ECONOMICS: Biden buys votes with student loan forgiveness

https://schiffgold.com/key-gold-news/somebody-has-to-pay-for-student-loan-forgiveness/

Somebody Has to Pay for Student Loan Forgiveness
August 24, 2022 by Michael Maharrey

*** begin quote ***

President Biden is expected to announce student loan forgiveness on Wednesday (Aug. 24). The plan will reportedly cancel $10,000 in student loan debt for anybody making less than $125,000 per year.

A lot of people think this is like waving a magic wand — poof — the debt is gone. But somebody has to pay and that somebody is the American taxpayer.

Nothing the government does is free. Ultimately, student loan debt forgiveness will add to the already massive budget deficit. That means Uncle Sam will have to borrow more money that taxpayers will have to repay, either in higher taxes or the inflation tax.

*** end quote ***

And we know who all pay — the Taxpayers.

The economy will have more inflation to deal with and the moral hazards keep piling up!

—30—

ECONOMICS: Here’s at least on good idea to save “Mother Earth”

https://www.dailymail.co.uk/femail/article-11105347/People-share-clever-zero-waste-tips-including-brothers-sent-birthday-card-1973.html

Waste not, want not! Social media users share their genius ideas for reducing, reusing and recycling – from resending the same birthday card to making an ice cream cone out of a banana leaf

  • People around the world are re-thinking what can be reused or recycled
  • Many people are becoming more aware of their environmental impact
  • Bored Panda collated some people’s very clever yet unusual zero waste tips

By Ellen Coughlan For Mailonline
Published: 04:02 EDT, 13 August 2022 | Updated: 04:09 EDT, 13 August 2022

*** begin quote ***

With two billion tons of waste dumped every year around the world, people have started to re-think what can be reused or recycled.

Many are becoming more aware of their environmental impact as rubbish sent to landfill represents a significant amount of greenhouse gases which have contributed to climate change.

People from around the world have shared their best zero waste ideas on social media, with Bored Panda collating some in an eye-opening online gallery.

*** end quote ***

As you know, I’m not a big believer in the “Mother Earth” Galia worship. But as an fat old white guy injineer, waste indicates that a better process exists and should be deployed.

A banana leaf is a good substitute for that paper wrapped around the ice cream cone.  But I like the cones.

Only serving coffee in the patron’s own cup seems to be a substantial saving.

My personal favorite is the reused birthday card.  Not that I send paper cards, I use e-cards from Jacqueline Lawson. https://www.jacquielawson.com/ which are really beautiful and completely “recyclable”. Laugh!

—30—

ECONOMICS: Bitcoin exposes the weakness of fiat “money”

https://www.zerohedge.com/crypto/hidden-costs-fiat-bitcoin-standard

“The Bitcoin Standard” Exposes The Hidden Costs Of Fiat
by Tyler Durden Monday, Apr 11, 2022 – 03:03 PM
Authored by Archie Chaudhury via BitcoinMagazine.com,

*** begin quote ***

Dr.u Saifedean Ammos, author of “The Bitcoin Standard,” explained how fiat has hidden costs and why Bitcoin represents the next generation of money…

Detractors of Bitcoin often point to its costs – namely in the form of electricity used in proof-of-work mining and its perceived impact on the environment – as reasons for why it will never be a sustainable alternative to traditional fiat currency. These detractors often believe that Bitcoin is fundamentally unscalable, or more likely, come from the power structures that fiat currency has enabled, such as government or centralized financial institutions.

In his presentation on the main stage of Bitcoin 2022, Dr. Saifedean Ammous delivered a presentation meant to underscore the invisible costs of fiat money, and how it has been used for centuries to economically oppress the average citizen of a fiat-based economy. Dr. Ammous has long been a supporter of Bitcoin, and has written “The Bitcoin Standard” and “The Fiat Standard,” both of which have helped educate numerous individuals about the advantages of Bitcoin and the corruption that is ingrained in most fiat states.

Dr. Ammous started his speech by focusing on inflation and how using fiat money helps back a system that is inherently unequal. Dr. Ammous specifically cited how fiat inflation is used primarily for the needs of the government, saying that “The cost of fiat is currently 3.5% of all global wealth, and is used to finance government parasites, wars, and monopoly banksters.”

*** end quote ***

Inflation is the silent tax that has robbed “We, The Sheeple” of 99% of the purchasing power of their “dollars”.

The politicians and bureaucrats love it because unless you look for penny candy, or a nickel cigar you won’t see it.

That what this thrives count on.

Argh!

—30—

ECONOMICS: Is the American Empire in decline — seems that way

“In a few words: the West is in decline and our leaders are greatly accelerating and exacerbating this decline. They can cover this up with redundant arguments about what is and isn’t a recession for so long. But at some point either the inflation will get worse — perhaps by gas shortages in Europe this winter — and/or the unemployment rate will spike. At that point, the underlying dynamics will become too obvious to ignore; for politicians and the general public anyway. Economists will likely find some other redundant nuance to debate and distract.”

https://macrocosm.substack.com/p/is-this-or-is-this-not-a-recession?utm_source=substack&utm_medium=email

# – # – # – # – #

It certainly seems that the “can” has finally been kicked as far down the road as it can be.  And, some very ugly economic “chickens” are going to come home to roost.

Instead of learning from the malaise in Japan, or the abject failures of previous “bailouts”, the politicians and bureaucrats have continued to increase their spendthrift ways.

“We, The Sheeple” are going to feel the pain!

—30—

ECONOMICS: FT Opinion ignores that there is no way to pay the debt that has been created

https://www.ft.com/content/db0a2535-7292-4c84-9015-0d9c4af67713?segmentId=b385c2ad-87ed-d8ff-aaec-0f8435cd42d9

Opinion The FT View
US recession is a smaller danger than long-term inflation
The Fed needs to hold its nerve on tightening further
The editorial board

*** begin quote ***

Investors have spent much of this week puzzling over what this all means — edging up predictions for the future path of interest rates and for the chances of recession. But there is good news in some of it — it is hard to read the markets’ responses as indicating that investors think this ultra-high inflation is now a permanent feature of American life. The Fed has credibility. But it still needs to tighten further to justify that faith.

*** end quote ***

I respectfully disagree.

The current 30T$+ national debt and the guesstimated 226T+ in unfunded liabilities that our posterity will have to deal with is inescapable.

The Russian “sanctions” over Ukraine have put the USA on a collision course to crush the U$D.  (The fact that it’s the cleanest dirty shirt in the laundry is little comfort.)

For decades, responsible people have been pointing out that empires fall when their currency is debased.  Why should the USA be any different?

We have kicked the can down the road and we can see the end of the road.

End the FED and return to sound money.

—30—

ECONOMICS: If my leased car’s value is understated, ain’t I paying from more “leave value” than I am getting?

Ford eliminates end-of-lease purchase option for EVs

https://www.autoblog.com/2022/06/24/ford-ends-purchase-option-on-leased-vehicles/

# – # – # – # – #

The “game” may be having a “rules” change because used cars are more valuable than the lease’s return price.​

So that means you the leaser (i.e., sucker) paid more for the value of the lease than calculated and you can’t recapture that at the end of the lease by selling the “pig” privately.

Seems like something akin to theft by fraud.

—30—

ECONOMICS: There is no such thing as “price gouging”

https://patch.com/new-jersey/southbrunswick/s/i9a9w/baby-formula-shortage-prompts-nj-state-of-emergency-murphy?utm_source=nearby-news&utm_medium=email&utm_campaign=alert

Baby Formula Shortage Prompts NJ State Of Emergency: Murphy
Those looking to make a profit by increasing baby formula prices will face severe penalties in New Jersey, officials said.
Nicole Rosenthal, Patch Staff
Posted Wed, May 18, 2022 at 8:40 am ET

*** begin quote ***

NEW JERSEY – Gov. Phil Murphy declared a state of emergency in New Jersey on Tuesday amid an ongoing shortage of baby formula due to inflation, supply chain issues and recalls in the state and around the country.

The declaration was signed in order to activate New Jersey price gouging laws consistent with efforts at the federal level, according to Murphy.

“We firmly believe that New Jersey is the best place in the nation to raise a family, and during this challenging time, we want to support our
families with all of the resources at our disposal,” Murphy said in a statement.

“To any retailer who may try to take advantage of vulnerable families during this shortage, let me be clear that this reprehensible action will not be tolerated. And to any New Jerseyan affected by this shortage, rest assured that my administration will do everything in our power to ensure families have access to the formula they need.”

