The United States President Harry S. Truman was reputed ever said, “Give me a one-handed economist. All my economists say, ‘on the one hand… on the other hand.” Actually, it is not that bad—many agreements reached by economists and so few disagreements between them.
Urbanization made American farmers richer than before. Why? Because urbanization makes land in rural areas cheaper due to the population decrease. The farmer bought this land from their ex-neighbor. More extensive land motivates them to invest in better agricultural technology. Net result: they are getting more productive and richer in the process. What makes […]
The economy is dynamic. Steel and iron were replaced by computers and plastics. So as jobs. Alvin Toffler described that mankind evolves from a hunter-gatherer society to an agricultural society to an industrial society to an information society. This century sees a change from the industrial society to the information society. The industrialization has made […]
Automation will not reduce our jobs. It adds jobs but in different ways. Machines replace old, routine, and hazardous jobs. In contrast, a new economy creates new jobs. The net result: jobs are growing because of automation. What makes these research great? Because it counter our prejudice. The advancement of technology brought by news worries […]
The answer because education and healthcare are hard to be replaced by a machine. It isn’t easy to be automated. What makes these research great? Because it solves puzzles that haunted many economist for long time. Why only several goods and service cheaper, not all of goods and service.
The logic seems obvious. Free health care means better health. Needy or elders can afford healthcare because they are subsidized by the federal government. After they are not ill, they become more productive, and then wealthier, and then escape from the poverty trap. But, this logic is dead wrong.What is wrong? This assumption is fatally […]
Since many centuries ago, the best mind in mankind scholarship tried to answer the question of why some countries are rich, and some are poor. Ibn Khaldun, Adam Smith, and Karl Marx gave their analysis. But, cross country data were not available. Economists right now can obtain new conclusions by observing many cross-country data, including […]
The western country now is rich, and they levy a high tax to its citizen. Can we conclude that higher taxes lead to prosperity? No, that is fatally wrong. The effect can not precede cause. Rich countries nowadays are low tax regime before they are rich. They levied high taxes after they are rich, not […]
Most economists now accepted the view that the central bank plays a significant role in the economy. The Federal Reserve System as The United States of America’s central bank not only a dominant player in the US economy but also in the world. How can it be? Simply by decreasing and increasing its money supply. […]