Rick Rule: Why doesn’t the Cost of Living Does include Taxes?

12:01
the second thing and this is astonishing
12:03
to me
12:03
is that the fed’s estimate of the cost
12:05
of living doesn’t
12:07
include tax while
12:10
government expenditures are over 40
12:12
percent of gdp
12:14
the idea that your cost of living
12:15
doesn’t include tax
12:17
i suspect daniella that would be okay
12:19
with you if you didn’t have to pay the
12:20
tax
12:21
but given that you do a calculation of
12:23
cost of living that doesn’t include tax
12:26
seems very odd to me i reck i understand
12:29
that government probably shouldn’t be
12:32
considered to be a consumer good
12:34
unfortunately it’s a good which you are
12:36
forced to consume and fund
12:38
and people when they are thinking about
12:40
the impact of their savings
12:42
and their uh earned income relative to
12:45
their purchasing power
12:47
need to think about inflation very
12:49
differently
12:50
than a slavish reliance on the cpi oh
12:53
that is so well said and i’m happy you
12:55
brought up the point about uh
12:56
tax a rick a real good one um so you
12:59
know
13:00
it seems like we’re living in this world
13:02
of you know fake earnings fake gdp
13:04
fake interest rates and super high
13:06
valuations
13:07
um the feds in a corner
13:11
i think the fed isn’t a corner uh i i
13:14
think
13:14
i think they’re there by popular demand
13:17
when i see what the fed does it reminds
13:19
me of an old
13:20
pogo cartoon from my youth where pogo is
13:23
in the swamp
13:24
and he says i have met the enemy and he
13:27
is us

Former Sprott executive Rick Rule speaks candidly with our Daniela Cambone on everything from the Fed’s current moves to the best safe havens for money right now. Chiming in on the silver squeeze, he also offers insight on why $PSLV has become such a popular vehicle.

In this must-see interview, Rule reflects on his career, explaining the game-changing mindset that has cultivated his success. “The essence of wealth is enhancing your wellbeing— and that isn’t all material,” he says.

The Necessary Immigration Debate

as mass immigration increases diversity, it reduces social cohesion and civic trust

.. the trust problem is not a simple matter of racist natives mistrusting foreigners, since social trust is often weakest among minorities — which is one reason why the most diverse generation in American history, the millennials, is also the least trusting.

.. It’s one reason why campus politics are so toxic, why Democrats struggle to keep their diverse coalition politically engaged

.. Then linked to these ethno-cultural tensions are the tensions of class, where mass immigration favors stratification and elite self-segregation.

.. regions and cities with the largest immigrant populations are often the wealthiest and most dynamic.

.. The hinterlands are also filled with people who might want to move to wealthier regions (or who used to live there) but can’t because an immigrants-and-professionals ecosystem effectively prices out the middle class.

.. Thus our rich and diverse states also often feature high poverty rates when their cost of living is considered, while second and third-generation immigrants often drift into the same stagnation as the white working class

.. Which in turn encourages them toward mild contempt for their fellow countrymen who don’t want to live under a cosmopolitan-ruled caste system

.. For some pro-immigration Republicans this contempt is Ayn Randian: We’ll all be better off with more hard-working immigrants and fewer shiftless mooching natives. For pro-immigration liberals it’s the predictable cultural triumphalism: The arc of history is long, but thanks to immigration we won’t have to cater to heartland gun-clingers any longer.

In both cases there’s a fantasy of replacement that’s politically corrosive, and that’s one reason why Donald Trump is president and Jeb! and Hillary are not.

.. Hence my own view that keeping current immigration levels while bringing in more immigrants to compete with our economy’s winners and fewer to compete for low-wage work represents a reasonable middle ground.