Entries Tagged 'Government' ↓

How Micro Economists Could Crush Covid

For over a century macroeconomists have dominated the field of Economics in the Western World. I predict this is going to change in this century and that microeconomics will make a come-back.

The sub-field of microconomics itself was actually founded decades earlier than the sub-field of macroeconomics by a Cambridge College professor in England named Alfred Marshall.

In the late 19th century, Alfred Marshall wrote his famous book, Principles of Economics, and in his classrooom Marshall taught microeconomics to his students.

Marshall invented the field of microeconomics in reaction to the popularity of Karl Marx’s book, Das Kapital, a book that was critical of the capitalism that Adam Smith had advocated in Smith’s earlier book, the Wealth of Nations, published in 1776, the year of the American Revolution.

Marshall’s microeconomics teachings shunned the simple arithmetic examples that Karl Marx relied on to support Marx’s theories that rich people were cheating the factory workers who had made them rich. Fast forward to the next century!

In the early 1930’s, the United States fell into a GREAT DEPRESSION, far worse than any we have seen since.

That’s when Lord John Maynard Keynes, a student of Alfred Marshall’s at Cambridge, created and taught the sub-field of macroeconomics.

Keynes overcame Marshall’s reluctance to use arithmetic by using a form of mathematics called ‘calculus’ to support Keynes theories. Keyne’s theories became the mainstream thinking of the economists during the Great Depression and afterwards.

Meanwhile in the mid-twentieth century, conservative followers of Adam Smith’s economics at the University of Chicago economics department were still using simple arithmetic just like Karl Marx had done.

For almost a hundred years now Lord Keynes’ flashy macroeconomics and ‘econometrics’, along with President Franklin Roosevelts’ “New Deal”, were considered successes that saved the U.S. Economy in the mid-twentieth century.

Nevertheless a minority of conservative economists on both the West and East Coasts of this country at Stanford University, University of Virginia and other Southern colleges, and George Mason University near Washington, D.C. published books which challenged the ideas of the Keynesian economists.

Some of these minority economists’ arguments were quite credible, others weren’t.

I know because I created numerous back-of-the-book indexes for all kinds of economics professors for over twenty-five years in the late 20th century: Keynesian liberals, Chicago conservatives, and ultra-conservative libertarians.

Macroeconomics and Microeconomics – The Differences

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Book Review – The 10 Rules of Successful Nations

Ruchir Sharma is the author of The 10 Rules of Successful Nations (2020). He is Chief Global Strategist and head of Emerging Markets Equity Team at Morgan Stanley Investment Management.

Sharma is a young man who manages $20 billion of assets, and already has two other books out: Breakout Nations: In Pursuit of the next Economics Miracles (2012) and The Rise and Fall of Nations: Forces of Change in a Post-Crisis World (2016)

Interviewed by Fareed Zakaria this past week, Sharma announced that when the COVID Crisis is contained, we, the United States, will not be among the top ten successful nations on his list—or even anywhere near it.

Given that Sharma’s first rule for a successful nation is “They fight population decline,” it isn’t surprising that we won’t be great again when this pandemic cools down.

It’s obvious that we are not fighting our population decline in the face of COVID-19. We are at the very top of the losers, with many of us gone and the health of millions of others diminishing every day more rapidly.

The Successful Nations

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Are Vaccines the Answer?

Thanks to the incessant drone of the media and and social media this century there is a huge split between the “right” and “left” in the U.S.

I look at that split and I feel it only goes to serve the ends of the wealthy to become even wealthier at the expense of the rest of us. Here’s how.

Coronavirus-19 seems to have accelerated that split even faster as we watch the death count in our country rising more and more each day. 

If you don’t believe that corruption lies in D.C. take a look at the chart I just posted on Brucenomics. 

In four weeks, the cream of trillions of dollars was skimmed off by Wall Street, while our President said, “Let them drink disinfectant,” and he urged us to go on contaminating each other by not wearing masks. 

Now on the second-and third- rounds of the “stimulus”, things haven’t changed much. Public corporations are getting money and so are foreign students. The death rates are still underestimated and tests and PPE supplies undelivered.

Now our President is promising a miracle cure in just months. Let’s take a look at the left and right responses to this. Continue reading →