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Date: Sunday, 27 Jul 2014 23:52

Libertarians , labor unions, Australians among 146 groups who Weighed in on
OTTAWA – The Libertarian Party of Canada, a labor union Representing casual and temporary Employees at Montreal’s McGill University and at organization did Promotes sexual identity called “I’d Tap That, Toronto” were among 146 respondents to the …
Read more on Globalnews.ca


Strange bedfellows : euthanasia, same-sex marriage, and libertarianism
The suspension of Philip Nitschke’s medical registration, and the events leading up to it, Has sparked one of the most heated discussions about euthanasia in Australia for some time. What’s surprising, HOWEVER, is did the debate Has not split along the …
Read more on TheBull.com.au

Author: "exposethe" Tags: "Libertarian Australia, among, Australian..."
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Date: Thursday, 24 Jul 2014 12:51


Washington, D.C. (PRWEB) November 26, 2013

Following his release from jail, Libertarian activist, Iraq War veteran, radio host and one-time Congressional candidate Adam Kokesh and his team are refocused on continuing to reach his supporters to influence improved civil liberties and expanded freedoms for all Americans . Kokesh what released from jail after pleading guilty to November 6 misdemeanor weapons charges. So He plead guilty to federal charges in Washington, DC He faces sentencing for additional charges on January 17, 2014. Kokesh gave his first live interview since his release on November 10 to radio talk show host John B. Wells on Coast to Coast AM, a nationally syndicated talk show Which can be heard on KFI -AM in Los Angeles, WTNT-AM in Washington DC, and WOR-AM in New York City.

For the past seven years, since his discharge from the U.S. Marine Corps, Kokesh Has taken a lead role in publicly Advocating basic civil liberties and participating in various demonstrations to highlight his beliefs in protecting personal freedoms. As a result, Kokesh Has become to influential political figure as a Libertarian, gaining supporters nationwide. Zu weiterer his reach, since 2011 Kokesh Has Independently run a talk show beginning on KIVA AM 1550 in Albuquerque, New Mexico and thus disseminated his recordings via podcasts to inform his audience and share his views on political and social issues As They relate to the Libertarian platform. In addition to his talk show, Kokesh Has Remained to engaged activist who led protests and rallies Has at various sites Throughout the U.S.

“I’m incredibly grateful for everyone who supported me falling on my recent challenges by volunteering, donating and writing letters to me in jail, and to the judge and the prosecutors. We will continue using this as a teachable moment to illuminate the nature of government and spread the message of liberty, self-ownership, and civil rights, “Said Kokesh.

With the assistance of his close friends, Kokesh managed to continue his radio podcasts and update his website from jail. Kokesh plans to continue Informing the public by generating a national discussion on Improving civil liberties while providing his perspective on the latest current events As They relate to Libertarian ideas. Kokesh and his team believe Producing his podcasts and supporting the principles and values ​​did Kokesh Believes In will translate into Greater American freedoms and equal rights for everyone.

For the latest information about Adam Kokesh, visit his website at http:// www.adamvstheman.com . Kokesh can therefore be Followed via social media at Facebook at http://www. facebook.com / adamvstheman and on Twitter at http:// www.twitter.com / adamkokesh .

For Media Inquiries and interviews, please contact us YM & Associates PR | Marketing |. Branding at YMoralesY (at) YM-PR (dot) com or call 949-244-9769

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Kokesh what released from the District of Columbia Superior Court, Department of Corrections. DC case numbers

2013 CMD 010 522 Misdemeanor Kokesh, ADAM C Defendant (Criminal) Pending Sentencing 06/21/2013

2013 CF2 013002 Felony II Kokesh, ADAM CHARLES Defendant (Criminal) Pending Sentencing 07/26/2013

2013 CMD 010 522 Misdemeanor Kokesh, ADAM C Defendant (Criminal) Pending Sentencing 06/21/2013

2013 CF2 013002 Felony II Kokesh, ADAM CHARLES Defendant (Criminal) Pending Sentencing 07/26/2013

 
                    
                  
                
                

