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.

AIER’s Editorial Policy.

Beware of the Ceiling

“Alas, most voters are ignorant of Econ 101. They don’t realize that price ceilings actually decrease buyers’ access to goods whose prices are kept artificially low by government diktats.” ~Donald J. Boudreaux

Is Inflation on the Rise Again?

“The Fed should be looking ahead and adjusting monetary policy in light of its forecasts. Instead, its eyes are fixed on the rear-view mirror.” ~William J. Luther

How Rich People Create Poverty

“The real gains come from people moving to where their labor is more valuable  — and that’s in high-income countries like the United States. The problem is, we rich Westerners won’t let them come.” ~Art Carden

Teaching the Butterfly of Liberty

“Casa Escuela is but one of many global examples of grassroots, local, civil society efforts to bypass the state educational establishment, with its bloated bureaucracy, mediocrity, and hardcore socialist thought.” ~Nikolai Wenzel

Who is the Greatest Economist of All Time?

“No matter what your specialization, whether in economics or in any other field, Cowen has written a book which is trying to convince you to break out of your specialization and rediscover the broader world of ideas.” ~James Hartley

Congress Overspends, but the Fed Inflates

“At most, large deficits impelled the Fed to support the market for government debt by purchasing more debt than it should have. The central bank, not the fiscal authorities, is the residual determiner of aggregate demand.” ~Alexander W. Salter

Hayek and the End of Truth 

“The underlying purpose of linguistic sabotage, logical incoherence aside, is to justify the power of a few. The actual meaning of an oxymoron like collective freedom, Hayek said, ‘is not the freedom of the members of society but the unlimited freedom of the planner to do with society what he pleases.'” ~Juliana Geran Pilon

The Carbon Offset Dilemma

“One really has to question the motives of climate activists who oppose the expansion of natural gas and nuclear power. Do they want to see realistic and sustainable environmental improvement or are they after some other kind of payout?” ~Paul Mueller

Income Inequality Rightly Understood 

“Any discussion of income inequality that fails to address whether the source added value for others or simply extracted unearned rents, is not merely incomplete, but misleading.” ~Robert Mulligan

Tariff Truths

“President Biden has maintained his predecessor’s duties on some $370 million worth of Chinese imports. Both national conservatives and liberal protectionists are dead wrong about tariffs and growth.” ~Tarnell Brown

Unleashing the Power of Free Markets

“The granting of monopolies was being abused by the crown, and parliament determined to do something about it. Over time, it became obvious that granting monopolies had an adverse impact on the English economy.” ~Will Sellers

America’s DEI Commissars Threaten Freedom

“Today, people are told they are victims or victimizers. Victims expect the government to remedy their grievances… The pursuit of social justice would undermine equal treatment under the law.” ~Barry Brownstein

Milton Friedman Was More Like F.A. Hayek Than He Likely Knew

“While both men won the Nobel Prize in economics – Hayek in 1974 and Friedman in 1976 – economists regard the scholarly work of Hayek as differing almost categorically from that of Friedman.” ~Donald J. Boudreaux

Business Conditions Monthly December 2023

“Inflation expectations have edged higher, raising concerns about the erosion of purchasing power and living standards. In the lead-up to the November presidential elections, policymakers and market participants will closely monitor future economic data releases to gauge the trajectory of inflation and its implications for the broader economy.” ~Peter C. Earle

E Unum Pluribus?

“A divisive diversity of special rights and special treatment for those favored by government must necessarily come at the expense of equal rights for all.” ~Gary M. Galles

Harwood Economic Review 90 Years of New Perils

AIER’s dedication to classical liberalism drives us to address both long standing and unforeseen challenges to American values. This issue tackles emergent threats to freedom: wokism, growing Fed mandates, and ESG among others. As threats to liberty expand, our commitment to safeguarding fundamental American ideals does as well.

