I Want My Raise Back Bernanke!

Two days ago I heard a report that inflation was higher than it had been in years. 1% in January alone. Ben Bernanke said that the rising inflation rates will lower the unemployment rate. He also denied the notion that America is moving into the stagflation that we had in the 70's. I find it interesting that the only presidential candidate's who is talking about the problems we are facing with the Fed is Ron Paul.
Bloomberg might, and although he said he won't be running. I think what he is really saying is "these guys are no good, they don't have real solutions, so I'll announce my candidacy's next month."
But in any event, keep in mind that the only reason the unemployment rate will drop next month is because you just got a pay decrease.

Ron Paul in Austin!

The Ron Pauliticians hit the campaign trail last weekend, by visiting the Ron Paul rally. I found it appropo that he was speaking under "Ye shall know the truth, and the truth will make you free."

FYI. This is why Ron Paul would be better than Obama

Getting out of the Ghetto

A recent study shows how difficult it can be for someone to get out of the poverty cycle. Personally I found it very encouraging. It shows that there is a way out of the cycle...get educated. Now Paul Krugman is saying we need to do more to help people rise out of poverty. But I think if you look at the world as a whole we are doing much better people have been breaking the poverty cycle all over the world. And according to a new paper from Andrei Shliefer the one man we have to thank is Milton Friedman.

Learn your Econ!

So when I was a senior in college Justin Skidmore (a friend and former roommate) suggested that I should take a class in economics. His reasoning: We require that people take biology, history, and a host of other classes that most people will never use. We all need economics to make educated decisions every time we step inside to a pool both, and knowing about the krebs cycle won't help with that. Tyler Cowen says that we don't hold our politicians to any of their economic promises, perhaps the problem is that no one knows anything about economics.
As a side note: Obama and Clinton have talked about the difference between between the rich and poor. Michael Cox and Richard Arms show how big that difference really is.

Foolishness of Stimulus

Yesterday Mayor Blumberg described the stimulus plan congress passed last week as " giving drink to an alcoholic". Edward P. Lazear the Chairman of the White House Council of Economic Advisers said that the stimulus package would help save 500,000 jobs this year. That would be great, except that means each of those jobs are costing us $336,000. But our presidential candidates are already trying to find plans which would be an even more expensive way of saving jobs. Even Hillary Clinton now has turned her back on NAFTA, now she agrees with Obama in saying that NAFTA has taken jobs away from Americans. If they are successful in getting rid of free trade agreements and "forcing" corporations to stay in America. We will soon find ourselves paying much more than just $300,000 to keep a job that pays less than $50,000 here. But this one may take the cake for Hillary and Obama's worst idea.

Not Falling Far From the Gee

Merrill Kaey Gee is a Mechanical Engineer with a Masters degree in both Engineering and Physics. But he has always had a passion for Economics. With some much debate focusing on the economy during the presidential campaigns, I thought it would be good to see how the interest in economics started in the Gee family.


How did you become interested in Economics?
When I was in high school taking a speech class there was a book called Economics in one lesson on the table of books in our class. I was just fascinated by it. The teacher said if I liked it that much I could keep it. So I still have it.

Did you continue studying Economics?
No, I just didn’t have time because I had physics and other things. But I picked it up again after I heard a talk by Joseph Kearl. At that time Chrysler had gotten a big loan from the government to rescue them. The chairman of the board went around the country talking about how evil Japan was and how we needed tariffs to protect Americans but particularly the auto industry. Kearl gave a talk at BYU explaining the effects of tariffs. And it was so clear and cogent, that I went and asked for a copy of his talk. Which he gave me. But about that time, I came in contact with the foundation of economic education. So I started reading (they had an updated version of the first book I read). I started reading books by Henry Haslett. About the same time Milton Friedman came out with Free to Choose. I saw the TV show and then I read the book. Then I read Ludwig von Mises…and I am still studying his works.

Why didn’t you major in it?
Well I really wasn’t interested in it during college, I took the class in college and had the book by Paul Samuelson. It was a lot of charts and graphs justifying government action. When I went to BYU the Economics department was Keynesian very liberal. By the time Kearl was there about 15 years latter it was monetarist, much more conservative.

What has been your favorite book on economics?
Probably economics in one lesson, that or Free to Chose.

What is it that you like about economics?
Well, I really think economics…I enjoyed Adam Smiths book that was a favorite…Political economy (that is what we are talking about with Adam Smith, Milton Friedman, and Henry Hasslet) is really applied ethics, how to apply moral principles to your daily interactions with people in terms of economic interactions, which are very critical and that constitutes most of our interactions.

Why did you decide to major in physics?
That is a sad story. I started in EE but my cousin Martel was getting his PhD in physics, he convinced me that I would be better off in physics so I did. I don’t really regret it because physics was more rigorous than engineering so when I switched it was a little easier.

Why did you decide to get a Masters?
I started out to get a PhD, they were encouraging it, but I was drafted. I got a NDEA fellowship to get a PhD, because of the space race the government wanted more physicist. But after I got out of the army the bottom had dropped out of physics so I dropped the NDEA fellowship. At the graduation banquet (for masters in physics), the department chairmen said he didn’t want to discourage us, but he had called all over the country and as far as he could tell the next opening for a physicist would occur in 1985 that was 13 years away. Only two physicist got jobs. One was a women, who when she reported to work she was told she was only hired because she was a women, they had no work for her. They wanted her to go to Stanford and get another degree and they would put her name on the staff list. To get government contracts they needed a woman. The other that got a job, was my lab partner, not a good student. And we always felt, but he denied it, the only reason he got a job was that his father was the president of the company that hired him. So I went back to school and got a degree in Engineering. Everyone in my class besides those two got MBA’s or masters in Engineering.

What would be your dream job?
I don’t really know anymore… I wouldn’t make any money, but it would be fun to be a commentator on Economic issues.

Have you ever wanted to go back to Germany?
Well, I don’t like to fly. Before I was married I thought about it several times, since then I haven’t really desired to go back.

If you could go anywhere on a trip where would you go?
Probably Yellowstone.

Since this is an election year, what things are you looking for in a candidate?
Well I am Jeffersonian, so one that believes in the roles in the different levels of government. And a candidate that agrees to play by the rules. Every part of government has it own rules, and none really think they are bound by those rules. It is especially true in the national election.

Are there any key issues for you?
I think the most important one on the federal level is the restraint in spending. That is really it, I think Economic issues, particularly on the federal level should be restricted.

What Economic policies would you like to see changed?
Just about all the federal policies that are not constitutionally based: Social security, National endowment for the arts, Medicare, PBS, on and on and on.

Are there any candidates that you like?
I like Ron Paul, but I don’t think he has a china man’s chance.

Of all the candidates that have a chance, who do you like most?
Well there are only three left. I don’t like any of them. I will probably vote for Ron Paul as a write in.

Why didn't we listen to Landsberg?

Yesterday the president's stimulus package made it through the house and senate with very few nay sayers. It makes you wonder if any politicians listen to economic advisers? But to be fair there were a few economist who wanted the stimulus, here was the best debate I found: With Jason Furman and Steven Landsberg.

I hope they call me on a mission...again

My friend Jesse reminded me of all the dreams I used to have of being called on a mission again. I'm always full of mixed emotions during those dreams. Part of me is excited to be back in Germany, but as soon as we have to start going door to door, I start wondering how I ended back there. But still anytime I hear about someone going on a mission or I hear a missionary story, it brings back all the good memories. So since I have been thinking about that today, and will most likely be dreaming about it tonight. I figured I would share my new favorite Missionary photo. It was taken by my cousin Justin, of my Aunt Lonnie, and Uncle Allen.

Getting Older

Yesterday was Greg Mankiw's birthday, so according to his anecdote I've been old for years. But his article was probably the best in the times that I have read in a long time.