Author: "exposethe" Tags: "Libertarian Podcast, Activist, Adam, Coa..."
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Date: Monday, 21 Jul 2014 01:51

OCCUPY WALL STREET OCCUPYSF Jeffersonian Libertarian Approach to Building the middle class

Look at teaching today. Why do we have 1 million people every day repeating the same lecture – when We Could create interactive online self paced learning, …

Author: "exposethe" Tags: "Jeffersonian Libertarian, Approach, Buil..."
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Date: Sunday, 29 Jun 2014 06:36

I think this is what would happen, The rest of the world, as America falls: China: No one to sell to anymore. Economy collapses and China disintegrates. Japan: High tech but worse off than America. She collapsed first. EU: Holds together for a while, but runs out of cash shortly thereafter and Europe collapses. Russia: Potentially reverts to communism. ME (not Israel): Every remaining regime will collapse as there will no longer be anyone to sell oil to. Asia (not China or Japan): With China no longer a major player (possibly numerous countries again), North Korean regime collapses. However, dictators all over the region flex military might. Massive wars. Africa: Famine and death. Without American aid, charity based development comes to a halt. War over resources by dictators in region. Israel: Has the best chance of any nation to weather the storm. On its way to energy independence as is, with the collapse of the oil market, no one will have the money to wage wars and Israel can reduce her military budget and not worry about what people think of her anymore. Cut off aid to the “Palestinians” and tell the Arabs to deal with it, meaning taxes can be lowered and debt can start to be paid off. Economy will sputter for a while, but as she did for decades, she’ll survive. Canada: Collapses shortly after America (30% of economy directly connected to America, with the rest of the economy easily falling if 30% collapses). South and Central America: Changes will likely be based around drugs Also the dollar is the worldwide trading currency so that would hurt economies and a new currency would dominate. Basically… China will become the worlds largest economy then, since Chinas largest trading partner is Europe, and 2nd largest is America. If America goes bankrupt, they will have to pay China and Japan back the money owed. So if America declared backrupcy, then this will allow China to take Alaska, Guam, Hawaii as their own and any government infrastructure which equals 1. 5trillion dollars. They new currency will quickly be converter to Euros or Sterling and don’t forget that China actually has the money to keep their economy growing. China will just unleash trillions of dollars of government reserves to keep their country spending money to keep growing and Europe will only have the option to sell/buy from China. Japan would still stay alive considering China is Japans largest trading partner and vice-versa but America sure as hell would plunge into massive recession leaving millions and millions of American citizens homeless. The fact is this. Any country who has America as their largest trading partner will collapse immediately, with other countries feeling the effect and stress of it. But as for China, Japan, Europe and any other country who doesn’t have to rely on America, well, they will find their way out of it by either creating a monetary fund to bail out America just like Europe had to bail out Greece. Canada, Mexico, Germany, Israel and any country who relys on America for export will immediately plunge into recession. Since China is the driving force of the global economy since accession during the WTO and the 2008 recession, China wouldn’t be affected if Canada, Mexico, or Israel were wiped from the economy since China has minimal trade with those countries. As long as Europe (Chinas largest trading partner) and Japan doesn’t go bankrupt, China will still grow rapidly but America is Chinas 2nd largest trading partner, so China will must have feel the effect but they have the money to shield it from any recession. China is already sitting on 3. 5 trillion dollars in reserves alone… China has one of the highest bank reserve ratios in the world at over 15%. So in the case that this does happen, America will be split, since China and Japan are Americas largest debt funders, this would mean China would get Alaska and a lot of land, while Japan would get some land and billions of dollars worth of buildings to recoup their losses. Remember that what you borrow, you must pay back. Just like if you go bankrupt, the bank will take your home and anything and everything you own, until it’s fully paid back. Just to prove any theory out there. During the 2008 recession, Americas GDP fell over 10%, while Chinas GDP increased over 12%. That just proved that even with Americans falling into recession with people and markets panicing, China still had an astounding double digit growth of over 10+ for the past 4 years. At the end of the day, it really depends on how much resources a country has, such as money to play around with. Greece was bankrupt and didn’t have a cent to pump back into the economy, where as, China is sitting on a HUGE amount of reserves worth trillions and trillions of dollars and also has even more tucked away in the government social spending bank which is only used for emergencies. Europe also already has a bailout fund which has over 500billion dollars in it and is expected to have over 750bil by the end of 2014. America, however, doesn’t even have a penny. They only rely on the FedReserve to pump the money by printing more and more, which causes inflation which makes the money worthless if they do try it that way. Americas debt is already at over 15. 5tril.

