I didn’t start with a specific intent to find fault with the economic narrative. On the whole there’s much to admire about the book; nonetheless, the antagonism to the Glass-Steagall Act was striking in revealing Gordon’s short-sightedness. Totally oblivious to the coming financial crisis, with banks taking massive risks with depositors money that the government, not banks, had to guarantee.
Soft sciences deal with human behavior and have value judgments in them. Hard sciences strive to understand the physical world and its phenomena.
How can German 10 Yr rate be more than 1.5% less than the US 10 Yr rate? The German rate is 0.23%, while US Treasury rate is 1.92%! The most likely answer is that investors think that the difference in local currency valuation will disappear as the euro falls against the dollar. The euro exchange…
Declining gasoline, diesel, and petrochemical prices help the non-energy economy grow, boosting activity that 90% of the GDP that is not in the energy sector.
The Russian currency has a tendency to weaken so that the dollars earned by oil export are converted to more nearly equivalent number of rubles.
Thoughts come and go during the day. Some I’d like to know more about. Income Inequality. Vision statement. Society is for people, not markets. Markets are a means, not an end. Yes, equality of opportunity, not equality of outcome; but free markets don’t guarantee equality of opportunity – proof: firms only want equality of opportunity…
When the minimum wage is raised, don’t overlook the effect on GDP. Money is being transferred (in the starkest version) from the owner’s profits to the worker’s pocket. The owner’s consumption of his excess income is much less than the worker’s consumption requires. More of the worker’s income goes into economic activity, increasing GDP rather than going to the owner’s savings.