- Inflation Adjustment, comparing the last five years[1]
In 2015 $1.00 has the same buying power as $0.99 in 2014
In 2015 $1.00 has the same buying power as $0.98 in 2013
In 2015 $1.00 has the same buying power as $0.96 in 2012
In 2015 $1.00 has the same buying power as $0.95 in 2011
In 2015 $1.00 has the same buying power as $0.92 in 2010
Inflation has remained low this year. The inflation rate is part of what determines currency stability. - US Population, comparing the last five years[2]
2015: 322 million
2014: 320 million
2013: 317 million
2012: 315 million
2011: 313 million
2010: 311 million
Population increase is slow and constant, currently sustainable. - Labor force participation rate (age 16+ people currently working, and actively seeking work), comparing the last five years[3]
2015: 62% (200 million)
2014: 63% (201 million)
2013: 63% (199 million)
2012: 64% (201 million)
2011: 64% (200 million)
2010: 64% (199 million)
Continuing to decrease, and is alarmingly low. - Unemployment rate (of the labor force participation rate, that is how the government calculates it), comparing the last five years[4]
2015: 5% (10 million)
2014: 6% (12 million)
2013: 6% (12 million)
2012: 8% (16 million)
2011: 8% (16 million)
2010: 9% (18 million) - Real Unemployment, comparing the last five years using numbers from above.
2015: 322 - 200 + 10 = 132 million not working : 41% real unemployment
2014: 320 - 201 + 12 = 131 million not working : 41% real unemployment
2013: 317 - 199 + 12 = 130 million not working : 41% real unemployment
2012: 315 - 201 + 16 = 130 million not working : 41% real unemployment
2011: 313 - 200 + 16 = 129 million not working : 41% real unemployment
2010: 311 - 199 + 18 = 130 million not working : 42 % real unemployment
Numbers may be within plus or minus 2% margin of error as I cannot determine the percentage of the US population that is under the age of 16. - Median Household Income, comparing the last five years, adjusted for inflation[5]
2015: number not available yet
2014: $53,657
2013: $53,105
2012: $52,970
2011: $53,162
2010: $54,343
Wages seem to remain in the same range. - GDP, comparing the last five years, adjusted for inflation, in billions[6]
2015: number not available yet
2014: 17,348.1
2013: 16,663.2
2012: 16,155.3
2011: 15,517.9
2010: 14,964.4
Low growth over the last five years. - Conclusion
US Economy seems stable, but growth is stagnant.
Saturday, November 14, 2015
The Real State of the Economy at the end of 2015; Facts and Figures
Saturday, October 10, 2015
Modern Rules for International Economics
Economics can really be a tricky topic. One of the many reasons that this is true, is because economics is so vastly affected by changes in technology. You cannot take what works today and apply it 200 years ago without dire consequences just like you can't take what worked 200 years ago and apply them today without causing a massive catastrophe. Therefore, that brings us to the first rule...
1. The Rules of Economics must be fluid.
How to keep the rules of economics fluid doesn't really have a universally accepted set of guidelines. In fact, it's constantly debated among many circles. Perhaps it is a good idea that every law pertaining to economics must sunset in 365 days (can be renewed every year if working, not if it isn't), and must be written in clear and concise language with a very well defined goal.
2. All people must have the right to conduct business and have an equal opportunity to do so.
This seems obvious, but there are laws that keep people from forming a sole proprietorship. As an example, to be a taxi cab driver in certain places requires heavy licensing fees in the range of several thousand dollars. This is no problem for someone who is already wealthy, but a big problem for a young person just starting out. This is also important because the Internet has allowed people to connect directly to other people instantly anywhere on the globe. Services can be rendered, and goods can be shipped easily and inexpensively. Like it or not, the world is already a loose-knit confederacy, and we need to be able to conduct business in this confederacy.
3. New technology must be allowed to thrive.
If the United States government had banned automobiles because mass production of them would have put horse breeders and carriage builders out of business, life wouldn't be as we know it today. This principle can also be seen with taxi companies with the invention of Uber and ride sharing services. Peer to peer business is made very easy with technology and mobile smart devices, along with clever entrepreneurs coming up with ways to use the technology to benefit themselves and their customers.
4. Companies should not be allowed to lobby legislators.
Companies tend to lobby legislators with bills that sound like they have the people's best interest in mind, but are actually a guise to limit competition. The government is supposed to work for all people, not just certain groups. Which brings us to the next rule...
5. The people must never be split into groups or classes.
Splitting people into classes or groups only breeds resentment between those groups. Each person must be treated as an individual, and must be held equally accountable under the law.
6. Governments must be lean and efficient, and operate in a budget.
As we saw with the fall of the Soviet Union and the financial crisis in Greece, budgets must be set and followed as closely as possible. This doesn't mean that governments can never borrow money, it just means that the loan must be paid off in a reasonable amount of time. The suggestion of all programs sun-setting after 365 days would help with things staying lean. Each year, if a program is extended, there is an opportunity to fine tune things, scrap them completely, or extend them if necessary.
7. Taxes should be simple.
A modern country should have a simple tax code. One that is easy to remember, and very clear. Many people get into trouble with tax collectors every year because they were unable to understand the tax code. Having concise rules would also greatly reduce the amount of loopholes that can be exploited.
1. The Rules of Economics must be fluid.
How to keep the rules of economics fluid doesn't really have a universally accepted set of guidelines. In fact, it's constantly debated among many circles. Perhaps it is a good idea that every law pertaining to economics must sunset in 365 days (can be renewed every year if working, not if it isn't), and must be written in clear and concise language with a very well defined goal.