America Financial Calamity – This New Bubble Will Collapse the US Economy videos. . Please click here to subscribe to my channel. . SUBSCRIBE – Win a Free Silv. . .


Author: "exposethe" Tags: "free market"
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Date: Saturday, 28 Jun 2014 15:13

What is the free trade policy and how did it prove ruinous for indian industries. Essentially — To define U. S free trade policy is easy,it is just what it says it is,the United States lets everything from everywhere it signs a treaty with come into this country free and we have to pay heavy to sell our products to those same places. So that not only ruined the small indian industries,look around you go to a store and look at labels,look at what your wearing. If you wear tighty whities from fruit or loom they are made in Ireland,I believe the same with the little red wagons,I had one as a kid,it was only 70 americans left without jobs,70 to many. I think our elected and appointed goverment people who do these treaties have their heads 3 feet up their ***.


Author: "exposethe" Tags: "free market"
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Date: Saturday, 28 Jun 2014 06:12

Hi my name is amal I would like to know about free foreign exchange student programs. Do you know what I found? Foreign student exchange programmes are cheapest when arranged through your school. To study in another country/live with a host family, you either need to offer the same thing in return or pay your way. Nobody is going to host you for free. If your school cannot help, take a look at www. Afs. Org However, it is not free and, if you cannot find reciprocal hosting (for example, very few Americans are interested in studying overseas) then it is very expensive indeed.


Author: "exposethe" Tags: "free market"
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Date: Thursday, 26 Jun 2014 08:55

Do you care about the sinking dollar ? Has that impacted your life at all ? How about the stock markets the price of oil the loss of jobs and so forth Is the sub-prhyme mortgage still having an impact ? Did you or do you have any faith in the Presidents stimulus package ? If so why ? Has it or what good do you expect it to do in the long run. Essentially — State of US Economy: Deep Recession (most experts agree that it’s either just begun, or has yet to ‘officially’ begin, but is coming shortly. . We are just experiencing the beginnings of it) The sinking dollar, poor job market, and (of course. . ) the price of oil have affected me greatly in my personal, daily life. I haven’t lost my job, for which I am grateful, but finding a better one (even ones for which I am over-qualified) is proving impossible. Almost nobody is hiring in the professional sector, they’re all cutting jobs and/or waiting to see how bad things get before they even contemplate hiring for new positions. The mortage crisis has affected friends of mine, but not me personally. I rent, and will continue to do so until (hopefully) this economy turns itself around and becomes at least somewhat more stable. There’s already been a slew of research which indicated that the stimulus package has not had and will not have any worthwhile affect on the economy, good or bad. In essence, it was a save-face publicity stunt (things are real bad, the economy is headed in a very dangerous direction, but hey, here’s $300-$600. . Now stop whining commie.) EDIT: and to people like ‘TD’ who spin unemployment figures, not all of us gauge the country’s job market by if PetCo is hiring or not. A new Wal-Mart opening in your town is not a good example of postive job creation. .

Dan O’Neil of Leeds University talks about his new book Enough is Enough, and argues for ‘degrowth’, at Leeds Cafe Scientifique.


Author: "exposethe" Tags: "free market"
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Date: Wednesday, 25 Jun 2014 05:17

Hi all monday nights I host an economic meeting ebtween seven and nine feel free to leave comments and thoughts on questiions define aggregate demand and aggregate supply. Explain the difference between the short run aggregate supply curve and the long run aggregate supply curve. Explain why aggregate demand is inversely related to price level and describe how and why the aggregate demand curve can shift. From what I can tell… What you are asking for will take some time to explain. Try going to Wikipedia. Org and reading a few paragraphs about aggregate demand and supply. I haven’t heard anyone talk about it since I took Economics 101 in college.


