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And, of course, it is perfectly true that a poorly managed monetary system, or one which is experiencing something like an oil-price shock, can also experience inflation. Without going into the details prematurely, there are technical reasons why a little bit of inflation is useful and normal.
It discourages people from hoarding money and encourages healthy levels of consumption and investment. The trick is for the government to spend enough to ensure full employment, but not so much, or in such a way, as to cause shortages or bottlenecks in the real economy.
These shortages and bottlenecks are the actual cause of most episodes of excessive inflation. If the mere existence of fiat monetary systems caused runaway inflation, the low, stable rates of consumer-price inflation we have seen over the past thirty-plus years would be pretty difficult to explain.
What it emphatically does mean is that no such sovereign government can be forced to tolerate mass unemployment because of the state of its finances — no matter what that state happens to be. Virtually all economic commentary and punditry today, whether in America, Europe or most other places, is based on ideas about the monetary system which are not merely confused — they are starkly and comprehensively counter-factual.
This has led to a public discourse about things like budget deficits and Treasury debt which has become, without exaggeration, utterly detached from reality. Time and time again, these pundits declaim that hyperinflation is imminent, that interest rates are on the verge of an uncontrollable upward spike, and that the jig will be up for sure just as soon as the next T-bond auction fails.
The gold standard was finally and completely abolished over the course of a two-year period which started inwhen Richard Nixon ended the convertibility of the dollar for gold and devalued U.
Inthe U. The monetary system we inaugurated then is the one we still have now. It is not the same as the one which has been adopted by most of Europe — and this very prominent source of confusion about the role of money in the world today will receive close scrutiny at the proper point. Ingold-linked money became fiat-money — not for the first time, of course, but for the first time in a long time.
The political emphasis, at the time, was entirely on the importance of making sure that no one panicked.
The officials of the Nixon administration acted like cops who had just roped off a fresh crime scene: But what had really happened was epoch-making and paradigm-shattering. It was also, for the rest of the s, polymorphously destabilizing.
Because no one had a plan for, or knew, what all of this was going to mean for the reserve currency status of the U. Certainly not Richard Nixon, who was by then embroiled in the early stages of the Watergate scandal.
But no one else was in charge of this either. They wanted to forestall any kind of panic too. But, inevitably, as the real consequences of the new monetary regime kicked in, and as unforeseen and unintended knock-on effects began to be felt, this changed.
The world had a choice to make after the closing of the gold window, but even though it was a very important choice, with very high-stakes outcomes attached to it, there was no international mechanism for making it — it just had to emerge from the chaos. But, as things unfolded, no other choice could be imposed on the only economic powerhouse-nation, so all the other little nations eventually just had to work out ways to adjust to the new status quo.
Even after Euro-dollar chaos, oil market chaos, inflationary chaos, a ferocious multi-national property crash and a severe, double-dip American recession, the dollar continued to be the reserve currency. But while the implications of this were enormous, almost no one understood them at the time, or ever, subsequently, figured them out.
For the s was the period during which Keynesianism was decertified as the reigning economic philosophy of the capitalist world — replaced by something which, at least initially, purported to have internalized and improved upon it.
The chaotic, crisis-wracked world we now live in is the one which subsequent versions of this then-new economic perspective have helped to create. This is one big reason why virtually all members of the economics profession failed to see the housing bubble and were then blind-sided by both the financial collapse and the grinding, on-going Eurozone crisis which has followed in its wake.
The absence of any sort of professional, intellectual or academic accountability will be a theme here. The public policy reversal that began with Margaret Thatcher and Ronald Reagan promised that the deregulation of capitalism would lead to greater shared prosperity for everyone.
Today, even though the falsehood of this claim is brutally obvious, the same economic nostrums and stupidities that were used to justify it in the first place continue to be trotted out and paid homage to by a class of financial-media personalities who equate making a lot of money with understanding money.
It does not seem to occur to them that financial criminals and practitioners of bank-fraud can get rich through sociopathy alone. What needs to be said is this:Comprehensive and meticulously documented facts about taxes.
Learn about the various types of taxes, the distribution of the tax burden, economic effects, hidden taxes, and more. Be sure to use the Qualified Dividends and Capital Gain Tax Worksheet found in the instructions for Form or A to calculate the tax on qualified dividends at the preferred tax rates.
Non-dividend distributions reduce your cost basis in the stock by the amount of the distribution. The Debate Over Teaching Evolution In Schools Essay example Evolution is the process of how life has evolved over time. Many different people think different about evolution and .
The Debate over Taxing Stock Dividends Essay Sample The tax payments pertaining to stock dividends are a debate that seems to be going around in circles without any real answer in sight.
The term ‘dividend policy’ refers to “the practice that management follows in making dividend payout decisions or, in other words, the size and pattern of cash distributions over time to shareholders” (Lease et al., , p).
Income inequality in the United States has increased significantly since the s after several decades of stability, meaning the share of the nation's income received by higher income households has increased.
This trend is evident with income measured both before taxes (market income) as well as after taxes and transfer payments.
Income inequality has fluctuated considerably since.