Monthly Archives: September 2014

Some Things to Remember

Given the assumptions mainstream economics makes about human nature, economic outcomes such as are experienced today could not occur. Rid your mind of these fantasies and all that transpires in the economic and political arenas make perfect sense. Mainstream economics … Continue reading

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Definition of Economics

Investopedia defines the study of economics as follows. “A social science that studies how individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants.” This definition is typical but it is not exactly right. … Continue reading

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What Would Adam Smith Say Today?

What is known and understood is often discarded out of convenience. Adam Smith was an economist. Janet Yellen and Ben Bernanke are accountants and economists in name only. Adam Smith understood incentives. Ivy League economists are lost on the subject … Continue reading

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What exactly is the Federal Open Market Committee?

The Federal Reserve Web Site defines the committee as follows. “The term “monetary policy” refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help … Continue reading

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Ahead of the Fed

Talk ahead of the Federal Reserve meeting is that the central bank may make noise about increasing rates. Americans are trained to believe government, especially the Federal Reserve, have magical powers. Such beliefs are easy to come by since human … Continue reading

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Yikes We Don’t Know Anything

Common Sense Economics starts by acknowledging what we don’t know. What we don’t know are the answers to the most basic and important questions. Some of these are: 1.) What is the universe? 2.) How big is the universe? 3.) … Continue reading

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Our Eternal Ignorance

Basic questions have no answers. We do not know what life or consciousness are. Everything else is in the defined with euphemisms. Normally, we accept the euphemistic definitions of institutions and phenomena as true and make decisions accordingly. Not even … Continue reading

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