The title claim is not surprising. But it occurs to me that it follows from how I model prices of production, given stable relative profit rates among industries. I am not original with this modeling. My contribution is analying the choice of technique and exploring how this analysis varies with perturbations of relative markups. In the price equations, s1r, s2r, s3r, and so on are the rate of profits in the various industries. I call r the scale factor for the rate of profits. Given the...

Any fool can reduce debt in the short-term by selling their house, paying off the mortgage and renting a place. Whether you should do that depends upon whether the cost of renting is cheaper than that of borrowing, all things considered. That’s a tricky calculation. But it’s one that households wouldn’t make if they were tied by that “non-negotiable” fiscal rule; they would just cut their mortgage and not worry about the fact that they’ll have to pay the rent after five...

By Isabel Soisson The Copper Courier AB: This piece on the IRA cover quite a bit of territory discussing the Inflation Reduction Act. There is still more that was accomplished under the Biden Administration with the American Rescue Plan 2021 Act. Who would have thought an old president suffering from dementia could have accomplished so much? Listening to Biden for a while. It did not appear like he had a teleprompter and he covered a lot of...

by Emily Atkin Heated World The richest man in the world has a new message about climate change: It’s real, but don’t knock the industry most responsible. “I don’t think we should vilify the oil and gas industry,”  Elon Musk said while speaking about climate change during his two-hour conversation with former president Donald Trump last week. It was a sentiment Musk repeated four times throughout the 10-minute climate discussion....

Speaking like that is emotion and not analysis. 

Att bryna lök … .[embedded content]

– by New Deal democrat It’s a slow economic news week, so don’t be surprised if I play hookie tomorrow or Wednesday. In the meantime, now that we have July’s inflation data, we can update some “real” consumer well-being indicators. First, real average hourly wages for nonsupervisory workers rose 0.1% in July to a new all-time high excluding April through June 2020: It has risen 3.8% since its pre-pandemic all-time high, and 3.0% from...

Wealth Effect is a Myth!

If the skies are clear tonight by you, it may be interesting to look to the sky to see the Moon. Supposedly it is blue, full, and what is called a super moon. What is a super blue moon and why is it so rare? What is so special about the August 19 super blue moon. It is exactly a combination of three elements . . . a full moon, a supermoon, and a blue moon at the same time. According to NASA, tonight’s combination is quite ‘irregular’...

To mitigate climate change's economic impact, we need to rethink our approach. First, let's talk about private debt. Imagine trying to swim with a heavy backpack. That’s what private debt does to our economy. It weighs us down. Reducing private debt levels frees up resources. People can invest in their future. They can spend on sustainable options. Next, consider renewable energy infrastructure. Think of it as planting a garden. You nurture it, and it grows....