Author: Mark Biernat

  • Don’t vote for Trump

    This is just my subjective commentary, but it is OK to write commentary occasionally. Why not vote for Trump? We need a unifier, not a divider. We need someone committed to democracy and truth, not someone who spins stories. Based on Mike Pence’s comments, he does not impress me as a man of faith. I…

  • High Inflation and High-Interest Rates Explained

    Although in historical context, interest rates and inflation that exist today are not comparable with the experience in the 1970s (I remember interest rates over 20% under Paul Volcker and inflation over 12%), compared to the data of the last 30 years, rates and inflation are high. Theory teaches interest rates and the price level…

  • The Economy in the Middle Ages: The Medieval Economic System

    In my mind, the Middle Ages were not as dark and dreary as many economists understand. This is because society traded a lot off for industrialization and to live in a post-industrial world. I had four grandparents from the 19th century, and they lived under a semi-feudal system. Therefore, I can speak from experience. Although…

  • Why Deflation Is Good and Which Economists Support Letting Prices Fall

    The question should be, is inflation ever good? Deflation increases household income as prices go down. When the price of gas, food, or clothing decreases, ceteris paribus household income increases because expenditures are less monthly. The result is more disposable income and more savings. More savings equals more investment and long-term planning for productive endeavors.…

  • Adam Smith’s View on Government Intervention

    As a Ph.D. student of Economic history, I love Adam Smith’s ideals. However, I want to clarify some binary thinking that is pervasive in the collective unconsciousness about the economic theory of Adam Smith. Adam Smith was a free-market economist. I am not taking that away from him. But his stance on government was not…

  • Why Marx was wrong about Labor Exploitation

    My name is Mark Biernat, and I am getting a Ph.D. in Economics. Although I focus on Monetary theory, I do touch on the ideas of Karl Marx, as capital theory and monetary theory are connected. I get a lot of Marxist commenting on my blog. They often bring up labor exploitation and how the…

  • Solution to Budget Deficits

    Budget deficits occur when a government spends more money than it receives in revenue. If this persists over a long period, it can lead to a buildup of debt and a higher debt ratio to GDP. Let’s look at how this affects the economy as a whole. Why Deficit Spending is not Optimal One of…

  • Statistical Surveys and Non-Response Errors

    Survey Non-Response The purpose of this post is to address the concepts and issues behind non-responses in the survey. When economists or any researchers are collecting data for an academic or statistical study, non-response is becoming a more prevalent issue. Hence data collection needs to adapt to societal changes to maintain a level of academic…

  • An Economist’s 2020 Presidential Election Guide

    An Economist’s 2020 Presidential Election Guide

    This is an objective guide to the US 2020 Presidential election from an economist ‘s standpoint. Since the economy is the number one determinate criteria for people voting on the margin, and will swing election results, I think a guide to US economic issues is relevant. I also have a brief candidate guide to the…

  • Can Money be Neutral?

    Can Money be Neutral?

    Central banks pursue a policy of money neutrality. Except when they are seeking a monetary policy to steer the economy. Money neutrality means money has no impact on supply and demand in the real sector. That is, money is just a veil or a cloak. Money’s influence and function are to serve as a medium…