Connecting the Dots

Economic growth isn’t random. It comes from individual decisions to buy, sell, or do nothing. We all make dozens every day. Corporate CEOs and CFOs make bigger decisions, like whether thousands of people get hired or a factory gets built.

If you are American and you have health insurance, you probably get it from either your employer or some kind of government program. Or possibly both, if the government is your employer.

People respond to incentives. So do national governments. This is foundational to both economics and geopolitics.

Until about 50 years ago, people paid attention to the area where they lived. They read local papers, shopped at local merchants, and socialized at local events.

“Donald Trump Saves Christmas,” said the Gizmodo headline last week.

“You break it, you own it.” Then-Secretary of State Colin Powell cited this Pottery Barn rule back in 2002. He was advising President George W. Bush of the consequences should an Iraq invasion go badly.

The way you feel about yourself affects your behavior... and the economy.

The US economy grew at a 2.1% annualized pace in the second quarter, according to data released last week. That was better than economists expected but hardly impressive.

Last month, world leaders observed the 75th anniversary of D-Day, when Allied troops stormed the beaches of Normandy, France. It was a critical day in world history.

Imagine an alternate history in which Donald Trump lost the 2016 election.

Remember “No Child Left Behind,” George W. Bush’s education reform plan? Congress passed it in 2001.

Investors are in a buying mood despite many economic warning signs. Why? For some, it’s because they expect the Federal Reserve to cut interest rates and otherwise “stimulate” the economy. They believe (correctly) it would drive stock and real estate prices higher.