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Economics

zero sum economy

Examples of positive-sum, negative-sum and zero-sum economic activity In a capitalistic economy, in aggregate, there will always be more winners than losers. This is because the economy is growing in the long run and both parties benefit from an exchange.   Similarly, in the stock market, there will always be more winners than losers, even […]

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Economics

Does value investing work

Value investing was described in Ben Graham and David Dodd’s book Security Analysis in 1934. It was popularized by Warren Buffet. The purpose of this post is to address the question does value investing work. What is value investing Value investing is the belief that assets have an intrinsic value.  This intrinsic or natural value […]

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Economics

Best economic indicator

What is the best economic indicator Economic predictions are notorious bad. So this post I will talk about one economic indicator that is less known but not too shabby. Do not take it too seriously, but it does work. Many people look at the ‘dry Baltic index’ or an index of raw materials moved by […]

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Economics

Americans are spoiled

Americans are have economic lost perspective I am American. However, I became aware of how spoiled Americans are when I lived for many years in Eastern Europe. I am writing this not to cut on Americans, people who I respect, but to put economic life in perspective. Forgive my title, as I am a patriot, […]

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Economics

Cause of US economic problems

What is the biggest problems the USA has economically? US debt to GDP Federal Reserve mismanagement of money Trade deficit The trade deficit caused by China. There are two things happening here an economic downturn which was caused by poor monetary management (central bank) and the trade deficit. Of the two problems the government involvement […]

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Economics

Business cycle and fiscal stimulus

Fiscal stimulus exacerbates the business cycle Anything the government does free market does more efficiently.  Think of UPS vs the Post office.  Think of Google vs. umm the government could never create such an efficient tool as Google. Some people believe that micromanaging the economy and business cycles from the top with a large fiscal […]

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Economics

Why the US should tax the heck out of companies offshoring

Companies that go offshore will have to pay more taxes. Trump will incentivize the return of business domestically with a tariff. From free trade economics to common sense economics If we do not put some incentives for companies to stay, the middle-class wages will continue to decline. Multinational companies will offshore operations, relocate business processes and […]

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Economics

Business in China is a scam

Doing business in China scam is revealed. Doing business in China is a scam I am an entrepreneur.  I am an American living in Poland.  I have a few small businesses and the main business of a language products company (software, mp3 etc). I am not going to tell you to think about some theory […]

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Economics

Economic value

What determines Economic value? Many people think the amount of labor and hard work you put into something will determine value.  Because you put effort into something than you have created something of economic value.  Something that others will hail as great. Economic value is subjectively determined by whatever you think it is worth. This […]

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Economics

Will there be another economic crisis like 1929 or 2008?

Yes and soon. Because the Federal Reserve pumps money according to economic theory, this distorts the capital structure by achieving growth unconnected to real savings. In 2019 or 2020 the economy will start its descent down. This will specifically be triggered when the Federal Reserve Bank increases interest rates. The nature of economics is a […]