To eat, you must first work. Introduction The noise about tariffs has become nearly deafening. Some people think the US should impose tariffs. Others think the US should reduce or eliminate tariffs. A lot of this debate surrounds the question of whether trade deficits harm the US economy or not. So, what’s the truth? With … Continue reading Market Purpose: Consumption
Month: April 2025
Bad Math for a Bad Policy
Synopsis President Trump wants to make changes in the trading relations with other countries. But, since, with few exceptions, countries don’t trade people do, he has proposed some very flawed tax policies. To sell his flawed policies, he has engaged in some very questionable math. Introduction Most of the knowledge and understanding I have acquired … Continue reading Bad Math for a Bad Policy
Does the Federal Reserve Create Money?
Synopsis When someone asks, "How Does the Federal Reserve Create Money?" they base that question on the false premise that the Fed actually does create money. Consistent with the subjective theory of value, only individuals in the market can determine what to use as money. Those individuals have chosen to use various dollar-denominated instruments, but … Continue reading Does the Federal Reserve Create Money?