Industrial Policy Indignities

“Some low-value-added manufacturing, once economically sensible to do stateside, should now take place elsewhere. The alternative is tying up American workers in less-than-productive jobs.” ~David B. McGarry

Beware of the Ceiling

“Alas, most voters are ignorant of Econ 101. They don’t realize that price ceilings actually decrease buyers’ access to goods whose prices are kept artificially low by government diktats.” ~Donald J. Boudreaux

Is Inflation on the Rise Again?

“The Fed should be looking ahead and adjusting monetary policy in light of its forecasts. Instead, its eyes are fixed on the rear-view mirror.” ~William J. Luther

How Rich People Create Poverty

“The real gains come from people moving to where their labor is more valuable  — and that’s in high-income countries like the United States. The problem is, we rich Westerners won’t let them come.” ~Art Carden

Teaching the Butterfly of Liberty

“Casa Escuela is but one of many global examples of grassroots, local, civil society efforts to bypass the state educational establishment, with its bloated bureaucracy, mediocrity, and hardcore socialist thought.” ~Nikolai Wenzel

Who is the Greatest Economist of All Time?

“No matter what your specialization, whether in economics or in any other field, Cowen has written a book which is trying to convince you to break out of your specialization and rediscover the broader world of ideas.” ~James Hartley

Congress Overspends, but the Fed Inflates

“At most, large deficits impelled the Fed to support the market for government debt by purchasing more debt than it should have. The central bank, not the fiscal authorities, is the residual determiner of aggregate demand.” ~Alexander W. Salter

Hayek and the End of Truth 

“The underlying purpose of linguistic sabotage, logical incoherence aside, is to justify the power of a few. The actual meaning of an oxymoron like collective freedom, Hayek said, ‘is not the freedom of the members of society but the unlimited freedom of the planner to do with society what he pleases.'” ~Juliana Geran Pilon

The Carbon Offset Dilemma

“One really has to question the motives of climate activists who oppose the expansion of natural gas and nuclear power. Do they want to see realistic and sustainable environmental improvement or are they after some other kind of payout?” ~Paul Mueller

Income Inequality Rightly Understood 

“Any discussion of income inequality that fails to address whether the source added value for others or simply extracted unearned rents, is not merely incomplete, but misleading.” ~Robert Mulligan

Tariff Truths

“President Biden has maintained his predecessor’s duties on some $370 million worth of Chinese imports. Both national conservatives and liberal protectionists are dead wrong about tariffs and growth.” ~Tarnell Brown

Unleashing the Power of Free Markets

“The granting of monopolies was being abused by the crown, and parliament determined to do something about it. Over time, it became obvious that granting monopolies had an adverse impact on the English economy.” ~Will Sellers

America’s DEI Commissars Threaten Freedom

“Today, people are told they are victims or victimizers. Victims expect the government to remedy their grievances… The pursuit of social justice would undermine equal treatment under the law.” ~Barry Brownstein

Milton Friedman Was More Like F.A. Hayek Than He Likely Knew

“While both men won the Nobel Prize in economics – Hayek in 1974 and Friedman in 1976 – economists regard the scholarly work of Hayek as differing almost categorically from that of Friedman.” ~Donald J. Boudreaux

Business Conditions Monthly December 2023

“Inflation expectations have edged higher, raising concerns about the erosion of purchasing power and living standards. In the lead-up to the November presidential elections, policymakers and market participants will closely monitor future economic data releases to gauge the trajectory of inflation and its implications for the broader economy.” ~Peter C. Earle

E Unum Pluribus?

“A divisive diversity of special rights and special treatment for those favored by government must necessarily come at the expense of equal rights for all.” ~Gary M. Galles

Harwood Economic Review 90 Years of New Perils

AIER’s dedication to classical liberalism drives us to address both long standing and unforeseen challenges to American values. This issue tackles emergent threats to freedom: wokism, growing Fed mandates, and ESG among others. As threats to liberty expand, our commitment to safeguarding fundamental American ideals does as well.

Industrial Policy Indignities

“Some low-value-added manufacturing, once economically sensible to do stateside, should now take place elsewhere. The alternative is tying up American workers in less-than-productive jobs.” ~David B. McGarry