Author: "exposethe" Tags: "free market"
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Date: Sunday, 22 Jun 2014 08:50

I read about this in john mauldin’s book “end game” but still dint quite get it. After speaking to others on the web, I found the answer. I’m not sure what a”business cycle recession” is – and if it is the recession associated with Real Business Cycle Theory then the two have nothing in common. Ditto if it related to Austrian Business Cycle Theory but both of those are nonsense, and it is clear that they are nonsense. Balance sheet recessions are one kind of recession due to “inadequate demand”, the kind where the problem is that too many people have debt that is too high for them to keep spending as they had been. And as Minsky taught us, balance sheet recessions are not exogenous but endogenous – built into the nature of the economy:


Author: "exposethe" Tags: "Business Cycle"
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Date: Friday, 20 Jun 2014 14:50

. Do you know what I found? Government intervention is most appropriate to prevent the misuse of force and correct for externalities. Misuse of force includes people, for example, who break contracts or break laws. These people need to be dealt with through the government. An example of externalities is a factory that pollutes air or water. The government must enact policy to correct for the damage done. The electorate needs to be wary of giving the government too much power, however. Often power is given to the government to fix a problem, but then special interests capture the regulatory agency. One example is when the government decided to regulate railroad prices to correct for a few monopolistic routes. The railroad interests befriended the agency and convinced them to raise prices on cheap routes rather than lower the expensive routes.


Author: "exposethe" Tags: "free market"
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Date: Wednesday, 18 Jun 2014 07:17

I am going to be in San Franciscoe, staying at a hostle near Union Squar, this weekend. I am looking for any location that is good to park my car for free (possibly?) in the residential area, etc. I want a location that is not too far and a place where I can catch a bus to the hostle. If not free, a cheap parking place. Thank you. Residential area near by, possibly, where I can park and take a bus to the union square area. From what I can tell… There are A LOT free parking, south of Folsome, west of Franklin, any have 2 hour time limit, You can park in Yacht club marina area free from 6am to 10pm and take #30 bus back. Almost everywhere is Free on Sunday.


Author: "exposethe" Tags: "free market"
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Date: Wednesday, 18 Jun 2014 06:12

Don’t copy and paste Wikipedia to me. Please read the question first: Question 1: I am a college student, major in Business, and I found economics is another independent major. These two majors seem like deal with the same scope (Money related?), however, why economics becomes an independent major? I always think economics should be part of business major. What is the relation between business and economics exactly? Question 2: What is the use of economics major? I mean nothing disrespectful, just curious, because the first class, our professor claims that economics major people rank the 1% top high income people, only medical major can beat it. For all companies that I know, there is accounting, finance, marketing, statistics…but there is no department called economics, I was always wondering what people from this major make for a living? And now, rank the top 1%? Furthermore in introduction, it is said, economics develop a lot of theories that simplify reality, trying to explain some phenomenon and making possible prediction. It gives me a sense that, economics just give a lot of things based on paper, theory but never applicable in reality. So, this major just super confusing to me, I feel like I am gonna waste my tuition on this class, and what I learn will be only applicable on the midterm and final ☹. I think I found an answer. Well first, your professor is lying or mistaken to claim Economics graduates “rank in the top 1%” of income. But that kind of bluster is common for promotional college professors who actually have no experience in the real world. They have their blinders on and don’t know what they’re talking about. When you speak of it being theories on paper — an Economics major is more of an academic discipline than a trade credential. There *are* “Economists” in the business world and government and academia, but they have PhD’s, not bachelor’s degrees only. No, Economics is not a subset of business. Business is a subset of economics. To make an analogy, the field of Economics is like reading and writing, while accounting or finance are like typing. But many businesses are looking to hire typists and they don’t care if the typist can understand complex literature or write creatively, they just want someone to bang on the keyboard. A good economics student has a deeper understanding of the business world that an accounting major (for example) will not possess. Also, economics is NOT about money. Money’s just a small part of economics. You’d learn that if you pay attention. BUT, certain majors like accounting and finance do produce a high-demand skill that will get you hired strait out of your bachelor’s degree. Businesses are looking to hire accountants for the accounting department, and they don’y care if that new accountant truly understands the forces governing the business world. They just want a bookkeeper. Clearly someone like you is not cut out to be an Economics major. That’s fine. But you shouldn’t view taking economics as a waste of tuition. It’s an opportunity to develop valuable fundamental insights that underlie the business world.


