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Economics

This category contains 8 posts

Why are cows fed corn?

Or for that matter, why are cows fed anything but grass? Recently, livestock was actually being fed candy! You can’t make this stuff up. At least, I can’t make this stuff up. I suppose it makes a bit of sense, considering there was a drought and corn was too expensive. There has been an interesting […]

Greenspan and understanding rationality

Alan Greenspan was the chairman of the Federal Reserve, one of the most powerful monetary institutions of the world, for 18 years. He was heralded for an era so prosperous, that the US actually turned off their debt clock in 2000. Unfortunately, post-facto, he was also perhaps guilty of setting the policies that created the […]

Slums and bridging technologies

Why do slums exist? Only the poorest of the poor live there. To say that it’s a hard life is an understatement. Recently, I was visiting the slums in Nairobi. I can’t say it was a pleasant experience. There was a positive though, as I spent some time talking to those in the slums, and […]

What happens when 80% of the work is done by 20%?

What happens when there’s not enough work? Unemployment and societal problems related to unemployment. But let’s be honest, the goal of civilization should be a 100% unemployment rate and we’re still quite a way off from that. So the present unemployment rate is far too low! Why is this even a problem? Initially, I thought […]

Economies of real things and monetary policy

Does monetary policy actually create jobs? As usual, the answer is both yes and no. For instance, does printing money fix the economy? If there an extra trillion dollars in circulation and not just hidden in bank vaults, what would happen? I always like asking myself, “Why would this work?” Classically, if the number of […]

Feast, famine, and obesity – cheap corn

Paradoxically, in the past 100 years, the increased production of food has also increased the levels of food insecurity in the world. Wouldn’t it make sense that if there is more food, there are less people who are hungry? Unfortunately, the world is not so simple. Where the food is produced is as important as […]

Limitations and understanding: Economic theories du jour

It’s very easy to concentrate power and inequality. In fact, there’s not much to it. So when trying to understand economic theories, one needs to approach it from the angle of whether the economic policy will help or hurt the masses, whether there are specific groups affected, and what the effects are in the short-term, […]

Wealth and the storage of food

All wealth is just the storage of food. Or, more pedantically, wealth allows one the ability to buy and trade for the necessities of life, food and water being among them, at a later date. Food and water, by themselves, are also wealth. A corollary of this is that all wealth comes from the land. […]