*** end quote ***

Once again, this is just Gooferment stupidity. There’s no such thing as “price gouging”. Higher prices are the signals from the market that makes TWO things happen — conservation of a scarce resource and an incentive to entrepreneurs to provide resources or alternatives. Baby formula is no different that any other commodity. Argh!

Like the hotels taking in refugees from a natural disaster MUST raise their prices to encourage “conservation”.  If the price is “too high”, then a family will squeeze into one room rather than spread out into two.  Then this will leave that other room free for some other family.  The market place “rations” scarce resources by higher priced.  

Also, entrepreneurs may open a spare bedroom during an emergency to make a few bucks because of those high prices.

Argh!

Real economists like Walter Williams have made much stronger arguments than I ever can. But it’s clear that politicians and bureaucrats never studied any economics or enjoy posturing for the publicity.

Argh!

—30—

ECONOMICS: Anti-trust? Let Musk buy Twitter. It’d would be a hoot!

https://www.spiked-online.com/2022/04/15/why-elon-musk-has-rattled-them/

Why Elon Musk has rattled them

  • His attempted takeover of Twitter has revealed just how terrified the liberal elites are of freedom of speech.

Tom Slater Editor 15th April 2022

*** begin quote ***

We stand here on the edge of tyranny… Elon Musk wants to buy Twitter. That, roughly speaking, has been the commentariat reaction in recent days as the world’s richest man has launched a takeover attempt of the social-media giant, citing his concerns about its censorious policies as his main motivation.

Musk revealed last week that he had become Twitter’s largest shareholder, with a 9.2 per cent stake. Now he’s offered to buy the whole company for a cool $43 billion, a nice premium on its current worth. As it stands, Twitter’s board is resisting and America’s great and good have gone berserk.

The Washington Post’s Max Boot was swift out of the blocks. ‘I am frightened by the impact on society and politics if Elon Musk acquires Twitter’, Boot tweeted. ‘He seems to believe that on social media anything goes. For democracy to survive, we need more content moderation, not less.’

*** end quote ***

What better way to break up Big Tech than to have some “wild card” break in?

—30—

ECONOMICS: The economy has yet to recover from covid, but the stock market is being inflated

https://www.zerohedge.com/markets/nothing-has-changed-except-everything

Nothing Has Changed, Except For Everything
BY TYLER DURDEN
MONDAY, MAR 28, 2022 – 09:30 AM

*** begin quote ***

The signs and symptoms I’m paying attention to are as follows (read this list slowly, and take it all in):

  • We have a market that saw the NASDAQ (an index) rise about 120% in less than 2 years off its March 2020 lows, despite the fact that our economy never materially recovered during the same period of time.
  • Our money supply (M2) rose between 21.7% and 26.92% year over year, between April 2020 and February 2021. Its long term YOY average rise, including this data, is just 7.16%. Prior to 2020, most YOY growth was between 3% and 5%.
  • Our inflation rate is at its highest point in about 30 years, and that is using a totally different method for measuring inflation than we used to. If we used the standards for measuring CPI in the 1980s, inflation would likely be at all time record highs for our nation.
  • We have the most material hot war in Europe since World War II taking place, with little visibility on how it will end. At the same time, relations with Russia and China have not been this contentious in decades. Russia and China also look to be posing a serious, calculated challenge to the U.S. dollar’s reserve status.
  • As I pointed out days ago, stocks relative to GDP are also in uncharted territory, where reversion to the mean would mean a minimum of a 40% drop from here.

But hey, Jim Cramer says he thinks “the bear market is over”. He’s on CNBC. I’m not.

*** end quote ***

Hard to imagine what will happen when the politicians and bureaucrats have “managed” the US into a horrific depression.

Sigh!

It’s not going to be pretty for the non-rich.

—30—

ECONOMICS: There should NOT be any taxes on “Virtual Currencies”

https://www.irs.gov/businesses/small-businesses-self-employed/virtual-currencies

*** begin quote ***

Virtual Currencies
 
Virtual currency transactions are taxable by law just like transactions in any other property. Taxpayers transacting in virtual currency may have to report those transactions on their tax returns.

What is Virtual Currency?

Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value. In some environments, it operates like “real” currency (i.e., the coin and paper money of the United States or of any other country that is designated as legal tender, circulates, and is customarily used and accepted as a medium of exchange in the country of issuance), but it does not have legal tender status in  the U.S. Cryptocurrency is a type of virtual currency that utilizes cryptography to validate and secure transactions that are digitally recorded on a distributed ledger, such as a blockchain.

Virtual currency that has an equivalent value in real currency, or that acts as a substitute for real currency, is referred to as “convertible” virtual currency. Bitcoin is one example of a convertible virtual currency. Bitcoin can be digitally traded between users and can be purchased for, or exchanged into, U.S. dollars, Euros, and other real or virtual currencies.

*** end quote **

Sounds like they are defining “money”!

We don’t tax when “dollars” (i.e., Federal Reserve Note fiat greenbacks) are converted to Euros or visa versa.  So why are we taxed on “Virtual Currencies”?  For that matter, why are we taxed when buying gold or silver?  Doesn’t the Constitution define a “dollar” as an amount of gold or silver?

Argh!

Guess the IRS is going have a hard time finding all the non-custodial crypto wallets!!!

#endthefed 

If they can keep drugs out their prisons, how will the keep crypto out of a free society?

—30—

ECONOMICS: Inflation reduces real wages

https://www.theguardian.com/commentisfree/2022/feb/05/fed-raise-interest-rates-shaft-american-workers-robert-reich

The FED is about to raise interest rates and shaft American workers – again
Robert Reich — Sun 6 Feb 2022 01.00 EST

  • Policymakers fear a labor shortage is pushing up wages and prices. Wrong. Real wages are down and workers are struggling

*** begin quote ***

Fed policymakers are poised to raise interest rates at their March meeting and then continue raising them, in order to slow the economy. They fear that a labor shortage is pushing up wages, which in turn are pushing up prices – and that this wage-price spiral could get out of control.

It’s a huge mistake. Higher interest rates will harm millions of workers who will be involuntarily drafted into the inflation fight by losing jobs or long-overdue pay raises. There’s no “labor shortage” pushing up wages. There’s a shortage of good jobs paying adequate wages to support working families. Raising interest rates will worsen this shortage.

There’s no “wage-price spiral” either, even though Fed chief Jerome Powell has expressed concern about wage hikes pushing up prices. To the contrary, workers’ real wages have dropped because of inflation. Even though overall wages have climbed, they’ve failed to keep up with price increases – making most workers worse off in terms of the purchasing power of their dollars.

*** end quote ***

It’s a fact of life the at the FED’s 2% inflation target is a joke.  The FED has debased the currency of 99% of its value with its “2% target”!  But over and above that, the inflation has been robbing poor people, working slobs, and senior citizens on fixed income.

So maybe a good liberal like Reich might be enlisted into the “End The Fed” movement.

IMHO we need to go back to “real money” aka gold and silver.

Under hard money, prices go down and real wages go up naturally.

—30—

ECONOMICS: ‘The Great Reject’?

http://feedproxy.google.com/~r/zerohedge/feed/~3/0jJpXtjZ4no/atlas-shrugging-forget-great-reset-here-comes-great-reject

Atlas Is Shrugging: Forget ‘The Great Reset’, Here Comes ‘The Great Reject’
Zero Hedge by Tyler Durden

*** begin quote ***

It won’t work, and it brings to mind a particularly vivid example I once heard about a balloon disaster that still makes me cringe when I think of it:

A group of people were embarking on a balloon ride and as they were just a foot or two off the ground, the burner erupted into flames. The balloon pilot realized immediately what this meant and he leapt from the gondola which was still only a few feet off the ground.

One or two of the passengers were quick witted enough to realize what this meant and followed him. This set off a feedback loop: as the fire expanded, its hot air forcing the balloon higher, combined with the weight reductions as the first few people bailed out, the situation very quickly escalated past a point of no return.

The balloon had accelerated very rapidly to heights from which it was no longer possible to leap safely. The unfortunates who had hesitated and were trapped in a gondola being propelled higher by a fireball, to their inevitable doom.

That’s what our entire situation feels like today. The balloon is still hanging a foot or so above the ground, the canopy is on fire, and the people who have figured out what this means are bailing out while they can and in doing so they are accelerating the ultimate burn-then-crash of the entire system.

*** end quote ***

Economics is called the “dismal science” for a very good reason.

It’s based on the idea that ALL resources are scarce and there are “laws” that describe how resources are used

It’s “dismal” because rarely are there enough resources to satisfy everyone’s “wants”.  (Notice I didn’t say “needs” because that’s a much lower standard. (Think what passes for a “good life” in a Third World country and you’ll have my idea of “needs” versus “wants”.)

