We Are All Economists

We all use economic principles in our daily lives, even if we don’t realize it or know that someone has given them names. Like the laws of physics, ignoring them or passing laws or having good intentions doesn’t change them in any way. Actions always have consequenses. . . . → Read More: We Are All Economists

Obama’s Job Creation In the Abstract

The latest iteration of President-Elect Obama’s stimulus plan calls for 3 million jobs to be created or saved, of which approximately 20% will go towards government positions. For an example of how this has worked out at the state level, see Bill McGurn’s recent editorial on my home state of New Jersey. As usual, . . . → Read More: Obama’s Job Creation In the Abstract

Why Most “Respected” Economists are Pro-Fed and Anti-Gold

To partisans of the Austrian theory of the business cycle, the cause of the current financial crisis is as plain as day — and that’s why we’ve been predicting it for years. You would think that the neo-Keynesians, monetarists, and Marxists who made fun of us Austrians in 2006 and 2007, and said we’d . . . → Read More: Why Most “Respected” Economists are Pro-Fed and Anti-Gold

Forced to be a Good Citizen and Buy American?

When I heard about the “big 3″ (GM, Chrysler and Ford) whining for “bail outs” I remembered Atlas Shrugged. It is long ago, I read that novel, but I remember very well, what those “honorable” industrials did to survive in spite of their obvious incompetence. They asked the government to protect them. Some things . . . → Read More: Forced to be a Good Citizen and Buy American?

The System of the World (Part II)

In part two of this series, I examine global demographic trends and take an initial look at the implications for global GDP growth, and by extension, the outlook for the current world-system of debt-money, as defined in part 1.

The general demographic trend over the last 500 years, and particularly so since . . . → Read More: The System of the World (Part II)

“Bad Samaritans”- The “Myth” of Free Trade?

I first became aware of Ha-joon Chang’s latest book, Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism in a critique written by Edward Glaeser , a prominent economist at Harvard University, and published in the daily paper, the New York Sun. I read this review with great interest. Professor . . . → Read More: “Bad Samaritans”- The “Myth” of Free Trade?

Conservatives and the Gold Standard

One good thing about the current economic crisis is that it has greatly increased people’s interest in Austrian economics in general, and in the gold standard in particular. There had already been several high-profile leaders in economics, finance, and business who had come out in favor of hard money and abolishing the Fed. Then . . . → Read More: Conservatives and the Gold Standard

The Insanity of Caring About Stock Prices

Tries to examine why companies care about their stock prices from a layman’s perspective. . . . → Read More: The Insanity of Caring About Stock Prices

The Failure Of Free Markets

Free markets are being blamed for the global economic crises, but there have been virtually no free markets in most of the world for decades. While not totally unfree, nearly all markets have been manipulated, managed, poked and prodded by bureaucrats and politicians. Whether the interventions were necesssary is a different question. What cannot be questioned is the fact that interventions were prevalent. . . . → Read More: The Failure Of Free Markets

Prohibition and Potency

When the Progressives succeeded in implementing a national ban on alcohol in 1920, just 1 in 100,000 American deaths could be attributed to alcoholism. By 1927, that number had quadrupled. Clearly, people hadn’t stopped drinking just because it had been made illegal. In fact, many scholars believe alcohol consumption increased across the board during . . . → Read More: Prohibition and Potency