The Greek crisis illustrates the latest failure in Europe's attempts to build a lasting prosperity through consumption and redistribution of wealth. It's been going on for 150 years, and it remains to be seen if Europe will learn anything from the present crisis.
Despite massive policy stimulus in the United States, the US economy is now growing far more slowly than in past periods of monetary inaction from the central bank. Meanwhile, fragile economic bubbles are being inflated from China to Europe.
Thanks to the higher-education bubble, times are great for those who make money off of college students. Tuition continues to climb while a building boom produces expensive new housing and classrooms. Meanwhile, the students themselves may not be getting their money's worth.
Ben Bernanke reveals more about his own views when he commented on the $10 bill controversy to replace Alexander Hamilton. Bernanke attacked Secretary Jack Lew's idea to replace Hamilton with a women:
Jonathan teaches some high school students on the subject of inflation.
Economic populists have become skilled at causing economic calamities while escaping the blame. Instead, it’s the non-populists that end up picking up the pieces while getting the blame for the unemployment and wealth destruction that follows in the wake of populist economic policies.
The Fed and the government have gone to great lengths to prop up home prices. But it seems a bit odd to try to increase the cost of a basic necessity like housing. Why not do the same with food and clothing?
The Keynesian multiplier would have us believe that economic growth can come from an increase in demand and spending. But if we look more closely, we find there is never a shortage of demand, and what an economy really needs to expand is more saving.
