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Is Gold or the Dollar a Good Investment for the Economy?

1/22/2014

Is gold a good investment?

Is the dollar a good investment?

Is gold or the dollar a good investment for the economy?

These are two very different questions. Gold has historically been a good investment, especially compared to fiat currency. Enough has been written about that; however, I want to ask a very different question of whether holding capital in the form of a metal is good for the economy.

I am not talking about metal that is valued for its value as a utility such as using gold in technology or manufacturing, rather the worth determined by holding it as a hedge against inflation or to hold value.

Things of real worth such as land, buildings, goods, machinery, businesses, human capital, stocks, intellectual property, and commodities, among many others are far better investments for the economy.

Investing in these things helps create opportunities for businesses to emerge and grow. Capitalism requires capital.

Investing your capital here spurs the economy by putting money towards education, building a retail shop, a work van for a mechanic, a tractor, funds to get a movie made, improving the beauty of a park or buying futures in corn as to stabilize and ensure farmers expectations and production.

Additionally, investing in building roads to make financial exchange less costly, funds to develop new software to allow more efficient business or as a good as entertainment. Capitalism requires capital and gold is just a holder of capital on the sidelines and not engaging capital in capitalism.

Holding fiat currency such as the dollar is even worse on this issue. For all the reason stated with gold, however with non-backed up currency this expands the money supply and could cause many currency inflations or deflations issues if the market on average goes heavily into or out of the dollar. Fiat currency has no intrinsic value because it is not backed, whereas gold has certain value as utility and beauty in Jewelry.

Inflation has been going through a change in definition lately so for this purpose, I am talking about the change in the value of the dollar, not the natural drop in prices due to the products being made more efficiently or people valuing a certain commodity differently for many reasons.
I will never be against allowing anyone from investing in gold or anything else.

The Haley2024 Monetary policy would solve this issue because every Backed Dollar (BD) would be a certificate of ownership of these things of real value.

The Tenth Commandment

1/19/2014

The Tenth Commandment is one of the most important economic lessons. The lesson is not that you should not desire more and work hard for those things; you clearly should. The lesson here is that you should not resent what your neighbor owns. If they have a car, you can clearly want a car also; however, this is about you thinking that you deserve their car more then your neighbor does.

Yes, part of this covetousness is also sexual desire; however, the same principle applies. It is moral to desire your own wife, however immoral to desire your neighbor wife.

Liberals clearly have issues with the rich having so much. They not only want stuff, they think it is unfair that the rich have so much and that they deserve the riches' stuff. They are not happy with just earning their own stuff, they must have the rich's stuff.

Private Market Benefits

1/18/2014

When someone or a group of people own something, and they need to turn a profit for the investors, they try to maximize income and minimize expenditures. Of course, they have to build and protect a brand, thus have to be responsive to the concerns of their customers long term.

Competition simply keeps prices down. Most examples of high prices in the private sector are the result of government restricting competition.

Government is a monopoly; thus, the government does not need to worry about profit and politicians main concern is reelection. Without people having a choice, how do politicians know if something is needed? There are answers, yet no answers are better than billions of decisions by millions of people.

Cost Plus is certainly a business model that the government uses that some people like and others do not. It works better in some situations and worse in others. The way it is structured can turn a good model bad.

Bringing this topic up is not to give my opinion on it; however, it is to make the point that cost-plus contracts are not often found in commercial contracting but are frequent in government contracting.

When the cost of a project is not relevant to the income that the project will bring in, government spending is not likely going to the best use.

The original link was missing so I found another.

After Katrina significantly damaged New Orleans and other cities, thousands of cars were water damaged and abandoned on the public streets. Some cities contracted out with private companies that saw worth in these cars and paid the city a certain amount to clear the vehicles and take worth out in the form of parts or scrap metal. These cities were cleared within weeks. New Orleans went another direction. After leaving these cars scattered throughout the city for over a year, the city finally paid a contractor to remove the vehicles.

Yes, some cities were paid for the cars, which were removed quickly and others paid the contractors to clear the roads, which took years.

Minimum Wage Protest

9/29/2013

Minimum Wage Protest

I wept, hearing an interview with a young single mother making minimum wage was truly sad. However, I wept over what she said. She did not use these words. However, she wanted lawmakers to FORBID by law, her, my teenagers and millions of others from selling their labor for what their labor is worth. There is no slavery in this country, and if she wanted to set a minimum wage for herself, she is more than welcome to negotiate for the $15 an hour and not accept the job for less.

Fast food companies could pay $15 to much more competent employees that could do the work of 2 minimum wage workers. They could buy more automated machines that require fewer employees or they could go out of business. If the minimum wage were raised to double the current rate, a high percentage of those close to the minimum wage would lose their job because lawmakers choose to protect these people by forbidding them to work.

There are those that lack skill, experience, responsibility, ability, wisdom, self-control or a clean criminal record. In a tight job market, employers would naturally hire people that do not lack these essential fundamentals components. People would be forbidden from outbidding others. Many things determine pay rates. Certainly, the employee’s needs are essential to the employee and should negotiate hours and pay rates. Productivity and providing worth to the employer is essential to the employer.

An employer needs to be able to sell the product or service to cover the cost of payroll. There are many factors; however, employees need always to keep business concerns in mind. If an employee can lower overhead or increase quality, customer retention or otherwise bring in more business at a higher selling point, the employee would show they are producing greater worth and can demand higher pay.

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Is Gold or the Dollar a Good Investment for the Economy?

Is gold a good investment? Is the dollar a good investment? ​Is gold or the dollar a good investment for the economy? ​

The Tenth Commandment

Liberals clearly have issues with the rich having so much. They not only want stuff, they think it is unfair that the rich have so much and that they deserve the riches' stuff. They are not happy with just earning their own stuff, they must have the rich's stuff.

Private Market Benefits

Minimum Wage Protest

Minimum Wage Protest

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Is gold a good investment?

Is the dollar a good investment?

Is gold or the dollar a good investment for the economy?