Politicians from both sides of the aisle frequently speak of the unemployment rate as an important economic indicator. And indeed it is. However, there is some amount of deception involved in reporting this rate. Whether the deception is purposeful or not is up to voters to decide. Regardless, it should be understood that the labor force participation rate is far more important than the unemployment rate.
We all know of the existence of the Internal Revenue Service (IRS) thanks to the tax returns we file every spring. Nevertheless, how much do you really know about the agency? Do you know when it was established and for what purpose? The IRS is an interesting entity with a long history and an intriguing evolution.
Where politics and economics meet, we often hear terms such as ‘Keynesian economics’, ‘Keynesian theory’, and the ‘Keynesian model’ bandied about. All of these terms are a reference to the late British economist John Maynard Keynes. Keynes’ ideas were considered revolutionary during his heyday as an economist, and they laid the foundation for the study of macroeconomics.
The U.S. monetary system, as with most others, was built on the principle of hard currency. However, the definition of ‘hard currency’ has changed over the years. So much so, that today’s hard currency is not what your parents or grandparents understood in decades past.
Las Vegas was not always the investor-owned entertainment venue it is today. Prior to the 1970s, most of the valuable property in the city was built and maintained by organized crime. It was not until the 1970s, and creative investors such as Steve Wynn, that Sin City began saying goodbye to mobsters in favor of Wall Street investors.
Governments around the world measure economic strength based on the combination of a number of factors. One of the factors we use in this country is known as the Gross Domestic Product (GDP). Some say that GDP is a very reliable measure because it gauges the market value of U.S. productivity. Others say it is marginally useful due to its inherent weaknesses.
Are you familiar with how the U.S. income tax system works? Do you understand that it is a progressive system that does not tax everyone at the same rate? If not, allow us to explain. Needless to say, it is a system rife with inequities, at least in the eyes of those in the highest tax brackets.
The reasons why China has flatter business cycles than the US:
1. A major part of China economy is comprised of state-owned businesses / national enterprises with very large capacities and economic powers. Anything bad that happens to the economy can be immediately and silently negated without going public. Fluctuations are there, just not known to people.
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