Some people believe that economic inequality is literally the biggest problem we face. I will try to explain why such concerns are overblown. If you missed it, last week’s post discussed how much inequality we have in the US. Warped thinking Fixating on income inequality can warp one’s thinking. Strong words, but true. Income inequality is … Continue reading Why inequality is less of a problem than you think
I have mentioned a couple times that economic growth is very important. But it’s easy to hear a message like that and think, “yeah, yeah, growth is important, got it,” without it truly registering. This is a crucial concept for achieving prosperity, so let me try to make it more tangible. Without the solid growth … Continue reading Illustrating the power of growth
One reason that people support larger government is because they assume government rules and programs will accomplish their stated goals. However, this rosy view is often not supported by reality. Let’s look at an interesting example that was in the news recently. The background A May 19th Wall Street Journal article points out that certain ritzy … Continue reading Crazy example of banks twisting the rules
US unemployment shot up sharply during the Great Recession of 2008-2009. Since then, it has dropped back to more normal levels. Is unemployment now low enough? Let’s look at some facts. Multiple unemployment metrics The unemployment rate is defined as the percentage of the overall labor force that is jobless. Simple enough, right? Not really. … Continue reading Has unemployment dropped enough since the Great Recession?
Some people justify Big Government by claiming that it helps the Little Guy. This romantic view is largely political salesmanship. Big Government is more about helping politicians, government workers, and powerful special interest groups than the Little Guy. Let’s look at how government policies harm the Little Guy. Little Guy realities Before we begin, let’s … Continue reading Government helps the Little Guy?
The more I ponder the topic of capitalism, the more convinced I become of the importance of businesses. I used to think of businesses as generally a good thing because they provide jobs, but I see now that it’s much more. Everyone should want a business-friendly environment. Not because it helps businesses, but because it … Continue reading Why we should be pro-business
A couple of my recent posts discussed the immense prosperity gains much of the world has seen over the past couple centuries. The long-term track record of free-market capitalism is quite good and quite clear. However, some people say that the American middle-class has stagnated, and is little better off today than in the 1970s. … Continue reading Is middle-class stagnant?
People have become tremendously more prosperous over the past two centuries, at least those who live in countries that practiced something like free-market capitalism for a sustained period. In my last post, we looked at how incomes have grown in different parts of the world. In this post, the time machine will take us back … Continue reading Prosperity Time Machine (2 of 2)
I think one reason some people don’t appreciate free-market capitalism is that they take prosperity for granted. They don’t really notice how prosperity has improved over the decades, so they don’t really think about how it happened. This is somewhat understandable. The slow unfolding of events over decades and centuries makes it difficult for anyone … Continue reading Prosperity Time Machine (1 of 2)
The growth rate of the US economy has been in the news recently, for a couple reasons. First, economic growth in recent years has been lower than the historical average of roughly 3%. This has led some people to predict low growth as the new normal. Second, the budget released last week by the Trump […]