Tag: economics

Economic Myths, Part 4: Job Creation is Good

Dyseconomics, developed in 2011, describes how an economic system that is optimal for growth and technological expansion is one where, counterintuitively, the economic contributions of the majority of individuals goes to zero relative to the size of the overall economy, a version of the Pareto Principle as applied to macroeconomics. It also describes the counterintuitive… Continue reading Economic Myths, Part 4: Job Creation is Good

Economics Myths, Part 3: Full Employment is Good

Some may be surprised to learn that ‘full employment’, as defined by a 0% or near 0% unemployment rate, is neither feasible nor economically desirable. The definition of ‘full employment’ can have many meanings, the definition accepted by economists generally allows for some unemployment, but for ‘full employment’ to occur anyone who wants to work… Continue reading Economics Myths, Part 3: Full Employment is Good

Falsifiability, String Theory, and Policy

An interesting post by Noah Theory vs. Data in economics. This is related to the long-standing debate over falsifiability and science, and this ties into Popper’s demarcation problem: Logically, no number of positive outcomes at the level of experimental testing can confirm a scientific theory, but a single counterexample is logically decisive: it shows the… Continue reading Falsifiability, String Theory, and Policy

Economics Myths, Part 2: America Is In Decline/The Dollar Is Weak

This is part two of the ongoing economics myths series. A common refrain among the media these days is that ‘America is in decline’ or that the ‘dollar is going to become obsolete’. The Economist has jumped onto the dollar-is-doomed bandwagon, with the article The primacy of the US dollar looks unsustainable, which offers no… Continue reading Economics Myths, Part 2: America Is In Decline/The Dollar Is Weak

Economics Myths, Part 1: Budget Surpluses Are Always Good

This is the first post of a multi-part series of common economics misconceptions. Economics may be the ‘gloomy science’, but it also tends to be a counterintuitive one as well. The media, often ignorant about the intricacies of macroeconomics, unwittingly spread these fallacies to the general public, as well as regurgitated by politicians who, like… Continue reading Economics Myths, Part 1: Budget Surpluses Are Always Good

Sorry Marx, Capitalism May Not Be Self-Limiting

From the Wall St. Journal: The Middle-Class Squeeze dire forecasts of Karl Marx… The Marxian prophecy may be wrong because of the Pareto Principle, which is that the richest 20% contribute 80% to consumer spending, while the poorest contribute very little. This means that Capitalism may not be as self-limiting as commonly believed by some.… Continue reading Sorry Marx, Capitalism May Not Be Self-Limiting

Nike Reports Blowout Earnings, Don’t Blame Bull Market on QE

Wish I had more time to read NRx & HBD blogs and related commentary, but I’ve been glued to the stock market in anticipation of the market breaking higher, in which case I am prepared. The Grey Enlightenment is a midpoint between the ‘Dark Enlightenment’ and ‘The Enlightenment’, in rejecting egalitarianism and liberalism but supporting… Continue reading Nike Reports Blowout Earnings, Don’t Blame Bull Market on QE

The Great Debate Again: Jobs vs. Automation

Again from Aaron: The Luddite Fallacy has a long history of being a fallacy. There are new jobs replacing obsolete ones. And in other instances, automation and jobs can coexist. In the first instance, every major brand has Facebook page and these brands hire people to answer questions and delete spam from the pages –… Continue reading The Great Debate Again: Jobs vs. Automation

The Economic Crisis Is In Brazil and Turkey, Not China

As the media goes on and on about a supposed ‘China crisis’, as if a 1% decline in China’s GDP growth constitutes a depression, Brazil was recently downgraded to ‘junk’ by Standard and Poors, meaning that Brazil’s economy, which is heavily dependent on oil, is doing so poorly that the risk of default can no… Continue reading The Economic Crisis Is In Brazil and Turkey, Not China