UPDATE: And the winner is… Adrienne of Adrienne’s Corner and Red of Caught Him With A Corndog (who cheated off Adrienne). For both “guessing” the name of our esteemed author as Thomas Sowell. Another one of many profound men of color who understand what is happening in this country and are not afraid to speak out against it. Mr. Sowell is a syndicated author who’s articles are printed in many different magazines and online journals but I found this one through the Patriot Post, which offers a free subscription and shares a wealth of knowledge to anyone possessing the desire to learn.

Now, Adrienne has asked for a reward of some kind. Specifically, she said:

I want a priiizzzzze

Something shiny would be nice…

Usually, I don’t hand out rewards for this sort of thing but, since you screamed about it..

After an exhaustive search around the Robo-basement, I’ve dug something out of the jewelry box that may suit you, or Flavor Flav. I’m not sure. There is only one, but Adrienne and Red, I’m sure you can share, a joint custody of sorts. Work out the details between you. You are hereby awarded…

the Robo-Bling.

Name the Naked Author Prize - AKA: Robo-Bling!

Congratulations. I think.

Begin original post===============================

You know, I’m swamped with work right now so lets play another Name the Naked Author game! This week, our commentator takes on the question of our economy and why, with so much money being printed, the inflation level hasn’t risen. I was curious of that myself.

As usual, no Google and leave your guess in the comments. I’ll announce the name Saturday.

Read on:

If you could spend vast amounts of other people’s money just by saying a few magic words, wouldn’t you be tempted to do it? Barack Obama has spent hundreds of billions of dollars of the taxpayers’ money just by using the magic words “stimulus” and “jobs.”

It doesn’t matter politically that the stimulus is not actually stimulating and that the unemployment rate remains up near double-digit levels, despite all the spending and all the rhetoric about jobs. And of course nothing negative will ever matter to those who are part of the Obama cult, including many in the media.

But, for the rest of us, there is a lot to think about in the economic disaster that we are in.

Not only has all the runaway spending and rapid escalation of the deficit to record levels failed to make any real headway in reducing unemployment, all this money pumped into the economy has also failed to produce inflation. The latter is a good thing in itself but its implications are sobering.

How can you pour trillions of dollars into the economy and not even see the price level go up significantly? Economists have long known that it is not just the amount of money, but also the speed with which it circulates, that affects the price level.

Last year the Wall Street Journal reported that the velocity of circulation of money in the American economy has plummeted to its lowest level in half a century. Money that people don’t spend does not cause inflation. It also does not stimulate the economy.

The current issue of Bloomberg Businessweek has a feature article about businesses that are just holding on to huge sums of money. They say, for example, that the pharmaceutical company Pfizer is holding on to $26 billion. If so, there should not be any great mystery as to why they don’t invest it.

With the Obama administration being on an anti-business kick, boasting of putting their foot on some business’ neck, and the president talking about putting his foot on another part of the anatomy, with Congress coming up with more and more red tape, more mandates and more heavy-handed interventions in businesses, would you risk $26 billion that you might not even be able to get back, much less make any money on the deal?

Pfizer is not unique. Banks have cut back on lending, despite all the billions of dollars that were dumped into them in the name of “stimulus.” Consumers have also cut back on spending.

For the first time, more gold is being bought as an investment to be held as a hedge against a currently non-existent inflation than is being bought by the makers of jewelry. There may not be any inflation now, but eventually that money is going to start moving, and so will the price level.

Despite a big decline in the amount of gold used to make jewelry, the demand for gold as an investment has risen so steeply as to more than make up for the reduced demand for gold jewelry, and has in fact pushed the price of gold to record high levels.

What does all this say? That people don’t know what to expect next from this administration, which seldom lets a month go by without some new anti-business laws, policies or rhetoric.

When you hire somebody in this environment, you know what you have agreed to pay them and what additional costs there may be for their health insurance or other benefits. But you have no way of knowing what additional costs the politicians in Washington are going to impose, when they are constantly coming up with new bright ideas for imposing more mandates on business.

One of the little noticed signs of what is going on has been the increase in the employment of temporary workers. Businesses have been increasingly meeting their need for labor by hiring temporary workers and working their existing employees overtime, instead of hiring new people.

Why? Because temporary workers usually don’t get health insurance or other benefits, and working existing employees overtime doesn’t add to the cost of their benefits.

There is no free lunch — and the biggest price of all is paid by people who are unemployed because politicians cannot leave the economy alone to recover, as the American economy has repeatedly recovered faster when left alone than when politicians decided that they have to “do something.”

Comments
  • Adrienne July 14, 2010 at 11:13 am

    Thomas Sowell – I just read that about an hour ago

  • Adrienne July 14, 2010 at 11:14 am

    Do I get a prize?? Huh? Huh?

  • Adrienne July 14, 2010 at 11:15 am

    I want a priiizzzzze

  • Adrienne July 14, 2010 at 11:50 am

    Something shiny would be nice…

  • mnrobot July 14, 2010 at 11:54 am

    ROTFL Your husband must be proud.

  • Red July 14, 2010 at 12:43 pm

    Thomas Sowell – I cheated off Adrienne. Do I get a prize? Me too me too ;-)

  • mnrobot July 14, 2010 at 12:45 pm

    You should be ashamed of yourself young lady.

    • Red July 17, 2010 at 5:29 pm

      Oh I am. So very very much so…VICTORY! BY ANY MEANS NECESSARY!!!!

  • Adrienne July 14, 2010 at 1:27 pm

    Red and I both get a priiiiiizzzzzze!!! Actually, Red gets TWO for cheating. GO, Red!!!!!

    • Red July 17, 2010 at 5:28 pm

      Thanks Adrienne, you’re a peach!

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