper” their purchases of US government issued debt and mortgage-backed securities — the latter being mostly bundled debt originated by government-sponsored entities and agencies. That’s the “money” that supports the suburban sprawl industry.”

 

 

 

Read the whole sobering article … if you dare .

 

 

 

 

 

 

 

Daily Comedy 5.8.13

 

     Our apologies to those who came expecting the usual morning laugh  but today , May 8th , for Friedrich A Von Hayek’s birthday , we have chosen to honor him throughout our daily posts , thus we present for your enjoyment an animated biography of one of the world’s greatest thinkers .

 

 

Friedrich August Von Hayek: (1899-1992)

 

 

” This is a project of the famous free market economist Friedrich von Hayek who lived a very long time. Enjoy!
Created at http://goanimate.com/ “

 

Happy Birthday FA von Hayek

 

 

 

Wiki Bio

 

” Friedrich August Hayek ; 8 May 1899 – 23 March 1992), born in Austria-Hungary as Friedrich August von Hayek and frequently known as F. A. Hayek, was an Austrian, later turned British,[1] economist and philosopher best known for his defense of classical liberalism. In 1974, Hayek shared the Nobel Memorial Prize in Economic Sciences (with Gunnar Myrdal) for his “pioneering work in the theory of money and economic fluctuations and … penetrating analysis of the interdependence of economic, social and institutional phenomena”.[2]

Hayek is an economist[3] and major political thinker of the twentieth century.[4] Hayek’s account of how changing prices communicate information which enables individuals to coordinate their plans is widely regarded as an important achievement in economics.[5] He also contributed to the fields of systems thinkingjurisprudenceneuroscience, and the history of ideas.[6]

Hayek served in World War I and said that his experience in the war and his desire to help avoid the mistakes that had led to the war led him to his career. Hayek lived in Austria, Great Britain, the United States and Germany, and became a British subject in 1938. He spent most of his academic life at the London School of Economics (LSE), the University of Chicago, and the University of Freiburg.

In 1984, he was appointed as a member of the Order of the Companions of Honour by Queen Elizabeth II on the advice of Prime Minister Margaret Thatcher for his “services to the study of economics”.[7] He was the first recipient of the Hanns Martin Schleyer Prizein 1984.[8] He also received the US Presidential Medal of Freedom in 1991 from president George H. W. Bush.[9] In 2011, his articleThe Use of Knowledge in Society was selected as one of the top 20 articles published in the American Economic Review during its first 100 years.[10]

 

 

 

 

 

 

Concise Encyclopedia Of Economics:

 

” If any twentieth-century economist was a Renaissance man, it was Friedrich Hayek. He made fundamental contributions in political theory, psychology, and economics. In a field in which the relevance of ideas often is eclipsed by expansions on an initial theory, many of his contributions are so remarkable that people still read them more than fifty years after they were written. Many graduate economics students today, for example, study his articles from the 1930s and 1940s on economics and knowledge, deriving insights that some of their elders in the economics profession still do not totally understand. It would not be surprising if a substantial minority of economists still read and learn from his articles in the year 2050. In his book Commanding Heights, Daniel Yergin called Hayek the “preeminent” economist of the last half of the twentieth century.”

 

 

 

 

 

Further Reading

 

The Friedrich Hayek Quote Page

Biography of F. A. Hayek (1899-1992)Mises.org

Friedrich Hayek (Stanford Encyclopedia of Philosophy)

F. A. Hayek | Libertarianism.org

BBC News – Masters of Money: Friedrich Hayek

F.A. Hayek - Encyclopedia Britannica

BBC News – Keynes v Hayek: Two economic giants go head to head

Friedrich von Hayek Nobel Prize Winner

VIDEOS

 

 

Bibliography

 

1920–1929

  • Monetary Theory and the Trade Cycle (1929) [1]

