Hughesair (Inflection Point)
Retired physician and air taxi operator, science writer and part time assistant professor, these editorials cover a wide range of topics. Mostly non political, mostly true, I write more from experience than from research and more from science than convention. Subjects cover medicine, Alaska aviation, economics, technology and an occasional book review. The Floatplane book is out there. I am currently working on Hippocrates a Fanciful History of Medicine and Death of the Middleclass. Enjoy!
- Name: Clancy Hughes
Alaska Floatplane: NOW EXCLUSIVELY AVAILABLE ON KINDLE
Sunday, August 07, 2016
Tuesday, August 02, 2016
Saturday, July 09, 2016
Monday, June 27, 2016
Globalization = Colonialism
Thursday, June 23, 2016
We can tax the wealthy to pay their fair share for public infrastructure, but none of this will work so long as we have the colossal loss of jobs to cheap foreign labor, loss of manufacturing to inequitable trade treaties, with the resulting loss of wealth from the US economy. Monopolies dominate the infrastructure, and lost wealth accrues to the so called one percent who now control the legislative process.
More women working in the workforce and increased minimum wage are strong boosts, but they come at a price. In good times it does not require two or more family members working to provide a living. Increased minimum wage already boosts food and restaurant prices causing a strain on fixed income seniors. As the elegant French lady suggests, we need to think productivity.
Sunday, May 29, 2016
The Fed goes to extraordinary lengths to stimulate the economy with very little result, thus raising questions, what is the economy and how does one stimulate it? Our economic growth barely exceeds population growth and obviously all but the very wealthy are suffering from a declining standard of living. An old tattered economics 101 text book may shed some light on the questions.
The man or woman on the street has no problem feeling the depression. Why is it that economists do not? What is the economy anyway? What is the energy that man on the street feels walking down a thriving business district in a thriving city, I'm thinking of Dublin, versus the depression felt in a manufacturing town where the plants are shut down, moved to Mexico or outsourced to China?
A text book might say, "economics is the allocation of scarce means to alternative means," that says nothing of good economics or bad economics because the economy is the very quality of life, the standard of living. The gross domestic product, GDP, offers one yard stick for measuring the economy but falls short reflecting the quality of life, the productivity that drives the economy and the palpable feeling of energy on the street. The word product is the key. The GDP is the product of the money supply multiplied by the yearly turnover rate, the number of times that money is spent, the turnover rate or velocity. The velocity is under appreciated and the numbers are hard to find. Divide the GDP by the M1 and you get a sense of velocity, the turn over rate, the number of times we spend and pass the same dollars from one place to another over a year's time. In good times the velocity is up around 11, in bad times, like now, it is down to like 5.
In physics E = M c squared. In economics Energy equals the GDP divided by the M1, money supply in circulation. Janet Yellen and the Federal Reserve have tried to stimulate the economy with quantitative easing pumping nearly 4 trillion dollars into the economy over seven years by way of the banking system with minimal results. The strategy does nothing for the velocity or energy side of the equation in fact velocity, i.e. energy may be lower.
2016 16.49 3.2446 5.08
2015 16.47 3.0873 5.33
2014 16.15 2.9212 5.53
2013 15.76 2.6414 5.97
2012 15.38 2.4586 6.26
2011 15.19 2.1618 7.03
2010 14.94 1.8600 8.03
1009 14.54 1.6965 8.57
2008 14.58 1.6034 9.09
2007 14.99 1.3711 10.93
2006 14.72 1.3849 10.63
2005 14.37 1.3869 10.36
2004 13.95 1.3025 10.04
2003 13.53 1.3025 10.39
2002 12.96 1.2187 10.63
2001 12.71 1.1824 10.75
2000 12.69 1.0896 11.65
Note that a dramatic increase in money supply drives little increase in GDP
One can hardly find any reference in government accounting for the turnover
but a dramatic decrease in the energy level of the economy, less than half since 2007
In 1998 the government stopped publishing L the factor for overall liquidity,
later they stopped publishing M3. Both would reflect the trillions sequestered in the
shadow banking, hedge funds and offshore banking; I wonder why.
Productivity drives the turnover rate, the velocity and thus the energy and the standard of living. What drives productivity? The working man can tell you, the tradesman can tell you and the farmer.
For land substitute, a cheap exploitable sustainable abundant resource, today we think foreign labor and cheap manufacturing at the expense of US jobs and an obscene trade deficit now exceeding a half a trillion a year while ignoring our own infrastructure, energy, transportation and information grid to the benefit of legislatively sanctioned monopoly. It's like colonialism all over again. OK forget the trade deficit, focus on abundant cheap sustainable exploitable infrastructure, substance and photons,
Saturday, February 27, 2016
Medical Records, EHRs
Sunday, January 17, 2016
Dance Dance Where Ever You May Be
Saturday, January 02, 2016
The Big Short by Michael Lewis
Saturday, December 12, 2015
envelope and see that the amount remains the same, the cost of living increase has indeed been canceled by congress, I feel cheated and angry. How can we trust any current legislator or the administration. The only thing the two parties have agreed on in the last eight years was to cut Social Security.
They say Social Security will run out of funds in x number of years. That is pure BS, There are no funds in Social Security. Every year all the funds collected are spent in the general fund with the attitude that the amount collected will always cover the obligation and quite a bit more for politicians to spend. The only thing legal about it is: that is the way it has worked from the beginning.
Social Security is not a give away; we worked a lifetime contributing to the fund. It is our money. One would expect to realize a dividend from its responsible administration, not a change in the law canceling the cost of living provisions.
Is there any surprise that none of the politically correct politicians of either party have the support they need?