Theory or Practice, Which Matters?

Theory or Practice, Which Matters? STUDENT QUESTION:  I do understand that there is something special you get from experience that you cannot get from a book or class, but with classes having more hands on approaches can you think of something specific experience can give a person that pure education cannot? MY RESPONSE: That’s an […]

Energy Policy, Global Warming and Economics

One of my economic students wondered what all the ruckus was about “Global Warming” and how its might be related to the recent bankruptcy of Solyndra. We had the following conversation. We can talk about Global Warming, or whatever that notion might be called today, but that is not the point. The point is money, […]

Practical Economics: How to make the economy go zoooom in the night.

Practical Economics:  How to make the economy go zoooom in the night. Part 2 of 2 TAXES, REGULATION & ECONOMIC GROWTH Animal Spirits Former Federal Reserve Chairman Alan Greenspan regularly spoke of the need to unleash ‘animal spirits’ to attain and sustain robust economic growth. Greenspan identifies the uncommon motivation impelling certain entrepreneurs to spend […]

Economic Indicators: Consumer Price Index or Inflation.

Economic Indicators: Consumer Price Index or Inflation.   Should we be worried?    The classic explanation for inflation is too much money chasing too few goods, which certainly describes well the current situation in America. Why then, aren’t we plagued by inflation today? Without getting too technical, may I offer some perspective? In the two-year […]

Interesting Economic Fact – Oil Sources for America

Interesting Economic Fact – Oil Sources for America The USA used approximately 19.1 million barrels of oil a day in 2011, importing around 9.5 million barrels of oil daily. The top ten countries importing oil into the USA (millions of barrels) were: Canada                  2.2 Saudi Arabia       1.2 Mexico                  1.1 Venezuela            […]

Economic Indicators: Unemployment Rate – January 2012

Economic Indicators:  Unemployment Rate –  A Look Behind the Numbers.    From the Bureau of Labor statistics. A                         B                           C                      D                   E 2007              231,867,000         153,124,000      7,078,000       4.6% 2008              233,788,000         154,287,000      […]

How to make the economy go zoooom in the night. Part 1 of 2

Practical Economics:   How to make the economy go zoooom in the night. The main determinants of long-term economic prosperity and growth are explained. Part 1 of 2 ECONOMIC PROSPERITY A major factor involved in the growth and prosperity of a nation today is whether or not the culture within that nation encourages and rewards […]

The Main Causes of the Housing Crisis and the Financial Meltdown

Previous student question: For years, I have always believed that some of the government regulation in place has not worked well and has distorted the economy and the financial market. I also feel the problem of the current weak economy and the on-going housing troubles includes regulatory inadequacy. Is there no regulation in place when […]

Will America or China dominate the 21st Century?

Will America or China dominate the 21st Century? China’s per capita GDP today is close to $4,000, about 20 times more than in the 1970s, moving that country’s overall GDP directly behind America’s.[i] Teng Hsiaop’ing, Mao’s pragmatic successor, pushed wide open the spout of market forces flooding economic growth across China. Will China’s economy inevitably […]

The Wonder of The Free Market – 3

The Wonder of The Free Market – 3 Question from MBA Candidate  (student) – “But can citizens and the free market really fix themselves? A comment from the website of the Department of Justice (2011) states that the competitive process, which is found within free markets, only works when competitors set prices honestly and independently.” […]