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What's the "American system" of economics? Most people would say it is capitalism, which thereby deserves all fault when anything goes wrong. Well, Kel Kelly responds to this myth in this fast-paced and darn-near comprehensive treatment of the truth about the free market and intervention. His thesis is that the problem isn't capitalism; it is that capitalism in the sense of a free market is not even legal in the United States. Sure, we have private property and some measure of commercial freedom, and enterprise thrives wherever it is permitted. But it is also strangled, hobbled, injured, and suffocated in nearly every aspect of American economic life.
While not an economist in the traditional sense, I am very interested in the study of economics. While not everyone shares this level of interest, I believe people should have an understanding of economics as the field is so important to understanding the world that we live in. Though this list contains ideas that are controversial, it is not intended to promote anger or controversy.
"A growing economy consists of prices falling, not rising." The stock market does not work the way most people think. A commonly held belief — on Main Street as well as on Wall Street — is that a stock-market boom is the reflection of a progressing economy: as the economy improves, companies make more money, and their stock value rises in accordance with the increase in their intrinsic value.
Are high dividends good or bad? The answer depends upon your personality, financial circumstances and the business itself. In Determining Dividend Payout: When Should Companies Pay Dividends? , you learned that, “a company should only pay dividends if it is unable to reinvest its cash at a higher rate than the shareholders (owners) of the business would be able to if the money was in their hands. If company ABC is earning 25% on equity with no debt , management should retain all of the earnings because the average investor probably won't find another company or investment that is yielding that kind of return.”