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The Economy Is Growing. So Why Do We Feel Poorer?

oneplanet — Fri, 06 Nov 2026 13:26:42 GMT

In our previous Economics 101 article, we talked about GDP. We learned that GDP measures the total value of goods and services produced in a country.

Source: ChatGPT

When GDP rises, we say that the economy is growing.

This sounds like good news. But sometimes people hear that the economy has grown and ask a very reasonable question:

“If the economy is growing, why do I feel poorer?”

There is no single answer. Economic growth is important, but it does not automatically mean that everyone’s income, purchasing power, or quality of life improves.

Let’s look at some of the main reasons.

Growth Does Not Reach Everyone Equally

Imagine that a country’s economy grows because a few large companies earn much higher profits.

This activity increases GDP. However, if workers’ salaries do not rise and small businesses do not benefit, many people may not feel the growth in their daily lives.

The economy can become larger while most of the new income goes to a relatively small group.

This is why GDP tells us how much an economy produces, but it does not tell us how that income is shared.

To understand people’s living conditions, we must also look at wages, income distribution, employment, and poverty.

Inflation Can Reduce the Benefit of Higher Income

Imagine that your salary increases from $1,000 to $1,100. This is a 10 percent increase.

At first, this may look like an improvement.

But what if the prices of food, rent, transportation, and other basic needs rise by 15 percent during the same period?

Your salary is higher, but it buys less than before. Your nominal income has increased, while your real purchasing power has fallen.

This is one of the main reasons people may feel poorer during a period of economic growth.

The economy may be producing more, but if prices rise faster than household incomes, daily life becomes more difficult.

The Population May Also Be Growing

Total GDP may rise simply because the country has more workers, consumers, and businesses.

However, total growth does not show how much economic output is available for each person.

This is why economists also examine GDP per capita, which means GDP divided by the population.

Imagine that the economy grows by 3 percent, while the population grows by 2 percent. Growth per person is much smaller than the headline GDP figure suggests.

Even GDP per capita is only an average. It still does not show whether the income is distributed equally.

Growth May Be Concentrated in Certain Sectors

Not every part of the economy grows at the same time.

Technology, finance, construction, or energy companies may expand quickly, while agriculture, retail, or small manufacturing businesses struggle.

People working in growing industries may receive better salaries and find more opportunities. Others may face job losses, weak demand, or rising costs.

Growth may also be concentrated in one city or region. A country can report strong national growth while people in other areas see very little improvement.

This means that two people living in the same economy can experience economic growth very differently.

Housing and Basic Costs Matter

People usually judge the economy through their own household budgets.

If rent, food, education, healthcare, and transportation become more expensive, a positive GDP number may feel distant.

Imagine that your income rises slightly, but your rent increases by 30 percent. You now have less money available for savings, holidays, entertainment, or emergencies.

Technically, your income has increased. In reality, you may feel less financially secure.

This is why the cost of basic needs often affects public feelings about the economy more strongly than national growth figures.

Growth Can Come With More Debt

Household spending is one part of GDP.

If people spend more by using credit cards and consumer loans, economic activity may increase in the short term. Businesses sell more products, and GDP may grow.

But households may also become more indebted.

When interest rates rise, loan and credit card payments become more expensive. Families may then reduce their other spending and feel more pressure on their budgets.

Growth supported by rising debt may therefore feel very different from growth supported by higher productivity, better jobs, and stronger real wages.

What Should We Look at Besides GDP?

GDP is useful, but it is only one part of the economic picture.

To understand whether growth is improving people’s lives, we should also ask:

Are wages rising faster than inflation?

Are good jobs being created?

Is income becoming more equally distributed?

Can people afford housing, food, healthcare, and education?

Are households able to save, or are they depending more on debt?

Read the full post

Texas is now Blue

azircon — Wed, 04 Nov 2026 14:54:51 GMT

Texas is Blue

Last night I went to bed at 2am. I was waiting to hear Abdul El-Sayed's victory speech. So I am under slept but deeply satisfied. You know I was talking to my wife a couple of days back, about if we can flip only one of the Texas races, the Senate race or the Governor race, which one should we wish for? It is a very hard choice, because putting a democrat senator from Texas at national stage has long term impact, but Greg Abbott as a governor of Texas was doing real damage to my children directly by defunding public school system where my kids go. Abbott's evil impact was and still is direct to my family.

https://i.imghippo.com/files/tMNY2296lHE.png

Thankfully we didn't have to choose! You got both our wishes!

