The Common Sense Economist

WHAT ECONOMIC RECOVERY?

The administration keeps talking about the “phony scandals” diverting the attention of Americans from the real problems of jobs and the economy. Mortimer Zuckerman, in a July 16 Wall Street Journal op-ed, “A Jobless Recovery is a Phony Recovery,”... Read more

The Cost of Cheap Labor

As Congress considers the Immigration Bill proposed by the gang of eight, it is worth considering a few lines from my book ALL YOU REALLY NEED TO KNOW ABOUT ECONOMICS, pg. 79. “Data reported by the Center for Immigration... Read more

Tax Reform: Flat or Fair?

The only Constitutional purpose of taxation is, or should be, to obtain revenue for essential government operations.  Adam Smith said in An Inquiry Into the Wealth of Nations, his great work on market economics, that governments may tax citizens... Read more

The Unemployment is 7.5%, or i it?

The Bureau of Labor Statistics reported that the unemployment rate for April had fallen to 7.5% from 7.6% in May.  This is the lowest since January 2009, when the rate was 7.3%.  The highest during the Great Recession was... Read more

IT’S THE GOVERNMENT, NOT SOCIAL SECURITY

Civil War Pensions were an early attempt at “Social Security” in America.  The program began in 1862 and provided a pension to those who were disabled as a result of military duty.  The benefit would be payable to a... Read more

The Missing Recovery… from the Daily Bell.com

The Missing Recovery Monday, March 04, 2013 6:03 PMOfficially, since June 2009 the US economy has been undergoing an economic recovery from the December 2007 recession. But where is this recovery? I cannot find it, and neither can millions... Read more

IS MINIMUM WAGE THE ANSWER?

Common sense economist Milton Friedman said, when speaking of a proposed increase in minimum wage, “It has always been a mystery to me why a youngster is better off unemployed at $4.75 an hour than employed at $4.25 an... Read more

HOW MONEY IS CREATED

Few people know how money is created. One Obama supporter who expected the President to give her money said it was from “his stash.” A member of Congress whose name I forget said we shouldn’t worry about the national... Read more

THE RENT-SEEKING ELECTORATE

Strange as it must seem, rent-seeking to the economist is trying to get something for nothing. I know it doesn’t make sense, but that’s the way it is, economically speaking. Why rent? In economics, rent is payment for natural... Read more

TAX MAGEDDEN IS COMING

The fiscal cliff, which I would rather call the fiscal slope, is maybe right around the corner. Or maybe it isn’t. Why the slope instead of the cliff? When we will experience a rather steep slide instead of a... Read more