Addison Wiggin asked his readers to imagine an older happily married couple, having their usual morning breakfast together:
They work well together, though maybe the lady of the house has been “the better half” lately … doing a larger burden of the work, paying more bills, keeping the house together and so on. But nevertheless, things are good, so it seems. Times are a little tough, but there’s no imminent reason to suspect the relationship won’t last.
When ABC News announced that Fannie Mae and Freddie Mac would be de-listed by the New York Stock Exchange on July 8, writer Rich Blake said that “these once mighty enterprises will trade alongside stocks on the Over-The-Counter Bulletin Board, a place where many companies go to die.”
On Friday Reuters reported that non-government payrolls rose only slightly in June and overall employment fell “for the first time this year … indicating the economic recovery is failing to pick up steam.” This report followed several others last week indicating weakness in consumer spending, housing, and manufacturing which “have heightened fears [that] the economy could slip back into a recession.”
The New York Times reports that many factories are ready to hire workers, but that applicants for jobs lack the skills in math and science to be productively employed in these good, high-technology jobs. Is this because government in America “invests” too little in education?
After strong criticism of the U.S. dollar in recent weeks from world leaders, the United Nations added more pressure with yet another scathing report calling for a new international reserve currency issued by the International Monetary Fund.
One ironclad rule of government programs is “if you subsidize something, you will get more of it.” Thus, paying poor, unmarried women to have children increases the number of children in single-parent families, and paying farmers to grow corn increases the amount of corn cultivated.
After a meeting with his economic team and Federal Reserve Chairman Ben Bernanke on June 29, President Obama announced "the economy is strengthening" and "we are into recovery." The recovery mantra, however, seems to be falling on more and more deaf ears these days.
As credit and economic activity continue to contract, analysts are warning of big problems and unprecedented fiat-money creation by the Federal Reserve System in the near future.
Several European nations recently announced spending cuts to bring their budgets closer to balance in the wake of the current global economic recession, especially Ireland, Greece, Portugal and Spain. But Paul Krugman, the leftist Keynesian economist of the New York Times, argues that balancing budgets will lead to a new depression: