Tag: economics
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How Economies Work
photo credit: unforth When Adam Smith wrote The Wealth of Nations he was not writing about how economies and markets should work, he was writing about how they do work. Anyone who wants to know how they do work must read that book. Be prepared – it’s long and very detailed and you must be…
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Money Down the Drain
A little statement from an article titled “Cash For Clunkers”: Did It Work? got me wondering about the fate of three hundred million dollars. When the $3 billion is exhausted, roughly 600,000 vehicles will have been swapped for more fuel-efficient models, based on statistics released from the government so far. Do the math there and…
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The Economic Bill of Rights
During his final State of the Union address Franklin Delano Roosevelt spoke about what he said could be considered a second bill of rights which may be referred to as The Economic Bill of Rights. In his address he said some important things that ring true such as: We cannot be content, no matter how…
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The Paradox of Government
Today I read Paul Krugman writing about the paradox of thrift. As is often the case, I found it interesting to read and to notice the assumptions that Krugman bases his positions on. While anyone can go read what he wrote I’ll give a quick overview of the paradox of thrift – increases in personal…
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Economic Recovery
I was listening this morning to a story on NPR about rising unemployment when an interesting thought struck me. The story was talking about the negative feedback loop of rising unemployment leading to lower housing prices and more economic uncertainty. These factors then dampen consumer spending and keep unemployment high and even encourage more unemployment.…
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Economic Contradiction
Paul Krugman and I agree on little politically (I have at times agreed with him when he was arguing that TARP was a bad idea – although we disagreed on the reasons why) and despite the fact that my assumptions about the nature of sound economics differ from his most of the time I recognize…
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GM Surprise (or not)
Back at the end of March David Brooks made a prediction for GM in the New York Times that came due today. I have been waiting to check in on that. He started with this background of the situation as it stood that day: The Bush advisers decided in December that bankruptcy without preparation would…
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A Currency All My Own
I really enjoyed Scott’s introduction to different currency types. It’s a great introduction to the differences between fiat currency, commodity currency, and representative currency. Coincidentally we have implemented a new representative currency in our household in an effort to teach our children about money and work. Personally I think that the commodity backing our currency…
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Public Transportation
I have just changed my commuting from riding the bus to driving. This was not due to my own choice – my office moved and I was unwilling to take an extra 2 to 3 hours per day to get to and from this highly underserviced area. Coincidentally I had to buy gas on my…
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Senators Seeing the Future (Clearly)
There are obviously a few things that I don’t understand about the Senate. Yesterday I reported that according to Senator Bennett the most important (he said it was most important, it was not simply the first thing on his list) part of the job of a senator is to try to see the future clearly.…