Essays - Magic Money, and More - for Today!
The "Magic..." essays were inspired by questions and comments from friends and neighbors about government policy and the pandemic. Annie used to teach this sort of fun stuff! She wanted to explain a few things to friends.
If you think the pandemic is over and you want to skip that part, scroll down
to find Annie's thoughts on today's challenges.
The Book Review is background information about the so-called Father of Free Market Ideas, Adam Smith.
Book Review: The Essential Adam Smith -
What He Said May Not Be What you Think
Magic, Money and the Pandemic
These essays address monetary policy (central banking and the Fed), fiscal policy (government budgets), fiat money (including dollars and bitcoin), and inflation (price-level changes). They present accepted teachings in economics, for the general reader, with a few thoughts on the pandemic and its challenges tossed in.
Annie thinks most adults should have some idea how their economic and political systems work. As news reports become more disturbing, she invites you to reflect on the implications of her theory – and here’s why:
Annie made a couple of numerical examples to illustrate her theory. If you understand graphs, you should see from the figures at the link (left) what her theory implies. She could be wrong. She hopes you will consider the matter for yourself.
Annie's examples are typical of graphs you might see in a Principles of Economics textbook, illustrating a point. However, Annie's point is different from what is customarily presented in beginning economics textbooks.
The second link at left - The Fighting Fed - discusses a banking dilemma. Annie suggests that the U.S. economy's increasing polarization matches her theory, in which part of the population is dependent on money-magnet-type industries and part on resource-losing-type industries. Their different challenges may not both be solvable with currently acceptable (and applied-to-everyone) policy tools.
Annie suggests other options. They may be found in the Theory and Reality series of essays; in particular at the end of the "Q and A - Theory and Reality" essay.