Postal Service looking to hike prices again

EPJ reports:

The U.S. Postal Service board will look into hiking postage prices on all types of mail, as losses continue to plague the agency, the chief of the board said Friday, reports CNN.

Typical of how government operates….The more you fail, the higher you raise your prices (taxes). Failure becomes almost a perverse incentive.

This is the polar opposite of the rules of the free market: If you fail to satisfy customers, you have to close down.



Krugman is perplexed that Central Bankers care about their survival

It’s an argument he’s held for many years…Those central bankers just won’t listen!

Long ago I argued that to gain traction in a liquidity trap, the central bank needed to credibly promise to be irresponsible — that is, convince investors that it would not rein in monetary expansion once the economy was at full employment and inflation was starting to rise. And this is a hard thing to do; no matter what central bankers may say, history shows that they often revert to type at the first opportunity.