Pragmatic Capitalism

Capital for Living a More Practical Life

‘Essential Reading’

Where Does Money Come From?

“The process by which money is created is so simple the mind is repelled.” – JK Galbraith There’s a reason why myth # 1 in my “biggest myths in economics” is “the government prints money”. It is, by far, the most pernicious and misleading of the economic myths that exists. I was reminded of this today… Read More

Understanding Money

Just letting readers know that I’ve updated the “Understanding Money” section on the Orcam website.  My goal is to make this a comprehensive section of the site helping people better understand money, finance and economics.  If you have anything you’d like me to write about or if there are additions to the site that you… Read More

Great Investors Think in Terms of Probabilities

The smartest investors know that they’re actually not that smart.  That is, they recognize the fact that they’re going to be wrong a lot.  But in realizing this they also acknowledge a more important fact – they don’t have to be right all the time to succeed.  They just have to be right about the… Read More

Common Myths About the Federal Reserve

Just an FYI here. I added a reference page in the “tools and resources” dropdown along with some other myth busting posts. This one covers some of the more popular myths about the Federal Reserve. If you can think of any I should add please let me know. Thanks.

The Biggest Myths in Economics

Heidi Moore asked a good question on Twitter yesterday about the most prominent myths in economics. I started to list a few, but I thought it might be worth touching on a handful of the more destructive ones in some detail. A lot of this will be very familiar to regulars, but should provide a nice summary regardless. So here we go: