Archive for category Economics

The True Costs of public school per pupil

Mar 12

Posted by Billy in Economics, Politics | No Comments

Well, education spending is a hot topic, especially where I come from. Here in my area, the Jordan School District is struggling due to poor policy management over the last while and the separation of the budget between districts. I still don’t know the real numbers or what is needed but this video brings to light something we all need to understand about costs in education…

You will also want to see this, a pdf article by Adam Schaeffer (the guy in the vid) discussing this lack of transparency in public education. How can we ever fix a system we don’t even understand? …when the issues are clouded or hidden?

Tags: education, government

John Stossel: Protocol for Climate Change

Dec 15

Posted by Billy in Economics, Politics | No Comments

John Stossel always levels the playing field a bit. In this clip, he discusses climate change with Jerry Taylor of the Cato Institute. The key point is not an argument over whether it is good to live sustainably but whether the methods paraded by most are worth the paper they are written on! It’s not even an argument over whether your Hummer really hurts the environment, just a look at the realities of the proposed “solutions”. Check it out! under 10 minutes…

Tags: enviroment, interventionism, John Stossel, regulation

The Entrepreneur is the Answer. You’re trying too hard mr. Gov.

Sep 10

Posted by Billy in Economics, Politics | No Comments

I like to think that proponents for big government solutions have good intentions. In fact, most of them likely do. There is the occasional power-hungry participant that is downright scary but the majority are well intentioned. The problem lies in a fundamental understanding of the purpose of government and what works vs what doesn’t. No matter how much you support Che Guevara and Fidel Castro’s 59′ revolution for the ‘working man’, Cuba’s recent past has been less than ideal and glamorous. It just didn’t work. Now that might be an extreme example but either way… Even Sweden has been working back toward free market economics with the near collapse of it’s socialized system in the early 90’s. If someone tries to show Sweden as a model for success, make sure you differentiate today’s results from yesterday’s causes. They had to reform their system from near collapse due to socialization and now, nearly any successes they see are from free enterprise.

Now back to us… the government is just not that good at business, and that’s okay! It was never meant to be. I believe it is well summed up by Claude from the Ben Stiller movie “Along Came Polly”, check it:
So the moral is the gov needs to accept that it is a “hippo” and not a “zebra” (big business) or even a “leopard” (small business), it’s a hippo and if it ever accepts it, it can live happy as a hippo….

Ramirez, in his artistic eloquence, shows the gov’s enterprising history…

Not the best track record… Let’s just accept that it’s a hippo, then maybe we all can be “happy as a hippo”… hehe…

Tags: free markets, funny stuff, history, socialism

A look back at the Depression may help today

Sep 9

Posted by Billy in Economics | No Comments

I recently came across a collection of articles and information compiled and published by the Foundation for Economic Education (FEE) here. This is an excellent collection that I would argue all should read and understand before making rash decisions regarding our current economic circumstances. The media and certain groups are quick to demean and blame capitalism which, in my opinion, is not only jumping to harsh conclusions but outright wrong. It is important to obtain multiple perspectives and this page and information offers one of those perspectives. Following is from that page on FEE’s site:

Articles About the Great Depression

“News Flash: FDR Didn’t Restore Prosperity,” by Sheldon Richman
“Rome and the Great Depression,” by Lawrence W. Reed
“The Great Depression According to Milton Friedman,” by Ivan Pongracic
“The Great Escape from the Great Depression,” by Robert Higgs
“Mysteries of the Great Depression Finally Solved,” by Mark Skousen
“The Great Duration, 1929 – 1941,” by Robert Higgs
“The Great Depression,” by Hans Sennholz
“Myths of the New Deal,” by Burton Folsom Jr.
“Great Depression,” by Gene Smiley (From the Concise Encyclopedia of Economics.)
“Our Economic Past~The Great Contraction, 1929-33,” by Robert Higgs

Check out the list of books they recommend here on the page. I have read many of the articles and a book or two and highly recommend them. These will give you a historical understanding that allows for improved support and solutions in today’s situation.

Tags: FEE, free markets, interventionism

Krug-enomics, another failure to look at causes from Keynes’ protegé

Sep 8

Posted by Billy in Economics, Politics | No Comments

Paul Krugman issued his latest self-empowered revelation to us lowly economic buffs (here). Apparently I should still look to demand-side, interventionist economics when that’s never worked historically! (talk to the 70’s)! It definitely didn’t help the depression (see my light review of a great essay here)… Let alone the fact that interventionism is exaggerating and even causing the business cycles that lead to the financial ruin of today!? Anyone heard of the federal reserve and monetary policy? NOT classical economics and capitalism, that’s human intervention at its finest, guessing what the interest rate should be. To think we can control the interest rate is to be ignorant to economic complexity. Read “I, Pencil” for crying out loud. This is the problem, looking at solutions while ignoring or investigating the cause, simply making blatant, uneducated assumptions as to the ‘likely’ cause of the problem, the story of Krugman’s life (at least published life).

