The pols in DC have been on a spending spree since the turn of the century and our national debt has skyrocketed. Donald Trump has been promising his supporters the great wall of Mexico paid for by the Mexicans and on Twitter he keeps clicking his heels together while repeating that meme evidently in the hopes that if he says it enough, people will accept his alternate version of reality. The problem for Trump, his wall and threats of border taxes on auto makers, beyond simple economics, is the Mexican people do not seem to want to cooperate with Trump’s scapegoating of them and like Trump, the Mexican President also has access to Twitter:
TRUMP, when will you understand that I am not paying for that fucken wall. Be clear with US tax payers. They will pay for it.
And despite the overwhelming evidence these taxpayer Film incentives are spend a dollar to gain a quarter type propositions that make absolutely no economic sense, one of the major accomplishments of the 2015 Mississippi legislature was finally instituting this taxpayer funded giveaway to out of state business interests. Its not that the leadership in this state being backwards that makes this so bad. Its that the leadership is both late and backwards that helps keep us snake bit when it comes to economic development. Meantime the fools play (with your tax money). Continue reading “As the fools play: Pissin’ away your tax dollars”
In economics, more precisely in contract theory, signalling (or signaling: see American and British English differences) is the idea that one party (termed the agent) credibly conveys some information about itself to another party (the principal). For example, in Michael Spence’s job-market signalling model, (potential) employees send a signal about their ability level to the employer by acquiring certain education credentials. The informational value of the credential comes from the fact that the employer assumes it is positively correlated with having greater ability.
I noted the majority of the comments on the Huff Post post which featured this video were driven from a political idealogy standpoint than one of economic common sense which is one of the reasons I opined on the last Taleb CNBC video I posted that:
using history as a guide we’ll go bankrupt before most folks are able to pull their heads out of their asses.
This is simple common sense, not only do we spend far more than we take in, we have also rewarded those who brought us this disaster known as the financial crisis. My own greatest heartburn isn’t derived from the short term measures taken designed to cushion the economic blow, rather we have no long term solution designed to prevent the inevitable.