Petrodollar refers to United States dollars earned through the sale of its petroleum (oil) to another country. Origin In 1971 Richard Nixon was forced to close the gold window taking the U.S. off the gold standard and setting into motion a massive devaluation of the U.S. dollar. In an effort … Continue reading
Category Archives: Economy
Universal Basic Income
America is running out of jobs. It’s time for a universal basic income. The politics of a guaranteed income get a lot easier when you acknowledge that the U.S. is no longer the land of opportunity Free money for everyone! With weak job growth, rising poverty, and the rich continuing … Continue reading
The Labor Participation Rate
As of March 2013, the percentage of working-age adults in the labor force -known as the participation rate- fell to 63.3%, the lowest since May 1979. Since unemployed people who stop looking for work are not counted as unemployed, the official unemployment rate is grossly understated. Part of the … Continue reading
China’s Achievements
In less than two generations, without vast oil reserves or mountains of debt, China has peacefully transformed itself into the world’s preeminent manufacturing powerhouse, and for that it deserves the highest praise and admiration. America’s trade deficit with it stems in part from China’s lower labor and medical care costs, … Continue reading
Public Debt
Currently the only way the government can maintain its liquidity is thanks to the Federal Reserve, which as of April 2013 holds 16% of total outstanding Treasuries -essentially Federal IOUs purchased by the Fed with money created out of thin air. How long this can continue is anyone’s guess.
Trade Deficit
The trade deficit is a direct consequence of the fact that more workers in other nations are employed producing goods and services for the United States than the other way around. So far, this wealth hemorrhage has been confined to the middle class, compelled to choose between unemployment and underemployment. … Continue reading
Distribution of Wealth
There’s a rapidly widening gap in the distribution of income and wealth. The latest census data depict a collapsing middle class (this video details how it happened and its ramifications), high underemployment, low (and declining) labor participation, and rising outlays for disability, food stamps and low-income tax credits. Alarming as … Continue reading
Poverty and Wealth
“The first man who, having fenced in a piece of land, said “This is mine,” and found people naïve enough to believe him, that man was the true founder of civil society. From how many crimes, wars, and murders, from how many horrors and misfortunes might not any one have … Continue reading
Mass Exodus From The U.S. Workforce – Nov. 2013
The unemployment rate has been declining, but so has labor force participation. Media attention tends to focus on the former and to ignore the latter; as a result, some people wrongly assume that the employment situation is improving and that it’s only a matter of time before things get back … Continue reading
Man-Cession
In the mid 1950s, nearly every man in his prime working years was in the labor force, a category that includes both those who are employed and those actively applying for jobs. Early in 1956 the “participation rate” for men ages 25 to 54 stood at 97.7%. By late … Continue reading