Political Economy

Category: Economics

  • Wicksell expectational business cycle model

    Knut Wicksell developed a model for understanding price movements based on the divergence of the observed bank rate of interest and marginal productivity of capital or let us say the profit rate. variations of this idea were developed by the Austrian school of economics to explain business cycles. That is disequilibrium in the monetary markets…

  • Cost based pricing vs. Value based pricing – How naive are you about economic justice?

    I believe the heart of the misunderstandings about economic justice and fairness is a misunderstanding about what a price is. Many people on all sides of the political spectrum have passionate views about economic justice and what this represents? It determines who to vote for and how the economy should develop. The central question is…

  • Mitt Romney’s economic plan

    Do not read journalist’s critiques of Mitt Romney’s economic plan by papers like the New York Times or the Huffington Post. They will only give you partial gobbledygook. Read my critique of he economics of Mitt Romney. In one clear, crisp concise statement ‘Romney is free market but uses economic incentives to encourage productivity and…

  • The risks and rewards of penny stock investing

    Penny stocks are a cognitive illusion. Not the penny stocks themselves mind you, they are real. However, your chances to make money from thinly traded, low-priced stocks with little liquid assets, working capital and a lot of dreams are the cognitive illusion. In other words, although there is a chance to get rich from trading…

  • Why the US has economic problems and what you can do

    US economy is not working because Americans forget what economics is about Why is the economy not working? Let me explain economics so simple even Obama could understand, yet he will not. Nor will his Einstein advisers with wing-tip shoes and fancy degrees. I wish he would read this. The simple answer is this: Americans…

  • What works with job creation in economics

    In a time when the manufacturing of downward arrows that are inserted in economic graphs are the only sector of the economy that is booming, it is worth to be reminded what works in economics and what does not. Basically if you watch this video you will understand what does not work with job creation.…

  • Is capitalism ethical

    In our genes are is encoded from the beginning of evolution the idea of survival of the fittest. When humans were becoming modern between 200,000 years and 50,000 years ago in Africa, only the strong survived. This is found and imprinted in our DNA . However, people have extend this idea of Darwinism to the economic…

  • Capitalism is the best form of socialism

    Libs do not understand that if you want a big middle class with a fair distribution of wealth, try capitalism. Only in free market America do we have a such large middle class with a comfortable lifestyle. Believe me, the middle class and even the poor live a relatively cushy lifestyle. Capitalism is the best…

  • Treasury Vs. Federal Reserve

    What is the difference between the U.S. Treasury and the Federal Reserve? The U.S. Treasury mints the coins, while the Federal Reserve Bank controls the currency and influences the purchasing power in the economy through the use of the interest rate policy tools. Beyond that definition, I wrote this post is to clarify the confusion…

  • How to fix the US economy

    GOP and Democratic economic fixes do not impress me at this juncture. Why? They are about slowing the leak not fixing the hole. Anyone who understand how to solve the economic woes of the USA are nit picked and labeled as fringe. Even respected economists debate in their ivory towers while the ship is still…