Re: A Question about Ron Paul\'s Economics
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Since inflation is outstripping the economic growth, people are making less and less money.

[/ QUOTE ]

Except this isn't happening.

[/ QUOTE ]

http://bigpicture.typepad.com/commen...ax_graphic.jpg

So by the IRS's metrics from 2000-2005, real income didn't increase. But I think the IRS metric is faulty. Instead of calculating inflation by however they did, compare to the price of gold over that time period.

http://www.adesblog.com/images/gold_price.gif

Gold more than doubled in price during those 5 years, and at this point about 1.5 more years later, it is nearly triple the starting point. If people found out that their money was devalued by 50% over those 5 years or 66% over 6.5 years they would be horrified. Instead the IRS is somehow calculating inflation at some absurdly unrealistic low number.

[/ QUOTE ]

The IRS graph shows a recession in ~'01. It confirms that we are not currently in a recession, as avg. real income is increasing pretty sharply.

Computing inflation by gold price is just nonsense, so I'll leave that one alone.

Re: A Question about Ron Paul\'s Economics
 

[ QUOTE ]
It doesn't take a genius to figure out that we can't just keep borrowing money and borrowing money.

[/ QUOTE ]

Have you seen how badly the average American is in debt?

Re: A Question about Ron Paul\'s Economics
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Since inflation is outstripping the economic growth, people are making less and less money.

[/ QUOTE ]

Except this isn't happening.

[/ QUOTE ]

Don't forget that true inflation is not an increase in prices, rather, an increase in prices is the result of inflation.

Inflation is actually an increase in the money supply.

[/ QUOTE ]

OK, but money supply inflation would be an awful metric to use to compare real incomes at two different points in time.

Re: A Question about Ron Paul\'s Economics
 

In a world where the Fed devalues thier savings and bailouts for reckless borrowing and irresponsibility are common, can you blame people. People respond to incentives, adn government has created the wrong incentives.

Re: A Question about Ron Paul\'s Economics
 

[ QUOTE ]
[ QUOTE ]
It doesn't take a genius to figure out that we can't just keep borrowing money and borrowing money.

[/ QUOTE ]

Have you seen how badly the average American is in debt?

[/ QUOTE ]

I know! It's horrendous. But sooner or later it's going to catch up with you. Just like it will catch up with us (as a country). Every time I worry about money, I realize that at least I'm far less in debt than almost anybody I know.

Re: A Question about Ron Paul\'s Economics
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
It doesn't take a genius to figure out that we can't just keep borrowing money and borrowing money.

[/ QUOTE ]

Have you seen how badly the average American is in debt?

[/ QUOTE ]

I know! It's horrendous. But sooner or later it's going to catch up with you. Just like it will catch up with us (as a country). Every time I worry about money, I realize that at least I'm far less in debt than almost anybody I know.

[/ QUOTE ]

Of course it's going to catch up. I'm just saying maybe it does take someone with a pretty decent brain, if not a genius, to figure it out.

Re: A Question about Ron Paul\'s Economics
 

[ QUOTE ]
From Russell Roberts, economics professor at George Mason University, blogging on the NY Times website:

[ QUOTE ]
Ron Paul thinks we’re in a recession at a time when unemployment is under 5 percent and blames it on monetary policy. This resonates with people who are scared and confused. I’m neither, so I’m not sure what he’s talking about.

[/ QUOTE ]

Someone help me on understanding the economics at work here. My first thought is that a recession with low unemployment is possible if the government has a large budget deficit. I have no clue if this is true or if it's currently the case.

[/ QUOTE ]

Simple solution. Russell Roberts is an idiot. Ron Paul doesn't think we're in a recession right now, he thinks we are on the verge of one, which is correct.

Re: A Question about Ron Paul\'s Economics
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Since inflation is outstripping the economic growth, people are making less and less money.

[/ QUOTE ]

Except this isn't happening.

[/ QUOTE ]

Don't forget that true inflation is not an increase in prices, rather, an increase in prices is the result of inflation.

Inflation is actually an increase in the money supply.

[/ QUOTE ]

OK, but money supply inflation would be an awful metric to use to compare real incomes at two different points in time.

[/ QUOTE ]

That may well be true.

Re: A Question about Ron Paul\'s Economics
 

[ QUOTE ]
Russell Roberts is an idiot.

[/ QUOTE ]

Ron Paul is a racist.

Re: A Question about Ron Paul\'s Economics
 

[ QUOTE ]
[ QUOTE ]
Russell Roberts is an idiot. Ron Paul doesn't think we're in a recession right now, he thinks we are on the verge of one, which is correct.


[/ QUOTE ]

Ron Paul is a racist.

[/ QUOTE ]

Brilliantly argued as always.