7 06 2012

article link here

Truck driver of 28 years, now 69 years old with unilateral (on one side of face) dermatoheliosis. Skin is damaged by UVA/UVB rays from sunlight exposure causing wrinkles.

Economics in One Lesson book

6 06 2012

According to author of this book Economics in One Lesson, Henry Hazlitt (1952), “[I]t is essential for the health of a dynamic economy that dying industries should be allowed to die as growing industries should be allowed to grow.  For the dying industries absorb labor and capital that should be released for the growing industries.”

Economics isn’t about buying up mal-investments and having tax payers take up such responsibility. Henry Hazlitt says that this cycle is never-ending and businesses will be created unless we keep hoarding. The book is 198 pages, big font, available here

Savings rate

Government interference by injecting money into banks can force people to accept lower interest rates. People who save are not frugal, as the money they put into banks earn interest and help in lending processes to creates businesses and jobs.  Hoarders, those who put money under mattresses or hide them, do more damage than those who put money into banks.  Stagnation occurs when savings exceed investing.  This is not to say that one should go out and spend lavishly to show off to the world that they are helping the economy, because in the end the one who loses most is this person since they are spending into their own capital. Help stabilize yourself before you can help others!

Artificial interest rates is what it is.  Though interest rates are lowered for those seeking loans, there is shortage of capital to back itself.

Inflation = increased taxes
Minimum wage and wage increase and price-fixation by government = increased cost of living and everything becomes more expensive

If all is boring just read the first chapter, and the closing chapter (which is hilarious actually).

My friend inspires me to study more.