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The Economic Effects of a Falling Dollar, Increased Exports and a Negative Trade Deficit

Conventional wisdom in economics cites that a weak currency encourages exports, and can actually help an economy. This opinion does work for certain economies, but for others it could have the opposite affect. What is the combined economic effect of a declining greenback, increased exports and a negative trade deficit?

The False Economy of the Hospitality Industry in Oaxaca, Mexico

Conspicuous consumption by the middle classes in Oaxaca, Mexico, might suggest a healthy economy. But an examination of those in the hospitality industry, operating restaurants, hotels, guest houses and bed & breakfasts, reveals a false economy which could result in disastrous circumstances if tourism does not improve.

Oversized Consumption and Waste

There is an increase in life stresses to earn money to obtain products and services that are more than we comfortably need. There is also waste and the environment to consider. As concern about nature and our social well-being are becoming more topical each year, many of us are beginning to realize that this frantic consumer anxiety needs to be reigned in.

Is The Economy Ever Going To Get Better?

Experts keep telling us things are going to start to get better but America is waiting to see the results. In April I wrote that it appeared that times were beginning to get a bit easier, but the market has taken a turn for the worse since then. Real Estate values continue to decrease, which is great for new buyers but miserable for those who purchased homes at the peak of the housing boom. Moreover while many companies are starting to see higher gains the rates at which they are hiring are failing to keep up. What gives?

Housing Crisis and Lower Income Home Owners

The article details the fact the lowest price homes in markets all across the US have experienced price drops greater than homes which cost more. This is no surprise and it is the natural consequence of artificial incentives instilled into the housing market by the Community Reinvestment Act originally signed by Jimmy Carter, and subsequently updated in the Gramm Leach Bliley Act signed by Bill Clinton.

The Economic Theory Behind Spending Cuts

Various governments around the world are currently proposing all types of spending cuts. The reasons for this, is to address growing national debts that are spiraling out of control. However this debt should not be compared to the debt of a normal person, as countries are known to run budget deficits and they are part and parcel of economic history.

Why Are Europeans Outraged by the Economic Crisis?

They come from all strands of life; they crowd the central streets and alleys of major South European towns; they protest peacefully; they are the movement of the “outraged citizens.” But why they are outraged?

Is American Economic Influence Declining Globally?

In this decade of the 21st century, we live in a global economy, in which human capital, natural resources, and trade expands, despite a recession in Europe, & the United States. This trend creates the same question, Is American economic influence declining Globally?

Why Government Cuts Are Necessary

All around us there is a lot of opposition to the government cuts which the UK government and other Western Economies are currently pushing through. These cuts are very important to maintain economic strength though and we have to endure some significant short term pain for long term gain. Let me explain.

I Want to Know – What are the Advantages of a Free Market Economy?

The other day, I was on a website, and someone ask the very naive question about why free-market economies were better than the purported Utopian or communist societies that are often seen in other parts of the world. It seems to me rather unfortunate we have standardized testing in the United States of America for math, English, and writing – but that we do not explain to people why free-market capitalism and a free-market economy is so important to the vitality of our nation. Okay so, maybe I should explain why free-market capitalism is so great, and I will…

Quantative Easing 2 – Will It Really End?

Is Quantative Easing 2 is about to end. Or have we been conned yet again into believing something, to have the rug pulled from right underneath us. This is an important topic here in mid June.

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