The Federal Reserve Board’s recent decision to put downward pressure on interest rates has temporarily quieted those who claimed George W. Bush was exaggerating the possibility of an economic downturn solely to boost his tax cut plan. Many critics, however,...
MARKETS
Intellectual freedom cannot exist without political freedom; political freedom cannot exist without economic freedom; a free mind and a free market are corollaries. – AYN RAND
Microsoft Assault is an Inept Stab at “Industrial Policy”
The federal government’s persecution of Microsoft is a travesty–the worst combination of third-rate economics and special- interest politics. Last year’s ruling against the company may be a victory for envy-driven bureaucrats at the U.S. Justice...
Basic Economics
One of the reasons for the confusion surrounding so many economic issues — such as the current electricity crisis in California — is an underlying confusion about what economics itself is all about. To many people, economics is about money. But economies...
California’s Antitrust “Deregulation” of the Power Industry
The power crisis in California now threatens to shut down Silicon Valley–and if Silicon Valley goes, it could end up shutting down America’s economy. To save itself — and the rest of us — what should California do? That depends on what the...
Microsoft and the Mythology of Anti-trust
The biggest question about anti-trust law is whether there really is any such thing. There are anti-trust theories and anti-trust rhetoric, as well as judicial pronouncements on anti-trust. But there is very little that could be called law in the full sense of rules...
The Cause of the California Electricity Shortages: “Price Controls”
As an economist, whenever I hear the word “shortage” I wait for the other shoe to drop. That other shoe is usually “price control.” So it was no great surprise to discover, after the electric power shortage in California made headlines, that...
Microsoft and Liberty
Think about the government’s case against Microsoft and, just as importantly, it’s implications for our liberty. Let’s ask a general question just to get started. If there’s an act we all agree is immoral and unacceptable when done by an...
TAFOL Files An Amicus Curiae (Friend of the Court) Brief Supporting The Microsoft Corporation
The Microsoft antitrust case represents a breathtaking and frightening extension of antitrust law to a new American technological industry that is the envy of the rest of the world.
“Protectionism” vs. Human Rights
Is the protection of domestic jobs more important than the protection of individual rights?
Law and Economics
Rather than my usual fall schedule of teaching in the Economics Department at George Mason University, I taught “The Economic Foundations of Legal Studies” at the university’s School of Law to first-year law students. Economics is no stranger at...
Is Microsoft a Hypocrite?
I was saddened to see the lead article in last Tuesday’s (12/5/00) Wall St. Journal “Microsoft Tries to Lob Monkey Wrench Into AOL-Time Warner Deal.” In the story, reporters alleged Microsoft might be cooperating with the Federal Trade Commission to...
Anecdotal Economics: Leave Crane Hunting in China To Bird Watchers
Crane hunting is the craze for foreign investors traveling in China. Seemingly every morning an American wakes up bright and early in his five star hotel built in the coastal cities expressly for the purpose of pampering foreign investors with expense accounts. He...
How Bill Clinton Rode The Reagan “Supply-Side” Boom
Keynesians continue to peddle their snake oil because the real function of their “economics” is to justify Big Government and the redistribution of income.
How Republicans Lost the Economy (By Their Failure To Grasp Supply Side Economics)
George W. Bush might lose this election — not to Al Gore but, paradoxically, to the Reagan Economy. At Willoughby South High School in Ohio, Dick Cheney, the Republican vice presidential nominee, explained why when he declared that the good economy Americans are...
The Microsoft Saga
In a decision generally hailed as a victory for Microsoft, the Supreme Court rejected the government’s plea to hear a direct appeal of the government’s Antitrust case against Microsoft. In April, Judge Thomas Penfield Jackson ruled that Microsoft had...
The “Economic Growth Causes Inflation” Myth
There’s a certain economic platitude that outrages me every time I hear it repeated by the financial press and political economists. Put simply, it’s the familiar comment that economic growth causes inflation. It has many variations, including “high...
