Economy

Still Waiting for Signs of Intelligence

Written by Robert Jackson Smith on Sunday, 03 August 2014. Posted in Economy, Business

What has this world come to when you have to negotiate with governments over how much of your own money you can keep? When you only get to keep what the government says you can keep…there are no rights anymore.

Still Waiting for Signs of Intelligence

I just read in The Wall Street Journal, “The boom in ‘inversion’ deals, in which a U.S. firm buys a foreign company and moves overseas, has raised the ire of President Barack Obama, who has said the practice is ‘wrong.’”

Why I’m Not Inclined to Leave the United States when the U.S. Dollar Collapses

on Wednesday, 02 July 2014. Posted in Economy, Business

Increasing numbers of people are renouncing their citizenship and leaving America. But when the final crisis happens, they won't be any better off than those who stayed put in the USA.

Why I’m Not Inclined to Leave the United States when the U.S. Dollar Collapses

1. My dad told me that you can’t run from your problems…they’ll just follow you. Perhaps I was unfortunate to have a father who was a former fighter pilot whose primary instruction was, “Attack.”

The Benefits/Costs of Low Interest Rates

Written by Robert Jackson Smith on Monday, 19 May 2014. Posted in Economy, Business

The Fed's monetary manipulations make some people rich, and many people poor and create the growing probability of instability and crisis.

The Benefits/Costs of Low Interest Rates

For everything on this planet there is a market price, including interest; i.e., the cost of borrowing money.

The Evils of Inflation

Written by Robert Jackson Smith on Thursday, 17 April 2014. Posted in Economy, Business

It's become fashionable to think of inflation as a good thing. Instead, it is like a cancer eating away at the financial foundation of a nation.

The Evils of Inflation

Inflation is the expansion of the supply of money and credit. So what’s so bad about inflation?

What Inflation?

Written by Robert Jackson Smith on Wednesday, 05 March 2014. Posted in Economy, Business

The next time you ask yourself, “What inflation?” just remember…you won’t see it coming until it’s too late.

What Inflation?

First, let’s make one thing perfectly clear: inflation refers to the expansion of the money supply and credit. Price inflation refers to rising prices.

Income Inequality, Part 2

Written by Robert Jackson Smith on Thursday, 20 February 2014. Posted in Economy, Business

As long as the world’s politicians/bureaucrats continue to consume wealth with inflation, taxes, business-stifling regulations, wealth confiscation/transfers, the inequality of wealth will continue to grow.

Income Inequality, Part 2

Income inequality in the United States is still in the news, and probably will be for some time. And it’s no wonder, with all the specious notions about why the inequality is growing. Some people blame globalization, others blame broken homes, crime-filled communities, dysfunctional schools, and personal chaos. Still others blame the rich for having as their one overriding goal “to protect what they have and get even more,” with the result that the rich bribe politicians into giving the rich ever more tax breaks while the poor struggle to make ends meet.

A Second Social Security System?

Written by Robert Jackson Smith on Tuesday, 28 January 2014. Posted in Economy, Business

Today, it is similar to a Ponzi scheme about to collapse. All that stands behind the system is the U.S. government’s ability to tax and create dollars out of thin air.

A Second Social Security System?

When the Social Security System was established in 1935, it was sold to the public as old-age or retirement “insurance.” The idea was that the (usually younger) working people would contribute enough to the system to cover the payments to the (usually older) retirees who hadn’t contributed anything toward their retirement. 

Income Inequality

Written by Robert Jackson Smith on Wednesday, 18 December 2013. Posted in Economy, Business

One hundred years ago, the United States was growing into the richest nation in history. Today, it is declining into a third-world country—but then, that’s what happens when we try to make everyone’s incomes equal…

Income Inequality

I sure am glad I don’t live in a world of income equality! Just imagine what the world would be like if everyone were paid the same regardless of results. It would kill our incentive to produce more. Think about how much poorer all of us would be if Henry Ford hadn’t mass-produced the automobile, David Rockefeller hadn’t mass-produced oil and gasoline, and Steven Jobs hadn’t mass-produced the iPod, iPad, and iPhone! And those are just a few of the people who weren’t equal to their peers and produced more. But then, everyone’s different and very few people are really equal.  (From what little I can recall from high school, we were all trying to be different!)

