The General Economic Literacy and Education Thread

Easy_C

Peacock
I figured I would start this thread as a repository for general economic questions and information, and I figure every so often I'll post relevant information and materials.

My motivation for starting the thread is that sometimes seeing the illiteracy on here is a bit painful, even when most of us have a significantly higher competency in the area than I've seen from the other ideological camp. Without getting into enough specifics to identify me (trust me, the pool of possible people here is huge) my background includes a finance degree from a top 20 business school and I have worked at some of the world's largest financial services firms so I can see very clearly the knowlege gap that exists. This thread is where myself and others can provide information to close that gap.

That said there is a significant number of concepts, ideas, and history in the area that is important because knowing these things both helps you better understand how policies will impact you and to better forecast social/economic trends. For example the "Great Reset" agenda is something that anyone who actually knows how bond markets work could see coming in some form for year (there were fundamental reasons the government-debt model was breaking and they would predictably resort to an authoritarian solution aimed at nationalization and capital restrictions) and it helps you make investment decisions that aren't based entirely on speculative, emotionally driven group think and misinformed interpretation of significances.

Here's my first Contribution: a lecture from Canadian professor Mark Meldrum explains the impact of Minimum Wage increases.

(embed is blocked, click here)

 
I have 2 questions to ask you.

1) I have no doubt that the great reset with agenda 2030 will surely come but my question is this, why will government allow the crypto world to exist? In my opinion this industry have created lot of millionaires and will also create more, if government around the world are serious about all these agenda, why have they not shut down the crypto industry to make people poorer and stop them from competing financially with them because the reality is this, the more money a person makes, the more the individual is able to influence government decisions.

2) My second question is about the minimum wage, most conservatives are against the minimum wage. It is also a fact that abolishing the minimum wage will decrease unemployment but wont the removal of minimum wages leads to exploitation?

I am of the opinion that minimum wages creates an incentive for people to join skillful jobs. For instance, if an employer pays a minimum wage of 100 dollars per hour for a job, i believe it will allow those who are intelligent, skillful, ambitious and who wanna make money to study to get a skill in that field and get rich.

I believe financial rewards motivates people to work more. In my opinion, a lack of minimum wage remove the zeal and motivation for work.
 

paninaro

Pelican
I am of the opinion that minimum wages creates an incentive for people to join skillful jobs. For instance, if an employer pays a minimum wage of 100 dollars per hour for a job, i believe it will allow those who are intelligent, skillful, ambitious and who wanna make money to study to get a skill in that field and get rich.

I believe financial rewards motivates people to work more. In my opinion, a lack of minimum wage remove the zeal and motivation for work.

You can still motivate without a minimum age -- people who do well will be quickly promoted and get a raise.

It's interesting how few people actually still get minimum wage if they've been at a job a year or longer. While they may start at minimum wage, once they demonstrate they can show up on time and get things done, they get a raise.
 
You can still motivate without a minimum age -- people who do well will be quickly promoted and get a raise.

It's interesting how few people actually still get minimum wage if they've been at a job a year or longer. While they may start at minimum wage, once they demonstrate they can show up on time and get things done, they get a raise.
I understand your point.

But then how will wages be calculated for unskilled labour, if we abolish minimum wages?

Won't it lead to exploitation of workers by job creators.

Imagine, a rule says i should pay you 10 dollars per hour compare with another rules, which says i can pay you whatever i like, which among the 2 rules is fair in the labour market?
 
largest financial services

Relevant for understanding the psychology of what's going on: what's been your perception of the people in this sector? I've known many and was surprised how few understood anything about economics or the financial system... and I'm just some slub who knows how to read books and find data.

You're right on target about the bonds and the Great Reset though. I had realigned when everyone acted confused that rates were going down again like it's a magic trick no one understands.

Also...for everyone else: M2 money supply is meaningless. Stop looking at it.
 

Easy_C

Peacock
Relevant for understanding the psychology of what's going on: what's been your perception of the people in this sector? I've known many and was surprised how few understood anything about economics or the financial system... and I'm just some slub who knows how to read books and find data.


See above video. Most of them are rich kids who don’t have more than a paper understanding, and got there by dutifully playing the game and complying with authority figures.

I do think it tends to be somewhat different as you get away from the Bulge Bracket and Elite Boutique institutes because boutique banks that have survived had to do so without the same level of institutional advantage. It’s also much less the case among any type of employee who are directly responsible for market interactions (e.g traders and salesmen but not Sell Side researchers) as they tend to come from less “elite” backgrounds and are in fields where they don’t have the luxury of existing in the theoretical instead of reality.


For example: Most analysts, investment bankers etc. think short selling drives down markets.

Traders know it doesn’t because short sales also create a matching buy order to cover them.




What actually causes a price crash is when there aren’t enough buyers in the market, which means sellers start running down the high bids and the highest bid moves down very quickly. This tends to happen when you’ve got too many buyers rushing to run security which eventually means everyone who will buy already has and there’s no buyers left.
 

Easy_C

Peacock
1) I have no doubt that the great reset with agenda 2030 will surely come but my question is this, why will government allow the crypto world to exist? In my opinion this industry have created lot of millionaires and will also create more, if government around the world are serious about all these agenda, why have they not shut down the crypto industry to make people poorer and stop them from competing financially with them because the reality is this, the more money a person makes, the more the individual is able to influence government decisions.
Not sure. Initially no bank would touch it because of being viewed as a money laundering instrument. Now we don’t know for sure, but now that it is traceable it’s a possible Trojan horse. It also could be designed as or ba beta test for official cryptos

2) My second question is about the minimum wage, most conservatives are against the minimum wage. It is also a fact that abolishing the minimum wage will decrease unemployment but wont the removal of minimum wages leads to exploitation?

Possibly. There’s a difference between theory and practice, and if you combine a labor surplus combined with government protection of donors you very easily could get that.

There’s a whole playlist from Mark that Covers the CFA economics topic and it’s worth following as a good general intro to economic theory

(First video here)

 

paninaro

Pelican
I understand your point.

But then how will wages be calculated for unskilled labour, if we abolish minimum wages?

Won't it lead to exploitation of workers by job creators.

Imagine, a rule says i should pay you 10 dollars per hour compare with another rules, which says i can pay you whatever i like, which among the 2 rules is fair in the labour market?

Let the free market calculate wages. Take a hospital that needs to hire doctors, so minimum wage doesn't matter since this is a high-skilled ocupation. How do they figure out wages? The free market figures it out -- if they are paying too little, no one will apply.

The same can work for unskilled labor -- if you are offering let's say $1/hour, no one will apply. If you offer $100/hour, they will be flooded with interest. Somewhere in between is the number the market will work out. No need for the government to set it to be some arbritrary number.
 

Tactician

Kingfisher
Gold Member
For example the "Great Reset" agenda is something that anyone who actually knows how bond markets work could see coming in some form for year (there were fundamental reasons the government-debt model was breaking and they would predictably resort to an authoritarian solution aimed at nationalization and capital restrictions) and it helps you make investment decisions that aren't based entirely on speculative, emotionally driven group think and misinformed interpretation of significances.

Hi @Easy_C , if you have a moment, could you give a rundown or recommend some resources about how the bond markets are connected to the Great Reset?

Also, what are some of the fundamental reasons causing the govt-debt model to break?

Understanding bond stuff is a big weakness of mine. Would be happy to hear your views about this topic. Cheers.
 
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