Ramparts readers, here are a few articles from the financial world that struck a chord with us. Enjoy!
Our first piece is by Ryan McMaken of The Mises Institute, “Four reasons why government spending is even worse than taxes.” Tax season is a reminder of the enormous amount of time and energy that goes into estimating how much we must hand over to the government each year. McMaken argues that taxes aren’t the worst of it, however. He says it’s the political and economic damage that government does by spending the money that really hurts.
“Google tells customers “ownership” is now an illusion”, by Kit Walsh at Wolf Street, examines Nest Labs, a home automation company acquired by Google. The company recently moved to remotely disable some of its customers’ home automation devices. While modern software enables devices to do new and useful things, it also gives manufacturers the ability to exert more control over their customers – ensuring that a device serves their financial interest. Google may have trouble selling hardware in the future if this practice persists.
Dhierin Bechai of Seeking Alpha writes “Boeing finally draws profit on Dreamliner production,” weighing in on how deferred costs on the Boeing Dreamliner program have trended over the years. Bechai says deferred costs have peaked, as Boeing’s share price heads higher again.
Lastly, Robert Murphy of The Mises Institute shares “The Fed can’t save us,” a piece that analyzes the Fed’s decision to raise interest rates while maintaining its balance sheet. With these efforts in mind, Murphy weaves in what he believes will be a comparison to the Austrian Business Cycle Theory, and explains why the Fed’s attempt may not end well.