Tag Archives: macroeconomics

A Keynesian Nightmare: Saving Money Helps Shorten Recessions

There’s a popular notion in Keynesian economic theory known as “The Paradox of Thrift (or Saving).” Since Keynesian economics focuses on Gross Domestic Product (GDP) — which is, frankly, a measurement of spending — saving money is paradoxical because it lowers GDP due to consumers not spending it.

The reason why economists care so much about GDP is because it’s an important indicator of where the economy is in a business cycle (boom or bust). When GDP constantly drops for a period of time, this is known as a recession. How exactly does saving money help shorten a recession?

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How Much is Enough When You're Saving Money?

Now that tax season is upon us, I’d like to ask you something: If you’re able to, do you currently have a plan for saving money? Whether or not you do, have you ever considered how much you should have in your savings account? There’s the 50/30/20 rule for budgeting as well as the 10% rule for retirement, but we’re not talking about methods for saving money. Instead of thinking how to save it, I want to get you thinking more about how much you should save.

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Oregon Measure 97: The Harsh Reality

The State of Oregon is having a bit of wild dream when it comes to a state measure that was intended to raise taxes by 2.5 percent on big corporations. The ‘Yes on Measure 97’ campaign even has over 70 experts and academics to back up the measure. But is it really all it’s cracked up to be? To be honest, I don’t think so. 

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Oregon Business Agenda: Give Some Authority Back to Counties

Rural Oregon, especially eastern Oregon, is experiencing some serious economic hardship. These areas feel quite neglected from the state and have been pretty vocal about it. Does Governor Kate Brown acknowledge that? Who knows? Maybe she did and nobody covered it. But until that’s something to be proven, we have to assume that she did not. Why should we care? It’s just farm land and whatnot, right? Rural Oregon, believe it or not, still brings in a good amount of money to the state. Eastern Oregon has been considering joining Idaho and Idaho doesn’t have a problem with that.

As I mentioned in the last article, I have an agenda for Oregon’s businesses that I believe will help turn our economy back around and help Oregon get back on its feet. There’s still time to kick start this recovery. I firmly believe that a big start is allowing the counties to make deicisions about labor for themselves.

NOTE: This article is part of a series that outlines a common sense agenda for the benefit of all Oregonians.

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Oregon Business Agenda: Taxes and Tax Reform

Oregon is in deep trouble right now. Between March, 1996 and February, 2015, the unemployment rate in Oregon has been higher than the federal rate. Its manufacturing jobs have all skipped town, the timber industry is nearly non-existent, and many are continuously fighting for higher business taxes so that they pay their “fair share.” The cause of this has been a mixture of state and federal legislation that just isn’t in the best interest of Oregon and its residents. I have an agenda that I believe would help put Oregon in the right direction: Progress and prosperity.

NOTE: This article is part of a series that outlines a common sense agenda for the benefit of all Oregonians.

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Why You Shouldn't Trust Biased Economic State Infographics

I don’t mind it when people support President Obama if they believe in the things that he’s doing. However, I do have a problem with people quoting economic indicators to people who might not understand them. For example, why would they quote GDP growth when that doesn’t necessarily mean that the economy is doing good? Why show the unemployment rate, but not the rate of those not in the labor force and the labor force participation rate?

The answer is simple: Either the creator of biased infographics like this don’t understand much about economic indicators or they know enough to know better, but they think you don’t. It’s not fair for people like this to mislead the country into support like this. I’m going to show how to analyze data for yourself so that you don’t get misled.

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Per Capita Income: An Economic Misunderstanding

After reading into Oregon’s 10-year plan outcome areas for the economy, I noticed something that really worries me. It mentions closing the income inequality gap and getting the per capita income above the national average. Trying to close the income inequality gap is a nice idea, but raising the per capita income isn’t a good indicator of economic success. This is because it can be raised by the rich getting richer or, worse, the poor getting poorer.

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Why An Oregon With a $15 Minimum Wage Isn't a Good Idea

It would seem that some people don’t really care about economics or anything when it matters most; of course, “it” meaning the minimum wage. In fact, people seem to really care about economics only when it agrees with them. Hence, we have liberal economists who twist the principles of economics without telling those who agree with them the flip side, the truth. This is why people who understand economics are frustrated with those who don’t and push for a minimum wage increase. Maybe it should be increased, but not up to $15.
People might say that Oregon isn’t thinking about a $15 minimum wage. I tell anybody who thinks this that they obviously don’t know about 15 Now PDX, or they don’t read this article by The Oregonian or that article by The Oregonian. Perhaps they’re very oblivious and don’t even know that Koin 6 News has an article about it. Obviously, there is an organization and three articles about it. Oregon has many people with plans to try to raise the minimum wage to $15. As a matter of fact, there’s a large possibility that a measure on the 2016 ballot for Oregonians to vote on it may show up.
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