No, Rev. Warnock, The Bible Does Not Preach Socialism!

The Rev. Raphael Warnock, one of the new Democrat senators from Georgia, preached a sermon in 2016 on socialism in his church in Atlanta, the Ebenezer Baptist Church. In that sermon, he told his congregation the following:

“The early church … Read More

Does The U.S. Actually Have Poor?

In their detailed analysis of the conditions of the American poor, Robert Rector and Rachel Sheffield disclose how the destitute in the United States live significantly better than, not just the poor in the rest of the world, but … Read More

Can Biden Rise Above His Authoritarian Party?

Joe Biden takes the oath of office next week, finally succeeding in his third run for the presidency. He does so in the midst of allegations that he won through virtue of serious breaches of election ethics.

Biden’s first … Read More

A Fatal Problem In Modern Economic Thinking

Here is my promise to you in today’s Dividend Cafe – the entire thing, from start to finish, is apolitical.  Now, that is not actually true, and maybe by the time I am done writing, I will explain what that … Read More

How Companies Pay Shareholders: Buybacks Discourage CEO Empire Building

Click here to read part 1 of this series.

Click here to read part 2.

It’s important to remember that reinvestment is a matter of trade-offs, not an unalloyed good.

“Importantly, the number of value-creating investment opportunities a company … Read More

The Era Of No Consequences

Historians may take a considerable amount of time in granting a designation to a particular period of time, a nomenclature such as “The Victorian Era,” or “The Enlightenment.”

That lag may be considerably shortened regarding the current era. Indeed, … Read More

Income And Well-Being

The data shows income inequality hasn’t changed over the past 100 years (see The History Of Income Inequality And Popping Economic Bubbles), and the three key wealth indicators are: productivity improvement, (which has improved dramatically), income mobility, and personal well-being. “While … Read More

How Companies Pay Shareholders: Buybacks Don’t Subtract From Wages

You can read the first part of this series here.

Another root of misunderstandings is a simple lack of knowledge about the basics of accounting practices. Buybacks aren’t a subtraction from worker salaries or research and development. They are financed … Read More

Taper Nervous Breakdown

The next time the Fed reduces its bond purchase program the market reaction should be more like a nervous breakdown rather than just a tantrum.

First let’s review a bit of the historical histrionics surrounding the initial Taper Tantrum. Back … Read More

China, Democrats, And Donald Trump

Democrats, and many in the media and Hollywood, have generally responded harshly to Republican Presidential candidates. One example, “Bush Derangement Syndrome,” became well known during the first decade of the 21st Century. However, the reaction to the election of Donald Trump … Read More

Biochemical Engineer Ivor Cummins Discussing “The Rosetta Stone Of Modern Chronic Disease”

I recently sat across a phone line with Ivor Cummins, researcher of modern chronic diseases and author. We discussed his book Eat Rich, Live Long, co-authored with Dr. Jeffry Gerber, an expert in preventative medicine. Coming from a Biochemical Engineer background, Ivor’s journey … Read More

Hillbilly Elegy Economics Lesson: Culture Matters

Netflix’s adaptation of J. D. Vance’s autobiography, Hillbilly Elegy: A Memoir of a Family and Culture in Crisis, is more than a rags-to-riches story. It dramatizes one the most important points in economics. For those unfamiliar with it, the summary from … Read More

Take The Under On 2021 GDP

Wall Street is universally bullish on the economy and stock market for 2021. For example, Morgan Stanley is on record predicting the U.S. economy will expand by 5.9% next year. The stock market has front-run this optimism. The most … Read More

How Companies Pay Shareholders: Buybacks Are Not A Giveaway

London Business School finance professor Alex Edmans devotes a substantial portion of his excellent book Grow the Pie to stock buybacks. His discussion offers an honest recapitulation of both the political and financial case against them, showing that he has taken … Read More

The History Of Income Inequality And Popping Economic Bubbles

In a significant study by economists Thomas Piketty and Emmanuel Saez, they explain the economic impact historically on capital and upper income Americans:

We find that top capital incomes were severely hit by major shocks in the first part of … Read More

Diseases Of Modernity: What Do They Have In Common?

I recently had a discussion with the brilliant Dr. Benjamin Bikman, author of the book, “Why We Get Sick: The Hidden Epidemic at the Root of Most Chronic Disease — and How to Fight It,” which makes a very compelling argument for … Read More

Mobocracy

There is an underlying tone in the discussions that journalists, politicians, academics, business leaders, and everyday citizens have among themselves. It is the fear of the mob.

It began first on college campuses, where mobs have prevented non-leftist speakers from … Read More

Beware Market Land Mines: Stimulus, Vaccine Failure, Interest Rates

When the market cap of equities reaches 183% of GDP and gov’t bonds yield near 0%, or even less overseas, the notion that one can just buy and hold a balanced portfolio is extremely dangerous. The minefield is not packed … Read More

Following Classical Economics

Classical economists; such as Adam Smith (The Wealth of Nations, 1776), Jean-Baptiste Say (A Treatise on Political Economy, 1803), James Mill (Commerce Defended, 1808), David Ricardo (Principles of Political Economy and Taxation, 1817), John Stuart Mill (Principles of Political … Read More

What Prostate Cancer Taught Me About Our Fiscal And Physical Health Code Blue

Prostate cancer!

That was my diagnosis. Stomach, meet floor. That one word brings to mind the many who get it, die from it, survive it, and lots of fundraising and research to “find the cure.” Mention Medicare/Medicaid and healthcare … Read More

The War Of The Worlds

The recent pandemic has led more and more people into the world of ‘virtual reality’.  Unable to travel, downloads of virtual-travel apps have doubled in a matter of months.  People are getting accustomed to living in a make-believe world … Read More

Cuomo’s Partisan Authoritarianism Struck Down By SCOTUS

The United States Supreme Court ruling temporarily blocking enforcement of New York Governor Cuomo’s Executive Order restricting attendance at houses of worship was an appropriate recognition of the primacy of the First Amendment.

SCOTUS Blog reports, “The Supreme Court […] granted requests … Read More

Socialism: The Road-To-Hell Paving Company

“Uncle Joe” Biden promised to revive the Paris climate accord in spite of the fact that the agreement would accomplish little. Dr. Robert Murphy wrote of the accord, “The only reason so many countries signed up for Paris is that … Read More

Amazon And The Los Angeles Lakers Wreck The Wage-Stagnation Narrative

In 1981, Magic Johnson signed a 25-year, $25 million contract with the Los Angeles Lakers. The deal was massive for its time. The Lakers rewarded Johnson with an eye on keeping him with the team forever, but eventually the … Read More