Money, Income, and Wealth

money is used to purchase goods and services. While income and wealth are valued in money units, that is their only relationship with money. Income is the annual flow of purchasing power earned by an individual. Wealth is the accumulation of past saving plus any increases or decreases. Continue Reading →

Paul Ryan’s Budget Proposal

So, Rep. Ryan, I ask a simple question: what do you propose to do about municipal bond interest? If that interest remains tax exempt, your proposal will cause wealth to flood into the muni market, driving interest rates being paid by state and local governments down sharply. The portfolio shift will be caused by — what else? — wealthy people trying to escape taxes. Continue Reading →