‘Marketing’ Archive

The December 2013 Capital Drain newsletter is ready

Tuesday, December 17th, 2013

Hi,

I just posted online and emailed the December 2013 Capital Drain newsletter. If you’re on the direct mailing list for that, you should be receiving it now.

If you’re not yet on the list, but would like to be, send me an email.
If you just want to read the letter, follow this link: December 2013 CapDrain.

I hope you’ll enjoy it. You can sample from the past several years of newsletters on this page.

-R

Longsplice rope

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Clarifying Keynesian Economics

Friday, May 10th, 2013

British Economist John Maynard Keynes has been hugely influential because of ideas he developed while studying the Great Depression, which was then ongoing.

His key observation was that when an economy has been dealt a severe blow, such that there’s mass unemployment and shuttered factories, then the economy if left to itself could take a very long time to recover. That’s simply because unemployed people spend as little as possible, and businesses only re-open factories or build new ones to meet rising demand for goods. Even if, as theory recommended at the time, wages and interest rates dropped to the point where many more people would be hired, those workers’ spending power would be too low to drive growth in the short or medium term.

Keynes proposed that in such a case, government could speed the recovery immensely by borrowing money (interest rates were low and business were not borrowing to build) and funding productive work. Workers would have money to spend for current consumption, and roads, bridges, schools, etc. would be built to make future growth more efficient.  When the recovery came around, the special projects would wind down and the government would use the increased tax revenues to pay down the debt.

Some people hated the idea, not least because it gave a very big role in the economy to government. Arguments have raged, and good and bad points have been raised.

Seven of the most common bad points are discussed by Mark Thoma in The Fiscal Times:

Seven Myths about Keynesian Economics

 


The March 2013 Capital Drain newsletter was posted last week.

Friday, April 5th, 2013

Hi,

I’ve just (last week) posted and emailed the March 2013 Capital Drain newsletter. If you’re on the direct mailing list for that, you should be receiving it now.

If you’re not yet on the list, but would like to be, send me an email.
If you just want to read the letter, follow this link: March 2013 CapDrain.

I hope you’ll enjoy it. You can sample from the past several years of newsletters on this page.

As you know, I’ve been away from the blog for a while. I had to move my home and the company on short notice, but I’m settled and productive again. In many ways the new place is a delight, but I’ll miss my frequent visits with favorite people and businesses in Redwood City and neighboring towns.

-R

To get an email notice of new blog posts, including notice when each newsletter is released, subscribe:


 

 


The June 2012 Capital Drain newsletter is ready

Sunday, July 1st, 2012

Hi,

I’ve just sent out the June 2012 Capital Drain newsletter. If you’re on the direct mailing list for that, you should be receiving it now.

If you’re not yet on the list, but would like to be, send me an email.
If you just want to read the letter, follow this link: June 2012 CapDrain.

I hope you’ll enjoy it. You can sample from the past several years of newsletters on this page.

-R

To get an email notice of new blog posts, including notice when each newsletter is released, subscribe: