Category Archives: Economic Recovery

How Big Should Government Be? Not Big Enough for Many.

Have we reached a critical mass of voters?  On what issue you might ask.  On whether big government is bad on the whole.  I have read a couple of articles recently, addressing that question.  I don’t honestly know whether or to what extent people may believe big government is basically good.  But here is a quote from the author of the article, Jim Geraghty, writing in National Review, January 21, 2016 (read it at http://www.nationalreview.com/corner/430104/many-americans-dont-seem-all-upset-about-big-government).  He quotes from research by… Continue Reading ››

Mr. Obama’s economics in the SOTU–just another day in unreality

Like many of our readers, I can’t watch Mr. Obama’s SOTU.  His ability to distort reality is amazing, and simply raises my blood pressure.  So why watch?  Well, actually because I was hooking up a new TV setup while it was playing and had to check signal.  I wasn’t listening very long (maybe a few minutes) and here he goes again. I believe a thriving private sector is the lifeblood of our economy. I think there are outdated regulations that… Continue Reading ››

Bernie Sanders Looks to Sweden

In the recent Democratic Party debate Bernie Sanders told us we should look to Sweden, Denmark and Norway to see how a successful democratic socialist economic system works.  I have heard others say the same thing.  Even some conservatives have argued that socialism of the democratic kind works pretty well in those Scandinavian countries.  Rich Lowry, in an article in National Review Online, dated October 20, 2015, says “Not so fast.”  And he has some data to back up his… Continue Reading ››

Ten Years After

For the creation was subjected to futility, not willingly, but because of him who subjected it, in hope that the creation itself will be set free from its bondage to corruption and obtain the freedom of the glory of the children of God. Romans 8:18-21 Religion that is pure and undefiled before God, the Father, is this: to visit orphans and widows in their affliction, and to keep oneself unstained from the world. James 1:27 The question: “How should Christians respond to people who… Continue Reading ››

Greek Exit from Euro = Grexit = Chaos? or, = bumpy road to reality?

The Greek drama may finally be ending as soon as Monday, as end it must at some point.  Greece will exit the Euro, and the question is what will happen?  I don’t claim any special insight into what that will be, but there are a few points about this we should consider. First, Greece’s problem is very simple:  they have spent far more, and more importantly, promised far more, than they can pay back.  Their debt to GDP ratio is… Continue Reading ››

States Limit Local Regulation: Finally

An interesting development has arisen on the issue of regulation.  It seems that some state legislatures have moved to limit how much local governments will be allowed to regulate businesses and people.  This is quite a development.  In the past usually the states were only too happy not only to regulate directly themselves but to leave it to local governments, especially cities, and particularly large cities, to tax and regulate to their heart’s content.  It looks like some have finally… Continue Reading ››

Another Historical Distortion, by Bill Maher

Bill Maher tells authoritatively that capitalism did not produce a middle class.  It was actually worse than that.  I quote extensively from his statements on “Real Time” on HBO because you have to read it to believe someone said it: “so what’s happening is, the Democrats are proposing to nibble around the edges of our middle-class problem, and the Republicans are pretending to care while they go back to servicing eight rich d*ckheads who own coal mines, and no one… Continue Reading ››

SOTU and Inequality (Once Again)

In light of the State of the Union Address by President Obama, I am compelled once again (as if I were a “broken record”) to address the President’s proposals to raise taxes on “the rich” in order to reduce inequality and provide new services to those with lower incomes.  Perhaps there are some new readers on this blog who haven’t seen my previous posts on the same subject, so this effort may not be wasted. The issue of inequality of… Continue Reading ››

What is the price of oil telling us? And what are the real downsides of cheap gas?

A few days ago I continued my regular pooh-poohing of the perils of deflation, which is coming up again because of the fall in the price of oil.  As I said in that post, deflation that is associated with productivity is generally a good thing, but if its a result of a collapse in the money supply, well, that is a disaster.   And while the price of any single commodity falling can never be deflationary–since deflation is a monetary phenomenon–it… Continue Reading ››

Sometimes the media gets it right– why changing government incentives are contributing to lower employment.

I don’t know how this slipped past the editors of the NYT.  We have at least a recognition that changing incentives are contributing to more people staying out of the workforce.  Of course, excellent economists such as U of Chicago’s Casey Mulligan have done outstanding empirical analysis to show that changing government policies are making it far more costly (in terms of potential loss of government benefits) to go back to work.  But you’d never expect to hear this from… Continue Reading ››