Daily economy news from the American Institute for Economic Research: data, stories, research, and articles touching on economics, politics, culture, education, policy, opinion, technology, markets, healthcare, regulation, trends, and much more.
The Sunk Cost Fallacy in the War on Terror
“A sunk cost is an outlay (monetary or otherwise) that cannot be recouped once made. In economics, we teach our students that sunk costs should not factor into our decision-making.” ~ Abigail R. Hall Blanco
What Can We Lose To China By Isolating Afghanistan?
“Although the United States may be withdrawing its military, continued engagement through diplomatic and economic means could go a long way in mitigating an already tragic situation.” ~ Ethan Yang
Why Almost Nobody Knows Anything about Critical Race Theory
“If we were to dig deeper, a look at biases in human reasoning would provide us with a richer understanding of the costs of sincerely trying to understand CRT and how it is or is not appropriately used at various levels of education.” ~ James E. Hanley
Unit Auto Sales Fell Again in August as Shortages Drive Inventory Down and Prices Up
“Light-vehicle sales fell for a fourth consecutive month in August, falling farther below the recent typical range. Component shortages continue to disrupt production causing inventories to plunge and prices to surge.” – Robert Hughes
Lessons from the Financial Instability Hypothesis
“The Covid-19 recession was not triggered by financial causes, but the ballooning government debt the U.S. is currently pursuing, recklessly and with a vengeance, can only substitute a new unsustainable expansion for a sustainable recovery.” ~ Robert F. Mulligan
Weekly Initial Claims for Unemployment Benefits Appear to be Trending Lower Again
“Weekly initial claims for unemployment benefits fell for the fifth time in the last six weeks, hitting the lowest level of the pandemic though continuing claims ticked up. A tight labor market and a record number of open jobs should help drive initial claims lower, but rising Covid cases remain a threat to the outlook.” – Robert Hughes
98% Propaganda
“Authoritarianism indoctrinates its votaries and buffaloes others into a false and oversimplified worldview, in which the only important factor is vaccination. But the causes of hospitalization and death are multifarious.” ~ Daniel B. Klein
The Totalitarian Roots of Vaccine Mandates
“The end to the pandemic requires not that we follow the collectivists but that we are free to consider different perspectives and discover in the course of an uncoerced social process what really works.” ~ Barry Brownstein
Labor, Materials, and Logistical Struggles Continue for the Manufacturing Sector
“Demand for manufactured goods remained very strong in August. However, labor, production, and logistical issues – many of which are worsening with the surge in new Covid cases – continue to restrain supply and pressure prices.” – Robert Hughes
Panetta Says We Will Return to Afghanistan
“Those who claimed that we could transform Afghanistan into a democracy only revealed that they don’t know much about what is involved in establishing liberty and the rule of law.” ~ Clifford F. Thies
Climate Science: Seeking Truth or Defending Consensus?
“Political agents can be expected to look to ‘science’ to provide a cover for expanded interventions or claims on resources that were previously considered to be unacceptable.” ~ Christopher Lingle
After Lockdown
“Risks remain and the prospects for the global economy after lockdown remain uncertain. Honest valuation remains difficult when markets are so hampered. The next decade is likely to favour the tactical investor.” ~ Colin Lloyd
Increasing Evidence that Lockdowns and Social Distancing are Harming Kids
“It is not too late to stop such destructive policies going forward or to ensure that we learn from this disastrous episode in public health history.” ~ Zachary Yost
Covid Concerns and Rising Prices Drag Consumer Confidence Down in August
“Consumer attitudes are becoming less optimistic as Covid cases rise. The waning optimism could impact spending and adds to the growing list of risks to the economic outlook” – Robert Hughes
Liberalism’s Enemies
“If we’re going to have to pick a team soon, then, we should no longer be asking whether that team is left or right. We should be asking whether that team is liberal or illiberal.” ~ Max Borders
Afghanistan’s Taliban Is Evil, but Don’t Isolate the Afghan People
“Today the situation looks bleak. But it is not set. Americans should continue to do what they can to generate an alternate future for the tormented country.” ~ Doug Bandow
On Track for Calamitous Policy Outcomes
“I fear that humanity’s response to Covid has put us on a terrible track, one destined to deposit us all in a horrific place.” ~ Donald J. Boudreaux
Hurricane Ida Threatens Global Plastic Markets
“Of the many industries which have been strained to the limit of their capacity over the last eighteen months, few have struggled as mightily as the resins and plastics sector.” ~ Peter C. Earle
