Paulitical Economy™

By Paul Musson

A snapshot of what’s going on in the world’s economy.

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FAQs about Paulitical Economy™:

How many episodes does Paulitical Economy™ have?

The podcast currently has 62 episodes available.

Paulitical Economy™ episodes:

August 25, 2025Post 330
The Ford F-Series of pickup trucks have constantly been in the top six of cars sold going back to the 1960s.
Pickup trucks now account for four of the top six.
In the 2010s Japanese cars accounted for four of the top six.
After experiencing two straight years of declining sales, Home Depot seems to be turning things around: slowly.
Amazon continues its strong sales growth.
Advertising and web services leading the way.
And are now offering same-day delivery for groceries.
Deere Corporation sales continue to fall.
And its share price continues to soar.
The cost of renting an apartment in Canada has gone through the roof over the last 15 years.
And is significantly higher (adjusted for inflation) than it was in past decades.
In Financial Ructions:
Stock market values are very high.
10 and 20-year stock market returns have been very low or negative from these elevated levels.
Reverse Repo is almost gone and will no longer be adding liquidity to the market.
Foreigners’ purchases of Canadian federal bonds are down 85% this year.
Probably getting increasingly nervous about rumours of even more debt-fueled government spending.
And no, government spending does not grow the economy.
Japanese long-term bond yields continue to climb.
In our book review of The Way the World Works we look at:
How governments responded to higher inflation by raising taxes:
Worst of both worlds for taxpayers.
And how fallacious economic doctrine made things considerably worse in the 1970s.
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45min
August 19, 2025Post 329
Large movie chains in the US are outperforming the industry.
And a look back at AMC Theatres.
French luxury goods company LVMH sales are still falling.
Especially in Japan.
US renewable energy credits are going away.
A Danish company is particularly impacted.
A poll shows that a slight majority of Canadians want to see home prices fall.
But the percentage of homeowners who want this is likely much lower.
Core inflation in the US ticked up for the second month in a row.
In Financial Ructions
Wholesale inflation ticked up even more than retail inflation.
And despite inflation rising in the UK, the Bank of England keeps lowering its base rate.And investors have taken the British 30-year bond yield to its highest level in 27 years.
In our book review of The Way the World Works:
We take a look back at the establishment of Bretton Woods.
How the Founding Fathers knew all too well the hazards of a paper currency as it was “liable to abuse.”
And how it wasn’t long after Bretton Woods was established that the United States abused their exorbitant privilege.
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32min
August 11, 2025Post 328
McDonald’s turns things around.
But lower income consumers are suffering.
Caterpillar sales are still falling but not as much.
A turnaround?
But things not looking good at Gucci.
RH (luxury furniture) has really turned things around.
And some examples of their great corporate culture.
Molson Coors no longer seems to be benefiting from the boycott of Bud Light.
It’s share price is down 54% over the last ten years.
And a look back.
And Creemore!
We look at the changes in Canada’s property prices since 1970.
And when our housing affordability crisis started and who was responsible
In Financial Ructions:
Canada’s jobs numbers tumbled in July after growing strongly in June.
And how since 2015 the growth in government jobs has far outstripped that of the private sector.
Spoiler alert: This is really bad for the productive capacity of the economy.
Book Review: The Way the World Works by Jude Wanniski
Alexander the Great and Julius Caesar were two of the first to go down the Laffer curve.
As did Britain after the Napoleonic wars.
But than after WWII they went up the curve and stayed there for a long time resulting in economic stagnation.
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52min
August 05, 2025Post 327
Starbucks is still seeing comparable store sales decline.
But a fourth leg of their business is growing quickly.
Chateau Lafite Rothschild is one of the world’s top wines.
Its futures price is off 49% from its peak.
Another look at the three main ways in which policymakers created Canada’s housing affordability crisis.
They thought the benefits would trickle down to the next generation.
Spoiler alert: they didn’t.
Carbon Dioxide emissions by country
Who’s number one: USA, China or both?
Microsoft is growing like gangbusters.
And a $10,000 investment in its shares in 1986 would have grown to a tidy sum today.
Facebook’s sales are also soaring.
Its share price is up 54% over the last year.
More evidence of a two-tier economy with older industrial type businesses seeing sales declines:
A quick look at tools.
Financial Ructions:
You’re Fired
Trump comes out guns blazing after record-breaking downward jobs revisions.
Shoot first, ask questions later?
In our book review of The Way the World Works:
Jude Wanniski looks at Keynesians and the Monetarists.
And how the decrease in the money supply in the early 1930s was warranted by a significant, policy-induced reduction in real output.
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47min
July 30, 2025Post 326
General Motors has a long and interesting history.
It has been hurt by tariffs, but sales did benefit as customers rushed to beat the tariffs.
Women are twice as likely to be raped in the UK and Sweden than they are in the US.
And a hundred times more likely than in Japan.
Chipotle is a fast casual restaurant whose sales have been going in the wrong direction over the last year.
A quick look back.
Americans are going to the movies a lot less than they were pre-COVID.
Higher ticket prices are helping to offset some of the decline.
In Financial Ructions:
We look at how since 1961, taxation in Canada has grown faster than any other form of expenditure.
Surprise, surprise.
Then we look at how there is one thing in Canada that has grown faster than taxation.
And that is government spending.
And no. Canada does not have more runway than other countries in terms of deficit spending and debt to GDP.
Runway implies no negative effects and from that perspective they all ran out of runway a long time ago.
All western economies are already suffering enormously from runaway government spending.
