Mortgage Interest Deduction A Good Idea?

It has been mentioned here and elsewhere that the mortgage interest deduction in the tax code is a roundabout way of subsidizing banks. If interest rates are determined by supply and demand then the demand for interest rates is only dependent on what a taxpayer's "effective interest expense is". For example, if interest rates are at 4.0% and you … [Read more...]

For Debt Ceiling Lessons… Turn to Robert Bork?

"In the past, raising the debt ceiling was routine. Since the 1950s, Congress has always passed it, and every President has signed it. President Reagan did it 18 times. George W. Bush did it 7 times." - President Barack Obama, July 26, 2011. In the United States, Congress controls the purse strings.  Congress sets the amount of spending that the … [Read more...]

Uncle Sam’s Real Time Debts

First for some good news: the United States still has a debt rating of AAA, according to Moody's.  However, it's probably in the country's best interest to keep an eye on increasing deficits before they get too large.  That's what the site I'm linking you today helps you do - keep an eye on the real time US deficit, and some of the unfunded … [Read more...]

How to Pay Off Debt… Stealthily

There's Another Way There are three ways for a government to pay for debt: issue new debt, collect taxes, and cause inflation.  Inflation is a 'hidden tax' on a populace- it decreases the value of future money, and allows governments to pay off their current debt with devalued money.  The United States dollar, as the world's reserve currency, … [Read more...]

Milton Friedman’s Permanent Income Hypothesis

Milton Friedman’s Permanent Income Hypothesis Revisited Milton Friedman is most certainly the most influential economist of the last fifty years and, perhaps with John Maynard Keynes, the most influential of the entire 20th century.  His theories and research continue to shape public policy debates even to today. One of Friedman’s most influential … [Read more...]