Economics

Protectionism and the Fallacy of Composition

Protectionism can’t enrich the country as a whole, only boost certain individuals and industries while impoverishing the rest.

The Free Market versus the Bureaucratic State

The Free Market versus the Bureaucratic State

As Ludwig von Mises explained, an enterprise or activity is either guided by the pursuit of profit or it is not: Make profits by satisfying consumers better than the market supply-side rivals or meet the legislative mandate of the government bureau or agency by following the rules and procedures specified in your job description.

America’s National Debt Bomb Caused by the Welfare State

America’s National Debt Bomb Caused by the Welfare State

The Federal debt has now crossed the $19 trillion mark. When George W. Bush entered the White House in 2001, Uncle Sam’s debt stood at $5 trillion. When President Bush left office in January of 2009, it had increased to $10 trillion. Now into seven years of Barack Obama’s presidency, the Federal debt has almost doubled again.

Carl Menger and the Foundations of Austrian Economics

Carl Menger and the Foundations of Austrian Economics

Carl Menger is a towering figure, not only for the development of his variation on the “marginalist” theme, but for originating a still unique and distinct and highly relevant approach to economic and social analysis that still rightly bears the name, the “Austrian School.”

Politicians Ignorance of Capitalist Free Market Economics

Politicians Ignorance of Capitalist Free Market Economics

Politicians can’t see the wonders that the market provides, but they somehow see everything government does as a blessing — taxes that cut into people’s pay and regulations that make it more expensive to produce. They don’t see that their well-intended “pro-consumer” rules raise prices and reduce choice.

Capitalism Supports Free Open Unions and Not Compulsory “Closed Shop” Ones

Capitalism Supports Free Open Unions and Not Compulsory “Closed Shop” Ones

On the surface, labor unions make their appeal to society with rhetoric of claiming to want to better the conditions of all workers seeking gainful and income-enhancing employment. What is not as clearly seen are the indirect and usually unintended effects from compulsory unionism that end up keeping far too many in poverty and less remunerative jobs that the supporters of labor unions say they wish to help.

The ‘Affordable Housing’ Fraud

The ‘Affordable Housing’ Fraud

It is no coincidence that housing prices in coastal California began skyrocketing in the 1970s, when building bans spread like wildfire under the banner of “open space,” “saving farmland,” or whatever other slogans would impress the gullible.

Efficient Malpractice

Efficient Malpractice

Take the notion of the efficient market. What does that mean? Today, hordes of people are coming out of economics and finance majors believing an absurdity. Yes, I said absurdity. They think that, if the market is efficient, it’s impossible to beat the average...

The Myth of Stealing American Jobs

The Myth of Stealing American Jobs

America doesn’t lack economic growth and jobs because China, or other countries, “steal” them. America lacks economic growth and jobs because its own government will not permit its economy to function freely and fully, as a private market economy can and should.

The Economy is in Liquidation Mode

The Economy is in Liquidation Mode

Imagine running a rink company at the end of the roller skating craze. You know it is not going to survive for long. How do you operate your business? You milk it. Well, that’s now happening across the entire economy.

Yield Purchasing Power: $100M Today Matches $100K in 1979

I wrote a story about poor Clarence who retired in 1979, and even poorer Larry who retired last year. I created these characters to challenge the notion of calculating a real interest rate by subtracting inflation. The idea is that the decline of a currency can be measured by the rate of price increases. This price-centric view leads to the concept of purchasing power—the amount of stuff that a dollar can buy. It’s the flip side of prices. When prices rise, purchasing power falls.

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