Archive for the ‘Middle Class’ Category

No Hope and No Change

Monday, August 1st, 2016

Finally, the candidates are no longer presumptive.

American voters and their delegates have chosen, yet somehow we’ve ended up with candidates from both parties that almost no one likes. Both are liars. Both are power-hungry narcissists. Both have questionable morality. Most of us would use the term “sleazy” to describe actions both have taken to add to their personal wealth. Few of us would trust either of them enough to buy a used car from them.

But come November, barring a third-party candidate, a coup or an act of God, we’ll be choosing either Hillary Clinton or Donald Trump as president. If our founding fathers were alive today, they might be thinking that a monarchy doesn’t seem so bad after all. Never has the phrase “lesser of two evils” been so literal.Hillary

So which candidate is the greater lesser?  Or, more to the point, which candidate should get your vote?

One way to decide is to review the platforms each party passed at this year’s convention. A party’s platform, of course, is just a guide. Either candidate, if elected president, may ignore the party platform. Congress will have an influence, too, even if the next president follows President Obama’s precedent and pretends that Congress doesn’t exist. (more…)

Today’s Economic News: Woe Is Me

Monday, July 27th, 2015

The summer weather and the media’s focus on positive economic news may have you feeling cheerier than usual these days.

Two words: “Bah, humbug.”  Or maybe, “Get real.”

Focus, for a minute, on the cloud, rather than the silver lining; recognize that evaporation has caused the glass to be less than half full (and more than half empty); see the bubble bursting, the interest rates rising and stock prices dropping.  In other words, get realistic about the economy.

In the Keynesian world, the more government spends, the more the economy is “stimulated.” In the real world, more spending means more debt, higher taxes, more regulation and GDP growth well below the historic norm. Chart 1

In the imaginary world, central bankers and government officials can keep the economy growing indefinitely and can boost asset prices to new records forever.  In the real world, asset prices are at artificially induced levels; reality will take hold when the Federal Reserve Board raises interest rates, when China’s stock market tanks (as it has begun to), when Greece is booted out of the Eurozone, or when Iran uses the $150 billion it receives from the lifting of sanctions to further its war against the U.S. and Israel.  (more…)