Category: Finance & Economics

The Invisible Hand and Its Scar

Thumb on the Scale of Justice

If you’ve studied economics or the business pages, you’ve probably heard of the Invisible Hand. Adam Smith introduced the metaphor in The Wealth of Nations two hundred and fifty years ago. It’s been elaborated on and developed into a basic justification of unfettered free market economy. The Invisible Hand The invisible hand is a metaphor…

Missing Side of Budget Debates

Net worth

(Text, originally composed in 2005) Every year, all year, we hear about the United States federal deficit (this was written only three years ago and, although happily the yearly budgetary deficit is gone, the exclusive focus on the yearly income-outgo budget is still a flaw). The federal budget is worth serious and sober discussion, but…

Invisible Hand

The Invisible Hand (from jeff-for-progress.blogspot.com). Scrooge McDuck-looking character hoisted aloft on the Invisible Hand, looking down at 5 identical factories with tall chimneys spewing smoke in their industrious pursuits

We should not alter societal needs—equality of opportunity and equal reward for equal work—allowing a mythical Invisible Hand the power to stifle changes to the economic marketplace.

OPEC Extra Cost

High Prices

Not stressed enough is the effect the oil price had on economic activity from 1973 to last year. The artificially high price of oil and energy caused GDP growth to be less each year that the economy labored on OPEC-inflated oil costs.

Fed Call for 2 Per Cent Inflation

The Fed’s call for 2% inflation is an indication that economists don’t have a complete economic theory that explains both production and price changes. If they did, they would advocate 0% inflation.

The great bulk of real inflation since 2009 has been in the stock market, making people who already own stock wealthier.

Media: Free Market versus Status Quo

We have a nice insight now into how little capitalists value the free market when it conflicts with the status quo. In the past year as OPEC lost control of cartel pricing, the price of oil has fallen from $100/barrel to $50. Do we hear the financial talking heads on MSNBC, CNN, Bloomberg, and other…