Inflationomics

It's Too Late, Shelley

Monday, the 31st of July 2017

I recently read a quote from U.S. Senator Shelley Moore Capito (R-W.Va.), in which she reportedly stated, “I did not come to Washington to hurt people.” She was apparently talking about the Senate’s attempt to repeal the Affordable Care Act or parts of it. She obviously thinks that the Affordable Care Act helps people and doesn’t think about the people it harms. Her comment made me wonder...

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’Til Debt Do Us Part

Friday, the 30th of June 2017

Debt is still the #1 problem for the U.S. government, state governments, businesses, and individuals. And this problem won’t go away as long as money is available to be borrowed at exceptionally low interest rates. In short, more debt is being encouraged by the fed’s (and other central banks’) policy of low-to-no interest rates.

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How Do the Amish Compete in Modern Society?

Thursday, the 18th of May 2017

The Amish. They use horses and buggies for transportation.... They clearly are living as was done back in the late 1800s or early 1900s.... So how do they compete?

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The More Government Does, the More it Takes Away

Tuesday, the 25th of April 2017

When a government taxes you, most people would agree that it’s taking away a percentage of your money.  And because time is money, a taxing government is taking away a percentage of your life.  If it takes 50% of your income, it owns 50% of you.

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International Trade

Thursday, the 30th of March 2017

Take a look at the labels around you. The labels on the products you use every day. You might discover that your phone is from Korea or China, your clothes were made in Indonesia or Pakistan, and your bananas were grown in Colombia. What if everything that didn't have a "made in the USA" stamp suddenly doubled in price?

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Building Walls to Keep the Competition Out

Sunday, the 19th of February 2017

The idea of building a wall between Mexico and the United States has been in the news a lot lately. The idea is short-sighted. It’s treating a symptom...

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Labor Lessons?

Thursday, the 26th of January 2017

Years ago, when my wife and I were just getting started with our publishing business, and before we knew anything about labor markets, we moved our business from Cedar Falls, Iowa, to a small town in Centre County, Pennsylvania, called Spring Mills.

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How to Make America Great Again

Wednesday, the 28th of December 2016

One of the most basic principles of economics is that the more capital there is invested in a job, the more productive that jobholder can be. Consider...

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What I Learned from my Ninth Grade Math Tutor

Tuesday, the 29th of November 2016

Yes, I was having trouble with Algebra when I was in ninth grade.  And so my dad hired a math wiz from the local college to help me improve my grades.  And I do remember the next day in class... 

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Voting for the Lesser of Two Evils

Monday, the 31st of October 2016

Let’s start arbitrarily with President Kennedy. We got Kennedy instead of Nixon. How evil was Nixon? Stay tuned. With Kennedy as President... 

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Reader's Questions Answered

Friday, the 30th of September 2016

Questions: Why can’t the Fed keep interest rates low? How does the market drive them back to market value? Answers: ... 

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It's Time for a Renaissance of the Gold Clause Contract

Monday, the 26th of September 2016

Assuming you had the money, would you lend $10,000 to be paid back over 30 years plus 3% interest? What if inflation skyrocketed? ...

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Paying Your "Fair Share" While Building Wealth

Monday, the 29th of August 2016

There’s a lot of rhetoric leading up to the election about taxing the rich, making them pay their “fair share,” etc. But who’s going to determine how much one’s “fair share” is? Some poor but greedy politician, some rich politician, or some bureaucrat? What do they know about what’s “fair?” Why wouldn’t it be fair just to have everyone pay the same amount regardless of their income? Isn’t that equal treatment under the law? Alas, that’s not what we argue about… 

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Lessons from Planting Trees

Friday, the 29th of July 2016

Some of you may have heard the story my dad used to tell about how, back in the early 1970s, he planted (actually, he had me plant) black walnut trees on some land we own. The big-picture plan was to plant them so that future generations would be able to harvest them and reap the benefits of their far-sighted ancestors. It was a great long-term plan, but there were a few details missing…. Now, I’m going to tell you the rest of the story. 

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The Brexit Aftermath

Wednesday, the 29th of June 2016

Someone recently asked me whether I thought there would be a war as a result of the British electing to exit the European Union (EU). After all, she said, President Lincoln went to war when the Confederate States of America seceded from the United States of America.

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What Can Gold Do for Our Money?

Monday, the 6th of June 2016

One of the chief virtues of a gold standard is that it serves as a restraint on the growth of money and credit. It makes runaway government deficit spending and major monetary catastrophes such as hyperinflation practically impossible.

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The Future Under Negative Interest Rates

Monday, the 30th of May 2016

We've all heard about negative interest rates by now. How the bank depositor has to pay the bank for the privilege of keeping his/her money in the bank…the opposite of the way things have worked in the past.

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Why Regulators Can't Regulate

Wednesday, the 27th of April 2016

Everyone knows that regulators regulate markets. Markets, of course, are the result of individuals acting freely to determine the price of everything from food to insurance. It's simply the most efficient way to allocate scarce resources in a world of unlimited wants. And when regulators regulate, they alter the way people behave.

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Working Outside the "System"

Monday, the 28th of March 2016

As interest rates go negative, savers have less incentive to save and everyone has less incentive to stay within the unrewarding "system." The "system," of course...

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Negative Interest Rates

Thursday, the 25th of February 2016

Let's say there's a banking crisis and banks stop lending money. The economy contracts. Voters become unhappy. And nowadays it's the central bank's job to stimulate the economy. So, what does it do?

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Why the Federal Reserve Always "Happens" to Be Wrong

Friday, the 12th of February 2016

The Federal Reserve Board finds itself back in a quandary of its own making.

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The 21st Century Gold Standard is Already Here

Thursday, the 14th of January 2016

Some advocates of the gold standard look to the past and idolize the way it was during the 19th and early 20th centuries. They point to the Coinage Act of 1792, where a dollar was defined as 371¼ grains of pure silver, and gold was fixed at a ratio of 15 to 1 relative to silver. “If only we could fix the dollar to a set quantity of silver again,” they lament.

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