The Stock Market v. the Economy

What is good for the stock market is not necessarily good for the American people. Sometimes the stock market reveals economic reality. A sudden plunge usually means that people are realizing that economic productivity was being grossly exaggerated. So now they are making a “correction.” [See also, “Did the Stock Market Receive a Secret Bailout?”] But other times the stock market is a distraction from economic reality. Here is an example: “Stocks Are Mixed as Crude Oil Closes Worst Read more […]

“Drill, Baby, Drill!” Sarah Palin Vindicated Again!

Barack Obama shows how Sarah Palin understood reality better than he does. In 2012, candidate and President Barack Obama decided to argue against the Republicans on energy. As the Daily Caller reports: it was just two years ago that President Obama said “we can’t just drill our way to lower gas prices” in a speech bashing Republican calls for more drilling. “Last week, the lead of one news story said, ‘Gasoline prices are on the rise, and Republicans are licking their chops,’” Obama Read more […]

Do Lower Energy Prices Have a Downside?

Technically the answer to that question is yes. Lower energy prices have a downside for people who make more money from higher energy prices. Just like tailors suffered when the sewing machine was invented, or harvesters lost their income when harvesting machinery was invented. But notice these were temporary disruptions. Ultimately, everyone became better off, including the people who originally lost income. Why? Because the cost of living went down for everyone. Everyone had cheaper clothing Read more […]