Analysis: Consumer Prices Up 6.1 Percent Since April 2021 a Personal Income Falls Behind

by Robert Romano   The U.S. economy has been on a rollercoaster ever since the COVID pandemic of 2020, first with high unemployment and near deflationary levels as the global economy was locked down, followed by a deluge of government spending, borrowing and printing almost $7 trillion, followed by inflation that has largely outstripped incomes. The last of the COVID transfer payments, which contributed substantially to the inflation — what Milton Friedman dubbed “helicopter money” — went out in March 2021, and so the question is how have the American people been faring since? Nominal personal income has increased at an average, annual rate of 4.4 percent, according to data compiled by the Bureau of Economic Analysis. In the meantime, the Consumer Price Index has increased at an average annual rate of 6.1 percent. The Bureau of Economic Analysis defines personal income as “The income that persons receive in return for their provision of labor, land, and capital used in current production, plus current transfer receipts less contributions for government social insurance (domestic).” That’s slightly confusing, and so the St. Louis Federal Reserve Bank defines personal income it as “the income that persons receive in return for their provision of labor,…

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Commentary: Arizona’s New School Choice Bill Moves Us Closer to Milton Friedman’s Vision

“Our goal is to have a system in which every family in the U.S. will be able to choose for itself the school to which its children go,” the Nobel Prize-winning economist Milton Friedman stated in 2003. “We are far from that ultimate result. If we had that, a system of free choice, we would also have a system of competition, innovation, which would change the character of education.”

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Analysis: The First Gulf War Validated Five Major Weapon Systems, All-Volunteer Military

The First Gulf War, or Desert Shield and Desert Storm, which was a strategic failure, but an operational success came to an end Feb. 28, 1991 with President George H.W. Bush calling a halt to combat operations after the 100 hours of combined land and air offensive.

It was the culmination of months Desert Shield’s diplomacy and military build-up beginning Aug. 7, 1990, shortly after Iraq invaded and conquered its neighbor Kuwait. Desert Storm began Jan. 16, 1991 with a ferocious air campaign that prepared the battlefield for the last 100 hours.

It is important to record operations success in the ledger of a war whose memory has become awkward and difficult.

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Three Ways Milton Friedman Improved the Field of Economics

Milton Friedman

by Luis Pablo De La Horra   Milton Friedman is probably the most important free-market thinker of the twentieth century. His ideas in defense of capitalism and economic freedom had an enormous influence on the shift towards free-market policies that took place from the 1970s onwards. Countries like the UK, China, Chile, or Estonia followed the economic recipes contained in best sellers like Free to Choose or Capitalism and Freedom, unleashing the power of free markets to create wealth and prosperity. Yet the contributions of Friedman as an economist are often overlooked by non-economists. Here are three that will help you understand a bit better his work. 1. On Methodology In 1953, Friedman wrote a very influential essay titled The Methodology of Positive Economics, where he puts forward what he thinks is the right methodological approach to economics. According to Friedman, the assumptions on which a theory rests don’t have to be realistic: as long as they are “sufficiently good approximations for the purpose in hand” (which is to make accurate predictions), the theory is valid and useful to analyze the world. Let’s draw upon an example to better understand what he meant. We are all familiar with the theory of perfect competition, which is based on…

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