"Finland’s basic income experiment is unworkable, uneconomical and ultimately useless. We think it takes social policy in the wrong direction [and is] impossibly expensive, since it would increase the government deficit by about 5 percent."
We discuss the fact that average investors are making very poor investment decisions right now in financial markets because of a Federal Reserve that refuses to normalize interest rates after a decade of ZIRP.
If the returns on central bank "free money for financiers" are diminishing rapidly while public anger at rising wealth inequality is heating up, why put the central bank's credibility and political independence on the line for a policy that has visibly failed to benefit Main Street?
While President Trump is right to focus on the issue, there are several reasons why his proposed solution will unfortunately not lead us anywhere closer to solving the problem...They will keep coming as long as the incentives remain.
"Indians should move their savings out of India while they still can - it is still possible to buy gold or open bank accounts in safer and more reliable jurisdictions outside of India. Keep in mind that capital controls will likely be imposed soon. Those who still have the opportunity and the necessary skills should move out of India."
It's long overdue to acknowledge we face a future absent net growth and likely a future with fewer consumers, fewer homebuyers, fewer taxpayers, fewer employees. We face a battle where higher productivity leads to ever more being done by ever fewer people... and if we aren't thoughtful, honest, and creative in how we adapt to this new reality... terrible consequences could await us.
The problem is not insufficient wages.The problem is fractional reserve lending coupled with a Fed hell-bent on creating inflation in a technologically deflationary world. Misguided minimum wages hikes, public unions, and political corruption all exacerbate the problem.
During the last 20 years of the Soviet Union, everyone knew the system wasn’t working, but as no one could imagine any alternative, politicians and citizens were resigned to pretending that it was. Eventually this pretending was accepted as normal and the fake reality thus created was accepted as real, an effect which Yurchak termed “hypernormalisation.” Looking at events over the past few years, one wonders if our own society is experiencing the same phenomenon.
Apparently New York's Governor doesn't think that misinformed government policies are doing nearly enough to drive up college tuition costs. As a result, he has decided to offer "free" tuition at public state and city colleges to any student whose parents earn less than $125,000.