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Showing posts from July, 2018

Basic Economics: Higher Wages Mean Higher Prices

If we are to have a nation in which workers get raises, isn’t it obvious that those wage gains will result in higher prices of goods? For so long the holy grail of (Globalization) economics has been predicated upon driving costs of goods lower in order to stimulate increased spending. This supported the rationale for moving labor overseas to impoverished nations. During this time American workers lost millions of jobs and those who remained employed went decades without a raise so that the elite, white collar worker could afford to buy more goods or have more money left over to pay landlords ever higher rents. This idiotic cycle has been at the root of the wealth and income gap that the Left has derided for so long, yet it is that same Left, led by the Clintons, that has embraced the move towards globalization that has so exacerbated the gap. (Note: Most Republicans until Trump also embraced the idea that globalization is a brilliant idea).

Chicken Kiev with my Apple Pie, Please

I write this piece because I love the foundation upon which our nation was built, and want to preserve that for my kids. In short, I simply cannot abide by a society that is so monolithic in its perspective, so quick to condemn without knowledge, so easily herded into a single way of thinking, and so willing to categorize anyone with a different opinion as being evil or ignorant as how I see society currently operates. It is frightening to me that we’ve descended into a society wherein people are reluctant to speak or question for fear of being ostracized or worse. This is not the country I want for my family.

What If Credit Tightened By Even 1%?

This week I read an article about a company that offers personal loans to folks who are seriously down and out. One of their strategies involves mailing checks for $2,000 to these people’s homes and if the check is cashed it activates a loan agreement that calls for the borrower/check-casher to repay the loan with interest at the incredible rate of 32% per year. Apparently, this is not uncommon and there are many companies engaged in similar business. Of course, like many, my first reaction to this article was dismay or disgust, thinking that these poor and obviously desperate borrowers are being taken advantage of. Then, I began to think to myself what this says about the health of our financial system. I wondered to myself, if this lending were indeed curtailed, thus depriving these borrowers from access to credit, what the impact on the economy might be. I thought: Is it possible that we NEED these people to borrow and spend, lest the economy not achieve targeted growth rates, whic…