The typical American gets 46% of their wealth through the social institutions of government, which taxes are used to provide.
The fallacy is
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.
Favoring of the status quo over free market competition must not be forgotten when listening to media analysis. They are paid by financial elites tied to the status quo.
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.