Archive | Economics

Tarriff Wikimedia

Tariffs – a Balanced Look (i.e., no politics or opinions)

“Tariffs are one of the oldest trade policy instruments, with their use dating back to at least the 18th century. Historically, the main objective of a tariff was to raise revenue (my emphasis). In fact, before ratifying the 16th Amendment in 1913 and formally creating the income tax, the U.S. government raised most of its revenue (taxes) from tariffs. Even so, […]

Continue Reading · 0
Bau

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 […]

Continue Reading · 0
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 […]

Continue Reading · 0
424px-An_Aura_of_Fantasy_at_the_Fountain_of_Wealth,_Suntec_City_–_Singapore_(4180438271)

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 […]

Continue Reading · 0
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. […]

Continue Reading · 0
5enav_pifn_20130408

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 […]

Continue Reading · 0
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 […]

Continue Reading · 0
commodities

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 […]

Continue Reading · 0