Michael’s Musings Facebook Posts – Latest Financial Insights & Musings

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Welcome to Michael’s Musings Facebook page feed. Here, you’ll find all our latest posts, thoughts, and updates on financial planning, current trends, and practical advice.

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Michael's Musings

Michael's Musings

Musings on money and finance, from a Financial Planner based in East Perth, Western Australia. Nothing on this Facebook account is to be considered personal financial advice.

4 weeks ago

Michael's Musings
Learning about economics in 6 minutes 22 seconds.In recent times my musings on financial markets hints at a move towards higher government intervention in markets. And that leads me to muse on the question : "Are greater levels of government involvement in markets a good thing or a bad thing?" Is a larger government deficit even important? Some folk have moved towards the idea that government deficits don’t matter. Higher regulation can help ‘steer’ private enterprise and curb the potential excesses of a capitalist economy. But how does anyone know where the ideal mix is? Where does government control or regulations kill entrepreneurship and innovation? When does a company move from providing a community service to profiteering?Much has been made in recent times of markets having a "soft landing". A hard landing is inevitably a recession while a soft landing is a gradual move towards a balance of demand and supply within an economy, without triggering the awful recessionary outcomes of increased unemployment and failed businesses. Most market watchers appear to believe the USA has achieved a soft landing. To my mind, the result has yet to fully play out. And a good deal of the result will depend on the extent to which governments get involved in markets – setting prices; regulating more industries and favouring this or that sector or business.Much of this argument boils down to the musings of two great Economists – John Maynard Keynes and Friedrich Hayek. The former agitated for government intervention while the latter favoured ‘free markets’. You could read much and still learn little when trying to sort out the respective arguments. So I’ve provided a link to a YouTube clip that does a wonderful job of highlighting the differences between these two very different ways of managing an economy. See MoreSee Less
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