Archive for the ‘Economics’ Category

Conservative’s rose colored glasses

Sunday, October 20th, 2013

I was watching Sunday Morning before and they had on Alan Greenspan. I remember back a few years ago somebody from the Bush administration saying they looked at several economic models and decided to go with the conservative one which didn’t show that we were in a bubble. He didn’t mention the economist’s name. Greenspan said in the interview this morning that he didn’t take into account people’s reaction of fear and euphoria in predicting market fluctuations and thus missed the fact that we were in a bubble. Ironically, John mentioning George Soros in another post led me to look him up on Wikipedia. His main tool is people’s probable reaction to market conditions. I’m sure fox news had all kinds of bad things to say about him and I’m ignorant of those things since I get a sick feeling every time I’m exposed to their propaganda. Wikipedia mentioned that Soros went all in trying to beat Bush in his second term. I’m guessing that’s why Soros probably got on fox’s radar and Bush’s blunder with his tax cuts made Soros Hell bent on defeating him.

The purpose of government

Sunday, June 9th, 2013

The purpose of government is to give us an alternative to killing each other. The purpose of business is to make a profit, usually at somebody else’s expense. If the business is in a position of power their profits can be obscene. If the business is in a weak position they can lose money and go out of business. In theory a business offers something that enriches those who make use of it. In practice some businesses create a dependency that saps all the resources of the rest of the economy. The purpose of government is to give us an alternative to killing the bastards.

Raise the Minimum Wage

Sunday, November 25th, 2012

The ugly truth is that the economy does better when you have a federal government meddling with it by trying to get rid of poverty or hunger or homelessness or whatever. We make more stuff than the population can buy and we’re making more stuff than we ever did and with fewer people making this stuff. If you think of wealth as the goods and services we can provide then you have to accept that this country is wealthier than it’s ever been. The problem is that the system has become more and more imbalanced. We need consumers who can afford to buy the stuff but, there’s that nasty law of supply and demand making unneeded workers compete for lower and lower wages. Fix the system.

What is a moderate republican?

Thursday, June 25th, 2009

When Arlen Specter changed from being a republican to a democrat I started thinking about what a moderate republican was and what was the real difference between republicans and democrats.  In many ways it’s just a matter of style and trivial perspective.  I suspect that for a lot of republicans they are anti-communist and the republicans offer a bias that is as anti-communist as you can get; even though democrats are not communists.  For that segment of the republican coalition they choose an ideology that forces religion on people over the communist ideology that bans religion; the democrats believe in freedom of religion and to that end try to keep it out of government.  I suppose a moderate republican would dismiss that part of the coalition as extremists.  The anti-communists consider any government meddling in economic affairs a form of socialism.  I’m guessing that a moderate republican would heed the lessons learned when 19th century robber barons glommed so much of the GNP that there wasn’t enough left to sustain the economy and so they tolerate a certain amount of government intervention; especially if it serves their own personal business interests.  Sadly, many democrats share that with the moderate republicans but, I suppose that’s what democracy is all about: the majority of the people deciding what’s in their own best interests and steering the government in that direction.  My own personal bias is towards a government that stays out of my personal life, my religion and keeps the robber barons at bay.  We still have robber barons but, they are global and the popular belief has it that they are Middle Eastern Sheiks.  I have my doubts.  I think they are Texas oil men who control the refineries.  In either case, I would like us to return to that economic philosophy that touted an ever expanding middle class and distribution of wealth over an ever larger segment of the population; a philosophy that seems to have been shared by every 20th century president with the exceptions of Hoover, Reagan and Bush II.  But, I could be wrong.  Maybe, wealth distribution is what separates moderate republicans from democrats.  I’m still trying to figure out what a moderate republican is.

Where did the money Go?

Sunday, March 15th, 2009

The truth is; it never existed. The ‘poison assets’ were agreements between banks and borrowers that was based on the premise that the house was going to be worth more in the future and that somebody was going to have enough money to pay the loan back. Ultimately, some wage earner was going to have to indenture his or her services for 30 years. The free market system decided that the average indentured servant wasn’t worth the cost of the house or the loan. The bankers, the lawyers, the title searchers, the builders and the sellers all took their cut and spent it on whatever they spend it on and the money was never there. It lay off in the murky future of someone who got killed by supply side economics.

Spend vs Save

Friday, March 13th, 2009

It’s better if everyone else spends and you save. Then you have all the money and if they need the money they have to come to you to borrow it. Then you get to charge interest on the money they borrowed to pay you for all the stuff you sell them.

What is Money?

Wednesday, March 11th, 2009

Money is a tangible object that some government fashions in order to extract goods and services out of people.  It’s only value is in what people are willing to do for it.  The idea of nationalizing the banks is a purely ludicrous idea.  The whole banking system is pretty much an arm of the government.  Where the money goes is a prerogative the government has been exercising since before the bible was written.  Whether it goes to Haliburton or a police department in Ohio, it’s still arbitrary.

Some argue that printing too much money will cause inflation.  I never saw that happen.  I’m not saying it can’t but, the only time I saw inflation happen in my lifetime was when the oil companies started raising their prices and everyone else tried to catch up.  The last time they did it everyone started economising and the whole thing fell apart.  I’m starting to think the only reason for the way our banking system is structured the way it is is to delude idealogues into thinking we have a free market system.