A Great read on the current budget debate:
Over the past couple of years we have been introduced to new economic ideas that challenge the world view of many. These new ideas are what I like to call, "Obamamath" heres a few of my favorites:
1.If you increase the number of patients (without increasing the number of doctors) you will REDUCE costs and bend the cost curve down.
2. Flooding the market with money will increase demand (the Keynesian economic theory)
3. Increasing taxes have little impact on the economy. Or better yet, incentives DONT matter.
4. My personal favorite, the new idea of "Created or Saved" Jobs.
Theres so many contradictions to simple pillars of ECON 101 its tough to keep up with. Ive been reading over the past few days more and more reports coming out that key elements of cost savings that were promised through the healthcare debate are now proven wrong. By just listening to their selling points before the big vote you know that it contradicts common sense. Lately the "Obamamath" is being proven to not add up. I'm glad that the elections are next week, and although it wont be the complete fix, it will at least stop this nonsense coming out of Washington. I read that the percentage of people who have business experience in this Administration is the lowest in American history and it shows. In terms of the stimulus how much is actually needed to show the people who support it that stimulus doesn't work? Another trillion? 2 trillion? Most importantly this climate of uncertainty is freezing growth. This just shows how little this administration understands business. I want to keep everything on this site strictly business and this funny business is not good for business as a whole.
I'm a fan of John Stossel, and a recent one at that. Ive learned more about the political idea of being a Libertarian, which essentially is for maximum personal freedom from government, and allowing individuals to make decisions for themselves (only a part of the idea of course) from him. Anyway I came across this article written by John that I think is very interesting concerning the minimum wage and the effects of the increasing it. See I'm turning 22, and when I had my first job waaaayyy back in 2005, I was paid $5.95 an hour. Now the minumum wage is around $7.25. As John points out, that increases the cost of having the same employees over these years by 41%. That would inevitably lead to layoffs because a company cant afford to keep those workers at those increasing rates. The most interesting part to the article was the chart, and the same reason why I'm posting it today.
My favorite part of my favorite show. Heres another great "common sense" from Neil Cavuto
This video is a little lengthy but I think it gets many good points across. Really enjoyed it
I wrote a list of my future goals down the other night and this was one of them. I wanted to create a site where I could accomplish many things at once. First, I wanted to keep a good record of my investments and a sense of how successful my investing philosophy is. Second, the frustration I have with the current political environment and its effect on business needed an outlet. Finally, I wanted to build credibility for myself in a possible future career in the market. So here we go.