1930–1939

  • Prices and Production (1931) [2]
  • Monetary Nationalism and International Stability (1937) [3]
  • Profits, Interest and Investment (1939) [4]

1940–1949

1950–1959

  • “The Transmission of the Ideals of Economic Freedom,” (1951) Full Article
  • John Stuart Mill and Harriet Taylor: Their Friendship and Subsequent Marriage (1951) ISBN 978-0-678-06504-4
  • The Counter-Revolution of Science: Studies on the Abuse of Reason (1952) ISBN 978-0-913966-67-9
  • The Sensory Order: An Inquiry into the Foundations of Theoretical Psychology (1952) ISBN 978-0-226-32094-6
  • The Political Ideal of the Rule of Law (1955)

1960–1969

1970–1979

1980–1989

 

 

 

 

 

 

Cyprus: Can It Happen Here?

 

 

 

 

” After going back and forth, the government of Cyprus ultimately decided, under international pressure, to go ahead with its plan to raid people’s bank accounts. But could similar policies be imposed in other countries, including the United States?

One of the big differences between the United States and Cyprus is that the U.S. government can simply print more money to get out of a financial crisis. But Cyprus cannot print more euros, which are controlled by international institutions.

Does that mean that Americans’ money is safe in banks? Yes and no. The U.S. government is very unlikely to just seize money wholesale from people’s bank accounts, as is being done in Cyprus. But does that mean that your life savings are safe? No. There are more sophisticated ways for governments to take what you have put aside for yourself and use it for whatever politicians feel like using it for. If they do it slowly but steadily, they can take a big chunk of what you have sacrificed for years to save before you are even aware, much less alarmed.”

 

 

 

Coming Dangers to Economic Freedom

 

 

” Peter Lewin posted some very interesting commentary of Richard Epstein’s distinguished scholar lecture at on-going Southern Economics Association (SEA) meeting. I had the opportunity to hear Epstein several years ago at the Association of Private Enterprise Education meeting and hardily agree with Peter’s assessment that “To hear Epstein talk is awe-inspiring. Hard to describe. Always without notes he delivers intricate, clever, funny, insightful prose without hesitation, seamlessly weaving his web of logic, backwards and forward, while making knockdown points.”

 

Distinguished Guest Lecture:

“The Implications of the Recent Election for Economic Freedom”

Richard Epstein
The University of Chicago
Law School

Friday, November 16th
at 5pm

Peter’s summary:

” This afternoon I heard Richard Epstein talk on the implications of the recent election for the economy. He gave the annual distinguished scholar lecture as the SEA meetings. To hear Epstein talk is awe-inspiring. Hard to describe. Always without notes he delivers intricate, clever, funny, insightful prose without hesitation, seamlessly weaving his web of logic, backwards and forward, while making knockdown points. “

Ludwig von Mises

  “Had he not passed away at the tender age of 92 in 1973, Ludwig von Mises would have turned 131 years old today(ed. note Sept 29th). In my humble opinion, he was the greatest social thinker of the twentieth century. In a series of breakthrough contributions like The Theory of Money and CreditSocialism: An Economic And Sociological AnalysisHuman Action (his magnum opus), and Theory and History–to say nothing of a series of smaller and no-less-insightful works like Bureaucracy and Omnipotent Government–Mises developed theories of economic growth and business cycles that are relevant today. One of the wonders of the modern world is that his major contributions are available to be perused or downloaded from the institute bearing his name or from the Liberty Fund. Today, anyone with access to an internet connection can access his works with little or no trouble. Anyone with a USB drive can carry his greatest works on a keychain.

The progress that made this possible wasn’t an accident, and it wasn’t random. Indeed, this brings us to Mises’s greatest contribution: his demonstration that socialism cannot function as a rational economic system and that private ownership of the means of production is necessary if value is going to be maximized and waste is going to be minimized in the production process.”

100 Percent FED Up

 

Follow

Get every new post delivered to your Inbox.

Join 6,831 other followers