Insights on Economy, Financial Markets, and Investing | Economic Prism Part 109

The recent GOP tax bill has sparked a lot of discussion. One thing is indisputable: it has provided an intriguing spectacle.

The opportunity for true solutions to America’s debt crisis has long since passed. Instead of confronting the growing insolvency that plagues the nation, lawmakers have consistently opted for convenience, merely shifting responsibilities from one day to the next.

Currently, viable options to rectify our fiscal issues are sparse. In this advanced stage of a beleaguered nation, style often takes precedence over substance. Congress and President Trump undoubtedly demonstrated this dynamic while advocating for the bill with considerable flair.

For instance, on Tuesday, President Trump, Senate Majority Leader Mitch McConnell, and House Speaker Paul Ryan hosted a meeting at the White House, complete with two empty chairs. Senate Minority Leader Chuck Schumer and House Minority Leader Nancy Pelosi chose to skip what they deemed a “show meeting,” ultimately highlighting their absence rather than participating. Continue reading →

Governments worldwide will go to great lengths to intervene in the personal lives and choices of citizens. This trend has become abundantly clear through our past experiences and observations. What lies behind this inclination?

For starters, politicians possess an inherent aversion to freedom and personal liberty. They seek to control your behaviors, choices, and decisions. More alarmingly, they aim to utilize your financial resources to achieve their goals.

In the United States, bureaucrats, emboldened by their authority, frequently obstruct individuals striving for self-sufficiency. Everything from licenses and permits to fees and employer identification numbers stands between an entrepreneur and their first sale. Local regulations can be so cumbersome that even running a simple lemonade stand requires a permit in many areas.

Moreover, thoughts of launching an auto shop or medical practice can lead to significant headaches, often requiring entrepreneurs to invest a year’s worth of profits in extensive plans just to comply with hazardous material regulations from the fire department. Continue reading →

Renowned economist and Nobel Laureate Milton Friedman famously stated that “inflation is always and everywhere a monetary phenomenon.” He likely referred to the swift rise in the supply of money relative to the production of goods and services, which money buys.

As more money circulates without a corresponding increase in goods and services, the value of money is diluted. Thus, price inflation doesn’t merely refer to skyrocketing prices; instead, it reflects a decrease in purchasing power caused by an excessively expanding money supply.

While Friedman provided a keen observation, he also showcased an opportunistic outlook. He viewed monetary inflation as a potential catalyst for enhancing human productivity and stimulating economic growth.

Friedman suggested that a stable money supply wasn’t sufficient. Instead, he argued for a moderate rate of monetary growth and inflation to constantly energize the economy. By instilling a belief in consumers that prices will continually rise, policymakers could stimulate ongoing consumer demand. Continue reading →

As dawn broke last Saturday, we set out under a brilliant, clear sky. The autumn colors surrounded us as we ventured closer to the majestic mountain peaks, though a lingering chill accompanied the crisp morning air.

Much like Jonathan Harker’s journey to Transylvania over a century ago, we traveled eastward. However, our path diverged, bypassing Vienna and Budapest, soaring instead toward the Carpathian Mountains.

We navigated through the foothills of the San Gabriel Mountains, transitioning from the Angeles National Forest to the San Bernardino National Forest, ultimately ascending to the quaint Oak Glen village perched a mile high above the sprawling concrete of Los Angeles.

In this mountain enclave, we found no stoplights or fast-food franchises. The landscape was free from billboards, power lines, railways, and graffiti, allowing nature to shine without the distractions of urban infrastructure. Continue reading →