Author: "exposethe" Tags: "Business Cycle"
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Date: Monday, 16 Jun 2014 23:10

. After looking around, I learned — I do not think the america economy will revive in 2012, as US has 9% unemployment, under the ‘Okun’s rule of thumb’, the economy needs to grow 3 % in order to reduce 1% in unemployment. if, assume that 5% unemployment rate is natural rate of unemployment. (you got to check it). US need to cut unemployment rate by 4%, and according to the Okun’s rule, the economy got to grow 4% * 3 = 12%. I do not think the US is able to grow at such as rate with the current state. With this pace, the US would not even recover in 2013, and it will probably recover after 2013. Slow and long road ahead. .


Author: "exposethe" Tags: "free market"
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Date: Monday, 16 Jun 2014 13:33

Is money supply( more money prinited) within a country as the economic conditions get better, example a countrys gdp is $100 this year, next year they do $500, will the state allow enough notes extra to go in circulation to go with the growth. Basically… Monwey supply increase does not really lead to improved economic conditions, except for a short while in the presence of groos underutilization of productive capacity due to low demand. Money cannot in general by being larger in supply improve economic conditions. However f conomic conditions improve and the growth of GDP and volume transactions demands for money supply to facilitate that process, money supply has to increase. Normally the credits and banking system and the capital market is expected to support the creation of adequate money supply to keep the whheels of exchange running smoothly, sometimes, the Central Bank has to relax its restrictions on the banks to create credits/ deposits by reducing the statutorily fixed can reserve ratio. If the central bank or the govt. Does not allow such expansion of money supply withthegrowth of GDP, the growth process will be hampered. But such kinds of situations seldom happens. What happens mostly is that more money supply than is required by theeconomy is created by the Govt. Resulting in high inflation, especially during the periods of boomng economic activiyies.


Author: "exposethe" Tags: "free market"
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Date: Saturday, 14 Jun 2014 05:27

I need to know the number of business cycles from 1989 to the present. I’m a little confused on the concept of a business cycle, so I’m hoping someone can help me to arrive at an answer. Do you know what I found? A business cycle always has this pattern: The economy grows (expansion). The expansion reaches a peak. The economy contracts (recession). The contraction reaches the bottom, called a trough. then the economy expands again, starting the cycle all over again. So the cycle is always: expansion, peak, contraction, trough. In that order, but you could start with whichever part of the cycle you want to start with. In order to count the number of business cycles, you can count how many times the economy has been in any of the stages. Probably the easiest is to count the number of recessions, since “official” recessions are widely reported. I didn’t catch what country you are from. I have the answer based on the United States. If you need the answer from somewhere else, perhaps you can google “(country name) recessions”. But the recessions for the United States since 1989: July 1990 – March 1991 March 2001 – November 2001 December 2007 – June 2009 A total of three recessions in that time frame. The economy has not reached the peak stage since then; it is in (very slowly, unfortunately) the expansion stage. The peak before the first recession would have been just before the start of the first recession listed. The previous expansion was very lengthy, from December 1982 to June 1990. So the entire expansion at the beginning would not be included in the time frame you are asking for. You would have: 3 peaks, 3 contractions (recessions), 3 troughs, and somewhat less than 3 expansions. I believe the answer you are looking for is 3.


