Most investors are not aware of a critical division of professionals in the world of financial services. This distinction lies between fee-only fiduciaries who are free to act in your best interests and commission-based agents and brokers who are required to act in the best interest of the companies that employ them. Even when...
If the goal is to stimulate the economy, the means are already known: Freedom and cheap energy.
The tale of two Black Fridays began with the first modern Macy’s Thanksgiving Day Parade in 1924, which ended with an appearance by the jolly man in red. After this signal that “Santa had arrived,” retailers brought out their Christmas decorations and launched their holiday advertising campaigns. Before long, consumers came to accept the...
The U.S. economy is a dead man walkingâ€â€a zombie on life support. If we don’t bite the proverbial bullet and go through a painful cleansing, a healing period of deflation, the ultimate price we pay will be even worse.
Interviews with low-income single moms show that they are not hostile to marriage as an institution or as a life goal. In fact, they dream of having a husband, children, a minivan, and a house in the suburbs "with a white picket fence," but nobody tells them they will probably always...
According to the Heritage Foundation’s 2010 Index of Economic Freedom, Hong Kong has the most economic freedom. Freedom does matter. Hong Kong is the poster child for superior investment returns following free markets. Investments there have appreciated 71% more than the S&P 500 over the past decade. Hong Kong has an incredibly low tax...
It has been almost 50 years since Milton Friedman, Nobel economist, released his classic, Capitalism and Freedom. The book has slowly slipped from my course syllabus, not to mention that of the political elite. And why not? What Friedman said is now obvious. Surely, Americans, given the indisputable superiority of the free market over...
Washington’s stunning economic power grabsâ€â€healthcare centralization, Keynesian fiscal stimulus, and Federal Reserve bailoutsâ€â€are creating an unintended consequence: an increasing demand for freedom literature. Exhibit A would have to be F.A. Hayek’s 66-year-old Road to Serfdom’s recently hitting number one for all books on Amazon.com.Those desiring an even deeper education in the ideas of liberty...
I’m turning 50 this week, probably the most significant milestone after birth. It’s a good time to assess progress on all fronts–physical, emotional, spiritual–and of course financial. If you are close to either side of 50, I’d like to outline the ideal scenario to help you make your own financial assessment. We should have...
Congress recently passed the Dodd-Frank bill. At the signing, President Obama claimed, “Because of this law, the American people will never again be asked to foot the bill for Wall Street’s mistakes. There will be no more tax-funded bailouts . . . period.” Washington excels at blame shifting. The financial crisis began and ended...
Like a banana republic, we have allowed a self-serving political class to spend tax dollars and borrowed funds to “buy†popularity and take us to the brink of national bankruptcy.
I’m now convinced that the Obama administration is placing its political agenda above policies that would contribute to the economic recovery that millions of Americans so desperately need. That agenda includes bringing more economic activity under government control, making more people dependent on government, and, generally, redistributing wealth.I have come to this conclusion after...
The President’s Council of Economic Advisers (CEA) has released its most recent quarterly report on the effects of President Obama’s stimulus plan. Not surprisingly, the CEA praises this monumental Keynesian scheme, crediting the stimulus for saving or creating 3.6 million jobs and increasing the amount of private funds invested in the economy.What should we...
Investors are challenged these days to know where to put their money. Everyone wants to know which asset class will perform the best and help them meet their retirement goals. We use six different asset classes: three for stability and three for appreciation. In the stable asset classes, you loan a company money to...
The grand lesson of the 20th century is that Big Government retards economic progress.The evidence of this lesson goes beyond the socialist countries and their dramatic economic failures. Several decades ago, as a young economist, I encountered repeated studies that showed a high correlation between two macroeconomic phenomena: The larger the government’s share of...
Recently, Bill O’Reilly interviewed John Stossel about the dangerous situation along Arizona’s porous border with Mexico. Stossel is probably my favorite reporter. I admire the way he demolishes popular myths, particularly economic myths. However, on the topic of how to deal with waves of illegals (some of them perpetrators of violent crime) in Arizona,...
It’s easy to be overwhelmed by the bewildering array of economic data, statistics, charts, and graphs floating around. Often, we economists can’t see the forest for the trees. It’s hard to figure out what is truly significant and what is background noise. Having made that disclaimer, I offer some data that merit your contemplation....
If you read the financial press or listen to what politicians say, you have probably heard many times how important it is for the Chinese renminbi (yuan) to strengthen against the dollar. Indeed, it sometimes sounds as though a weaker dollar is the key to a prosperous economic future for Americans. Nonsense!Let’s look at...
Calling for a balanced budget amendment has been a staple campaign issue for conservative Republicans for years. Undeniably, our nation is beset by fearful fiscal woes. However, a balanced budget amendment isn’t the answer.Let me emphasize that I endorse a balanced budget in principle. Indeed, in my recent article, “Good Cop, Bad Cop,” I...
I agree with President Obama that we need more labor unions. However, I disagree with his approach. Full disclosure: I have been a dues-payer to both the United Auto Workers and the National Education Association unions. My sympathies are heavily tilted toward the interests of the men and women who do the work that...
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