In today’s economic climate, the “wants” have outstripped our Gooferment’s ability to supply the resources need to satisfy them. (Note the tax  & borrow to spend  on “wants”.)

So like the balloon example above, get off before the disaster.

—30—

ECONOMICS: A “wealth tax” is tax on unrealized gains; not “income”

https://www.americanthinker.com/articles/2021/03/the_government_is_considering_a_financial_weapon_of_mass_destruction.html

March 25, 2021
The Government Is Considering a Financial Weapon of Mass Destruction
By John Klar

*** begin quote ***

In seeking to tax unrealized income from hyper-inflated capital assets, AOC, et al. are launching an aggressive, unconstitutional plan to destroy the national economy while growing government limitlessly.  Given her past pronouncements, she likely understands this travesty even less than she comprehends cow farts.

What is terrifying is not that AOC is calling for insane monetary policy and whole new means of tax takings.  What is terrifying is that almost no one is raising the fiscal alarm.

*** end quote ***

And, like the income tax, that started by impacting the top per cent, it quickly came down on everybody.

There’s no way that such a tax doesn’t destroy the economy’s “seed corn”.

The rich don’t have a basement full of bucks like Scrooge McDuck in their basement.  It’s spent or invested and EVERYONE benefits.

Argh!

—30—

ECONOMICS: The Gooferment is to blame for Texas’

https://www.washingtonpost.com/opinions/2021/02/18/texans-grid-outage-deregulation/

*** begin quote ***

Why Texans are cold and in the dark Texas’s predicament stems from a decision that state lawmakers made about 20 years ago to abandon the traditional model of fully regulated electricity utilities. Still used across many areas of the nation, these electric companies — described as vertically integrated utilities — do not compete for customers and are allowed to earn a rate of return on investment. They can raise rates only with the permission of state regulators. (Washington Post)

*** end quote ***

All the Gooferment’s fingerprints are all over this crisis.

—30—

ECONOMICS: Thought Experiments About the Minimum Wage

(Don Boudreaux) Tweet Here’s a letter to a high-school senior in Wisconsin who (I boast) reads Café Hayek: Mr. S___: Thanks for your e-mail. I share your negative opinion of Pres. Biden’s proposal to more than double the national minimum wage to $15 per hour.

Source: Thought Experiments About the Minimum Wage

*** begin quote ***

I’m sure that many of your classmates earn income by doing odd-jobs such as babysitting, mowing lawns, and shoveling snow. So ask them what they think would happen if government forced them to double the amounts that they charge to do these jobs. Do your classmates think that parents with young children will continue to hire as many hours of babysitting at (say) $30 per hour as they hire at $15 per hour? Will homeowners’ willingness to hire neighborhood kids to mow lawns be unchanged if the price of getting a lawn mown is forced up from (say) $25 to $50? Will neighbors be just as willing to pay (say) $40 to have snow shoveled off of their driveways as they are when they must pay only $20?

*** end quote ***

Here’s another thought experiment.

We know that few heads of households (I believe less that 1%) earn on the minimum wage.

Soooooo.

Cui bono.

It’s a well known fact that when you increase the bottom of the pay scale all the level on top of that pay grade have to go up too.

So it’s union workers, politicians, and bureaucrats that make out the best.  Obviously, the taxpayers are much worse off, as well as a consumers, as price increases ripple thru the economy.

Argh!

—30—

ECONOMICS: The death of the department store and the American middle class – Impact Lab

Department stores are also facing the reality that they are no longer the main way most shoppers discover or access new brands — which was once perhaps their main appeal as onetime innovators. Consumer brands have increasingly become focused on building connections with customers through their own stores, websites, social media platforms, and other online-only marketplaces. 

The death of the department store and the American middle class – Impact Lab

# – # – # – # – #

Clearly, the handwriting is on the proverbial wall.

EVERYONE needs to reassess what this means in their own life.

My past advice seems to apply even more so now.

Success for your generation is: (1) ruthless financial discipline — no bad debt; (2) a life long interest in learning — education — a degree — they can’t take it away from you; (3) a NON-OFFSHORABLE white collar job in order to save big bux; (4) a blue collar skill for hard times — never saw a poor plumber; (5) one or more internet based businesses — your store is always open; (6) a free time hobby that generates income; and (7) a large will-maintained network of people who can “help” you.

