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 …

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 …

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 …

Americans are spoiled

Americans are Spoiled 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, but let us …

Cause of US economic problems

What is the biggest problem the USA has economically? 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 in credit and money is bad, and is responsible for the …

Why the US should tax the heck out of companies offshoring

Companies that go off shore will have to pay more taxes. Trump will incentivizing 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 …

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 a main business of a language products company (software, mp3 etc). I am not going to tell you think some theory from a …

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. But what is economic value? Economic value is not like the Marxist economist …