The best is that Krugman ignores the lives of other economic greats such as Hayek or Mises, what about Friedman even? He forgets that Keynes actually failed in predicting the great depression! Mises was the one who nailed that. See ‘Making of Modern Economics’ for more on that little tidbit. Keynes simply got credit for offering government actionable solutions, which any politician will praise. It gives them purpose, and a much greater one than simple keeper of the peace as they should be. The Ludwig Von Mises Institute gave a tidbit on the Krugman piece simply saying:

It’s all here: how economists were in love with capitalism before the Great Depression (?), how Keynes was the only one who saw the failures of laissez-faire (!), how economists fell in love again with markets in recent years (!!), and how the popping bubble has startled them whereas the great Keynesian Krugman knew it all along (??). Oh, and by the way, there is no one who ever existed named Hayek or Mises or Haberler or their students.

The whole thing reads like a big fairytale, and the author is the hero in the end.

I can’t believe this guy got the Nobel prize in 2008. He’s too politically tied anyway to be a solid economist. That’s simply my opinion, think what you will…

Tags: interventionism, Keynes, Paul Krugman

Essay Review: Great Myths of the Great Depression

Sep 2

Posted by Billy in Book Reviews, Economics, Politics | 1 Comment

I recently finished an essay by Lawrence W Reed, currently the president of FEE (foundation for economic education) of which I’ve posted briefly in the past. This short and concise essay described the ‘true’ causes and sustaining factors of the great depression. It dismantles the common thinking that the “New Deal” and FDR were solutions to the depression, and discusses the realities of the regulation, deceit, and politician-ing that went on during the depression. Solutions included FDR’s proposal of a 99.5% marginal tax on incomes over $100,000 (luckily it didn’t take), the destruction of goods and crops in an attempt to raise prices, and many more interesting debacles of political blundering that occurred, too many list here.

The essay pointed to the real culprit of the Depression and business cycles in general, bad monetary policy. This is revealed again with the current economic crisis and the Federal Reserve’s tinkering with interest rates (just as in the 20’s as a precursor to the crash). In fact, the circumstances leading up to the depression and even many of the political solutions imposed are astoundingly reminiscent of today! Do we ever learn from the past?!?! Hopefully the result will not be 12 years of drudgery in depression again… Check out the pamphlet in print here or as well available for free online here.

I give this essay a solid 2 thumbs up and recommend it to anyone. In fact, get a few copies and give it to anyone you know…

Tags: Federal Reserve, Great Depression, history

The Rise and Fall of the Dollar

Aug 31

Posted by Billy in Economics | No Comments

Mises.org Contributor Sean Malone created the following summary of the rise and fall of the US Dollar. Check out the post here.
(Click on the graphic for a big one…)

This also shows the increase in money supply (small graph in upper right, it is absolute increase). As for percentage increase, it is scary. See the below graphic on money supply increase by percentage:

money supply increase

This can be seen in a past article in the Wall Street Journal here.

Monetary policy is out of control and in the hands of politicians as it NEVER should have been, hence the need for fixed standards among other things.

Tags: Federal Reserve, Inflation

The Trojan “Donkey” of Health Care Reform

Aug 26

Posted by Billy in Economics, Politics | No Comments

As the healthcare debate pushes on, I tire of the madness so a little humor always livens the spirit…
Thanks again ‘Mikey’:

Political Cartoons of Michael Ramirez
Editorial Cartoonist for Investor’s Business Daily

Get a unique perspective on today’s issues with the political cartoons of IBD’s Pulitzer Prize Winner, Michael Ramirez.

Tags: funny stuff, health-care, Michael Ramirez

“Charter Cities” as a gateway to Libertarian ideals…

Aug 25

Posted by Billy in Economics, Entrepreneurship/Business, Politics | No Comments

A recent talk on TED.com by Paul Romer describes a concept called “charter cities” which, as a foundational concept, is extremely interesting and potentially revolutionary in nature, paving a pathway to reforms for freedom in any country, including the United States. The US is definitely not a purely free market and a charter city would allow a “free market experiment” to exist here as well as other parts, just as Hong Kong was, and is for China. Countries could have their own “Hong Kong” and people would be able to choose to participate. As demand grows, new charter cities are started, eventually whole countries may be reformed. What a concept for nations that have been over-run with imperialist regimes and freedom-less government monopolies that have forgotten how to live with freedom or aren’t even sure if they want it. Allow people to choose, countries and communities to transition. If each charter city works, you now have examples and evidence of effectiveness. Good stuff!