Few topics invoke a maddening response like income and wealth inequality does. Just as Pavlov’s dogs salivated in response not only to food but also to stimuli (like lab coats and bells) associated with food, the mere mention of inequality causes many of us to salivate at the opportunity to make our ideological opponents look stupid or immoral. Read more
Category Archives: Economics
President Trump has referred to the tax relief plan he signed into law yesterday as “a giant Christmas present” for the American people. I’m convinced he really believes it is.
It certainly looks like one. I don’t know anyone who will refuse the hundreds or thousands of dollars this tax bill affords them. Yet we need to ask this question—who is this present really from? Read more
The Road to Economic Ruin
In Part 1, I asked if the economic havoc wreaked by socialist dictators can be replicated in a capitalist democracy. I also stated that while Venezuela exports oil to fund their social programs, we, in part, export dollars to fund ours.
But what if the price of our main source for funding our social programs drops dramatically, will we experience the same problems as Venezuela did when the price of oil plummeted? Read more
How Much Socialism Does It Take to Collapse An Economy? Part 1
Economic and societal collapse in any nation is a tragedy. Inflation at 700% (expected to reach 2000% by 2018) devours the life savings of every Venezuelan. Food shortages along with high food prices caused the average poor Venezuelan to lose 19 pounds last year. Violent protests wrack Venezuela leaving some no choice but to flee their homes hoping to find a better life in a neighboring country. Others, with medical or engineering degrees in hand, have fled to Columbia but have found no work except as prostitutes. Economic sanctions squeeze Venezuela, restricting its ability to borrow money, though some nations, for political reasons, may lend at punitive rates. Meanwhile, President Maduro apparently has no intention of stepping down or declaring bankruptcy. Read more
According to some economists and government leaders, parents all across America have evidently been wrong for decades. Money actually does grow on trees. Read more
Stolen Jobs, Stolen Future
Stagnating wages, American job losses to overseas workers, underemployment and inequality have all been front-and-center issues for both Democrats and Republicans in this year’s presidential election. Read more
My recent article, America’s Level of Prosperity is Not Sustainable, dealt mainly with the yet to come lowering of living standards in the U.S. due to having to pay back external debt to our trading partners. Read more