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Willisms

« John Edwards' Handsome Booty | WILLisms.com | Just Couldn't Resist »

Trivia Tidbit Of The Day: Part 438 -- Freer Economies Have Lower Inflation.

More Trade Means Lower Inflation-

More trade = lower inflation.

The Dallas Fed says so (.pdf):

moretradelowerinflation.gif

And yet, we're now seeing a retreat away from trade, from our new socialist Congressional overlords. And a retreat away from lower taxes. And a retreat away from Iraq. And a retreat away from "cleaning up corruption in Washington," as if that ever was a serious promise.

Of course, all of this probably explains why the approval ratings for Congress are in such rapid retreat.

Bad policy is bad politics.

-------------------------------------

Previous Trivia Tidbit: It Costs Too Much To Do Our Taxes.

Posted by Will Franklin · 24 May 2007 01:59 PM

Comments

Walmart represents the single best inflation fighting strategy there is. The Fed can lower rates or raise rates or play whatever games they want, but the single best way to control inflation is to create and then sell products more efficiently. I won't go too far on my Walmart soap box, but Walmart benefits everyone through lower prices unlike unions, tarriffs, and import restrictions that only benefit the workers in these industries at the expense of higher prices for everyone.

I assume that this chart simply shows that if you allow free trade, products will naturally be produced at the most efficient locations in the most efficient manner leading to lower costs which keeps inflation in check. I know that folks want to bash international companies like Walmart that import cheap foreign products and put "American Workers out of Work" as well as bash "outsourcing" and "offshoring" of jobs, but this simply tells the truth... wage gains made by keeping jobs in inefficient industries at home are far more than offset by inflation and higher prices for everyone.

Free trade is the only way to go.

Posted by: Justin B at May 24, 2007 06:03 PM

Mr Willism.Com,

I am not the ripest apple hanging on the tree. But based on your past predictions, I am inclinced to believe that a a red arrow pointing downward with a label of "Inflation" may not be a bad thing.

Could you get a government official, preferably not someone mandated to hire a person because of sex, biological impairments, height, weight, religion, skin color, hair curliness, pigeon- toeness, acute visual distortion, or gastric large bowel dys-function to verify this for me.

Posted by: Eneils Bailey at May 24, 2007 07:15 PM

Will,this has been shown over and over again. The socialists play on people's emotions, create envy and hate, then tax the you know what outta of us all in attempt to keep us poor and stupid. The problem is that some of us who are poor aren't as stupid as the socialists want us to be. Intelligence is largely genetic. However, the socialists know this, too. Here the Constitution gives us some little protection until the socialists get control over all three federal branches at which time they'll retire it. Once they have us all poor and stupid, eugenics is the next step, don't you think?

Posted by: Steph at May 25, 2007 08:32 PM

Eneils - so you're still not giving me any perks for being bald, eh? Bigot.

Steph, that was once my worry as well, but reality has taken odd twists again. Progressives are having fewer children, and discussions about having children have become uncomfortable among them, regardless of who's having them. Yet it occurs to them that we still need them...life gets ironic.

Posted by: Assistant Village Idiot at May 27, 2007 08:31 PM

AVI,

No, just being bald will not make it.

Could you qualify as a left-handed Lithauanian?

I think anyone not currently recognized as a member of one of the current minority groups should just create their own and then we could all be treated equally again.

Posted by: Eneils Bailey at May 29, 2007 07:48 AM