Tag: economics

The American Dream Still Exists–If You’re Smart Enough

From Freakanomics Radio: Is the American Dream Really Dead? It depends how you define it and for whom. The podcast defines the ‘American Dream’ in terms of upward mobility, or the percentage of people born in the bottom fifth of income who advance to the top 20%. Because the size of each bracket is always… Continue reading The American Dream Still Exists–If You’re Smart Enough

Stagnant Inflation-Adjusted US Wages: Putting Things in Perspective

Headlines about stagnant inflation-adjusted wages in the US, are becoming increasingly common. Real wages have not budged since the 60’s: However, WSJ had an article discussing how wages are higher when measured by a different inflation index, and also after accounting for increased employee benefits in the form of employer-subsidized healthcare. This trend is not… Continue reading Stagnant Inflation-Adjusted US Wages: Putting Things in Perspective

The ‘New World Order’

From Unz: Risks and Opportunities for 2017 Russia is now the most powerful country on the planet. I know, I know, the Russian economy is relatively small, Russia has plenty of problems and just a year ago Obama dismissed Russia as a “regional power” while McCain referred to her as a “gas station masquerading as… Continue reading The ‘New World Order’

Debunking the 90% Eisenhower Income Tax Myth

From Unz: The Trump Bubble The author, Mike Whiney, cites a study that the US economy did better when income tax rates for top earners were at 80-90% during the Eisenhower administration, compared to around 34% today. “A study from the Congressional Research Service — the non-partisan research office for Congress — shows that “there… Continue reading Debunking the 90% Eisenhower Income Tax Myth

Drugs and Tariffs

I saw this linked from Free Northerner’s blog: An Economist’s Cautionary Note on Free Trade Targeted tariffs won’t raise consumption. They won’t spur economic growth. They will lead to more expensive goods, and less consumption. David Ricardo was right on all that. Comparative advantage still exists, and be very wary of anyone who talks about… Continue reading Drugs and Tariffs

Fallacy of Composition

Between 2008-2010, during the depths and aftermath of the financial crisis, pundits envisioned that the ‘old’ status quo would be replaced by a more egalitarian ‘new’ one of less wealth inequality, as well as slower economic growth and asset price stagnation, which some called ‘the new normal’. With the U.S. stock market and and U.S.… Continue reading Fallacy of Composition

Understanding Marx

Aaron dismisses the study of Marx as useless , but possibly falls into the the tempting trap of reductionism. The study of Karl Marx is more than Communism, which of course is a failure, as mass deaths during communists regimes or the economic under-performance of communist countries versus capitalistic ones (North Korea v. South Korea,… Continue reading Understanding Marx

Trump stimulus is not important

What Happens When Trump’s Populism Collides with Ryan’s Austerity? Ryan rejects Trump’s agenda on trade, on immigration, and, not least, on infrastructure. In September, a reporter asked Ryan about Trump’s proposal to spend $550 billion on infrastructure (a more modest version of Bannon’s trillion-dollar fantasy). The Republican Party is united in name only. In truth,… Continue reading Trump stimulus is not important