Posted tagged ‘Paul Krugman’

Must Reads For The Week 10/14/17

October 15, 2017

ECON MUST READS

Our Crazy-Making, Profiteering Education Career Maze, by Charles Hugh Smith, at oftwoinds.com. CHS lists 7 things that you would do if you wanted an education system that fails. He calls our current education system a “career maze”. By design, a maze is difficult to get out of. The question is; who does our education system benefit? The students? No! The beneficiaries are the receivers of the borrowed money.

Excerpt from the article: “Clearly, it would be enormously beneficial to teach the skills needed to learn on one’s own and adapt successfully to changing circumstances. The current system is a hierarchy of credentialing that enriches those dispensing and funding the credentialing…………When the student graduates after borrowing a fortune and discovers their diploma has low value in the marketplace or is in a field they’ve found they loathe, then suggest the “solution” is to borrow another fortune and invest more years in obtaining another credential.”

The answer is always the same. Do more of what got you in the mess in the first place.

How Higher Education Became A Obscenely Profitable Racket That Enriches The Few At The Expense Of The Many (Student Debt Serfs), by Charles Hugh Smith, at oftwoinds.com. Another article by CHS concerning our education system. He offers great analysis. Excerpt from the article: “Student loan lenders are skimming tens of billions in profits guaranteed by the taxpayers…….The number of employees in central system offices has increased six-fold since 1987, and the number of administrators in them by a factor of more than 34…..While the higher-ed status quo is failing the students, it’s enriching itself immensely Assistant deans of student loans and thousands of other administrators who be managed to do without a generation ago are racking in huge salaries and fat benefits/pensions.

Financialization And The Destruction Of The Real Economy, by Charles Hugh Smith, at oftwominds.com. What happens when government leaders regulate a free market economy so much it becomes a crony capitalist (or crony socialist) economy, and the central bank (our Federal Reserve) prints (counterfeits) money? The real economy starts to consume it’s own seed corn (capital). Whoever has access to the printed money first is stealing the production of the people who don’t have access to the printed money (that would be you and me). The economy gets hollowed out similar to what termites do to wood. Termites eat the joists in a floor and the studs in a wall from the inside out so all that remains is the veneer of stability, but no interior strength.

Excerpt from the article: “Strip an economy of capital, productive incentives, talent and yes, ethics and what are we left with? An economy spiraling toward an inevitable collapse…….like a Yellowstone forest fire. The deadwood of bad debt, extreme leverage, zombie companies and all the other fallen branches of financialization pile up. But the central banks no longer allow any creative destruction of umpayable debt and mis-allocated capital; Every brush fire is instantly suppressed with more stimulus, more liquidity ad lower interest rates. As a result the deadwood sapping the real economy of productivity and innovation is allowed to pile higher. The only possible output of this suppression is an economy piled high with explosive risk. Eventually Nature supplies a lightning strike, ad resulting conflagration consumes the entire economy.”

More Spending Does Not Drive More Employment, by Per Bylund, at mises.org. Excerpt from the article: “There is no escaping the fact that production precedes consumption in a very real and fundamental sense: that entrepreneurs endeavor in production before they know that they will be able to sell the goods produced. Spending is a possible outcome of entrepreneurial production, but not the other way around. The former does not employ people, but the latter does…..What drives the economy is not demand or spending, but entrepreneurship and production. In other words, entrepreneurs bear the uncertainty of their enterprise. They anticipate that consumers will value their goods and, based on this, estimate the price. That price, in turn, determines what costs and entrepreneur can reasonably expect to cove in production, which means the entrepreneur’s actual choice is for the cost structure in production – the price is an anticipation of consumer value.”

What does this mean? Production is the creation of wealth. The more you produce the more wealthy you become. Spending on the other hand, is the consumption of what has been produced. It is the destruction of wealth. This is true even though we know the reason we produce is so we can consume. We either consume what we produce, in the present, or we save what we produce for consumption in the future. We also use what we save for future production. It is like saving a portion of the corn we produce so we can plant it in the future in order to produce more corn. Production has to stay ahead of consumption or we start eating our seed corn (capital consumption).