Author: "exposethe" Tags: "Business Cycle"
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Date: Wednesday, 11 Jun 2014 12:24

I have really been contemplating where to go this summer. I really want to go abroad, specifically somewhere french as in France, Nice, etc. , but I don’t know where. Right now, I am looking at two different organizations. One is ASA and the other is AFS. Both seem like excellent programs, however I would love to learn more about the both of them. Personal Experience? How much freedom is given in these programs? Do they really help with language. I think I found an answer. Summer programs (I assume for young students) are indeed an excellent way to learn the language and have fun at the same time. The basic structure of these programs is identical to that of a “regular” summer camp, wherein the students are lodged in the dormitories of a college or university campus and reside there on a full-board basis for the duration of the program. Typically, they will be under supervision from their teachers or from counsellors, although older students may have a certain degree of freedom. If, on the other hand, you meant a general, “adult” program, then you have freedom to come and go as you please, and you are of course also free to take part in any excursions or activities the school may organize during your stay there. Additionally, you might also want to consider the programs offered by the company I currently work for, which include a Young Students course in Nice. Below are the relevant links to the main page and the Young Students page, so feel free to browse and see what we offer. Hope I have helped. Best of luck. Pedro Portuguese Translator for Apple Languages

Visit: ¡VAMOS. Let’s join UCAM International Summer Program. An intensive Spanish and cultural learning . . .


Author: "exposethe" Tags: "Austrian Economics"
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Date: Monday, 09 Jun 2014 10:40

I believe economic recession is defined as 3 successive quarters of loss in the GNP. Can you confirm this and tell me the definition of economic depression. After speaking to others on the web, I found the answer. There is no precise or agreed definition of a depression. Even 70 years after the last experience of the 1930s economic slump that became know as the Great Depression, economists are still wrangling over what caused it and what it meant. Defining the term is made more difficult since the last experience of anything like a depression was more than seven decades ago, which is well beyond many people’s living memory. In general, it is accepted by most experts that a depression is a very severe form of recession: one involving a deeper decline in GDP and most other measures of economic welfare, including employment, and which probably lasts for significantly longer than the typical recessions experienced in modern times. Harry S. Truman said it best: “A recession is when your neighbour loses his job – a depression is when you lose yours”.


Author: "exposethe" Tags: "free market"
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Date: Saturday, 07 Jun 2014 06:15

. Well, I have your answer right here. I guess it depends on your definition of a free market economy. probably the economy with the least amount of government interference is Singapore. you would however be hard pressed to find a whole economy that had free markets. the USA for instance gives large subsitites to their farmers. The Japanese Central Bank is known to intervene to keep their floating currency at a value they deem acceptable. China, a communist state have increasingly turned to the markets to produce and distribute goods. If you want a definitive list; I am afraid there is none. If you are to come up with such a list I might suggest dividing government spending by a country’s GDP. The smaller the % of government spending in the total economy, the greater the markets are free (everything else held equal).


Author: "exposethe" Tags: "free market"
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Date: Thursday, 05 Jun 2014 09:40

. I was happy to learn… Economics, study of how human beings allocate scarce resources to produce various commodities and how those commodities are distributed for consumption among the people in society (see distribution). The essence of economics lies in the fact that resources are scarce, or at least limited, and that not all human needs and desires can be met. How to distribute these resources in the most efficient and equitable way is a principal concern of economists. The field of economics has undergone a remarkable expansion in the 20th cent. As the world economy has grown increasingly large and complex. Today, economists are employed in large numbers in private industry, government, and higher education (see economic planning). Many subjects, such as political science and sociology, which were once regarded as part of the study of economics, have today become separate disciplines, although the study of a one generally implies a working knowledge of the others.

The first day of Moana Nui, Friday, May 31, 2013, is dedicated to presentations and group discussions by and with Indigenous Pacific Islanders in the SF Bay . . .


Author: "exposethe" Tags: "free market"
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Date: Wednesday, 04 Jun 2014 02:28

