The overall argument is that an influential driver of increasing inequality is the capability of the relatively well-off to capture large parts of the national income at the expense of the majority of the population through political influence. While the real wages of the economic elite increase, the majority of the population experiences stagnating real wages. In this regard, the changing shares of national income as measured by the functional income distribution (FID), which distinguishes between the factors labour and capital, have been neglected so far. The former measures the return to labour which is a major source of income for the majority of the population, whereas the latter measures the return to ownership which accrues mostly to a wealthy minority of the population.
It is an awe-inspiring and terrifying sight, a volcano spewing lava and millions of tons of ash and rock into a blackened sky. Mexico’s “fire volcano”, Mount Colima, recently began erupting … again, a reminder of the spectacularly destructive forces that can be unleashed by nature.
“Isn’t it a problem that neither I or you or anyone else, for that matter, knows what the [risk-free] rate should be?”
Alan Blinder’s response to my question at the time was that it is a problem, and that it would be a better world if central banks had perfect foresight. He seemed baffled by my follow-up question, specifically, why we do not allow credit markets to set every interest rate in the economy without setting a fed funds rate. Why, in other words, did we need a “risk-free” rate?
The Great Illinois Gold Rush! (GE Christenson)
Back to the important question: Where is the gold rush? Retirees, future retirees and current state workers should realize that they will inevitably lose benefits and jobs while their taxes and expenses increase. Gold, not the legislature nor the politicians, will protect their purchasing power.
The Mind of Mr. Putin (Joe M.)
Five thousand are dead and 25,000 wounded since March. And as the 25 million Yemeni depend on imports for food, which have been largely cut off, what is happening is described by one U.N. official as a “humanitarian catastrophe.”
“Yemen after five months looks like Syria after five years,” said the international head of the Red Cross on his return.
Gold And Money Supply (Aaron M.)
There is no correlation between gold and inflation any more than there is with most commodities. We have the largest database in the world. If such a relationship existed, we would be shouting it from the rooftop. The commodities business is highly cyclical; boom and bust is par for the course. Yet, these promoters bury people alive by telling them that there is no cycle and it is always up, up, and away.
Peter Schiff is an internationally recognized economist specializing in the foreign equity, currency and gold markets. Mr. made his name as President and Chief Global Strategist of Euro Pacific Capital. He frequently delivers lectures at major economic and investment conferences, and is quoted often in the print media, including the Wall Street Journal, New York Times, Barron’s, BusinessWeek, Time and Fortune.
In this week’s episode, Neil deGrasse Tyson chats with whistleblower Edward Snowden via robotic telepresence from Moscow. The two card-carrying members of the geek community discuss Isaac Newton, the difference between education and learning, and even how knowledge is created. They also dive into the Periodic Table and chemistry, before moving on to the more expected subjects of data compression, encryption and privacy. You’ll learn about the relationship between private contractors, the CIA, and the NSA, for whom Edward began working at only 16 years old. Edward explains why metadata tells the government much more about individuals than they claim, and why there’s a distinction between the voluntary disclosure of information and the involuntary subversion of individual intent. Part 1 ends with a conversation about Ben Franklin, the Fourth Amendment of the U.S. Constitution, the Universal Declaration of Human Rights, the CIA’s oath of service, and government Standard Form 312, which is the agreement Snowden violated.
In short, the welfare system punishes work and incentivizes dependency. More concretely, the structure is such that rational actors will eschew hard work, because the more they earn, the poorer they will effectively be in terms of total resources (calculated as welfare benefits plus earnings).
In the simplest possible terms: for many Americans, wage growth is a very, very bad thing.
Gold & Silver
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