—30—

ECONOMICS: Focus on the downside

Guns are a big part of my life… they make me money, they keep me safe, they encourage a particular set of values and lifestyle….but sometimes it gets difficult to remember that there are other aspects of preparedness that may actually be more paramount.

Source: Focus

# – # – # – # – #

If someone asked me what to do to increase resilience for 2021 I’d say “Wargame a scenario where you lose your job and can’t find another one at all or at the same wage and prepare for that”. That means clear debts as quick as you can, and start holding cash. Sure, you’ll lose some to inflation but I don’t see a Wewimar-esque hyperinflation coming yet. If you want to hedge your bets, split it among cash and metals. Here’s what I wold not do: I would not buy big ticket items just because I can, I would not buy anything on credit, I would not plan any expensive vacations, and I would not plan on having kids (because do you really want to take the hit of three months without a paycheck  and have the added medical expenses and the additional stresses all at a time when things are so uncertain?)

# – # – # – # – #

Yeah, it’s easy to be an optimist, and if you’re lucky, it’ll always work out for you.

But when planning for contingencies, assume the worst, and all surprises will be to the up side.

When as the Big Fat Old Turkey couselling Fat Old White Men, who were laid off or fearing for “their” job — even though “your job” is really NOT yours — I would urge them to figure out their “burn rate” of mandatory monthly expenses and depending upon their situation of age, education, savings, debts, and skills — hot in great demand or not — then realistically plan for how long they would be out of work.

Sometimes the answer was that they’d never get another job like their last one. It’s a brutal honest truth that comes to all of us sooner or later. (In my case, it was later; I’ve see some who just turned 50 and were stunned to be unable to find work at all.)

So a word to the wise, be prepared.  In this economy, an emergency fund of two years burn rate is NOT out of the question.

AND, YOU MIGHT NEED MORE.

YMMV.

—30—

ECONOMICS: Bonuses before bankruptcy: Companies doled out millions to executives before filing for Chapter 11

Bonuses before bankruptcy: Companies doled out millions to executives before filing for Chapter 11

Abha Bhattarai, Daniela Santamarina 5 hrs ago

Bonuses before bankruptcy: Companies doled out millions to executives before filing for Chapter 11The coronavirus recession tipped dozens of troubled companies into bankruptcy, setting off a rush of store closures, furloughs and layoffs. But several major brands, including Hertz Global, J.C. Penney and Neiman Marcus, doled out millions in executive bonuses just before filing for Chapter 11 protection, according to a Washington Post analysis of regulatory filings and court documents.

Source: Bonuses before bankruptcy: Companies doled out millions to executives before filing for Chapter 11

# – # – # – # – #

I’ve addressed this “problem” before.

https://reinkefaceslife.com/2010/03/22/political-reigning-in-corporate-salaries-a-modest-proposal/

Since “corporations” are a Gooferment “creation”, the Gooferment can make the ROE (rules of engagement) for them.

Soooooo, turn the IRS loose on the “corporations”.

No corporation can pay an annual salary more than the President. (It’s unseemly and crude!)

And, corporations should be able to pay ANYTHING in the form of “tiered” of equal amounts over 25 years.

My reasoning is that we want to “encourage” long term thinking.

Having seen the GM “bankruptcy” where everyone made out well EXCEPT the taxpayers and the bondholders, we need to “fix” this.

By making the Board of Directors and “executives” compensated in 25 year bonds, the entire set of incentives and motivations will be changed radically!

Sigh!

… … so it will never happen … …

—30—

ECONOMICS: Low value routine work is the easiest target for robots

https://www.zerohedge.com/personal-finance/say-goodbye-millions-jobs-events-unfold

Say Goodbye To Millions Of Jobs As Events Unfold
by Tyler Durden
Sun, 10/04/2020 – 13:30
Authored by Bruce Wilds via Advancing Time blog

*** begin quote ***

Many jobs will not be coming back after the covid-19 crisis ends. We can say goodbye to millions of jobs as events unfold and markets evolve. Millions of small businesses being decimated by Fed policies that favor huge companies coupled with a surge in automation bodes poorly for those looking for work. Over the last three decades, robots have become far more common in factories. In many manufacturing facilities, robots do most of the work. A typical factory may contain hundreds of robots working on fully automated production lines, as it rolls by on a conveyor, a product can be welded, glued, painted, and finally assembled at a sequence of robot stations.

*** end quote ***

Unfortunately, the current and next generation are not prepared to move up the “value chain”.

