The Fallacy of Weak Productivity Growth

Models of the economy are pretty useful tools.  And simple models are some of he most useful.  They help people envision how the world works.  They help organize thinking.

For Example, the model that says the potential U.S. economic growth is determined by “population (labor force) growth” plus “productivity” is an elegant model that shows how adding workers, or having them become more productive, leads to more economic growth.

But, event an elegant model can lead people astray when the inputs are misunderstood.  As they say, [Click To Continue]

Why Inflation Has Stayed So Low

Globalization, demographics, technology have helped to keep inflation low

Key takeaways:

  • Globalization, demographics, technology have been helping to keep a lid on inflation.
  • Continued low inflation could be a headwind for the performance of Treasury Inflation-Protected Securities (TIPS).
  • Low inflation helps to justify above-average valuations for stocks.

In the wake of the financial crisis, the Federal Reserve kept rates low, waiting for unemployment to call and inflation to rise to the Central Bank’s long-term target.  Several years ago, the unemployment rate passed the Fed’s target, but despite some [Click To Continue]

Personal Financial Vault

Today’s fasted pace world can make it difficult to keep track of all your financial information.  You might want to know your current mortgage balance and when it will be paid off.  Or your Net Worth and what retirement cash flows it is projected to generate.  There are many important questions I help wealth builders answer with today’s leading technology and our advanced wealth strategies.

Clearing a Path for Tax Reform – Brian Wesbury, First Trust

In the article linked below, Brian Wesbury – Chief Economist at First Trust, explains how U.S. tax policy over the last several decades has move from an environment where cutting taxes makes new spending difficult to a situation where government spending is so high tax cuts are hard to pass.

From a macro perspective, President Trump’s plan seems to do much of what Democrats have asked for by shifting a larger portion of the tax burden on individual high-earners while just about everyone in the bottom 60% gets a tax cut.  This is hardly an ideal supply side tax cut.  Republicans on the other hand, have lost their way.  Even with a majority in the house and senate, republicans have shown little enthusiasm for helping President Trump with his agenda.

This is a unique time in our history where a confluence of events have come together unexpectedly and produced an accelerating economic environment.  I believe tax reform could be another factor potentially leading us to the strongest economy so far in the 21st century.

Wesbury_Clearing a Path for Tax Reform

Digital Currency & Blockchain Technology

NO RECOMMENDATIONS ARE BEING MADE IN THIS VIDEO.  THE DIGITAL CURRENCY MARKETPLACE IS HIGHLY SPECULATIVE. YOU COULD LOSE YOUR ENTIRE INVESTMENT.

The Digital Currency Market has created quite a stir with some of the biggest names in the finance weighing in while the price of some Digital Currencies continues to rise.  The underlying Blockchain Technology of Digital Currencies is also being herald as a new exiting software development system.  In this short value I touch on both subjects including the two aspects of Digital Currency that help us understand its potential value.