Initial claims for unemployment insurance jump and universities shut down campuses and return to all on-line classes—news pointing to a setback for the economy. In contrast, existing home sales surge and the stock market moves into record territory—news pointing to an ongoing rebound from one of the sharpest declines in history. What does it all … Continue reading The Economy: Sorting Through the Pluses and Minuses
“A billion here, a billion there, and pretty soon you are talking about real money.” Attributed to Senator Everett Dirksen (Illinois) One wonders how Senator Dirksen might react to the current federal budget outlook, given the nearly $3 trillion of red ink that has been spilled so far in the 2020 fiscal year and the wrangling … Continue reading A Trillion Here, a Trillion There: How Will the Federal Debt Problem Get Resolved?
Since mid-March, the M1 measure of the money stock has grown $900 billion—an increase of more than 20 percent over just two-and-a-half months. If it kept this pace, M1 would double in a year. Accompanying this, the Federal Reserve has injected massive amounts of liquidity into our economy by purchasing more than $2-1/2 trillion of … Continue reading Any Signs of Inflation Yet?
Proponents of democratic socialism like to argue that democratic socialism is the purest form of democracy. Everybody gets treated the same. But that can be true only in the abstract. What does it mean in practice? Does it mean that everyone gets the same allocation of food, regardless of their physical size or dietary requirements? … Continue reading Some Introductory Thoughts
The Federal Reserve—the Fed—is the only institution in our economy that is authorized to create money, essentially out of thin air. This can take the form of cash, those greenbacks in your wallet, or electronic credits to bank accounts. Since early March, the Fed has ramped up liquidity roughly $2-1/2 trillion—yes, trillion. This has been … Continue reading Are We Drowning in Fed Liquidity?
The Kindle version of Capitalism Versus Socialism: What Does the Bible Have to Say? Is now available for purchase on Amazon. For a limited time, the price is $0.99! The paperback version is available as well for $8.99 If you would, upon downloading and reading the book, please take a moment to leave a review … Continue reading Now Live on Amazon
You may be wondering how all the losses being incurred during the COVID-19 crisis are going to covered. Many households and businesses are experiencing staggering shortfalls of income from their outlays. These shortfalls are being dealt with in various ways: Drawing down assets;Borrowing from banks and others;Receiving assistance from the Treasury and others; and/orFalling behind … Continue reading Who Pays the Bill?
Capitalism An economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.“Capitalism.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/capitalism. Accessed 27 Apr. 2020. This definition captures some of the properties … Continue reading Defining My Terms
Are you curious about the effects COVID-19 will have on our economy? UNCW Cameron School of Business professor Dr. Simpson discussed the economic implications and opportunities of COVID-19 during a UNCW Alumni Association-sponsored video event.