The Tax that is Obamacare

Written by Robert Jackson Smith on Tuesday, 03 December 2013. Posted in Economy, Health, U.S., Business

Progressives believe that more government, more regulation, and more taxation is the answer to every problem. This is the rationale behind Obamacare. The outcome will be, as it always is with socialism, a disaster.

The Tax that is Obamacare

On June 28, 2012, the U.S. Supreme Court upheld Obamacare as a tax. As with most taxes, money is taken from the more productive people and given to the less productive people. This does two things:

A Review of the Future

Written by Robert Jackson Smith on Friday, 25 October 2013. Posted in Economy, Business

It's easy to see where the road we are on leads: to more fiat money expansion, more debt, and, ultimately, financial upheaval.

A Review of the Future

During the past six years, I’ve written about the economy and what I expect in the future, and now seems like a good time for a review. So, let me try to pull together my various comments into one piece.

The Best Case Scenario

Written by Robert Jackson Smith on Wednesday, 25 September 2013. Posted in Economy, Business

After being taught by experience, perhaps the American people will learn to see the shackles that socialism represents and finally throw them off.

The Best Case Scenario

Ok, so Congress is deadlocked and can’t make a decision, the President is eager to enter a new war, and the Fed can’t taper…all’s well the ends well, right?

Inflation and Gresham’s Law in my Lifetime

on Saturday, 31 August 2013. Posted in Economy, Business

Over time, inflation, along with Gresham’s Law and legal tender laws, has driven out the good money and substituted bad money in its place.

Inflation and Gresham’s Law in my Lifetime

It was the summer of 1968 and I had just finished seventh grade. Rather than "goofing off" all summer, my dad required me to attend his Principles of Economics class at Grove City College.  He and Fred Andre team-taught the class, as my dad was often on the road giving lectures around the country.  It was during this class that I learned (among other things) that just four short years earlier, the U.S. government had stopped minting dimes, quarters, and half dollars out of silver (90 percent)...something about how the money supply had been inflated to the point where it cost more to produce the coins out of silver than their face value. In other words, the silver content was worth more than $.10 for dimes and more than $.25 for quarters. Bottom line: collecting silver coins was a fast way to make some money and a good way to retain value in the long run.

Stirring up Envy

Written by Robert Jackson Smith on Wednesday, 26 June 2013. Posted in Economy, Business

To the extent that we allow governments to consume wealth through taxation and profligate spending, we make ourselves poorer in the long run.

Stirring up Envy

I find it interesting that the U.S. Congress is taking notice of Apple, Inc.’s tax planning (avoidance, not evasion) and questioning Apple’s motives.  It would be one thing if Congress were asking Apple executives how they came to be one of the most successful (profitable) companies in the world, with an eye toward improving the way the U.S. government is run, but no! They want to find a way to change the rules to squeeze more money out of Apple!  (Make applesauce and juice out of them!)

The Unconventional Way Bitcoin Can Make You Wealthy

Written by Daniel Shafrir on Wednesday, 19 June 2013. Posted in Economy, Business

Current economic policies are undermining the shaky foundations of national fiat currencies, including the dollar. The situation is making alternatives, like Bitcoin, more attractive.

The Unconventional Way Bitcoin Can Make You Wealthy

Prologue

I am reminded of Sisyphus, King of Ephyra (later, Corinth), who was referred to by Homer as the craftiest of men. He committed terrible crimes against mere mortals and ‘worse’ still, and with great cunning, he offended Zeus and cheated Death. For his crimes he was eternally condemned to thrusting a heavy boulder up a hill, only having it come rolling back down as he got near the top. Had his earthly actions against his fellow men not violated the non-aggression principle, I could have probably warmed up to him as some sort of tragic hero, doing all he can to live life as he wanted it, while beating the gods at their own game. But given his crimes as a ruler over men, it does seem appropriate that his punishment is an ever-repeating cycle of arduous labor, engendering within him hope of a brighter future, yet concluding with dashed dreams and a return to square one. After all, to this day, rulers are notorious for repeating past mistakes while expecting different outcomes (a condition humorously defined by Einstein as insanity). 

How Inflation Affects Wages

Written by Robert Jackson Smith on Tuesday, 04 June 2013. Posted in Economy, Business

We continue to live in an age of inflation, with no end in sight. There are consequences for this, but are we prepared to accept them?

How Inflation Affects Wages

Inflation, i.e., the expansion of the paper (and electronic) money supply, affects wages in several ways:

[12 3 4 5  >>