Failures in Progressive Thinking
I was reading an essay in Foreign Affairs magazine recently entitled The Broken Bargain. It was about the multifarious populist and nationalist revolts among Western electorates over the last few … Read More
Category: Economic Issues
Ideas about how an economy works. Organized ideologies about economies go by names like Keynesianism, neoclassical economics, socialism, etc., etc.
Coronavirus Lockdowns and the U.S. Economy, April 2020
The worldwide pandemic of COVID-19 has replaced the trade war with China as the dominant influence on the U.S. economy. Coronavirus lockdowns are destroying the economy. Not that the pandemic … Read More
Coronavirus Impact on the U.S.
The world has completely changed in less than half a year. Because of an irresponsible Chinese Communist Party, the Chinese coronavirus (COVID-19, also known as the Wuhan virus) has been … Read More
Trump Derangement Syndrome Causes Severe Damage to the Democratic Party
The distress and uncomprehending dismay in the faces of Democratic Party members shown above speak volumes. It was taken on the election night of November 8, 2016, and records their … Read More
Continuing European Economic Stagnation
Almost two years ago, I produced the plots above as evidence for Western economic stagnation. If anything, the situation for European stagnation is only getting worse. The purpose of this … Read More
Governments Should NEVER Tax Companies!
One of the proudest achievements of Donald Trump and the Republicans was the Tax Cut and Jobs Act of December 2017. In fact, many neoliberals would argue governments should never … Read More
Does An Inverted Yield Curve Predict U.S. Recession?
Some U.S. Treasury yield curves have become inverted. This means the yield of a long-term Treasury bond (say the 10-year Treasury) is less than the yield of a short-term bond. … Read More
Trade War With China: U.S. Economy and Stock Markets, August 2019
Trade war with China has created great corporate uncertainties about the international supply chains of U.S. companies. These uncertainties have caused American companies to pull back from investments to produce … Read More
The Rahn Curve: What Makes Economies Grow?
Recently, I read an article by Richard W. Rahn about public hoaxes. Although he wrote mostly about the Trump Russian collusion delusion, the most important part of his essay was … Read More
Trade War and Cold War With China
The much feared trade war with China is the least of the problems we have with that great nation. The People’s Republic of China appears to be hardwired to seek … Read More
Modern Monetary Theory Madness
American progressives have a real problem. Somehow, they must figure out how to finance the huge new social programs they would like to impose on us. Lately, a number of … Read More
Curious, Erroneous Progressive Ideas About Taxes
Differing views about taxes generate much of the anger between the American Left and Right. Progressives, insisting government should be the major tool for solving social and economic problems, look … Read More
Income Distribution and Economic Freedom
The vicious ideological warfare between the Left and the Right is caused by one salient question: Just how useful is government in solving social and economic problems? A subsidiary issue … Read More
Comparing Economies of All Countries on Earth in 2018
2017 GDP per capita by Nation in constant 2010 U.S. Dollars. St. Louis Federal Reserve District Bank / GEOFRED In June of 2016, I wrote a post comparing economies of … Read More
What Progressives Don’t Get About Wealth Creation and Corporations
The progressive view of American corporations dating from the late 19th century. The Robber Barons, seated on bags of millions of dollars, are supported upon the backs of the workers. … Read More
Is the US Economic Boom Sustainable?
Evolution of the Atlanta Federal Reserve’s GDPNow estimate for real GDP growth in Q3 2018. The current estimate for Q3 growth is 4.4 percent. Atlanta Federal Reserve District Bank / … Read More
U.S. Economy and Stock Markets, July 2018
Real GDP growth rate from 2010 to the second quarter of 2018. Red line is the linear trend from Q4 2011 to Q1 2017. The green line is the linear … Read More
Trump Becomes More Convincing About Foreign Trade
Peter Navarro and Larry Kudlow, Donald Trump’s top advisors on foreign trade. Left: Prof. Peter Navarro Wikimedia Commons / White House Right: Larry Kudlow Wikimedia Commons / … Read More
Growing U.S. Economy Continues to Sizzle!
Time evolution of the Atlanta Federal Reserve’s GDPNow estimate for Q2 GDP growth, as of May 31, 2018. Federal Reserve Bank of Atlanta / GDPNow The plot above emphasizes again … Read More
Confirmation Bias: Who Is Most Guilty?
Using a compass and a map to find one’s desired direction. Wikimedia Commons / Audrius Meskauskas Echo chambers for different ideological orientations abound throughout the modern world. One can see them … Read More
Do We Need Tariffs To Attack Foreign Trade Problems?
U.S. Trade Balance as a percent of GDP and Trade Policies from 1895 to 2015 Wikimedia Commons / James4 The plot above is highly suggestive of what has caused our … Read More
How Probable Is a Trade War With China?
President Donald Trump and First Lady Melania Trump pose for a photo with Chinese President Xi Jingping and his wife, Mrs. Peng Liyuan, Thursday, April 6, 2017, at the entrance … Read More
U.S. Economy and Stock Markets, March 2018
Percent change in personal income excluding current transfer payments. The red line is the linear trend over the last two years of Obama’s administration, while the green line is the … Read More
Is Trump Killing the Liberal World Order?
A NATO naval fleet including warships from five nations. In four descending columns, from left to right: ITS Maestrale (F 570), De Grasse (D 612); USS John C. Stennis (CVN-74), … Read More
Donald Trump’s Stupidity About Foreign Trade
Bethlehem Steel (Bethlehem, Pennsylvania facility pictured) was one of the world’s largest manufacturers of steel before its closure in 2003. Wikimedia Commons / Jschnalzer By now, you have almost certainly … Read More
What Makes A Nation’s GDP Distribution More Unequal?
World Map of the GINI Index, published on Wikipedia.com in 2014. The darker a nation’s color, the larger its GINI index and therefore the more unequal its income distribution of … Read More
The Great Irish Economic Experiment with Capitalism
Ten-year moving time-averages of Northern EU countries’ GDP growth rates. All have currently fallen below 2% growth, with the exception of the Republic of Ireland, which in 2016 had 4.2% ten-year moving average … Read More
The Economic Decay of the West
Romans during the Decadence by Thomas Couture. Is the West retracing the steps of the ancient Romans? Wikimedia Commons / Thomas Couture (1815-1879) I often get the feeling my fellow … Read More
How Big A Problem Is Inflation For Stock Markets?
Inflation caused by increases in economic demand predicted by the law of Supply and Demand. Wikimedia Commons / SilverStar at English Wikipedia One often mentioned explanation for plunging stock markets has … Read More
Does a Falling Stock Market Presage Recession?
The trading floor of the New York Stock Exchange (NYSE) in the age of the internet. Note all the computer monitors. Wikimedia Commons / Ryan Lawler In case you have … Read More