Beginning in 1983 the government changed its method of calculation to show lower inflation by excluding food and energy, claiming they were too volatile to be reliable indicators. The result is the so-called “core inflation” CPI, which is a favorite of the Federal Reserve. The latest figure for this CPI reported by the Bureau of Labor Statistics is 0.4% (for August and also July), but if calculated by the method used in 1980 the inflation rate would be 7½ percent, as shown by Shadow Government Statistics (ShadowStats.com).
Tagged: Great Depression
On Wednesday, Georgetown Law School Professor Randy Barnett started with a lecture on the two traditional visions of the Constitution. Proponents of the well-known democratic Constitution contend rights are derived[…]
Democratic Party strategist Robert Weiner claims inexpensive domestic oil production via hydraulic fracturing will cause a new Great Depression, yet exactly the opposite is true. Writing in the Lynchburg, Virginia-based News & Advance, Weiner and his colleague Hannah Coombs strangely argue that Americans taking advantage of abundant, affordable energy resources is bad for the economy and will destroy our standard of living. In reality, Weiner and Coombs provide a perfect illustration about how anti-science, anti-fossil fuel hysteria drives leftist crusades against global warming, domestic oil production, and other asserted environmental causes.
Forty years ago, on October 9, 1974, the Nobel Prize committee announced that the co-recipient of that year’s award for economics was the Austrian economist, Friedrich A. Hayek. Never was there a more deserving recognition for one of the truly great free market thinkers of modern times.
For more than a decade, now, Federal Reserve policy has been guided by the fear of one economic bogyman: the presumed danger of “price deflation.” The fear is unfounded and the inflationary “solution” only leads to disaster.
Forty years ago, during the week of June 15-22, 1974, the Austrian School of Economics was reborn during a conference in the small New England town of South Royalton, Vermont. Why was this important? Because the economists of the Austrian School have developed the most persuasive understanding of why only economic freedom can give mankind both liberty and prosperity.
Instead of deregulation to reduce unnecessary, stifling regulatory burdens and barriers, as both Carter and Reagan did to such fully documented success, Obama regulates mercilessly as if regulation is cost free to the economy, as the most interventionist President in American history.
The American Public Transportation Association (APTA) is out with news of higher transit ridership. APTA President and CEO Michael Melaniphy characterizes the new figures as indicating “a fundamental shift going on in the way we move about our communities.” Others even characterized the results as indicating “shifting consumer preferences.” The data shows either view to be an exaggeration.
The full bill for Obama’s failed economic policies has yet to arrive. But no such explosion of debt has ever escaped a day of reckoning, and no such monetary surge has ever had a happy ending.
As a longtime book reviewer, I have read a growing stack of books warning about a financial collapse, but Holland’s book is not only based in the actual debt, but is written in a manner that even a person who has no knowledge of this issue can understand.
One hundred years ago this month, on December 23, 1913, the Congress passed the Federal Reserve Act, establishing a national central-banking system in the United States. The governing board of the Federal Reserve was organized on August 12, 1914, and the Federal Reserve banks opened for operation on November 16, 1914.
A common fallacy is that the Great Depression was ended by the explosive spending of World War II. But World War II actually institutionalized the sharp decline in the standard of living caused by the Depression.
Ninety years ago, on November 15, 1923, the Great German Inflation came to an end when the monetary printing presses were finally shut down, and the economic havoc came to an end. Its lessons are worth remembering.
President Reagan famously said “Government is not the answer to the problem. Government IS the problem.” But keeping with his unwavering theme as the unrelenting opposite of Reagan in every[…]