Some people will argue that just because the government does something, anything, that it’s being productive. But whether someone, an organization or government is productive or not depends on the value of what is done and the costs to do it. If the costs are greater than the value then it’s consumption. Productivity means taking …
Category Archives: Government Spending
What’s Wrong with Public Education?
The problem with public education is that it has nothing to do with education, it’s politics. Public school systems are political institutions, administered, run and funded by bureaucrats for political expedience. Is there anyone who doesn’t understand the inherent inefficiencies, half-truths and political horse trading of politics? People you wouldn’t trust to babysit your kids …
The Magic of Fiat Borrowing
Awhile back I posted an article called ‘Your Government is Bankrupt’ and in that article I was right and I was wrong. I was right that the government is bankrupt, bankrupt meaning it takes in less revenue than it spends and can’t pay back its debt, but I was wrong that it matters, it doesn’t, …
Why Lottery Winners Blow the Money
Someone who wins millions in the lottery who isn’t used to having and managing millions doesn’t consider the opportunity costs of the lost future value if they were to invest some of the winnings. They only consider the present value of the money and their short time preferences like food, drink, clothes, car, fun, sex, …
Your Government is Bankrupt
By Don Cooper The debt clock says that the federal government currently has a debt of $28 trillion that must be paid back with interest which means, for all intents and purposes, the US Federal Government is insolvent, bankrupt. This isn’t a joke and it’s not a conspiracy theory, it’s political, economic and mathematical fact …
Effects of the FED and the State on GNP
By Don Cooper Production Production means creating market value. Consumption means destroying market value. Production is the act of taking factors of production (inputs to production) and combining them in such a way that the market value of the outcome is greater than the market value of the inputs separately. If the market value of …