The idea behind Keynesian economics, as purported by the late British economist John Maynard Keynes and his followers, is that when the economy is in a recession, taxes should be cut and/or government spending increased to stimulate the economy and end the recession. Tax cuts give people more money to spend. Government spending creates jobs in the sectors of the economy that receives this spending. All this spending generates further income as the money is spent and re-spent. The stimulus thus ripples through the economy creating jobs, income, and promoting economic recovery. At least, that is the idea. Reality turns out to be quite a bit different.
When I was about 27 years old, I decided I wanted to write a book.
When my two sisters and I were kids, our parents took a trip to Europe for a few weeks one summer. We could not go with them and were farmed out – literally – to the biggest farm I have ever seen. It belonged to the family of my older sister’s good friend.
In the beginning of 1951, GM’s Chevrolet arm was floundering. Sales were dropping and consumers were losing interest. At the suggestion of a friend, GM Design Chief Harley Earl changed his focus. Sports cars were all the rage in Europe and Earl wanted a part of the excitement. Later that year, he assigned a small team of GM designers to work on a Eurostyle two-seater, bringing in a Jaguar XK120 for study. Dubbed “Project Opel,” the team worked on a multitude of designs.
There are certain points in my writing for MCM when I encourage readers to take a second look at the risk in their investment portfolio. By proactively managing equity and interest rate risk, investors may be able to decrease the level of volatility in their portfolio. First, a quick lesson in financial risk definitions:
As summer approaches, I’m on the lookout for low-sugar, warm weather treats for my toddlers, and it just occurred to me … why not freeze a smoothie? Popsicles can be made as easily as freezing some juice in a paper cup with a fork stuck into it, or you can purchase freezer molds in a variety of shapes and sizes. People of all ages enjoy these cool and healthy treats! Here are a couple of my favorite recipes.
Do you remember the TV show “Kids Say the Darndest Things?” It was a half-hour show hosted by Bill Cosby from 1998-2000. Art Linkletter, whose popular segment of the same name appeared on his “House Party” show from 1957-1970, was a regular contributor on Cosby’s program. What some of those kids would say really cracked me up!
Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen have said that if there is inflation, it will be “transitory,” meaning a short-term phenomenon. The argument is that COVID-19 has disrupted global supply chains, resulting in price increases for various goods. Once these disruptions are fixed, inflation should subside. It is like when gasoline prices spike during a hurricane, then fall once the supply comes back online.
If you watched the recent Academy Awards telecast, you will remember its strange and stunning conclusion. The show’s producers unwisely broke tradition by saving the announcement of the Best Actor award until last, presumably to honor the posthumous expected winner, Chadwick Boseman.