And it’s getting worse.
In our book review of The Way the World Works,
We look at how lower taxes contributed to the Roaring Twenties.
And how the tariff tax of Smoot Hawley helped end them.
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46min
July 23, 2025Post 325
Prices in the US are rising with eggs leading the way.
To the extents that tariffs are pushing up prices it should be a one-time hit.
Unless tariffs rise even further.
Core inflation in Japan is steadily rising.
Inflation in Canada is proving sticky.
In Financial Ructions:
We look at longer-term rates which are rising.
This should lead to higher mortgage costs.
In our book review of The Way the World Works.
JW introduces the Laffer Curve where at some point higher tax rates lead to lower tax revenues.
And how money blinds people with respect to how an economy truly functions.
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21min
July 14, 2025Post 324
US booze companies see impact from tariffs.
First positive and then negative.
Nike has not grown its sales for seven straight quarters.
And just experienced its largest sales decline so far.
Cocoa bean prices are very volatile and near historic highs.
A look at the world’s largest chocolate manufacturer.
Hershey sales are suffering.
As is its profitability as the high cocoa bean price bite.
A look at how growth in household wealth is only partially a reflection of growth in capital being produced in the economy.
And how the vast majority of wealth is held by the top 10%
In Financial Ructions:
We zero in on the equities and mutual funds part of household wealth.
And try to get a sense of how much real wealth has been created since 1989.
Spoiler alert, a lot less than the headline numbers.
Book review:
In our book review of The Way The World Works we look at two chapters:
In chapter 4 he looks at capital and reminds us that the increased capital production during wartime does not contribute to a flourishing economy.
In chapter 5 he looks at what leads to greater productivity and how well-intended government actions can detract from the wealth of society.
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30min
July 08, 2025Post 323
Florida is one of the weakest housing markets in America.
But prices are still sky-high compared to pre-COVID
Nationally, sellers outnumber buyers by half a million.
Prices are falling in some areas, but even with prices falling many will remain priced out of the housing market.
America’s largest home builder’s sales are accelerating downward.
The issue is affordability constraints, but it’s not about mortgage rates.
Tesla’s car deliveries fall for the second straight quarter.
Robotaxi to the rescue?
The Canadian government has rescinded its proposed digital services tax.
This is good news for Canadians.
US jobs numbers appear to be a mixed bag.
But the number of government workers are finally falling.
Microsoft lays off more employees.
But its share price continues to soar.
A look at the wealth of Amazon’s Jeff Bezos and how he achieved it.
In Financial Ructions:
Social Security in the US will be insolvent in 8 years.
And the cost of making it solvent has continued to increase as policymakers perpetually kick the can down the road.
Refusing to make tough but necessary decisions.
A look at what has been influencing stock market valuations.
In our book review of the Way The World Works we look at the economic law of supply and demand and how things happen at the margin.
And how the best political leaders don’t take criticism personally but rather as a way to understand the struggles of the electorate.
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43min
July 01, 2025Post 322
Carnival continues to ride the wave of higher prices.
General Mills sales are declining
But would be a lot worse if not for their pet business.
Yet, JM Smucker’s pet division had a double-digit sales decline.
And a look back.
Airliner JetBlue is seeing declines in air travel.
Its share price has been a 25-year disaster.
Student loan delinquencies in the US are soaring.
And government workers have a sweet deal.
Insolvencies in Canada fell in April.
We may finally be getting to a level that is less influenced by government.
Jobs growth in Canada has been nonexistent since January.
The unemployment rate is the highest in 9 years.
No Financial Ructions this week.
In our book review of The Way the World Works, we look at the age-old issue of how much wealth should be redistributed.
And the importance of relying on a sound system rather than hoping the right leader happens to come along.
Low taxation, a strong currency and the rule of law lead to economic prosperity.
We’re currently moving in the wrong direction.
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26min
June 09, 2025Post 321
Campbell’s Soup sales are back in positive territory.
Restaurants getting so expensive people are eating more at home.
But not eating as many snacks.
Hudson’s Bay is being liquidated.
But its brands will live on.
The percentage of first-time home buyers in the US has plummeted.
It’s a result of deliberate policy.
The alcohol industry is still struggling.
Brown Forman, maker of Jack Daniel’s, recently announced their results and they were met with plenty of booze.
Its share price is going down faster than shots of Jack Daniels at a Honky-Tonk line dance.
Home sales in the Toronto area are down more than a third from pre-COVID.
Yet active listings are way up: over 40%.
Lululemon comparable store sales in the Americas have not grown for five straight quarters.
Procter & Gamble sales growth has been declining.
And now its number of employees is following suit.
P&G competitor Kimberly Clark also saw sales weaken and are now in negative territory.
In Financial Ructions:
We look at how real interest rates were distorted into negative territory for years by Ben Bernanke.
With other central banks following suit this was the start of the housing affordability crisis in many countries.
Manufacturing has been contracting in the US for some time.
But prices are rising.
Canadian banks may be getting nervous.
Activist Treasury Issuance survives the change in government.
We start Chapter 1 of our book review of The Way the Economy Works: How Economies Fail – and Succeed by Jude Wanniski
Government must be of the people and must be trusted.
Decadence only occurs when government goes its own way and in a direction different from that demanded by society.
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40min

FAQs about Paulitical Economy™:

How many episodes does Paulitical Economy™ have?

The podcast currently has 62 episodes available.