Do you now see the blue spine of Texas? DFW to Austin to San Antonio to Rio Grande Valley turned blue. In fact 77% Latino votes went to the democrats. That alone is game over for Republicans in Texas.

First Latina Governor in Texas

The Austin state representative and former Austin school board president won the race with roughly 52.8% of the vote (5,226,388 votes) to Abbott's 45.7% (4,523,160 votes). This school-board background is the key and my main interest to elect her as a Governor for Texas. Governor-elect Gina Hinojosa has made several key promises regarding Houston Independent School District (HISD) and Texas public education:

Promises Regarding HISD and State Takeover

End the State Takeover: She has pledged to end the state takeover of HISD and return local control of the district back to the community and elected school board
Fire the TEA Commissioner: She promised to fire Texas Education Agency (TEA) Commissioner Mike Morath on her first day in office, a key figure overseeing the HISD intervention
Oppose AI School Expansions: She criticized and vowed to oppose HISD's plans to expand AI-focused school models to 100 campuses, labeling it an experiment on children

The above is straight from Gina Hisojosa's website, and today Elon Musk correctly pointed out, "Data centers in space looking pretty appealing right now"

Yes, Sir! Not in my backyards!

I have a lot to write about this, but I need to take some rest!

https://media.giphy.com/media/v1.Y2lkPTc5MGI3NjExaDBldXhqODk4emZrcnNsMWFkZWhwbnc0OHI3OGxjcTdrdnJsc2hzeSZlcD12MV9pbnRlcm5hbF9naWZfYnlfaWQmY3Q9Zw/35pTQFiy14OeA/giphy.gif

https://files.peakd.com/file/peakd-hive/zord189/Zcxlm2md-azircon.gif

Midterm Elections

azircon — Fri, 30 Oct 2026 20:18:15 GMT

Midterm Election

I have thought long and hard about not writing this post. Yet, I have decided that I should, otherwise, there will no record of the anxiety I am going through, and the total amount of time I have spent looking at the polling data in Texas. Many of you know that I like to plot data and study. Election polling dataset analysis is a quintessential application of data visualization, statistical modeling, and graphical communication. Because poll data combines binary/multinomial response outcomes, temporal tracking, spatial distribution, demographic stratifications, and quantifiable margins of error, it presents a rich playground for data science and graphic design.

Voter registration in Texas reached a record 19,041,684 registered voters. Of those 19M voters, as of this writing 6.2M have already voted. For those who perhaps are not politically motivated, you know that this year Texas is a swing state. It is therefore critical to understand how Texas votes. Now, I will try my best to keep this post away from political opinion and focus just on the data. Because to me ultimately that is the goal of this post.

Blue Spine of Texas

I do not know how many of you know this, but democrats in the State of Texas have long tried of find a footing in the state and win a statewide race. Every election in recent past we have tried and lost in the end. The closest we have been in a statewide race in recent memory was the Beto O'Rourke - Ted Cruz senate race in 2018. I remember that race well and we lost with 2.7 points.

If you are a democrat, this is the best map of blue in Texas you have seen in recent times. On this map, the blue urban counties along the I-35 corridor, from north of DFW to Austin to San Antonio to the Northern Rio Grande Valley is known as the Blue Spine of Texas. Whoever wins this spine, wins Texas. It matters not the most populated county in Texas, the Harris County, Houston, where I live. That is always blue, but it can't pull the state numbers. That is how the math works.

Early Votes

If you look at the 2018 Senate race, a little more that 8.2M people voted. At 5-days out right now, we are at 6.2M. We are tracking lower than 2020 and 2024, both were presidential elections, which typically show higher turnouts. However, we are tracking higher that 2022, which was a midterm Governor race, O'Rourke - Abbott, which Beto lost by almost 11 points.

So it is fairly safe to say, this year we will definitely turn out more than 2022 midterm and likely more than 2018 8.2M number. The question in my mind is, is the higher turnout going to be good enough to pull the votes along the Blue Spine. As of now Talarico is polling consistent 4+ point higher than Paxton, but the trouble is in Texas, democrats typically poll about 4.2 points higher, so the lead is still within the margin of error. I am also deeply invested in the Governor race where I prefer Abbott to be gone forever, but that is even a tighter race where Gina Hinojosa and Greg Abbott is polling even to Abbott with a point lead.

I don't know what will happen on Nov 03, but I indeed am anxious, and consuming as much data as I possibly can!

https://media.giphy.com/media/v1.Y2lkPTc5MGI3NjExaDBldXhqODk4emZrcnNsMWFkZWhwbnc0OHI3OGxjcTdrdnJsc2hzeSZlcD12MV9pbnRlcm5hbF9naWZfYnlfaWQmY3Q9Zw/35pTQFiy14OeA/giphy.gif

https://files.peakd.com/file/peakd-hive/zord189/Zcxlm2md-azircon.gif

Economics 101: Why Does the Strait of Hormuz Matter to the Global Economy?

oneplanet — Wed, 14 Oct 2026 17:37:42 GMT

A narrow waterway between Iran and Oman is once again affecting oil prices around the world.

Recent attacks on commercial vessels and falling ship traffic through the Strait of Hormuz have increased concerns about the security of global energy supplies. On October 14, Brent crude oil was trading at around $105 per barrel as markets continued to follow the risks in the region.

But why can events in one narrow strait affect fuel prices, inflation, interest rates, and economic growth in countries thousands of kilometres away?

Source: Gemini

The answer begins with the importance of oil in the global economy.

Why Is the Strait of Hormuz So Important?

The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and the Arabian Sea.

Major oil producers use this route to send oil and petroleum products to customers around the world. According to the U.S. Energy Information Administration, around 20 million barrels of oil passed through the strait every day in 2024. This was equal to about 20 percent of global petroleum liquids consumption.

This makes Hormuz one of the most important energy transit points in the world.

Economists often describe it as a chokepoint. A chokepoint is a narrow route through which a very large amount of trade must pass. If that route becomes unsafe or difficult to use, the effects can spread quickly.

Oil Does Not Need to Stop Completely

Oil prices do not rise only when physical supplies disappear.

Markets also react to expectations.

If traders believe that tankers may be attacked, shipping may slow down or future supplies may be interrupted, they begin to include this risk in the price of oil. This is called a risk premium.

Shipping companies may also ask for higher fees. Insurance costs can rise because transporting oil through the region becomes more dangerous. Some vessels may wait, change their routes, or require extra protection.

All these costs can increase the final price of oil, even if many tankers are still passing through the strait.

This is why a threat to supply can sometimes move prices before an actual shortage appears.

How Do Higher Oil Prices Reach Our Daily Lives?

Oil is not used only to produce petrol or diesel.

It is also connected to transportation, aviation, agriculture, manufacturing, plastics, chemicals, packaging, and many other industries.

Imagine that the price of diesel rises. A transport company must now spend more money to move food from a farm to a supermarket. The supermarket may then pay more for delivery, and part of this cost may be added to food prices.

A factory may also face higher energy, transportation, and material costs. An airline may pay more for fuel and increase ticket prices.

In this way, an increase in oil prices can travel through the economy step by step.

What Happens to Inflation and Interest Rates?

Higher energy and transportation costs can increase inflation.

This creates a difficult situation for central banks. They may want to lower interest rates to support businesses and economic growth. However, higher oil prices may keep inflation high and make rate cuts more difficult.

This is especially challenging because higher interest rates cannot produce more oil or make the Strait of Hormuz safer.

Central banks can try to reduce demand in the economy, but they cannot directly solve a supply problem.

A country may therefore experience both slower growth and higher inflation at the same time. Economists sometimes call this situation stagflation.

Why Are Oil Importing Countries More Vulnerable?

Countries that import most of their energy are usually affected more strongly.

When oil becomes more expensive, these countries must spend more foreign currency to buy the same amount of energy. Their import bills increase.

This can weaken the trade balance and create pressure on the local currency. If the currency also loses value against the dollar, imported oil becomes even more expensive in local currency.

The process may look like this:

Higher oil prices increase the energy import bill. A weaker local currency makes imports more expensive. Higher costs then contribute to inflation.

Households may feel the effects through fuel, electricity, food, transportation, and travel costs.

Do Oil Exporters Always Benefit?

Oil exporting countries may earn more income when prices rise.

However, the result is not completely positive.

Very high oil prices can weaken the global economy and reduce demand for energy. Exporters may also face shipping difficulties, higher insurance costs, or problems reaching their customers.

So, higher prices may bring more revenue in the short term, but long periods of instability can create risks for both importers and exporters.

A Small Strait With a Global Effect

The Strait of Hormuz shows us how connected the global economy is.

Read the full post

New US sanctions will worsen Cuba's humanitarian crisis and torpedo economic reform

limonta — Fri, 02 Oct 2026 01:47:42 GMT

Hurriedly, at the worst possible moment, with the same (bad) administrators at the helm of the state, and, above all, forced by a policy of economic asphyxiation, Cuba has embarked on the most far-reaching economic reform since 1959. Foggy Bottom's head can say whatever he wants, but any rational person evaluating that process will find that these are not mere patches, and that it goes much further than the reforms of the Special Period and even further than what many — myself included — who most strongly advocated for representative changes once dreamed possible. Never in the past 67 years has this country been so pro-market, even if many consider it insufficient. Beyond the Trump effect, the island's authorities had taken far too long to take any meaningful step. We have been stumbling for some time, digging deeper into the severity of our wound, and therefore demanding more aggressive and riskier steps. No strictly political modifications are in sight, which the country also urgently needs. However, the change in the economic agenda has shaken the foundations of the Cuban sociopolitical regime.

The current crisis dates back to 2019, as I explain in this recent post here. It is, yes, closely tied to everything that falls under poor internal management, including corruption, but also, or fundamentally, to the reinforced policy of economic asphyxiation that has been applied — and escalating — since the first Trump administration. No actors are willing to sell fuel to Cuba because of the sword of Damocles hanging over anyone who dares even to project that possibility. The siege on international financial movements related to Cuba, its most critical state enterprises, and its sources of foreign income has intensified to unprecedented levels. What does this translate into today? Extremely long power outages of more than 24 continuous hours, very low levels of transportation and water supply, runaway inflation, and so on, resulting in an extraordinary, alarming disruption in the reproduction of material life.

September 30: A new layer in the sanctions regime against Cuba

On September 30, 2026, substantive modifications to the US sanctions regime against Cuba entered into force. The package published by the Office of Foreign Assets Control (OFAC) comprises the new Cuba Sanctions Regulations, intended to implement Executive Order 14404, and amendments to the Cuban Assets Control Regulations (CACR), first introduced in 1963. OFAC accompanied the change with five new FAQs and 29 additional updates, plus a specific alert about increased sanctions risks in operations related to Cuba. The takeaway is that one must stay even further away from Cuba, or see yourself exposed to a thicket of exhaustive OFAC investigations. This year the island saw everything from its connections with European tour operators to its historic relationship with Canadian miner Sherritt break down. In other words, there is an explicit consensus that it is not worth testing Washington's resolve on the Cuba issue.

From direct to indirect operations

One key change affects the so-called Cuba Restricted List (CRL), which identifies entities and subentities that the State Department considers linked to Cuban military, intelligence, or security services. GAESA, for example, is a conglomerate directly linked to Cuba's Revolutionary Armed Forces. It manages a portfolio full of strategic and profitable economic activities, like remittance processing and tourism. Until now, the CACR prohibited persons subject to US jurisdiction from engaging in direct financial transactions with entities on that list. Since September 30, the prohibition also covers indirect financial transactions: you cannot touch anything that smells of Cuba.

The closure of the U-turn banking channel

Read the full post

Economics 101: Why Does a Currency Lose Value?

oneplanet — Sun, 27 Sep 2026 21:54:57 GMT

Have you ever checked an exchange rate and wondered why one dollar or euro costs more than it did a few weeks ago?

You may not buy foreign currency or travel abroad, but exchange rates can still affect your daily life. They can influence the price of fuel, phones, medicine, coffee, clothes, and even products made inside your own country.

Source: ChatGPT

So, why does a currency lose value, and why does it matter to us?

Let’s start with the basics.

What Is an Exchange Rate?

An exchange rate shows how much one currency is worth compared with another currency.

Imagine that one dollar costs 10 units of your country’s currency. Later, one dollar costs 12 units.

This means you now need more of your local currency to buy the same dollar. Your currency has lost value against the dollar.

Economists call this currency depreciation.

If your currency becomes stronger and you need fewer units to buy one dollar, this is called currency appreciation.

Currencies Also Follow Supply and Demand

In one of our previous lessons, we talked about supply and demand. The same basic idea also applies to currencies.

Businesses may need foreign currency to import machines, energy, materials, or technology. People may need it to travel, study abroad, or buy foreign products. Investors may also move their money between countries.

When many people and businesses want foreign currency, demand for it increases. If there is not enough foreign currency available to meet that demand, its price may rise.

In other words, the local currency may lose value.

For example, imagine that many companies need dollars to pay for imported oil, machinery, and electronic parts. This creates demand for dollars. If the country does not earn enough foreign currency from exports, tourism, or investment, the exchange rate may come under pressure.

How Does Inflation Affect a Currency?

High inflation can reduce the purchasing power of a currency inside the country. Over time, it may also make the currency less attractive compared with currencies from countries that have lower inflation.

Imagine that prices rise by 3 percent in one country but by 20 percent in another. Money is losing purchasing power much faster in the second country.

People may begin to protect their savings by buying foreign currency, gold, or other assets. This can increase demand for foreign currency and put more pressure on the local currency.

This does not happen in exactly the same way every time, but inflation is an important part of the story.

What About Interest Rates?

Interest rates can also influence exchange rates.

Higher interest rates may make a country’s currency more attractive to savers and investors because they may earn a better return. This can increase demand for the currency.

However, interest rates are not the only factor.

Investors also think about inflation, political and economic stability, central bank decisions, debt, and future risks. A high interest rate may not be enough if people do not feel confident about the economy.

This is why trust and expectations are very important in currency markets.

Why Does It Affect Daily Life?

You may think, “I earn and spend money in my local currency, so why should I care about the dollar or euro?”

The reason is that many products contain imported materials or depend on costs connected to foreign currency.

A phone may be imported. Fuel prices may depend on global oil prices. A local factory may use an imported machine or raw material. A café may buy coffee beans from another country.

When the local currency loses value, these imports become more expensive.

Businesses may then increase their prices to cover their higher costs. This is one way that currency depreciation can contribute to inflation.

Even a product made locally may become more expensive if its packaging, energy, transportation, machinery, or ingredients depend on imports.

Is a Weaker Currency Good for Exporters?

A weaker currency can make a country’s products cheaper for foreign customers.

For example, a European customer may find products from that country more affordable. This can help exporters sell more goods and earn foreign currency.

But the situation is not always so simple.

Many exporters also import energy, machinery, chemicals, or other materials. When the local currency loses value, their production costs may rise.

So, a weaker currency can support exports, but it can also make imported inputs more expensive. The final result depends on what the company produces and how much it depends on imports.

Can a Currency Become Stronger Again?

Yes, but there is no single solution.

A currency may become stronger when inflation falls, confidence improves, exports and tourism bring in more foreign currency, or investors see the economy as more stable.

Read the full post

Economy 101: Why Doesn’t Lower Inflation Mean Lower Prices?

oneplanet — Thu, 17 Sep 2026 15:07:03 GMT

You hear it on the news: “Inflation is falling.”

Then you go to the supermarket, order a coffee, or pay your monthly bills and think:

If inflation is falling, why is everything still so expensive?

This is one of the most common misunderstandings about inflation.

The answer is actually quite simple:

Lower inflation does not mean lower prices. It means prices are rising more slowly.

Source: ChatGPT

Let’s see how that works.

First, what is inflation?

Inflation measures how quickly the general level of prices is increasing over time.

Imagine that a basket of everyday goods costs $100 today.

If inflation is 10%, the same basket would cost around $110 a year later.

So far, simple.

But what happens if inflation falls from 10% to 5%?

You might expect the basket to become cheaper.

It doesn’t.

Instead, its price continues to rise, just at a slower pace.

