The Coming Wage Inflation In China
One of the toughest things that happens to fast-growing nations is inflation. It means that people’s money becomes worth less in value over time. With a rapidly growing economy such as that in China where they’ve had 7 to 10% GDP growth year-over-year for over three and a half decades it will be hard for China to escape inflation. They’ve had their bouts with inflation in real estate, commodities, food prices, energy, and just about everything else that someone might buy. These are growing pains, and China has to make sure it’s economy doesn’t overheat, and that it is managed properly.Regulations: Mathematical Solution
When I was writing on the Internet about the need for some regulations, I was asked where does one draw the line between rightful regulations and wrongful regulations. I believe that this can be computed mathematically. On one side of the equation should be cost of the events that the regulation exists to prevent multiplied by the chance of those events happening.Obama Stimulus
The American Recovery and Reinvestment Act of 2009 (ARRA), better known as the Obama stimulus included many parts that were meant to save American jobs and shore up economic growth. Following standard Keynesian guidelines, the economic stimulus involved the federal government spending hundreds of billions of dollars in order to stimulate economic growth and consumer spending. The stimulus was designed to attack the great recession of 2008 from all sides and since President Obama had the support of a Democratically controlled Senate and House of Representatives, he was able to get much of…Will the Eurozone Emerge From Their Economic Crisis?
Indeed, I’ve always said that people who are broke, living on bare-bones, or are at their financial end of the rope often make very poor choices for their future, and are apt to make their situation much worse. I’d say the same thing goes for countries faced with the same type of dilemma. They make the wrong short-term decisions, and leave themselves in a worsened situation. A case in point might be the Eurozone as they’ve attempted to emerge from this economic crisis, and yet they continue making one mistake after another culminating in what could be a disastrous decade of deleveraging.Unemployment in China, Is That Real?
Recently, the SEC said it was going after several rating companies, consulting companies, and subsidiaries of Chinese companies for possibly putting out false information. In the United States and in our markets we have strict rules for accounting and reporting. We have these to protect the investor, and to protect the market’s integrity. If people don’t trust the markets, they won’t invest, and we won’t be able to capitalize American businesses. Today, with the global flow of investment moving at such a high rate of speed we need similar rules and standardization around the world.Is The European Union and Eurozone Honestly Economically Sustainable?
Last year, I was discussing with an acquaintance the challenges with the EU and the economy there. My acquaintance is from the UK so he had a bit to say about it all and he is “in the know” if you will. He explained to me that the Eurozone had indeed had a decent run, but there were far too many differences between the different economies and their methodologies. To which I do concur, still, let’s take this conversation to a higher level because not a lot has changed from a year ago, and here we go into 2013 – things still look dicey.The Global Economy Is Interlinked – Should More Continuity Be Globally Mandated?
Most folks cringe on the concept of a new world order, and I can certainly see their point, as we have far too many layers of government as it is, still we do need standardization and continuity. After all, the US economy depends on the rest of the world as much as the rest of the world now depends on the US and our strength to buy their products and engage in trade as they build up their domestic economies. Sure, nothing new there, but I’d like to briefly discuss all this with you, especially on how it relates with the potential break-up of the European Union.Jobs Are Obsolete
Technology increases the efficiency and functionality of most things. We usually hear that the answer for long term unemployment is educating and retraining our work force. Training may help the individual, however as technology improves efficiency, there is simply less (really needed) work to do.Crucial Measures for Developers Expected From the Autumn Statement
The highlights of George Osborne’s upcoming announcement, such as raising £10bn in funds by increasing tax on pensions and large properties and introducing benefit cuts are causing much speculation. The chancellor’s move seems likely to target middle and upper class earners. The Autumn Statement announcement next week is expected to tackle his new plans for taxation and is likely to include hitting pensions and owners of large properties through a prospective “mansion” tax.One Dollar US Coins – Okay But So What?
As you know, Canada no longer uses a paper dollar. For decades now the United States has been talking about going to a one dollar coin as well, but we haven’t yet. Why not you ask? It’s hard to say, but I would submit to you that it isn’t so much about the cost of creating coins versus paper because the coins last quite a bit longer, rather the problem is; the return on investment of the creation of that coin..Birthrates and Economics Revisited
Population growth and economics are tied together. Many nations right now are facing a demographic shift with too many older people, and not enough younger people coming into the workforce to provide the inflow of funds to pay for everyone who have retired. This is a real problem. In the United States when we first put forth the concept of Social Security it was to be one-time payment of $1700 per person per lifetime.