That doesn’t necessarily mean more college degrees will save you.

The world will always value “poor plumbers”, good doctors and car mechanics, and entrepreneurial people who satisfy the needs of their fellow human beings.

The essential skill to have is to recognize that “the rules” are always changing and one has to be ready to ride the “wave”.

—30—

ECONOMICS: This will eliminate “rentals”?

https://www.economicpolicyjournal.com/2020/08/th-war-on-landlords-is-accelerating-how.html

TUESDAY, AUGUST 18, 2020
The War on Landlords is Accelerating: How Bad Will It Get?

*** begin quote ***

The idea of abolishing rent is not new, but until now it has never really been considered anything but a nutty pipe dream. But with the economic carnage wreaked by the virus and ensuing government lockdown still ongoing it has disturbingly come to be viewed as a conceivable policy option. With tens of millions out of work, the ability to pay for basic necessities like housing is obviously a valid concern, but the callousness of the idea of simply expropriating housing from property owners is disturbing and indicative of darker trends coursing through the body politic in these turbulent times.

*** end quote ***

Why would anyone be a landlord?

The Gooferment politicians and bureaucrats pandering to the mob to solve a “problem” that they created with their “stupid” or at least ill-considered policies.

Yet another example of — “The government is good at one thing. It knows how to break your legs, and then hand you a crutch and say, ‘See if it weren’t for the government, you wouldn’t be able to walk.” ― Harry Browne

—30—

ECONOMICS: Can’t criticize Marxism or its genocidal history

https://www.economicpolicyjournal.com/2020/08/economics-professor-isnt-allowed-to.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+economicpolicyjournal/YZSb+(EconomicPolicyJournal.com)

Economics Professor Isn’t Allowed to Open to All Students His Class Critical of Marxism

*** begin quote ***

A longtime economics professor at Wright State University, Professor Evan Osborne, who has repeatedly requested permission to teach a class critical of Marxism has been turned down by the university administration. Meanwhile, the university frequently offers courses that praise Marxism, Osborne told The College Fix.

*** end quote ***

Interesting that Nazism isn’t treated the same way.

No wonder the “yutes” have heads full of much.

Capitalism, would be better without the Gooferment, but it’s still the best of all the other choices.

—30—

ECONOMICS: Elizabeth Warren cheers AOC’s Green New Deal as she launches 2020 run | Daily Mail Online

The 69-year-old Democrat officially launched her campaign at a rally on Saturday in Lawrence, Massachusetts, one of New England’s poorest and most heavily Latino communities.

Source: Elizabeth Warren cheers AOC’s Green New Deal as she launches 2020 run | Daily Mail Online

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These SOCIALISTS are going to ruin the USA.

First, IMMORALITY “the rich” pay most of the taxes already.  How much more do they think they can pay?  If we think that tithing to God at 10% is holy, then what percentage doe the “god” of Gooferment demand.  IMHO, any tax is an immoral taking.

Second, INVESTMENT “the rich”, unlike Scrooge McDuck, don’t have a basement full of gold goins that they swim in.  They invest their wealth in productive higher order goods that improve productivity.  if the Gooferment takes that wealth, then where is the investment going to come from.

Third, WASTE the Gooferment already wastes so much.  It’s estimated, that for every dollar taken by Gooferment, more than half is wasted.  Over and above that, since the Gooferment produces little if anything of value for real people, why would anyone want to give them more wealth.

The SOCIALISTS want us to ignore the real world examples of East and West Germany, North and South Korea, Venezuela, the Stalin’s Russia, Mao’s China, Pol Pot’s Cambodia, Hitler’s Germany, and on and on through out history.  Countries that have been seduced by Socialism’s sirens song of “free stuff” have paid the price of death, poverty, starvation, and disease.  Capitalism may not be the “best system”, but it’s better than all the others that have been tried.

Argh!

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ECONOMICS: “Tax the rich” prevents “capital formation” and makes us all poorer

https://mailchi.mp/tomwoods/high-taxes?e=39307912ab

Tom Woods · PO Box 701447 · Saint Cloud, FL 34770 · USA 

FROM HIS EMAIL BLAST OF 2019-Jan-16 10:26PM

*** begin quote ***

Here’s my unfashionable opinion: I believe in tax cuts for the rich. (I believe in tax cuts for everyone.) I believe the rich are human beings with rights, and not cash cows to be milked by people who had nothing to do with the creation of their wealth.

Now what follows is just for you, and not for your social-democratic friends, who will listen to what I say and respond with, “That’s trickle down, which doesn’t work!”

Those people are anti-intellectual and can’t be reached. What I’m telling you here is for the sake of your own understanding, not theirs.

Here is how wealth is created, and why confiscating the incomes of high earners is so destructive.

When firms increase and improve the equipment and machinery at the disposal of workers, those workers’ labor becomes more productive. Imagine someone using a forklift (as my father did), as opposed to stacking pallets with his bare hands, or producing books with modern equipment as opposed to a 16th-century printing press. The amount of production the economy is capable of is thereby increased, often dramatically, and this increase in production puts corresponding downward pressure on consumer prices (relative to wage rates).

There is nothing natural or inevitable about the availability of this productivity-enhancing capital equipment. It does not fall out of the sky. It comes from the wicked capitalists’ saving, and the allocation of the unconsumed resources in capital investment.

This process is the only way the general standard of living can rise. Only in this way can the average laborer produce the tiniest fraction of what today he is accustomed to producing. It follows that only under these conditions can he expect to be able to consume the tiniest fraction of what today he is accustomed to consuming.

The increases in the productivity of labor that additional capital brings about push prices down relative to wage rates. By increasing the overall amount of output, such increases raise the ratio of consumers’ goods to the supply of labor. Put more simply, improvements in the production process that lead to an increased supply of consumer goods make those consumer goods cheaper and easier for people to acquire.

 

That’s why, in order to earn the money necessary to acquire a wide range of necessities, far fewer labor hours are necessary today than in the past. Thanks to capital investment, which is what businesses engage in when their profits aren’t seized from them and when savings are available to them to invest, our economy is far more physically productive than it used to be, and therefore consumer goods exist in far greater abundance and are correspondingly less dear than before.

*** end quote ***

And, he has a list of how productive has cut the “cost” of certain items in terms of the work hours needed to acquire them.  Very impressive.

“Tax the rich” is code for make everyone poorer by preventing “capital formation”.  Zero interest rates have wiped out savings by what’s left of the middle class.  If there is no “capital investment” because the “rich” are tax and unable to invest, then where does “capital investment” come from?  

I know “the money tree” that grows in everyone’s backyard!

Argh!

Today’s politicians and bureaucrats need to go to the figurative guillotine before the USA has its own version of the French Revolution.  Can these people possible be this stupid about economics?

I wonder.

TANSTAAFL (“There Ain’t No Such Thing As A Free Lunch” From Robert Heinlein’s classic) 

Or are they just blinded by their “power”?

Argh!

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ECONOMICS: Never thought of a cargo ship that way

http://www.economicpolicyjournal.com/2018/04/whos-we.html

SATURDAY, APRIL 14, 2018
Who’s the “We”?
Donald J. Boudreaux

*** begin quote ***

You’ll say that the “we” is Americans – to which I say that our capacity as Americans to make all these marvels has emphatically not been dismantled.  We do make them, sometimes directly and other times in a roundabout way.  But always we make them.  As the economist David Friedman points out, we Americans have an ingenious machine for transforming the corn that we grow in Iowa into automobiles that we drive.  That machine is called a “cargo ship.”  Into the ship we put corn and, a few days later, out of the ship comes automobiles.  We make cars by making corn.  This production process is akin to every other production process: mix various inputs together to produce something different and greater than the sum of its parts.

*** end quote ***

Now that’s an insight.

And the Gooferment should get out of the way of “we” filling up the outbound ships with “stuff”!

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ECONOMICS: Aren’t “tariffs” just taxes on “We, The Sheeple”?

http://www.foxnews.com/opinion/2018/03/07/john-stossel-mr-trump-if-raise-tariffs-on-steel-and-aluminum-punish-consumers.html

John Stossel: Mr. Trump, if you raise tariffs on steel and aluminum, you punish consumers
By John Stossel | Fox News

*** begin quote ***

No, President Trump, it’s not true that if you tax imported steel, we “will have protection for the first time in a long while.”

The opposite is true. If you raise tariffs on steel and aluminum, you punish consumers.

*** end quote ***

Isn’t this just a tax increase in disguise?

Maybe “We, The Sheeple” should subsidize the biggie whip makers?

Sorry, but tariffs are just stupid ekkynomics!

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