While I am speaking about Greg, and since it is super Tuesday, I think it is appropriate to post what he thinks about having Hillary as the next president. And by the way Volcker is backing Obama.

Why I Love Economics

So this article shows one reason that I really love economics.

I think the part that describes me best is

“The problem is not that economists are unreasonable people, it’s that they’re evil people”

he really nailed me.

More Milton

Every once and a while I just need to see a little clip of Milton to remind me of the good ol' days.

To Pigou or not to Pigou

One of my favorite economist, Greg Mankiw, created a club called the Pigou club. This is a club of people who support a $1 tax increase on a gallon of gas. Several other well known economist have joined (Alan Greenspan), also several well known idiots (Paul Krugman and Al Gore). A few other Economist are starting a no pigou club. One of the economist is Milton Friedman's son. I'm still a little torn on this, but I might find myself siding with Paul Krugman...that is scary.

It's the Economy, Stupid!

The country looks like we are on the brink of a recession, and since we are in the heat of a presidential race James Carville's words are back in force. So it is time to hear what the economist are saying.

Ben Bernanke is the one we are all watching. And he is saying it's time to stimulate. Larry Summers agrees. The Economist says not to over due it. Doug agrees with them.

Bush thinks it will take 145 billion to get the economy running.

Personally I think I am going to side with Ann Schwartz.

Person of the Year

I just finished reading about Time's person of the year Vladimir Putin. And I must say I misjudged the man. I decided to dedicate this post to some of the interesting things said by Putin and the rest of the runners up for Person of the year.One of the most interesting parts of the article was the reason Putin was chosen. "TIME's Person of the Year is not and never has been an honor. It is not an endorsement. It is not a popularity contest. At its best, it is a clear-eyed recognition of the world as it is and of the most powerful individuals and forces shaping that world—for better or for worse. It is ultimately about leadership—bold, earth-changing leadership. Putin is not a boy scout. He is not a democrat in any way that the West would define it. He is not a paragon of free speech. He stands, above all, for stability—stability before freedom, stability before choice, stability in a country that has hardly seen it for a hundred years."

Putin also showed an side of him I had heard about but never knew any first hand accounts about until reading about his interview. He gives some interesting advice to Americans, some advice that has been taken very seriously by several Ron Paul fanatics, but not many others.

"He says he wants Russia and America to be partners but feels the U.S. treats Russia like the uninvited guest at a party. "We want to be a friend of America," he says. "Sometimes we get the impression that America does not need friends" but only "auxiliary subjects to command." Asked if he'd like to correct any American misconceptions about Russia, Putin leans forward and says, "I don't believe these are misconceptions. I think this is a purposeful attempt by some to create an image of Russia based on which one could influence our internal and foreign policies. This is the reason why everybody is made to believe...[Russians] are a little bit savage still or they just climbed down from the trees, you know, and probably need to have...the dirt washed out of their beards and hair." The veins on his forehead seem ready to pop."

Throughout the article it is very clear that Putin wants Russia and U.S. to be friends, but he also wants respect and the U.S. to stay out of his business. In fact he thinks the US should stay out of everyones business, as shown when he spoke out against the Iraq war.

Putin strongly opposed America's invasion of Iraq and established Russia as a steady voice of opposition to Bush's adventure, demanding that decisions on Iraq be made at the U.N. (where Russia, of course, has Security Council veto power). America's occupation of Iraq has affirmed Putin's sense that he was right. "If one looks at the map of the world, it's difficult to find Iraq, and one would think it rather easy to subdue such a small country," Putin tell us. "But this undertaking is enormous. Iraq is a small but very proud nation." The debacle in Iraq plays into what is perhaps Putin's most cherished foreign-policy dictum: that nations shouldn't interfere in one another's affairs. And what that really means, of course, is that no one should interfere in Russia's affairs.