2. All people must have the right to conduct business and have an equal opportunity to do so.
This seems obvious, but there are laws that keep people from forming a sole proprietorship. As an example, to be a taxi cab driver in certain places requires heavy licensing fees in the range of several thousand dollars. This is no problem for someone who is already wealthy, but a big problem for a young person just starting out. This is also important because the Internet has allowed people to connect directly to other people instantly anywhere on the globe. Services can be rendered, and goods can be shipped easily and inexpensively. Like it or not, the world is already a loose-knit confederacy, and we need to be able to conduct business in this confederacy.
3. New technology must be allowed to thrive.
If the United States government had banned automobiles because mass production of them would have put horse breeders and carriage builders out of business, life wouldn't be as we know it today. This principle can also be seen with taxi companies with the invention of Uber and ride sharing services. Peer to peer business is made very easy with technology and mobile smart devices, along with clever entrepreneurs coming up with ways to use the technology to benefit themselves and their customers.
4. Companies should not be allowed to lobby legislators.
Companies tend to lobby legislators with bills that sound like they have the people's best interest in mind, but are actually a guise to limit competition. The government is supposed to work for all people, not just certain groups. Which brings us to the next rule...
5. The people must never be split into groups or classes.
Splitting people into classes or groups only breeds resentment between those groups. Each person must be treated as an individual, and must be held equally accountable under the law.
6. Governments must be lean and efficient, and operate in a budget.
As we saw with the fall of the Soviet Union and the financial crisis in Greece, budgets must be set and followed as closely as possible. This doesn't mean that governments can never borrow money, it just means that the loan must be paid off in a reasonable amount of time. The suggestion of all programs sun-setting after 365 days would help with things staying lean. Each year, if a program is extended, there is an opportunity to fine tune things, scrap them completely, or extend them if necessary.
7. Taxes should be simple.
A modern country should have a simple tax code. One that is easy to remember, and very clear. Many people get into trouble with tax collectors every year because they were unable to understand the tax code. Having concise rules would also greatly reduce the amount of loopholes that can be exploited.
Thursday, June 25, 2015
The SCOTUS Ruling on the PACA Subsidies May Have Saved the Election for the Republicans in 2016
It's been a while since I've written in this blog. Sorry for the long hiatus, but I was working for a company that was more demanding than all three of my young children put together. I no longer work for that company, so now I have some time to do some blogging again.
Let me start out by saying that I really loathe the PACA, and I disagree with Barack Obama economically on almost every point. In my opinion a street prostitute addicted to heroine knows more about economics than he does. And his signature legislation, the PACA, is a horrible piece of legislation that should have never been passed. For most Americans, it made the cost of both health insurance and health care (both separate things) much more expensive. It's forcing many health care providers to radically change the way they operate. Some may even go out of business. However, for a large minority of Americans it did in fact make Health Insurance available to them with generous Federal subsidies.
For those of you who do not know, the PACA stated that Americans who enroll in state exchanges are eligible to receive subsidies. About half of the states didn't set one up, so a federal exchange was made. Challengers of the law were hoping to use this wording of the law to make those enrolled through the federal exchange ineligible to receive the subsidies, and thus hopefully gutting the law. Now had this succeeded, it was estimated that 7 million Americans would lose coverage because they would no longer get subsidies.
A part of me really hoped that the SCOTUS would rule in the favor of the challengers. However, the strategist in my knew that it would have been devastating for the Republican Party in the coming presidential election. The reason being, the damage to the price of Health Insurance and Health Care has already been done. If the law were to be gutted, prices weren't going to go magically back to 2007 level prices. It would have pulled the rug out from under 7 million Americans, and you can bet that the Democrat Party would be using that as a rallying point for the 2016 election.
Health Insurance and Health Care in the United States are broken. There's no getting around that cold hard fact. The PACA didn't fix it, but what it did do was pander to people who were too poor to buy their own health insurance, but not poor enough to qualify for Medicaid. The proper path to repealing the PACA would be to normalize the health insurance and health care markets first. Gutting the PACA without doing this first would lose millions of potential votes for the Republican Party forever.
Let me start out by saying that I really loathe the PACA, and I disagree with Barack Obama economically on almost every point. In my opinion a street prostitute addicted to heroine knows more about economics than he does. And his signature legislation, the PACA, is a horrible piece of legislation that should have never been passed. For most Americans, it made the cost of both health insurance and health care (both separate things) much more expensive. It's forcing many health care providers to radically change the way they operate. Some may even go out of business. However, for a large minority of Americans it did in fact make Health Insurance available to them with generous Federal subsidies.
For those of you who do not know, the PACA stated that Americans who enroll in state exchanges are eligible to receive subsidies. About half of the states didn't set one up, so a federal exchange was made. Challengers of the law were hoping to use this wording of the law to make those enrolled through the federal exchange ineligible to receive the subsidies, and thus hopefully gutting the law. Now had this succeeded, it was estimated that 7 million Americans would lose coverage because they would no longer get subsidies.
A part of me really hoped that the SCOTUS would rule in the favor of the challengers. However, the strategist in my knew that it would have been devastating for the Republican Party in the coming presidential election. The reason being, the damage to the price of Health Insurance and Health Care has already been done. If the law were to be gutted, prices weren't going to go magically back to 2007 level prices. It would have pulled the rug out from under 7 million Americans, and you can bet that the Democrat Party would be using that as a rallying point for the 2016 election.
Health Insurance and Health Care in the United States are broken. There's no getting around that cold hard fact. The PACA didn't fix it, but what it did do was pander to people who were too poor to buy their own health insurance, but not poor enough to qualify for Medicaid. The proper path to repealing the PACA would be to normalize the health insurance and health care markets first. Gutting the PACA without doing this first would lose millions of potential votes for the Republican Party forever.
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