The Myth Of Infrastructure Spending, by Ryan McMaken, at mises.org. Does infrastructure spending stimulate economic growth and create jobs? On the surface it seems logical that they do. Deeper analysis shows us a different picture. Excerpt from the article: “….it is assumed that government infrastructure programs were all necessarily “proven winners” for the metaphorical construct known as “the economy……But infrastructure spending is not some one-time thing that blesses the nation with new wonderful things that everyone can use indefinitely. It is often a commitment to simply spend much more money in the future. So, you’d better be sure you’re buying exactly what you need……. Building a new bridge or a new road brings totally unproven or hypothetical benefits, especially….. in less industrially dense areas. What’s worse, the promoters of such spending do not take into account the opportunity cost of the spending. After all, this sort of spending requires that the money must first be removed from the pockets of taxpayers. It is assumed that this is justified because it creates “stimulus.” It creates new jobs in building highways, and makes roads everyone can use. But what would the taxpayer and the worker have done in the absence of that spending?”

“……Borrowing immense sums to spend on infrastructure that doesn’t boost productivity actually cripples an economy by channeling scarce capital and tax revenues into projects that only boost spending for a few years at best, while the costs of borrowing the money pile up for decades to come……If a new highway is needed in Peoria, let the Peorians pay for it, either with a toll road or local taxes. If the benefits of infrastructure spending is so abundantly obvious, then it will pay off for every metro area that builds a new road. The great benefit of federal spending on infrastructure, however, is that the new spending can be forced on the taxpayers with much less political effort than would be required to obtain a new local tax.”

Paul Krugman Destruction Worshiper, at ecoomicpolicyjournal.com. It is hard to believe that economists could think that destruction of things which still have years of service left is some how stimulative to an economy. Have they never heard of the ‘broken window fallacy’? Or are they too smart to understand something so basic? Excerpt from the article: “ Ludwig von Mises once allegedly tried to encourage his students to speak up more freely in class by saying: “Don’t be afraid to speak up. Remember, whatever you say about the subject and however wrong it might be, the same thing has already been said by some eminent economist.”

 

CARTOONS

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Must Reads For The Week 10/1/16

September 30, 2016

Krugman: Obamacare Is Starting To Unravel, at economicpolicyjournal.com. Obamacare is working exactly as planned. It was the next step toward a single payer Government run system.

Doctors Drowning In Flood Of Obamacare Regulations: Cleveland Clinic CEO, at cnbc.com. Cleveland Clinic CEO Dr. Toby Cosgrove said, “The regulation paperwork comes in the form of a 7-foot-tall stack of 16,000 pages.

Feds Force Michigan Cherries To Rot – In order To Raise Prices, at michigancapitalconfidential.com. Who says government bureaucrats don’t understand economics. Constricting supply raises the price. FDR mandated these type of edicts during the great depression. Pigs were killed and buried in pits so the price of pork would remain high (read here), even though people were starving. Central planning isn’t easy!

Sweden Creates 55 “No-Go Zones” As It Loses Control Of Refugee Crisis, at zerohedge.com. The Refugees are trying to implement Shira law and they are succeeding. Police have given up trying to control the violence in the No-Go zones. What’s happening in Europe can’t happen here, can it?

France’s New Sharia Police, at zerohedge.com. If immigrants don’t assimilate into the existing culture, the existing culture will be taken over. This can’t happen here?

In Most States, First-Generation Immigrants Receive More In Government Services Than They Pay In Taxes, at economicpolicyjournal.com. You can’t have open borders and a welfare state. It incentivizes the wrong kind of people to come to America. We need people who want to produce. We don’t need anymore people who want to consume without any corresponding production (welfare recipients).

Confessed Mall Gunman, A Non-Citizen, Voted In 3 Elections In Wa., at tammybruce.com. Do we want non-citizens voting? Democrats do.