The Antitrust Craze
Most of us can name no more than a dozen antitrust prosecutions under the Clinton Administration. However, since 1994, the Department of Justice has filed over 500 antitrust suits against American companies. The majority of suits went unnoticed, and only a select few...
Antitrust Morals and the Success of Tiger Woods
Tiger Woods’ remarkable run of success continues. In winning the last three major tournaments, two by record margins, he set new standards of golfing excellence while his competitors fought over second place. Some media commentators have wondered whether his...
The Antidote for Zoning: The “Coming to the Nuisance” Doctrine (Part 4)
The Coming to the Nuisance Doctrine is the only objective means of determining who has the right to continue using his property in the event of a nuisance. If zoning is to be replaced, therefore, it must be replaced with the Coming to the Nuisance doctrine. Since it...
The Antidote for Zoning: Bringing Objectivity to the Land Development Process (Part 3)
“Coming to the Nuisance” means exactly what it sounds like: if a property owner is using his property so as to cause a nuisance to another property owner, then the property owner who was the earlier to start his particular use is the one who has the right...
Isn’t Zoning Necessary to Prevent Nuisances? (Part 2)
The proponents of zoning claim that such initiation of force is necessary against developers to prevent the occurrence of nuisances. A “nuisance” is defined as the effect from an activity on others which unreasonably interferes with another’s lawful...
The Evils of Zoning: Subjecting Landowners to Arbitrary Whim
Real estate developers have good reason to feel cannibalized when they attempt to develop something today. Building permits for their projects are often exceedingly difficult to secure, requiring thousands of dollars in architect’s and attorney’s fees, and...
Abolish Antitrust!
Good afternoon. I want to address four issues regarding anti-trust as they apply to the Microsoft case. Anti-trust Paralyzes the Thinking Process In my research on the traits of great wealth creators ( The Prime Movers: Traits of The Great Wealth Creators ), I...
Mythical Roots of Antitrust: Definition Unnecessary
The antitrust laws and their enforcement are every bit as arbitrary as the “perfect competition” doctrine. Consider only those provisions relating to price setting. If a business sets a price above the prices of its rivals, it can be charged with...
Mythical Roots of Antitrust: ‘Perfect Competition’
Antitrust law relies heavily on flawed economic theory–particularly its theory of competition. It’s a view held explicitly or implicitly by most economists, politicians, and journalists. It’s been taught for decades in the universities....
Mythical Roots of Antitrust: Economic Power vs Political Power
From the time great business leaders were first maligned as “Robber Barons,” socialists have tried to obscure the difference between economic power and political power. They’ve insisted, against all evidence, that productive giants such as Andrew...
Mythical Roots of Antitrust: Preface
Most of you will recall the scandal during the winter Olympics a few years back, when disgruntled skating competitor Tanya Harding hired a thug to take a pipe to the shins of Nancy Kerrigan. Harding was envious of Kerrigan’s superior ability and tried to cripple...
Orrin Hatch reveals how antitrust laws are tools for power lusters
In a recent speech to businessmen at a technology industry conference, Senator Orrin Hatch (R-UT), a long-time proponent of breaking up Microsoft, stated that he supported “strict enforcement of antitrust laws” because they are “essential to the...
Greenspan, Interest Rates & Inflation
What do low interest rates have to do with causing the government to inflate the money supply? The link between Fed-manipulated interest rates and the money supply is a direct, causal one. The interest rate in question is the ‘Fed Funds rate’. This is the...
Assault Microsoft, Assault the NASDAQ
Earlier this month US District Court Judge Thomas Penfield Jackson issued his “conclusions of law” in the Microsoft antitrust case. BAM! Nearly $90 billion in value was destroyed–at Microsoft alone. The firm’s stock plunged 14%. The broader...
Break Up Microsoft?
The consumers of computer software need the freedom of Bill Gates and Microsoft to produce and innovate in any branch of computer software they choose.
Microsoft Breakup Is a Throwback to Socialism
Only a month ago, the Justice Department filed its motion that the Microsoft Corporation be broken into pieces as a “remedy” under the antitrust laws. The government wants to split the company into two pieces, one to make the Windows operating system, the...
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