Category: Economics

Peter Navarro Presentation

China’s Secret Economic Warfare Against the US Revealed In Shocking Detail

07/12/2018

[glossary_parse]White House National Trade Council and Office of Trade and Manufacturing Policy Director Peter Navarro spoke about the U.S.-China trade relationship. He released a report from the Office of Trade and Manufacturing Policy outlining the secret war that China has been waging against the United States. Ricardian Model Definition The United States sends about $550 […]

Unions did not create the 5 day work week or 8 hour work day, Henry Ford did.

Supreme Court Rules Against Unions

06/27/2018

It was a touch day for public sector unions today after the Supreme Court ruled in a 5-4 decision for Janus v. AFSCME that nonunion employees cannot be forced to pay fees to public sector unions. These fees, deemed as “fair share fees”, were collected as the unions believed that those who benefited from their […]

Fed beige book highlights widespread concerns over tariffs.

Will The Rising 10 Year Yield Crash the Stock Market?

04/23/2018

Why are interest rates and the U.S. dollar rising? Sure you have traders who are front running the Fed. They are going long interest rate sensitive vehicles in anticipation of the Fed hiking rates. But that’s not the full story. Protectionism and tariffs are inflationary. That is to say they push prices up. The faster […]

Supply and demand chart showing that Google's oligopoly on advertising reduces the quantity of advertising available from different firms causing advertising prices to rise.

Oligopolies and Monopolies

11/15/2017

The Trump Administration is following the playbook of Reaganomics. As part of its Reaganomics program, the Reagan Administration cut back sharply on the regulation of everything from monopoly and oligopoly to pollution and product safety, important elements that likewise effect the aggregate supply curve. Let’s review the microeconomics of monopolies and oligopolies. Adam Smith’s Perfect […]

Death By China: How America Lost Its Manufacturing Base

02/11/2017

It’s really important that stock traders watch the Death By China movie below as the Trump Administration gears up for a trade war with China. If you want to support quality movies like Death By China, consider purchasing the HD version on Amazon. If your HD TV can get Amazon, you can watch it with […]

Trump Administration and Tariffs Versus Quotas

11/14/2016

Protectionist policies in the form of tariffs and quotas are coming from a Trump Administration. It seems appropriate then that we examine tariffs and quotas from a macroeconomics perspective. The two most common ways of restricting trade are with tariffs and quotas. From a political point of view and to prevent a trade war, a […]

Here Comes Supply-Side Economics and the Laffer Curve

11/10/2016

Increases in government regulation, taxes, environmental regulations, and ObamaCare on businesses, shifted the aggregate supply (AS) curve inward and thus reduced aggregate demand (AD). With the explosion higher in the cost of doing business, businesses hired fewer workers. In fact, many small businesses reduced the size of their workforce in response to ObamaCare. Less hiring […]

Pharmaceutical Drug Pricing

11/3/2016

Pharmaceutical drug pricing is all over the mainstream financial media right now. Let’s examine the macroeconomics of what is happening. The demand for pharmaceutical drugs is inelastic. People that need a pharmaceutical drug prescribed by their doctor will demand that drug regardless of price. As the price of the drug goes up, demand mostly stays […]

Macroeconomics of Rising Interest Rates

10/30/2016

The prospect of a Federal Reserve rate hike is driving up the US dollar. The rising US dollar has a significant impact on the US economy and thus stock market. It’s important that traders understand the implications of a rising US dollar from a macroeconomic perspective. Rising US interest rates mean that a lot of […]

Macroeconomics Of Rent Control

10/26/2016

California, New Jersey, and New York have the most cities with rent control. Sanctuary cities in California like San Francisco and Los Angeles have some of the toughest rent controls. Rent controls hurt the local economy and make rental unit availability worse. Aggregate deadweight loss from rent controls across the country negatively impacts the US […]