Archive | Economics


What the Young Need to Know of Wealth

… and the not so young too. Turns out that the shift from benefits to contributions has caught the unaware and unobservant off guard. Long ago families lived near each other and took care of each other. With industrialization across the globe families began to move to industrialized centers (which became cities) and family care […]

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Pragmatic Capitalism

Pragmatic Capitalism – a brief review.

Pragmatic Capitalism. This is a great summary of many difficult topics to get your arms around normally. Roche does a good job summarizing many complex interrelations such as what is money, what you really do with your money in the economy, what the banks do and how the Federal Reserve, our central bank works in […]

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What is the “Wealth Effect?”

Many people spend more money when they feel their 401k (or any other retirement plan they have) or house value is up. The Wealth Effect is hotly debated. Intuitively though, if you feel like you have more money, you do tend to spend more. Here’s the problem. There is a big difference between feeling that […]

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Scarcity – A great read

The book Scarcity – Why Having Too Little Means So Much – has great insight that helps explain why poor tend to stay poor, why the busy tend to stay busy, why people worried about their finances remain worried about their finances, why the lonely have trouble making friends, and more. The authors’ definition: “By […]

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household income

How does your income compare?

This is one of the common questions I get from people. They’re trying to benchmark where they stand relative to other people. The problem with this approach is once you know, if doesn’t change anything. You see, the more someone makes income wise, the more they need to save to sustain that Standard of Individual Living. […]

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Richmond Fed rolls out education tool

The Federal Reserve Bank of Richmond has rolled out the first issue of their education pieces. They plan on semi-annual issues. What is unique is their combination of  improving both economic literacy concept and personal financial literacy on the select topic. Issues may be found on their site under the Publications tab, pull down Education, click […]

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smart consumer

Consumers might be smarter than economists

Economists, the Fed, policy makers and retail company executives seem to be befuddled why consumers are not spending. Kevin’s article* is a good snapshot of the current debt pay down mode consumers are in. “Consumers have been shedding debt like a bad habit. That’s good for personal finances, but not so good for an economy driven by […]

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What do dogs and cats have to do with commodities?

Rick Kahler writes an entertaining summary that puts how commodities are priced into perspective. Why are some commodities priced higher than others? Popularity, supply and demand, usefulness, and even marketing. Please read the short article linked to above for an entertaining explanation of commodity pricing … it should cause you pause next time you get all excited […]

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trade deficit

The “horrors” of The Trade Deficit

The “horrors” of our Trade Deficit going up is back in the news! However, what is not explained is the mirror image of this deficit. What professor Perry points out in his blog post (note when this was published and when pundits are back at it again): “Because international transactions are calculated using  double-entry bookkeeping accounting, international […]

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