FBI Investigating More Dead People Voting In Key Swing State Of Virginia, at zerohedge.com. Do you trust the FBI in the wake of the investigation of Hillary? There is no way the FBI will find voter fraud in a state where Clinton crony Terry McAuliffe is the Governor.

Who Really Lost This Weeks Presidential Debate? America Did, at zerohedge.com. America is an ideal where the individual is sovereign and the government is subordinate. Hillary and Trump are for bigger government. The bigger the government the smaller the individual. The debate was between big Government and bigger Government. America lost.

Are The “Invisible Americans” The Key Players In This Election?, by Charles Hugh Smith, at oftowminds.com. Excerpt from the article: “The gulf between reality and the official happy story of “recovery” spewed by the status quo’s well-paid army of apparatchiks, flunkies, flacks, hacks, toadies, lackeys and functionaries gorging at the trough of the status quo is widening to the point of surrealism. Memo to the D.C. Beltway/mainstream media apologists and propagandists: the 25 million Invisible Americans are no longer buying your shuck-and-jive con job.” This article has great analysis by CHS.

Let’s Take A Break From All This B.S.

Ryder Cup Heckler Has To Put Up Of Shut Up. He Makes Putt He Said He Could Make.

The European Ryder cup guys were great. I like how Dave Johnson didn’t want to take the $100 dollar bill from Justin Rose that Rose put on the green next to the ball before Johnson hit the putt.

Drone Captures Northern Lights Over Iceland

 

Must Read “Leftovers”

July 28, 2015

The Newest Obamacare Fail: Penalties of $36,500 Per Worker, at economicpolicyjournal.com. This new IRS penalty is a result of different interpretations of the Affordable Care Act. Or is it a money grab by the IRS. We should not be surprised that a 2500 page bill that allows bureaucrats to make more laws as they desire could be interpreted differently by the IRS. Since the IRS had to be expanded to enforce the Obamacare fine/tax, logic would follow that they have to find more money law breakers to justify their existence. Because there wasn’t enough money mined from the tax payers as only 6.6 Million Americans Were Forced To Pay The Individual Mandate Tax In 2014 for a total of only $1.2 billion. That’s chump change when you’re talking 3 plus trillion in government spending.

“Fannie And Freddie Are Back Bigger And Badder Than Ever“: NY Times Warns, at zerohedge.com. The only difference this time is “the government has decided to “sweep” almost all the duo’s profits into its own coffers, to be used as a slush fund for general government expenses“. This won’t end well will it! “What do you expect to happen when the people responsible for running the economy into the ground are rewarded with bailouts and deemed “Too Big To Jail?”

Paul Krugman On The Minimum Wage: 1998 vs 2015. by Mark J. Perry, at carpediemblog. Let’s go to the replay official!…… “Upon further review Krugman’s view on the minimum wage is…….”

“Why I Don’t Tip In Seattle” Left For Bartender, at imgur.com. You can’t raise the minimum wage in a vacuum. There will be consequences that many couldn’t even foresee, like not tipping.

A Criminal Inquiry Is Being Sought Over Hillary Clinton’s E-Mail Use, at targetliberty.com. Two inspectors general are asking the justice department to investigate Hillary Clinton. I don’t expect anything to be done because the Clintons are above the law. But as this scandal drags on, Hillary may not escape being found guilty in the court of public opinion.

IRS Agents Rob Convenient Store,  video from Institute for Justice.

No comment needed.

Lets End With A Positive Story

Black Cop: Why I Helped That White Supremacist, at usatoday.com. The people of South Carolina didn’t riot after blacks were killed in a church by a racist. Officer Leroy Smith gives everyone a lesson on how to handle the situation when he helps a man who was suffering from heat stroke at a KKK rally. South Carolina must have a different set of values than a lot of other places in this country, like Ferguson and Baltimore. Actions speak louder than words.

Must Reads For The Week 2/7/15

February 7, 2015
The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

Video Of Cops Pulling Gun On Teens For Having Snowball Fight, Not Telling The Whole Story, at nydailynews.com. When I saw this video on another site, I was skeptical because there was no film of the snowball fight and no evidence of snowball residue anywhere in the video. Always try to check everything out that you see on the internet. This is a perfect example of how cops would be protected if they were wearing body cameras. The full story would be there for everyone to see.