At 5% inflation, that $110 basket would rise to about $115.50 the following year.

Inflation fell.

But prices still went up.

Think about driving a car

There is an easy way to understand this.

Imagine a car travelling at 100 km/h. The driver slows down to 50 km/h.

The car is moving more slowly, but it is still moving forward.

Inflation works in a similar way.

When inflation falls from 10% to 5%, the speed of price increases has slowed. But prices are still moving upward.

For prices to actually fall, something different has to happen.

Inflation, disinflation and deflation

This is where three terms are useful.

Inflation: Prices are rising.

Disinflation: Prices are still rising, but more slowly than before.

Deflation: The general level of prices is falling.

So when you hear that inflation has fallen from 10% to 5%, what you are usually seeing is disinflation, not deflation.

And that distinction matters.

A lower inflation rate does not erase the price increases that already happened.

If your coffee went from $5 to $5.50 during a period of high inflation, lower inflation does not automatically bring it back to $5.

It might simply mean that next year it rises to $5.78 instead of $6.05.

So why do high prices feel permanent?

Because inflation leaves a mark on the price level.

During a period of high inflation, businesses face higher costs for wages, energy, transportation, materials and rent. Many of those costs do not suddenly return to their old levels when inflation slows.

That is why the prices consumers see often remain high.

This also explains why falling inflation can feel very different in economic statistics than it does in everyday life.

The inflation number may improve long before households feel financially comfortable again.

When do people actually feel the difference?

Usually when incomes begin to catch up.

Suppose prices increased rapidly for two years while your salary increased much more slowly. Your purchasing power fell.

Now imagine inflation slows significantly while your income continues to rise.

Over time, the gap may begin to close.

You may still see high prices in the supermarket, but those prices become easier to manage relative to your income.

This is why purchasing power matters just as much as the inflation rate itself.

For households, the important question is not only:

“Are prices rising more slowly?”

It is also:

“Is my income keeping up with the cost of living?”

The big picture

When inflation falls, it does not mean yesterday’s price increases are being reversed.

It means the economy is moving toward a slower pace of price increases.

Think again about the car.

It was moving at 100 km/h. Now it is moving at 50 km/h.

It has slowed down.

It has not gone into reverse.

And that is the simplest way to understand why lower inflation does not necessarily mean lower prices.

Trade War

basedcontent — Tue, 15 Sep 2026 00:01:33 GMT

In this video, Cenk Uygur & Dr. Elliot Morgan discuss the economic tug of war between the U.S & Canada.

https://youtu.be/EPSQAE-254c

Posted Using INLEO

_{Posted via HiveSuite}

KE Ratio: A Personal Perspective

azircon — Tue, 20 May 2025 18:28:24 GMT

KE Ratio: A Personal Perspective

The first time I came up with KE Ratio was in August of 2024. It has come a long way. Recently PeakD front-end kindly integrated with every hive users based on community request. I am deeply thankful and honored that community is finding the metric valuable. When I wrote the first post, I had no idea if anyone other than me will ever use it.

https://i.imghippo.com/files/tP4564vkU.png

The goal of this post to do a personal reflection on how I am viewing this simple quantitative metric to understand the general behavior of a hive user. That was my original intent to design it and it remains the same. Again, as a recap:

KE = (Author Rewards + Curation Rewards)/Held HP

KE = 1.0, you hold exactly as you earn (approximately!)
KE > 1.0, you hold less than you earn
KE < 1.0, you hold more than you earn

Below are some of the key posts on KE, where you can see how I arrived at the current derivation of the ration from its original post linked at the first line.

https://peakd.com/hive-13323/@azircon/splinterlands-contest-posts-and-curation

https://peakd.com/hive-13323/@azircon/but-what-if-i-sold-hive-to-buy-sl-assets

Some of these posts had massive engagement in hive standards. That led to @beaker007 creating the beebalanced app! In fact, thanks to our original discussion and interaction on one of this posts on KE I first met beaker. He was instrumental to get the tool to the masses and especially curators who can use this ratio to analyse the long-term investment mindset of a hive user. Now the KE Ratio shows up right next to your Hive Reputation number. Also if you hover of the KE Ratio number it even shows you the current detail! For me:

Author Rewards = 30804 hive
Curation Rewards = 235719 hive
Staked (held) HP = 1093527 hive
KE Ratio = (30804+235719)/1093527 = 0.24

This is objective fact. It can be found for any hive users. It is profound.