It has been very clear what happens to people who have been interfering with Russian affairs.
"His government has shut down TV stations and newspapers, jailed businessmen whose wealth and influence challenged the Kremlin's hold on power, defanged opposition political parties and arrested those who confront his rule. Yet this grand bargain—of freedom for security—appeals to his Russian subjects, who had grown cynical over earlier regimes' promises of the magical fruits of Western-style democracy."

"Dmitri Muratov also knows the difficulties of life in the Putin era. A softspoken, heavyset man whose neatly trimmed beard is turning gray, Muratov is the editor in chief of Novaya Gazeta, a Moscow newspaper, published twice a week, with a reputation for pursuing tough investigative pieces. In the past seven years, three of his journalists have been murdered; all were looking into corruption and wrongdoing. After the third murder, Muratov decided to close the 14-year-old paper to avoid putting any other journalist at risk. But his staff talked him out of it. The paper is perpetually harassed by officials around the country, but, Muratov notes with a weary smile, "we're still alive."

The last of Muratov's journalists to die, Anna Politkovskaya, was shot in the elevator of her apartment building last year on Oct. 7. Alexander Litvinenko, a former FSB officer turned government critic living in London, accused Putin of sanctioning the killing. Within weeks, Litvinenko himself was dead too, killed by radiation poisoning from a mysterious dose of polonium 210. (Britain wants to charge a former KGB officer, Andre Lugovoy, who has just been elected to Russia's parliament, with the killing. He denies it, and Russian law prevents the extradition of Russian citizens.)

Muratov, for his part, doesn't know who ordered his journalists' killings. He says only that he blames "corruption," which has flourished during Putin's eight years."

Perhaps this is one of the reasons for the joke in Russia about Bush and Putin.

Putin and Bush are fishing on the Volga River. After half an hour Bush complains, "Vladimir, I'm getting bitten like crazy by mosquitoes, but I haven't seen a single one bothering you." Putin: "They know better than that."

But as Time said for good or evil Putin is bound to continue having a profound effect on the lives of Russians, and also the world.

A glance at some of the runners up.

So anyone who knows me knows how big of a player Ron Paul has been in my life this past year. And TIME wasn't the only group who put him as one of the most influential people. But love him or hate him his campaign will have ripple effects in politics for years to come.

Speaking of unexpected political successes, how about Bobby Jindal! Here is my prediction 2016 Bobby will be the first Indian president.

It's hard not to be moved when hearing the story of the monks from myanmar. Governments can oppress, but even the least violent of people can make a difference for change.

Now I have never been a big fan of the French. But when I hear the President of France talking about free trade, cutting government subsidizes, and privatizing industries I want to yell out Viva la France! (actually considering how many times I have seen this guy in the head lines this year I was really surprised that he wasn't named person of the year).

Who would have guessed that a band like Radiohead would make Time's list? But actually a better question is who can guess what kind of impact they will have on the future of Music Marketing? I have to tip my hat to them for being one of the only (if not the only) bands to embrace technology and show trust in their fans.

Last words

Time also included a list of influential people who passed away this year. And here are some quotes to remember them by.
Evil Knievel
"That which did not kill Knievel — as he proved more literally than most — only made him, and his myth, stronger."

Madeleine L' Engle
"If the book will be to difficult for grownups, then you write it for children."

Norman Mailer
"There are two kinds of brave men: those who are brave by the grace of nature, and those who are brave by an act of will."

Kurt Vonnegut
"We are what we pretend to be," he warned in the intro to his novel Mother Night, "so we must be careful about what we pretend to be."

6 million dollar man!

Well I have had a few technical difficulties with my latest interviews. But meanwhile things have been going crazy on the election trail. Most notably was the latest money bomb dropped by Ron Paul supporters. In a recent PBS interview the reporter mentioned that unlike other candidates Ron Paul doesn't give out task on the campaign trail, he gives out power. She then asked him if he thought that was risky. "Freedom is always risky" he mentioned that he runs his campaign the same way he would run the white house giving freedom back to the people. Perhaps his fund raising success is just a small indication of how successful he will be in office.