Venezuela’s Socialist Paradise Turns Into Nightmare, by Peter Foster, at telegraph.co.uk. Individuals deciding what to produce, consume, exchange, and save in a free market increases people’s standard of living, and socialist central planning is “The Road To Serfdom“.

What Paul Krugman Thinks The Secret To The Universe Is, at economicpolicyjournal.com. This guy teaches economics at Princeton University! The students should ask for a refund. Does he understand that consumption is the result of production? Or does he think that what we consume appears magically out of thin air because of demand?

I Meet A Climate Concern Activist And Cave, at economicpolicyjournal.com. Trying to change the world, one person at a time. Their wasn’t much hope for this one.

Fixed, The App That Fights Parking Tickets, by Sarah Perez, at techcrunch.com. This is in the spirit that founded this country. Americans are always trying to find ways around Government interventions.

The Police No Longer Work For You, by Daniel Payne, at thefederalist.com. A SWAT team raided ten people playing poker. Fairfax police pocketed 40% of the money that was seized. Gambling is illegal in Virginia unless of course it is sponsored by the State. Government politicians and bureaucrats want anything outside of their regulates to be illegal. They want to control every aspect of people’s lives.

Wow…And Interest Rates Aren’t Even Climbing Yet, at economicpolicyjournal.com. The chart shows how the interest we pay on our national debt each year will almost quadruple in the next ten years. And that’s if the interest rates stay as low as they are right now. Unfortunately they have only one way to go, and that’s up. We all know who will pay for this.

Five Ways Liberals Ignore Science, by David Harsanyi, at thefederalist.com. Vaccines, global warming, genetically modified foods, fracking? What does the scientific process say about these and many other issues? Science is never settled. No one experiment can prove a theory correct, but all it takes is one experiment to prove it wrong.

Plane Hits Bridge In Front Of Car In Taiwan

Pilot’s Body Found Still Clutching Joystick Of Crashed Taiwan Plane, at reuters.com. The pilot saved lives by steering the plane away from buildings before crashing in river.

PEOPLE ARE AMAZING, OR INSANE!

1500′ Feet Tower

Most Insane Ski Line EVER

Must Reads For The Week 9/20/14

September 20, 2014
The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

Radical Math, at radicalmath.org. You would think math would be a subject that could not be propagandized by the left. But you would be wrong. Here is a quote from the Radical Math website: “Join educators, parents, students, activists, and community members from around the country for a 3-day conference to explore the connections between math education and social justice. We will explore many questions, challenges, and opportunities to work toward social justice through math education.” We can never rest in our quest to keep what’s left of our freedom and regain the freedoms we’ve lost, because the progressive left will never rest.

Peer-to-Peer Car Rental Startup FlightCar Raises Another 13.5 Million, by Ryan Lawler, at techcrunch.com. Here is another example of the market benefiting the consumer, and not the status quo crony’s. FlightCar has lots near airports around the country. Travelers can park for free for the duration of their trip. Their cars are then used by visitors to the airport, at a discounted rate, instead of paying higher rates charged by traditional rental car companies. Both parties benefit. One party doesn’t have to pay for long-term parking, and the other party pays a discount for a rental car.

The Simple Economics Of Adjunct Abuse, at mungowitzend.blogspot.com. Why is the pay and benefits for College adjuncts so low? The supply of adjuncts is high, and the demand for adjuncts if low. Universities recruit students for their MA and PhD programs. The students aren’t told the demand for these advanced degrees is marginal at best. Producing more than the market demands lowers the price of the good or service. Economic forces are always at work.

Global Un-Warming? Antarctic Sea-Ice Reaches Record High Levels, at zerohedge.com. Another example of reality going against the conventional wisdom of the global warming cult. Here is a quote form the article, “CEO of the Antarctic Climate and Ecosystems CRC, Tony Worby, said the warming atmosphere is leading to greater sea ice coverage by changing wind patterns.” It must be nice to be able to use global warming as a universal excuse for every weather scenario.

