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Tag Archives: consumption
Credit Loans, Consumption, and Prices
I think in general we’re seeing an increase in waste (consumption), and a very dangerous decrease in private sector investment. In other words, unsustainable consumption and a flattening of the structure of production. Continue reading
Venezuelan Economics
Venezuelan inflation is not likely to lead to a false boom. Instead, it is going directly towards consumption of capital. Continue reading
Posted in Current Events, Theory
Tagged Capital, consumption, inflation, production, structure, Venezuela
6 Comments
Krugman and the Paradox of Thrift
Paul Krugman doesn’t get economics. Continue reading
Don’t Be Fooled by GDP
Third-quarter data for 2009 is misleading, because most of the growth in GDP is only temporary and will cost us the same, or more, in the near future. Economic prognostics should not be based on GDP data, but on sound economic theory. Continue reading
Posted in Theory
Tagged consumption, domestic, Government, Great, gross, Investment, Private, product, public, Recession, spending, Statistics
2 Comments
The Broken Window
Bastiat’s metaphor for explaining how destroying wealth to stimulate production of the same exact wealth does not stimulate economic growth. It is the basic metaphor for all arguments against state expenditures, and used heavily by economist Henry Hazlitt in his book “Economics in One Lesson”. Continue reading
Posted in Theory
Tagged Bastiat, broken, Capital, consumption, fallacy, Frédéric, Government, spending, waste, Wealth, window
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Shifting Economy
The Economist publishes an interesting article which is half-correct, but still lacking in sound economic theory. There has been no shift to savings. Savings are a necessary part of economic growth. Continue reading →