It seems we are witnessing a significant shift. After years of growth, the government’s bull market might finally be reversing. This is promising news, as a decrease in government size relative to the economy will benefit everyone.
If the shutdown persists, we will face necessary adjustments and restructuring. Many federal employees may lose their jobs and will need to seek opportunities in the private sector. We won’t pretend this transition will be simple or devoid of challenges.
However, we believe that many federal employees will soon find themselves in more fulfilling roles. Many are skilled, intelligent, and resourceful individuals who simply found themselves in ill-fitting jobs. Who could have predicted that, following 9/11 and the 2008 financial crisis, the government would overextend its reach so drastically? This moment could serve as a valuable opportunity for them to exit with dignity intact.
Take Lisa Braswell, for example. She was furloughed last Tuesday from her position as a management analyst at the National Institute of Health. Continue reading
Ground Control to Major Tom: Reserves Are in Jeopardy
By Jeff Clark, Senior Precious Metals Analyst, Casey Research
When discussing a mining company’s “gold reserves,” the common assumption is that it refers to a specific number of ounces. After all, gold does not decay, nor does it relocate on its own.
Yet, assumptions can be misleading. In reality, industry-wide reserves are expected to decline significantly in the near future.
When gold prices drop, it influences producers not only in the short term—with decreased earnings and mandatory write-downs—but also the number of economically mineable ounces a company can report, which can impact future mining prospects as well. Continue reading
Yesterday, President Obama remarked that a government shutdown “would disrupt our economy.” Yet, here at the Economic Prism, we believe that a disruption might be just what we need, especially if it leads to stricter control of the national debt.
Since 1940, Congress has raised the debt ceiling 79 times—averaging more than once a year. Clearly, this practice has not curbed spending, and the debt continues to grow uncontrollably, doubling approximately every seven years.
The current debt ceiling stands at $16.699 trillion, yet it was exceeded months ago, although the Treasury has not yet acknowledged this reality.
According to the US Debt Clock, the debt now exceeds $16.9 trillion—well above the legal limit. Regardless of where one stands in the ongoing debt ceiling debate between the House and President Obama, there is one shared concern: government deficits and the massive federal debt will significantly worsen the prospects for future generations. Continue reading
With a dismal job market, stagnant GDP, declining household income, and sluggish wages, the economy seems to be moving like an old Cutlass Supreme.
Despite attempts to revive it, the economy cannot seem to run smoothly. One issue is repaired, only for another to arise shortly after.
Five years after Lehman’s collapse and the onset of the Great Recession, the recovery remains sluggish. Perhaps it needs a firm push to get it back on track. But where will that impetus come from? We have a few thoughts…
From our perspective, the economy is burdened by excessive debt and inconsistent monetary policies. Initially, the stimulus aimed to boost demand and economic growth, promising a quick influx of jobs and ushering in an era of prosperity.
However, that promise was illusory. Continue reading
In summary, the economic landscape is shifting, and while the challenges are significant, they may also present opportunities for growth and improvement. Embracing change could lead to more robust futures for both individuals and the economy as a whole.