Paul Krugman Explained, at zerohedge.com. Keynesian economist Paul Krugman is like the global warming cultists, he doesn’t have to be intellectually consistent.

Obama Met Privately With Top Journalists Before ISIS War Speech, by Michael Calderone, at economicpolicyjournal.com. I wonder if the journalists were given tips on how to propagandize the ISIS speech? Memorize the list of these unbiased journalists for future reference.

Castro Valley Winery Fined $155,000 For Using Volunteers, by Rebecca Parr, at mercurynews.com. Westover Winery is out of business after being fined $155,000 for using labor that volunteered. Here is an excerpt from the article, “The volunteers, some of them learning to make wine while helping out, were illegally unpaid laborers, and Westover Winery should have been paying them and paying worker taxes, the state Department of Industrial Relations said.” Why would people voluntarily work for no pay? Answer: Because they thought what they were getting out of working at this vineyard was more valuable than the labor they expended and also more valuable than the next best use of their time. Then government steps in and uses it’s coercive power to imposes they’re special wisdom on the people who voluntarily made this arrangement. I saw this at Carpe Diem Blog.

8 Subliminal Messages Hidden In Corporate Logos, at economicpolicyjournal.com. Individuals are really clever.

The World’s Largest Urban Zipline, at youtube.com. These people are insane.

The Economics Of American Pickers, by Joel Poindexter, at mises.org. There is a lot of depth in this short article that explains the economic principles in play on the History Channel Show, American Pickers.

 

 

 

 

 

 

 

 

 

 

 

 

 

Must Reads For The Week 7/6/13

July 6, 2013
The pen is mightier than the sword...

The pen is mightier than the sword… (Photo credit: mbshane)

Presenting Inflation…, at zerohedge.com. The Feds counterfeit money is leaking out of the financial sector and into the rest of the economy.

The Benghazi Diary, A Hero Ambassador’s Final Thoughts, by Jack Murphy and Brandon Webb, at sofrep.com. Steven’s diary sheds light on a cover up.

Don’t Mess With A Man’s Family: Armed Texas Dad Takes On Three Armed Intruders, by Jason Howerton, at theblaze.com. Mr. Ortiz saved the tax payers money that would have been used on the trial, and incarceration of the perps. I think he should get a tax credit for a percentage of what was saved. Lets incentivize this behaviour, so it can disincentivize the perps behaviour.

Rep Tammy Duckworth Eviscerates Man Using H.S. Football Injury For Government Contracts, at egbertowillies.com. Iraq war veteran and double amputee Rep. Tammy Duckworth,crushes this federal contractor for using a H.S. football injury to get a service disabled status in order to get federal contracts. This guy can’t turn his man card, he never had one!

Egypt What A Shame, by Chris Rossini, at economicpolicyjournal.com. Individual liberty can’t exist in the same place that Government power exists. The people of Egypt are trying to gain freedom through the very entity that is keeping them from being free. Dismantling Government power is what makes the individual more free.

Up In My Grill: 4th Of July Rap, by Remy & MeredIth Bragg, at reason.com. You probably broke some Government regulation at your 4th of July celebration.

Rahmaland Fireworks: 34 people shot on July 4th, at economicpolicyjournal.com. Chicago has some of the strictest gun control laws. I know I know; ” just think what the numbers would be if they didn’t have strict gun control laws!”

A Yiddish Lesson From Paul Krugman, at economicpolicyjournal.com. “Man plans and God laughs”.

Obamacare Strikes: Part-Time Jobs Surge, Full Time Jobs Plunge, at zerohedge.com. When Government creates incentives to hire part-time employees, part-time employment will rise. You don’t need a crystal ball to see this.

The Dirty Little Secret About Holiday Traffic Ticketing, by Gary Biller, at washingtimes.com. Interesting article showing evidence that speed limit laws have nothing to do with safety, and everything to do with funding.