Tragic Letters from the Outskirts of the New Economy

Dear Techconomist,

We are currently massively in debt, and we keep spending more. The national debt is 27 trillion and rising. So much Chinese money too! Yet politicians keep spending and raising the debt ceiling! It makes no sense to me. How can we bring our fiscal house in order?

With great concern,

Worried about National Debt.

Introduction and background: How does the Government spend its Money?

Dear Worried,

If you want to skip to the answer, scroll down to the section of this article called The Main Event. Before the main event though, let’s get through some common terminology to get on the same page. The United States federal…


Tragic Letters from the Outskirts of the New Economy

Photo by Neil Soni on Unsplash

Dear Techconomist,

I heard that some companies have been relocated to dodge taxes. I recently heard that Apple moved to Ireland?! How does a Company move? Should that even be legal?

Thanks!
The 99 Percent

Dear 99 Percent,

Companies move all the time. There are a variety of reasons, and sometimes those reasons are good. Offshoring sometimes happens to take advantage of cheaper labor or lower costs throughout a supply chain. What some companies do when they offshore is very interesting though. …


Tragic Letters from the Outskirts of the New Economy

Dear Techconomist,

What’s going on with Robinhood investors and Wallstreetbets? Why did Robinhood suspend trading on stocks like Gamestop and AMC? They cost me a lot of money. I feel cheated.

Sincerely,

Rich Tendies

Photo by logan jeffrey on Unsplash

Introduction

Dear Tendies,

Dope name. Favorite so far! Let me start off by saying this, the current retail consumer fad will not end well. There are really two things you’re not allowed to do as a private investor: trade with insider knowledge and manipulate markets through providing a false signal. There’s a very clear case that the activities performed by the Wallstreetbets crowd amount to market manipulation…


Photo by Unseen Histories on Unsplash

Dear Techconomist,

Someone told me that businesses should not be forced to serve minorities or LGBT people because over time the market will force the businesses that don’t out of business. Is that true? Does the market price away discrimination?

Sincerely,

Just wanting equality

Dear Just Wanting,

Does the market price out discrimination? In a word? No. Are we done for the day? Can I go home? Oh, we’re less than 50 words in, and I still have most of an article to write? Well, let’s get into the complexities.


Tragic Letters from the Outskirts of the New Economy

Dear Techconomist,

A friend of mine says Grubhub sells his father’s pizzas below the price his father gets. Does that even make sense? How does the Sharing Economy Make Money? Shouldn’t Grubhub be broke?

Sincerely,

Confused by low prices.

Dear Confused,

Grubhub, Uber, Uber Eats, Airbnb, We (Wework) Doordash…only one of these actually makes money and has a record of turning a profit. The fact that these massive companies with shockingly large user bases make no money while being worth billions of dollars seems almost irrational. The point of a company in classical economics is to make a profit. That’s…


Tragic Letters From the Outskirts of the New Economy

Dear Techconomist,

I heard that the minimum wage for federal workers just got raised to 15 dollars per hour, and they’re trying to raise the minimum wage to 15 dollars an hour nationwide. I currently make 11 dollars an hour. 15 would be a major improvement. I like the idea of making more money, but I am concerned I might lose my job. What does economics say on the issue?

Sincerely,

Making Ends

15 dollars
15 dollars

Dear Making Ends,

Yes, those greedy federal employees and contractors really are making 15 an hour at a minimum while the minimum wage for everyone else is…


We live in a time of rapid change, industrially, politically, environmentally, and especially economically. As the axis of the world spins more rapidly by the second, economic issues continue to become more baffling. Questions about the role of profits in corporate strategy and what to do about deficit spending become even more puzzling in a time of sustainable investing when policymakers on both sides engage in modern monetary theory without inflation. As the economics gets sorted out, plenty of people get lost in the shuffle. From the recent grads who cannot find work after COVID-19 to the Facebook employees who…


Welcome to “Tragic Letters from the Outskirts of the New Economy,” The Buzz’s newest publication.

We live in a time of rapid change, industrially, politically, environmentally, and especially economically. As the axis of the world spins more rapidly by the second, economic issues continue to become more baffling. Questions about the role of profits in corporate strategy and what to do about deficit spending become even more puzzling in a time of sustainable investing when policymakers on both sides engage in modern monetary theory without inflation. As the economics gets sorted out, plenty of people get lost in the shuffle…

Techconomist

Techconomist is an economist who writes about the modern economy. Contact her at techconomist@gmail.com

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