Economic Policy

Federal spending is not the only out-of-control government spending in the US. A number of states have been overspending and now face declining revenues. Will bankruptcies follow?

Understanding the scientific method is crucial when examining complex phenomena and related hypotheses like “man is the main cause of climate change.” Unfortunately, "political method" has replaced the scientific method.

Paul Krugman and other Keynesians believe that since workers are unemployed during a recession, government spending to employ them is costless. Instead of creating wealth, these make-work schemes destroy it.

Congressional Democrats are trying to intervene in a complex and varied market they know little about but that consumers navigate without need of help. This will not end well.

By borrowing money and “creating” new jobs, the government is creating the illusion of a strong economy. This does not end well.

There is a lack of buyers for US Treasury debt. Rating agencies have recently downgraded the US debt, and entitlement benefits’ “trust funds” will go into the red in a few years. The classical economists offer few answers to the depth of this problem. 

Government employees generally have sweeter pension plans compared to private-sector employees, but government pensions are purposely underfunded. No worries for government employees: taxpayers will pick up the slack.

By borrowing money and “creating” new jobs, the government is creating the illusion of a strong economy. This does not end well.

There is a lack of buyers for US Treasury debt. Rating agencies have recently downgraded the US debt, and entitlement benefits’ “trust funds” will go into the red in a few years. The classical economists offer few answers to the depth of this problem. 

While the creator of modern portfolio theory was awarded a Nobel Prize, that doesn't mean the theory isn’t flawed. In fact, it explains very little about investments.