With recent news overwhelmed by the financial difficulties of US state and national budget deficits, along with the continued financial difficulties in Europe there is a renewed focus on the impact of debt on national wellbeing.  This is especially important because most of the developed world is not far behind the major problems of these European nations.  The most important thing to understand about debt is exactly what it is, and by extension, what it is not.
What’s the Deal with Debt?
Fundamentally, debt is a financial magnifying glass.  It will amplify …

Those who are familiar with the work of thinkers like Milton Friedman know that inflation is actually a second form of taxation that is caused by government action, and acts by eroding the purchasing power of dollar-denominated assets.  This effect happens when the government increases the amount of currency in circulation faster than the growth of real production.  The net effect is more dollars chasing after fewer goods and services.
The inevitable “next question” is to find out what inflation means to us as individuals, and how we can fight against …

One of the most interesting and unique economic phenomenon to emerge over the last 10 years is the impact of technology in creating products that are free to the consumer.  Chris Anderson writes about this in his book entitled “Free”.  The most unique aspect of this business model is that it generates tremendous profits for those who know how to use it correctly.
Typically, the advent of a “free” product or service is a sample that is intended to give consumers a taste that entices them to pay for the products …

The German story of Faust is well known throughout literary and scholastic circles.  In the story, Faust is a successful scholar who is unsatisfied with his life and bargains with the Devil.  He offers his soul in exchange for unlimited knowledge and worldly pleasures.  The popular term: “deal with the devil” originates from the story of Faust.  This story has also been interpreted by some as a metaphorical representation of an ambitions person who compromises their moral integrity to achieve power and success.
A more appropriate interpretation for the current political …

In his famous novel “A Tale of Two Cities,” Charles Dickens wrote: “It was the best of times, it was the worst of times; it was the age of wisdom, it was the age of foolishness; it was the epoch of belief, it was the epoch of incredulity; it was the season of Light, it was the season of Darkness; it was the spring of hope, it was the winter of despair; we had everything before us, we had nothing before us; we were all going directly to Heaven, we …

In the midst of the constant headlines concerning government ‘bailout’ initiatives that have resulted from a credit crisis in the financial sector, one must stop to wonder whether the government is acting responsibly and what the likely results of these actions will be. (In truth, one doesn’t have to wonder that much … the government is acting with an almost complete lack of anything resembling financial responsibility.)
The core driver of this problem is that public agencies making market decisions will tend to make them based on political expediency instead of …

An Article recently published by the International Business Times explored the potential for problems associated with aggregate student loan debt.  Since the total student loan debt outstanding exceeds $1 Trillion dollars, the scope of the problem seems immense.  When complicated by the 30% of student loans that are 30 or more days overdue, there appears to be a crisis brewing.
The concern expressed by many is that the burden of student loan debt will suppress people’s future disposable income.  To many, this presents a dire scenario where future consumption spending cannot …

Our world is one where there is a considerable amount of risk and uncertainty.  Unfortunately, the current trend is that this uncertainty appears to be growing.  In nearly every facet of our personal, professional, and financial lives, the things that used to be taken for granted are no longer considered to be certain.
One of the most influential events of recent history is the financial crisis of 2008.  The credit bubble had escalated the stock market and real estate prices to unbelievable highs, just before they came crashing down.  A startlingly …

In the world of economics, there is a term called “Free Riding” that describes people who benefit for services and innovation that they did not pay to produce or develop.  There are many ways in which ‘free riding’ benefits people, since technology tends to be prohibitively expensive when it is first developed.  However, as it is adopted by more people the prices come down and quality increases with the increased competition.
Thus, the people who benefit the most from technology are the ones that wait until prices decrease and quality increases …

Recent news about the advent of rapidly rising gas prices has brought the subject of energy into the forefront of public opinion.  Unfortunately, the majority of the discourse occurs over typical “political football” issues such as profits from oil companies and proposals for higher taxes.  Recently, the topic has shifted toward the topic of exporting domestically produced oil to other countries.  Naturally, this is being portrayed as unpatriotic greed on the part of the oil companies who are subverting the national interest of the United States for their own selfish …