Inflation is widely misunderstood by the public. Even economists tend to have a hard time coming to a general agreement to the true definition of inflation. When you ask the person on the street what inflation is they usually respond by saying the “price of things going up” which is more of a
Federal Reserve
Where Keynes Went Wrong – And Why World Governments Keep Creating Inflation, Bubbles, and Busts
When the world financial system failed in 2008, world governments intervened decisively. Guided by Keynesian economics teams with impeccable credentials, they intended not only to “stimulate” the economy, but to “jolt” it back to borrowing and spending as usual. All of these actions were taken from a playbook devised by British economist John Maynard Keynes, author of The General Theory of Employment, Interest, and Money and by far the most influential social thinker of the past century.
But . . . not all economists agree. Following the Crash of 2008, some critics of Keynesianism ask: Isn’t the root problem that Americans have borrowed too much? Will even more borrowing, this time government borrowing to support deficit spending, really help us out of the bind we are in?
via Where Keynes Went Wrong – And Why World Governments Keep Creating Inflation, Bubbles, and Busts.
Are Easy-Money Policies an Obstacle to Genuinely Needed Pro-Growth Reforms? – Daniel J. Mitchell – Townhall Finance Conservative Columnists and Financial Commentary – Page full
Dan Mitchell
The problem isn’t just in Europe. Like the ECB, the Federal Reserve also has tried to goose growth with easy-money policies.
But that’s like pushing on a string. Maybe there are times that the financial system needs more liquidity, but folks shouldn’t labor under the impression that printing more money solves the structural problems caused by too much spending, too high taxes, and too onerous levels of regulation.
And it’s quite possible, of course, that easy-money policies actually undermine long-run prosperity by creating bubbles.
Dodd-Frank Still Stalling Economy – Bruce Bialosky – Page full
If the lender Koevary chooses moves their pricing or another lender becomes more attractive he must obtain a new appraisal for that new lender thus doubling the cost. Koevary told me that the big banks now control a lot of the third party appraisal procurement companies which ultimately gives them the control over the appraisers contrary to the laws intent. This is driving business to the banks and cutting out the brokers or other small players.
An additional;unintended consequence of a bill that was supposed to lessen the control of big lenders has shrunk the amount of lenders and greatly enlarged the share of the market for big players.
via Dodd-Frank Still Stalling Economy – Bruce Bialosky – Page full.
What the Feds and Bernie Madoff Have in Common – Brandon Dutcher – Mises Daily
Through the years, Bernard Madoff, the convicted ponzi schemer who defrauded his investors, “generously” donated millions of dollars to charity — cancer research, hospitals, theaters, schools, and more. At least one of these charitable organizations invested with Mr. Madoff, where the invested funds disappeared.But Madoff is not the only one who gives money to people after first taking it from them. Today’s political leaders win votes and plaudits by giving goodies to little Johnny, but they don’t bother to tell little Johnny that they’re putting it all on his credit card.
via What the Feds and Bernie Madoff Have in Common – Brandon Dutcher – Mises Daily.
ObamaCare Is Costing A Lot More Than You Think
Everybody knows that the new health reform program is expensive. But just how expensive is it?
Start with the direct costs. The Congressional Budget Office estimates that spending for all the different parts of ObamaCare (health insurance subsidies, Medicaid expansion, administrative costs, etc.) will come to about $2 trillion over the next ten years. That works out to about $2,000 for every household in America, every year.
You won’t get a bill for your share of all this, however. Most of the money is collected in hidden ways, such as taxes, health insurance plans, drugs, medical devices and even tanning salons. The cost to you will show up in higher prices, lower wages and (for the elderly) less access to medical care.
That $2,000, however, is just the beginning. Turns out there are indirect costs as a result of the harm done to the economy. For reasons I’ll explain below, ObamaCare will cause people to work less and produce less. In fact, University of Chicago economist Casey Mulligan estimates ObamaCare lowers the return from working by 10%. As Harvard economics professor Greg Mankiwexplains, that implies a long term loss to the economy on the order of 5% of GDP – or more than $800 billion a year at current prices.
The indirect cost to the economy, then, equals more than $8,000 per household per year – or four times the size of the direct budget outlays.
Adding the two together, the total cost of ObamaCare comes to more than $10,000 per household per year!
