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Economics

Government Grants

MoneyWithWings

Yesterday, I received an email from my congressman, he was sharing with the citizens of the district some opportunities for federal grants. It turned out that there is a website called grants.gov that lists all grants available from the different departments of the federal government. I did a quick web search using few states and all of them have similar grant programs.

Can the government start and fund the right projects?

In the free market when an entrepreneur starts a project, he estimates the market need for the product or service the project is going to offer and the possible price to charge. He funds the project through his money, loans or partnership with investors. The market provides a signal through profit and loss to the entrepreneur and the investors to steer the project to success or shutdown. If the entrepreneur tried to continue a failing project his investors will not continue supporting the project and may go to courts to block the project and extract what remain of their money.Read More »Government Grants

Education vs. Schooling

Education

The cost of college and public schools education quality are two of the main political issues now in the United States. The progressives believe that we should spend more on K-12 education, although we already spend the most per student, and create a federal standard for school curriculum and force the states to adopt it, hence common core. For college education, the progressives are pushing for plans to make the college free, which means that the taxpayers will pay for everyone’s college education regardless of whether they need or deserve such education. Conservatives on the other side are pushing for school choice, teacher accountability and the return of education powers to the local school boards which are all good ideas if your goal is to make public schools function better, but nobody is seriously considering the role all levels of government are playing in education. Are public schools necessary?

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How do banks work?

100-dollars

Banks play a large role in the economy. This post will shed some light on banks and the role of central banks in the economy and how they could create major economic problems with monetary policy.

First, let’s start with the basics. A bank is a corporation that accepts deposits from customers and uses these funds to give loans. Banks offer interest to account owners and charge interest on loans and the difference between the amount of interest they get from loans and what they pay to account owners will be the bank profit.

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