A Brief History of Economics
Learn More About: The History of Monetary Economics
A Note on the Economic Crisis:
First and foremost, it is essential that we drop the rhetoric and beliefs. The Republicans are still clamoring for less regulation. The Democrats are still pushing spending bills of questionable agenda. Dropping earmarks is essential to cutting to the core of the dilemma. President Obama is pushing down the earmarks, of that we can certainly appreciate his efforts.
We know the challenge is large. In all centrist considerations we wish policy makers to keep these core ideas in mind:
- We do not exist in an objective market. We exist in a regulated market. For anyone to claim that we need less regulation in a regulated market merely illustrates how out of touch they are with market realities. Such ideological views are not rational and are the foundation of the economic turmoil we are now in.
- Any form of earmark or bill stacking should be culled out of all bills. It is critical to precision target the essential problems of economic stability, ignore political agenda and keep the national and state interests of 'the people' at the center of attention. That being without sufficient jobs, the system itself will degenerate.
- All bailout funds must be connected with performance and productivity. No money should be given away without performance guarantees.
Let us not be lulled into any complacency or false hope that throwing money at the system is a cure all. Everything must be tied to productive, responsible behavior.
To those that 'believe' we should reduce regulation on the bailout. Please consider the fact that we are not in an objective market. If you make decisions based on that false assumption, your decisions will be wrong.
To those that believe that money alone is the answer and that it is only about jobs. Please consider that jobs that are not directly tied to long term benefit of the needs of the nation and the people will prove inflationary and temporary fix.
For policy makers:
- Increase regulation to ensure that transparency becomes your top priority. Since we are in a regulated non objective market basis, largely due to over-reliance on the Keynesian model.
- Push no earmarks, seek balance in all policy between states and keep the national needs of the people rather than local needs at the center. Otherwise there is increased risk of delay and monies that may go to unnecessary infrastructure.
- Set aside personal agenda as best as you are able. Sacrifice is needed to save the economy. In this case, the needs of the many must be held high in order for the needs of the one to even have a chance at a better future.
Protecting The Economy
Personal security comes with strength in the economy. Many people think that the economy is Wall Street. The fact is that the majority of business happens in small business. We should not place unequal, or unhealthy, emphasis on protecting one sector of the economy over another without due cause. The national debt has topped 7 trillion dollars and continues to rise due to unsustainable policies. It is a mortgage that needs to be addressed rapidly as the interest on this loan has strong potential to erode our economic stability.
How past presidents have affected the poverty rate.
One can clearly see how management and policy reflects on the poverty rate in the presidential cycles. Circumstances and policy should be examined in each instance.
Note: The lines are set in the previous year to the presidential term to show the last metric data in the cycle before taking office.
- The red color represents a presidential cycle that had the poverty level worsening in the close of the term.
- The green indicates a presidential cycle that had the poverty level improving in the close of the term. U.S. Census Bureau
The important question is how and why poverty rates go up and down. The strongest way to alleviate poverty is to provide the means, method, and motivation to earn and exchange value. That does not mean welfare, it means providing the opportunity and motivation to use ones potential to learn, earn and provide value. The more we give away, the less potential value can be achieved.
America is still known as the place where dreams come true. Our unique attitude that anything is possible if you are willing to work for it has driven innovation to the limits of imagination again and again.
The freedoms and regulations allotted us in our market economy are the foundation for our businesses and the fair trade of goods and services.
We need to examine the small business environment, legislation and policy that may have moved to favor corporate expansion and certain global aspects over the driver of the American dream which is the main driver of the American economy, small business.
Governing policies that protect businesses as well as consumers need to be continually examined in the ever changing landscape that is our fast moving market economy.
Flexibility and fairness combined with due consideration of needs in the local, national and international business arena will foster a healthy market economy.
From intellectual property to small business development, protecting the capacity to achieve the "American Dream" should be the goal of all and a motive in policy direction.
Balancing Needs in a Whirlwind of Competition - Are we working to secure the American Dream, or is it slipping away to the most powerful Washington lobbyists? Personal security comes with strength in the economy. Many people think that the economy is Wall Street. The fact is that the majority of business happens in small business. We should not place unequal emphasis on protecting one sector of the economy over another and always be considerate of how healthy a policy direction is. The national debt has topped 7 trillion dollars and continues to rise due to unsustainable policies. It is a mortgage that needs to be addressed.
Constant Dollar Income Thresholds
1979 - 2002 (Source IRS)
The blue and pink lines represent the top .1% and 1% income earnings group in the country. The disproportionate increase in the past 25 years may be caused by the rapid globalization and expansion of consumer markets.
This occurring concurrently with the market bubble in the 90's may have caused policy shifts to favor executive compensation.
On a value basis this market mentality caused or occurred in coincidence with the emergence of the technology market and the highest average price earnings ratio the markets had ever experienced.
Certain oversights in the SEC regulation regarding options and executive compensation seemed to have been taken advantage of which caused a wave of investigations and arrests in corporate America. IRS Statistics of Income