How do I use KE and Reputation

For those who don't know Hive uses a number called Reputation, which is what you see next to your name. However, it is a derived number just like KE. There are two reputations:

Raw Score
Derived Score

You can check your raw reputation score here: https://hiveblocks.com/@azircon

Please replace my name with yours. In my case:

Raw Score = Reputation 634,124,980,050,379
Derived Score = 77.22

If you ask me how did I get 634 trillion to 77! I have the answer! :)

Derived reputation score = ((log10(abs(reputation))-9)*9)+25

Reputation score is calculated using the mathematical function Log base 10. It is easy to raise your reputation at the beginning, but the higher your reputation, the harder it is to increase it. In fact, each time you want to increase your reputation of 1 point, it is ten times harder! Since it is a log function, it is exponentially difficult to raise it from 77 to 78, compared to say 67 to 68, by ten times ten, 100 orders of magnitude! :)

Accounts with a low reputation cannot harm the reputation of someone with a higher reputation. This was designed so that say a bot with negative intention and low reputation can't harm the reputation of a community member with higher reputation. Thankfully that still works. Notice, anything I publish, even a comment gets downvoted by 10 to 13 accounts in automation, but they can't hurt my reputation!

The original intent of reputation was:

It is an indicator that shows how “trusted or appreciated by the community” you are.
It is a tool that prevent user with low reputation to harm other users.

However, no tool or ratio (yes, that includes KE) is perfect. So you need a human mind to analyze it. Clearly there have been many examples where a high reputation user is an major extractor. I have many examples in that category, but here are some

https://peakd.com/@me-tarzan

https://peakd.com/@slowwalker

Thankfully most of them are gone, but a rare few are still leeching! Here is one:

https://peakd.com/@anomadsoul

You do the judgement if you are inclined to support an user with high KE or not. Most of the active community members have decided a cut-off of KE = 1 or KE = 3 is okay. Just as any cut-off there will be borderline cases, and you must use your personal judgement on how you vote. KE = 3 means the user have taken our 3X the rewards they have earned from hive. I consider that acceptable. We want people to use their hive earning, but just don't use it as a cash cow!

On a personal concluding note:

an old account with high Reputation and high KE is far worse than a new account with low Reputation and high KE
a low rep and low KE means either a dormant account or a holding account
curation projects have high KE as they distribute their earning to delegators

https://i.imghippo.com/files/JqJ5965XCY.png

Read the full post

Finance and Economy Community Intro

hive-180505 — Fri, 14 Feb 2025 16:15:57 GMT

Finance and Economy Community Intro

Hi I am @azircon. I am writing on behalf of Finance and Economy Community. It is unlikely that I will be writing too many posts on behalf of this community account, unless I have any news to share for the community.

Created with Grok: Prompt: finance and economy cartoon thumbnail, in manga style

Why another community

Personally, I love to write posts about finance and global economy. Previously I used to post in Leofinance, that was way back when it was a community and not a front-end, called inLeo. I have never enjoyed too much traction there, and it felt cheesy from the very beginning. However, I did publish a lot of posts with that tag, but never gotten much traction.

Not that I care about traction, but lately, I discovered there are really no other financially oriented community at hive. At least not that I am aware. So I thought, I should create one. I do not know if anyone will write here or not. If they do I will be thankful and happy.

A couple of individuals recently asked me to create this community, and here I am delivering the product. There will be moderation here, and rules are common sense in most cases. Please follow the written guidelines at the community page. There are two volunteer moderators so far.

@seattlea

@zaku

I want to be abundantly clear that neither of them endorsing me or this community in any shape or form. Similarly, I am not endorsing either of them. This is 100% voluntary. Also there is no monetary benefit regarding posting in this community, other than the tag.

Guidelines

I have written the basic guidelines, as I mentioned, it is mostly common sense, and majority of the hive communities follow similar principles. Please read them at the community page. The main thing to remember is to give people an alternative to financial postings. That is about it. I do not want to make a long post.