Steven Hanke Dismisses Krugman's Assertion
Johns Hopkins University applied economics professor Steven Hanke has strongly criticized fellow economist and Nobel laureate Paul Krugman's claim that inflation is a "global phenomenon." Hanke took to X (formerly Twitter) to express his disagreement with Krugman's latest op-ed article in the New York Times, calling it another example of disinformation from the esteemed economist.
Krugman Advocates for Bidenomics
In his article published on December 7th, Krugman argues in favor of Bidenomics, a term used to describe the economic policies of U.S. President Joe Biden. While he acknowledges that persuading conservatives may be difficult, Krugman believes that progressive U.S. citizens can still be convinced that the Biden administration has performed well in terms of the economy.
Krugman supports his argument by pointing out the increase in the labor productivity rate during the third quarter. He also mentions the significant reduction in the number of unfilled job openings, which he claims has now been largely resolved.
Hanke Challenges Krugman's Claims
However, Hanke dismisses Krugman's assertion that inflation is a global phenomenon. In a post on X dated December 9th, Hanke states that inflation is always and everywhere a local phenomenon, not a global one. He points out that countries like Switzerland, with well-managed central banks, maintain low and stable inflation rates. For instance, Switzerland experiences an inflation rate of 1.4% per year. Hanke also highlights China, the world's largest economy in terms of purchasing power parity (PPP), where inflation is only 0.2% per year.
Continued Disagreement Between Krugman and Hanke
This is not the first time that Hanke has rejected Krugman's arguments. In October, when Krugman declared victory in the United States' battle against inflation, Hanke expressed his disagreement with the Nobel laureate's viewpoint. Interestingly, when Hanke previously stated that the problem of inflation had been resolved in July, both Krugman and economist Mohamed El-Erian were reportedly uncertain about this claim.
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Frequently Asked Questions
What is the tax on gold in Roth IRAs?
A tax assessment for an investment account will be based on the current market value, and not what you paid initially. Any gains made by you after investing $1,000 in a stock or mutual fund are subject to tax.
You don’t pay tax if you have the money in a traditional IRA/401k. Dividends and capital gains are exempt from tax. Capital gains only apply to investments more than one years old.
These rules vary from one state to another. Maryland’s rules require that withdrawals be taken within 60 days after you turn 59 1/2. Massachusetts allows you to delay withdrawals until April 1. New York allows you to wait until age 70 1/2. To avoid penalties, plan ahead so you can take distributions at the right time.
Is it a good idea to open a Precious Metal IRA
Precious metals are not insured. This is the most important fact to know before you open an IRA account. There is no way to recover money that you have invested in precious metals. This includes investments that have been damaged by fire, flooding, theft, and so on.
It is best to invest in physical gold coins and silver coins to avoid this type loss. These items have been around for thousands of years and represent real value that cannot be lost. You would probably get more if you sold them today than you paid when they were first created.
If you decide to open an IRA account, choose a reputable company that offers competitive rates and products. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.
Remember that you will not see any returns unless you are retired if you open an Account. Do not forget about the future!
How much should your IRA include precious metals
When investing in precious metals, the most important thing to know is that they aren’t just for wealthy people. You don’t need to be rich to make an investment in precious metals. In fact, there are many ways to make money from gold and silver investments without spending much money.
You could also consider buying physical coins like bullion bars, rounds or bullion bars. Shares in precious metals-producing companies could be an option. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.
You can still get benefits from precious metals regardless of what choice you make. They offer the potential for long-term, sustainable growth even though they aren’t stocks.
Their prices rise with time, which is a different to traditional investments. So, if you decide to sell your investment down the road, you’ll likely see more profit than you would with traditional investments.
Statistics
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- If you take distributions before hitting 59.5, you’ll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
