A common tenet of Keynesian theory is that a lack of inflation will slow down the “velocity of money”, encourage people to hoard money, spend less, and therefore stall an economy by reducing demand.
Keep in mind that Keynesian theory has only been en vogue for a century, and is merely a blip in history. It is still just a theory, with fiscal interve… Read more
The last couple of interest rate hikes in the U.S. had an unusual short-term effect on the stock market — the markets went up on both the rumour and the news.
Normally, by placing a higher value on cash and savings, there would be a flight away from leverage and speculation, resulting in a correction in the market. However, that never happened as the DOW and S… Read more
Finance Minister Charles Sousa unveiled the plan in the province’s fall economic statement Tuesday afternoon. The corporate tax rate for small businesses will fall from 4.5 per cent to 3.5 per cent effective Jan. 1, 2018, the same day the province will increase its minimum wage from $11.60 to $14.
The Keynesian t… Read more
My last article discussed how Keynesian economic theory is used as a persuasion tool for current institutions of power to gain even more power. One of the keys to hide the destructiveness of Keynesian theory is to lie about inflation. Manufactured inflation numbers pose as “scientific data” to justify economic policy and interest rate decis… Read more
Like the postmodern movement, the rise of Keynesian theory in academia in the past century has led to government institutions wielding more power than they merit. The general public doesn’t really understand this recent interpretation of economics, so they are encouraged to trust a group of economic “experts” to sort it out for them.… Read more
A new Ipsos poll came out that shows Canadians are pretty much screwed no matter what the next Keynesian move is by the Bank of Canada:
Four in ten (43%) say they are concerned about the impact of rising interest rates on their financial situation, and nearly three in ten (28%) expressed concern that rising interest rates could move them towards bankruptcy.
… Read more
Take a look at this screen grab of the real estate headlines at CP24.com (Canadian Propaganda 24 hours a day):
Affordability is the worst, yet prices are near the bottom?
Nothing is technically “affordable” nowadays in a Keynesian powered economy. No one is encouraged to save, and everyone (government included) relies on debt, a.k.a. future … Read more
Canadian policy is currently being dictated by emotion (or more accurately, postmodernism) and the lack of objective analysis in some of the new bills and laws being passed will have dire consequences in the future.
In Ontario, the decision by the Wynne Liberal government to raise minimum wage to $14 by 2018 (about a 30% increase) and $15 by 2019 was made desp… Read more
To paraphrase a Louis CK comedy bit, let’s assume you were a billionaire. You decide to buy all the pants in the world, and then just burn them. Does this have a positive impact on the economy?
Let’s assume you spent $1 billion to buy all the pants. This represents $1 billion of savings, or stated differently, $1 billion in goods and services produc… Read more
BitCoin and cryptocurrency forums have been reacting emotionally to arguments illustrating the flawed technical fundamentals of cryptocurrencies.
… Read more
Just google bitcoin+ponzi, bitcoin+intrinsic value, bitcoin+myspace, etc. All arguments have been made. Honeybadger doesn’t care. It moves onwards & upwards.
Anyone who’s longer