The Problems with the Coronavirus Aid Package
Recently, Congress passed and the President signed the Coronavirus Aid, Relief, and Economic Security Act, which also is called the CARES Act. It was designed to rescue the financial lives … Read More
Tag: Stimulus
Factor that causes economy to grow. Includes but is not limited to government expenditures
Modern Monetary Theory Madness
American progressives have a real problem. Somehow, they must figure out how to finance the huge new social programs they would like to impose on us. Lately, a number of … Read More
Progressive Mendacity on Tax Reform
Vice President Mike Pence, as President of the Senate, announces final passage of the Tax Cut and Jobs Act in the Senate, 51-48. Screen shot of Right Side Broadcasting Network … Read More
Even More Lies Progressives Tell To Themselves!
A progressive regarding the world. Be careful what you buy from him! (c) Can Stock Photo / ezumeimages In my last essay I was only able to cover two of … Read More
The Trump Era Begins
President Donald J. Trump delivering his inaugural address, January 20, 2017 Screenshot of ABC News broadcast Uncompromising. That was the major tone of Donald Trump’s inaugural address on the west … Read More
Say’s Law Vs. Keynes Law: At the Heart of the Argument
Left: Jean-Baptiste Say (5 January 1787 – 15 November 1832), Wikimedia Commons Right: John Maynard Keynes (5 June 1883 – 21 April 1946), Wikimedia Commons / National Portrait Gallery At … Read More
The Progressives’ Sisyphean Labors
Sisyphus and his rock Photo Credit: Wikimedia Commons / Titian(1490-1576), Prado Museum Sisyphus is a figure from out of ancient Greek mythology, the founder and king of the city Ephyra, … Read More
U.S. Economy and Stock Markets, October 2016
The time-evolution of the GDPNow statistic from the Center for Quantitative Economic Research of the Federal Reserve Bank of Atlanta. Image Credit: Federal Reserve District Bank of Atlanta/Center for Quantitative … Read More
Why Is There Economic Optimism?
The Bulls Are Charging! Photo Credit: Charging Bull — NYC via photopin (license)/ Sam Valadi Every now and then, I experience a modicum of doubt about my pessimistic picture of the economy. … Read More
Economics Is Mostly About Human Psychology
An African market: a place where economic balances are discovered Photo Credit: Freeimages.com/Stewart Aston Last night I was musing about how I could persuasively sell the idea that an economy’s functions … Read More
The Fed Hangs Fire on Interest Rate Rise
Janet Yellen, the Chairman of the Federal Reserve Board of Governors Wikimedia Commons/U.S. Federal Reserve As widely expected, the Federal Reserve Open Market Committee (FOMC) hung fire on raising the … Read More
The Keynesian Emperors Have No New Clothes!
The Emperor has no new clothes! Image Credit: Wikimedia Commons/Vilhelm Pedersen (1820-1859) Given all their failures in suggesting successful economic policies around the world, one would have thought … Read More
The Thoughts that Haunt Me
A profligate government bureaucrat with you behind him! (c) Can Stock Photo More and more, the words haunting me are the ones I wrote in the final sentence of my … Read More
An Indonesian Reagan
Joko Widodo, President of Indonesia Photo Credit: Wikimedia Commons/Government of Indonesia For a country that is widely reputed to have a lot of crony capitalism, Indonesia is pretty lucky to … Read More
The Fecklessness of the U.S. Federal Reserve
From Top Left Clockwise: Janet Yellen, Federal Reserve Chairman; Haruhiko Kuroda, Governor, Bank of Japan; Mario Draghi, President, European Central Bank Wikimedia Commons/ US Federal Reserve, World Economic Forum, Asian … Read More
U.S. Stock Markets and the Economy, April 2016
Candle charts of Dow 30 index on top, S&P 500 on bottom. Blue overlay curves are 50 day moving averages, Red curves are 100 day moving averages. Images courtesy of … Read More
Rational Expectations, Market Clearing, and Real Business Cycles
The University of Chicago, where much of New Classical Economics was built by Robert Lucas, Jr. Photo Credit: Wikimedia Commons In my last post I began an examination of what … Read More
Alternative to the Keynesians: New Classical Economics
Adam Smith (1723-1790), founder of classical economics, which has flowered into New Classical Economics Image Credit: Wikimedia Commons/By Unknown – http://www.nationalgalleries.org/object/PG 1472, Public Domain At this time in history, the … Read More
The Phillips Curve in New Keynesian Economics
The original Phillips curve for the U.S. fit to 1960s data. A non-economist might justifiably be confused about why the Federal Reserve, the European Central Bank (ECB), and the the … Read More
The Federal Reserve Is in a Bind
Janet Yellen, Chairman of the Federal Reserve System Wikimedia Commons/United States Federal Reserve Wednesday and Thursday, Janet Yellen, the Chairman of the Federal Reserve, gave one of her periodic reports … Read More
Chaotic Economies and Adam Smith’s Invisible Hand
Chaos, chaos everywhere! Image Credit: Flickr.com/SantaRosa OLD SKOOL It is sometimes said that “if the only tool you have is a hammer, then everything you see looks like … Read More
U.S. Stock Markets and the Economy, February 2016.
Investors in the stock market getting their thrills! Wikimedia Commons/Boris23 The last few weeks with the stock markets have certainly been an exciting roller coaster … Read More
The Bad Examples of the ECB and BOJ
Mario Draghi, President of ECB, and Haruhiko Kuroda, Governor of BOJ Photo Credits: Wikimedia Commons/World Economic Forum and Asian Development Bank Now there are two central banks living in Alice’s … Read More
How to Solve Problems in Chaotic Social Systems
The problem space: a system with chaotic boundaries Image Credit: Wikimedia Commons/Eequor In Central Planning for Chaotic Social Systems I discussed how social systems, particularly economic systems, are really chaotic … Read More
The Keynesian Excuse: Secular Stagnation
Lawrence H Summers, leading Keynesian resurrecting Secular Stagnation Photo Credit: Wikimedia Commons/LHSummers The Keynesians must be panicking. In the United States, Europe, and Japan, nothing they have advised governments to … Read More
BOJ Also Losing Credibility And Its QE War
Haruhiko Kuroda, Governor of the Bank of Japan Photo Credit: Wikimedia Commons/Asian Development Bank Move over Federal Reserve! You are not the only ones losing credibility and in the dog … Read More
The Wall Street Casino Is Open Courtesy of the Fed
Casino slot machine winnings like stock market returns? Photo Credit: Wikimedia Commons/Raul654 By now it is common knowledge: Currently the results of the U.S. stock markets … Read More
Failures of New Keynesian Economics
The wreck of an elegant model! Photo Credit: Flickr.com/Kevin Hutchinson The New Keynesian economics is such an elegant mental construct that it is … Read More
How New Keynesians Explain 1970s Stagflation
Dr. Jimmy Carter’s Stagflation Advice: “I’m Going To Give It To You Straight—I Don’t Have Any Idea What I’m Doing.” … Read More
Blowing Up the New Keynesian Model
Demolition Explosion! Photo Credit: U.S. Department of Energy I am beginning to see suggestions that it is time to blow up New Keynesian economics to smithereens … Read More