. I was so happy to find this — the web page (below) provides: FISCAL POLICY VS MONETARY POLICY I. THE BUSINESS CYCLE Market economies have regular fluctuations in the level of economic activity which we call the business cycle. It is convenient to think of the business cycle as having three phases. The first phase is expansion when the economy is growing along its long term trends in employment, output, and income. But at any point the economy will overheat, and suffer rising prices and interest rates, until it reaches a turning point — a peak — and turn downward into a recession (the second phase). Recessions are mostly brief (six to nine months) and are marked by falling employment, output, income, prices, and interest rates. Most significantly, recessions are marked by rising unemployment. The economy will hit a bottom point — a trough — and rebound into a recovery (the third phase). The recovery will enjoy rising employment, output, and income while unemployment will fall. The recovery will gradually slow down as the economy once again assumes its long term growth trends, and the recovery will transform into an expansion. II. ECONOMIC POLICY AND THE BUSINESS CYCLE The approach to the business cycle depends upon the type of economic system. Under a communist system, there is no business cycle since all economic activities are controlled by the central planners. Indeed, this lack of a business cycle is often cited as an advantage of a command economy. Both socialist and fascist economies have a mix of market and command sectors. Again, the command sector in these economies will not have a business cycle — while the market sector will display a cyclical activity. In a full market economy — like the United States — the nation can suffer extreme swings in the level of economic activity. The economic policies used by the government to smooth out the extreme swings of the business cycle are named contracyclical or stabilization policies, and are based on the theories of John Maynard Keynes. Writing in 1936 (the Great Depression), Keynes argued that the business cycle was due to extreme swings in the total demand for goods and services. The total demand in an economy from households, business, and government is named aggregate demand. Contracyclical policy is increasing aggregate demand in recessions and decreasing aggregate demand in overheated expansions. In a market economy (or market sector) the government has two types of economic policies to control aggregate demand — fiscal policy and monetary policy. When these policies are used to stimulate the economy during a recession, it is said that the government is pursuing expansionary economic policies. And when they are used to contract the economy during an overheated expansion, it is said that the government is pursuing contractionary economic policies. III. FISCAL POLICY AND MONETARY POLICY Fiscal policy is changes in the taxing and spending of the federal government for purposes of expanding or contracting the level of aggregate demand. In a recession, an expansionary fiscal policy involves lowering taxes and increasing government spending. In an overheated expansion, a contractionary fiscal policy requires higher taxes and reduced spending. According to Keynes, a recession requires deficit spending while an overheated expansion requires a budget surplus. 1) Discretionary Fiscal Policy. The first way this can be done is through the federal budget process. However, this process takes so long — 12 to 18 months — that it is difficult to match discretionary fiscal policy with the business cycle. The expansionary Kennedy tax cut of 1964 and later the contractionary Ford tax increase of 1974 hit the economy just when the opposite contracyclical policy was needed. As a result, the federal government will only use discretionary fiscal policy in a severe recession, such as 1981-82 and 2008-09. In both cases, the federal government resorted to a large fiscal stimulus – tax cuts in 1981-82 and increased spending in 2008-09. Both policies created large deficits, which is the appropriate stabilization policy during a severe downturn. 2) Automatic Stabilizers. A second type of fiscal policy is built into the structure of federal taxes and spending. This is referred to as “nondiscretionary fiscal policy” or more commonly as “automatic stabilizers”. The progressive income tax (the major source of federal revenue) and the welfare system both act to increase aggregate demand in recessions, and to decrease aggregate demand in overheated expansions. These automatic changes in spending and taxes will generate a deficit in recessions and a surplus in overheated expansions. The size of these automatic changes can be quite large. In the 2008-09 recession the deficit stimulus due to the automatic stabilizers was much larger than the stimulus created by the legislative changes in taxes and spending (discretionary fiscal policy). Monetary policy is under the control of the Federal Reserve System (our central bank) and is completely discretionary. It is the changes in interest rates and money supply to expand or contract aggregate demand. In a recession, the Fed will lower interest rates and increase the money supply. In an overheated expansion, the Fed will raise interest rates and decrease the money supply. These decisions are made by the Federal Open Market Committee (FOMC) which meets every six to seven weeks. The policy changes can be done immediately, although the impact on aggregate demand can take several months. Monetary policy has become the major form of discretionary contracyclical policy used by the federal government. A source of conflict is that the Fed is independent and is not under the direct control of either the President or the Congress. This independence of monetary policy is considered to be an important advantage compared to fiscal policy. Note that expansionary monetary policy is commonly named “easy money” while contractionary monetary policy is named “tight money”. Other terms are also used.


Author: "exposethe" Tags: "Business Cycle"
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