The US Government is a Greater Risk to the Economy than Climate

As an opening remark, the word “risk” is inapt in discussing climate change and its effect upon the economy.  Risk is definable, and more importantly is measurable.  “Uncertainty,” the appropriate word is not quantifiable, and the damage from uncertainty remains unknowable until it becomes certain.  There is a large industry in the financial sector of US economy that … Continue reading The US Government is a Greater Risk to the Economy than Climate

A Practical Assessment of Modern Monetary Theory

Stephanie Kelton’s book, The Deficit Myth:  Modern Monetary Theory and the Birth of the People’s Economy has been reviewed by several economists whose work and opinions I respect.  None found it convincing in explaining and therefore accepting the book’s thesis that Modern Monetary Theory (“MMT”) has “discovered” a wellspring of money for the United States and any other … Continue reading A Practical Assessment of Modern Monetary Theory

Assessing America’s Economic Growth Conditions

Introduction:  Economic growth in a complex economic system has many variables. This essay concentrates primarily on those conditions that may reasonably be actionable to increase growth.  The more opportunities that are acted upon, the greater will be the favorable result, but for ceteris paribus.   There is always uncertainty in the economy, even if something positive is expected, there … Continue reading Assessing America’s Economic Growth Conditions

Occupational Licensing as Politics and Economics

Persons working under occupational licenses represented 5% of the labor force in the year 1950, or approximately 3.1 million persons.  Today, occupational licensing represents nearly one-quarter of the employed labor market, or approximately 48 million persons.   What is the reason occupational licensing has grown so much, and will continue to grow more in the future?  Two reasons; … Continue reading Occupational Licensing as Politics and Economics

Economic Theory better informs Public Policy for the Economy

There are many responsibilities of government in the United States that have important economic components and effects upon all residents of America.  None are more important than the only economic power assigned by the Constitution to the federal government, “To coin Money, regulate the Value thereof, and of foreign Coin;” Article I, Section 8, Clause 5.  From … Continue reading Economic Theory better informs Public Policy for the Economy

ECONOMICS: “Things Seen and Things Not Seen”

The Title of this essay comes from economist Frederic Bastiat, a French Liberal in the generation after Adam Smith.  He took simple economic subjects and made economic lessons of them in easily digestible content.  The subject of one of his essays was about the above title..  One of President Trump’s signature initiatives was to obtain trade relief … Continue reading ECONOMICS: “Things Seen and Things Not Seen”

Replacement Wages; a Smart Pandemic Recession Program

In March, Congress passed the CARES Act which in part expanded Unemployment Insurance (UI) to help workers losing jobs as a result of the Covid-19 pandemic.  The pandemic has required strict measures to lessen the spread of the virus, such as social distance, stay-at-home orders, and mandatory closure of some businesses.  These measures have dealt a serious … Continue reading Replacement Wages; a Smart Pandemic Recession Program

EXPLAINING ECONOMICS In a System of Free-market Capitalism

Adam Smith did not invent capitalism, nor did he invent the word.  He described trade of goods and services.  He also articulated the reason free choice and trustworthy participants underlies sustainability of trade. Most important, he explained in great detail the principles of efficient production by means of:  Division of labor, use of tools and economic scale to … Continue reading EXPLAINING ECONOMICS In a System of Free-market Capitalism