MARKETS

Tariff Advocates Rarely Talk About How Tariffs Punish Consumers

Politicians who support tariffs and other forms of government intervention in the economy frequently emphasize reshoring, trade deficits, cheap imports, and national security, but they rarely talk about consumers.

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.

The Cotton Candy Market

The Cotton Candy Market

If you borrow then it’s not income. This is why no one in his right mind borrows to buy consumer goods. Those who try cannot sustain it for long… But what if someone else borrows?

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...

Wage Theft

Wage Theft

The actual “wage thieves” are the politicians and others who impose minimum wage laws and other directives on the private sector. By impairing and ultimately destroying economic growth, politicians like Hillary Clinton are the ultimate wage thieves.

Apple vs. the Goliath U.S. Government

Apple vs. the Goliath U.S. Government

It does not matter how rich Apple is, or becomes. In the end, the government can do whatever it wants, at least so long as it keeps pushing the limits outside of its Constitutional boundaries, while our courts and citizens do absolutely nothing.

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.

Move Over Entrepreneurs, Make Way for Speculation!

Move Over Entrepreneurs, Make Way for Speculation!

Central bank apologists assert that zero interest will help the economy. It hasn’t yet, and it never will. However, the main concern by both Fed defenders and foes alike is the worry that prices might rise. Well, prices aren’t rising now. So the former are smug and the latter are frustrated.

They miss the real harm of zero interest.

Entrepreneurs: Breaking the Bureaucracy of Rules

Entrepreneurs: Breaking the Bureaucracy of Rules

FedEx turned out to be much better than the U.S. Postal Service, teens ignore Hollywood and become rich and famous on YouTube, people skip hotels and find rooms via Airbnb and so on. Who knows what discoveries await if we don’t let tired old rules get in the way?

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.

Currencies Depend on Faith, Gold Doesn’t

Currencies Depend on Faith, Gold Doesn’t

In his July 17th Blog, Let's Get Real About Gold, author and Wall Street Journal columnist Jason Zweig likened investor interest in gold with the "Pet Rock" craze of the 1970's, when consumers became convinced that a rock in a box would provide continuous...

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