Does anyone grasp what inflation actually is?
Here’s an excellent, informative post on inflation by Go Fish Tim, via Renee Royle (on Facebook):
Sharing from a colleague on LinkedIn who is a CPA and PhD. Economist.
I was appalled to discover wide-spread ignorance about inflation, even among PhDs in Economics and legal scholars I’ve spoken to.
Many believe that inflation is primarily caused by corporate price gouging, and they support Harris’s pricing control as the solution to inflation.
I don’t know what has happened to American universities, producing “economists” who lack a basic understanding of their own specialized fields.
It is especially alarming for legal scholars, whose main societal function is to define property ownership, to lack an basic understanding of the economic substance of ownership beyond legal title.
The PhDs in Economics fail to see that inflation is not the root cause but rather a symptom of excessive money printing through Treasury bond issuance to fill the gap between tax revenue and government spending. They don’t understand that when the Fed oversupplies currency, which has no intrinsic value, to sustain government spending, other participants in the American economy lose purchasing power.
The experts with a “JD” after their names do not understand that the economic substance of legal ownership lies in decision-making power.
For example, if you invest in a company, you can either be a creditor or an equity owner. The distinction between the two is whether you have voting rights, a.k.a. the rights to influence business decision-making. They obviously do not understand how to determine the value of ownership over property, which is largely determined by the regulatory environment and who controls decisions on the best use of the property, i.e., the control premium.
Harris’s federal government pricing control to combat a non-existent “price gouging” problem tells me that Harris is indeed pushing socialism in America, in an insidious manner.
She misrepresents her intention to deprive pricing autonomy as “fixing inflation,” which is actually a result of undisciplined government spending.
In some natural resource-rich African countries, research has shown that poverty persists despite abundant wealth because of defected legal system and disorganized documentation to clearly define asset ownership and trace transactions.
Without appropriate documentation, assets in these countries become “dead capital”—they cannot be used as collateral for loans, cannot generate returns through business, and cannot be sold. Similarly, when the U.S. government imposes centralized price controls, it could gradually transform productive assets into “dead assets,” devaluing them and inhibiting their ability to generate wealth.
It is terrifying to see how our education system produces incompetent leaders without the necessary skills to detect this apparent danger: government price controls impose a one-size-fits-all solution, removing mutual consents in transactions and devaluing businesses by limiting owners’ ability to adapt, innovate, or set prices based on market conditions. It is a robbery of private business owners’ property rights.”Does anyone grasp what inflation actually is?
Excellent, informative post on inflation by Go Fish Tim, via Renee Royle :
“Sharing from a colleague on LinkedIn who is a CPA and PhD. Economist.
I was appalled to discover wide-spread ignorance about inflation, even among PhDs in Economics and legal scholars I’ve spoken to.
Many believe that inflation is primarily caused by corporate price gouging, and they support Harris’s pricing control as the solution to inflation.
I don’t know what has happened to American universities, producing “economists” who lack a basic understanding of their own specialized fields.
It is especially alarming for legal scholars, whose main societal function is to define property ownership, to lack an basic understanding of the economic substance of ownership beyond legal title.
The PhDs in Economics fail to see that inflation is not the root cause but rather a symptom of excessive money printing through Treasury bond issuance to fill the gap between tax revenue and government spending. They don’t understand that when the Fed oversupplies currency, which has no intrinsic value, to sustain government spending, other participants in the American economy lose purchasing power.
The experts with a “JD” after their names do not understand that the economic substance of legal ownership lies in decision-making power.
For example, if you invest in a company, you can either be a creditor or an equity owner. The distinction between the two is whether you have voting rights, a.k.a. the rights to influence business decision-making. They obviously do not understand how to determine the value of ownership over property, which is largely determined by the regulatory environment and who controls decisions on the best use of the property, i.e., the control premium.
Harris’s federal government pricing control to combat a non-existent “price gouging” problem tells me that Harris is indeed pushing socialism in America, in an insidious manner.
She misrepresents her intention to deprive pricing autonomy as “fixing inflation,” which is actually a result of undisciplined government spending.
In some natural resource-rich African countries, research has shown that poverty persists despite abundant wealth because of defected legal system and disorganized documentation to clearly define asset ownership and trace transactions.
Without appropriate documentation, assets in these countries become “dead capital”—they cannot be used as collateral for loans, cannot generate returns through business, and cannot be sold. Similarly, when the U.S. government imposes centralized price controls, it could gradually transform productive assets into “dead assets,” devaluing them and inhibiting their ability to generate wealth.
It is terrifying to see how our education system produces incompetent leaders without the necessary skills to detect this apparent danger: government price controls impose a one-size-fits-all solution, removing mutual consents in transactions and devaluing businesses by limiting owners’ ability to adapt, innovate, or set prices based on market conditions. It is a robbery of private business owners’ property rights.
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