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.

Weekly Initial Unemployment Claims Fell Slightly

“Initial claims fell slightly, but job cut announcements are trending higher. Elevated consumer price increases and aggressive Fed tightening remain major risks for the economic outlook.” ~ Robert Hughes

Chatbots Killed the Academic Star

“The standard career strategy (‘write and publish a whole bunch of papers even if no one ever reads them’) will no longer be viable. It’s not clear this is bad, in most disciplines.” ~ Michael C. Munger

The Economics of Mending Wall

“Robert Frost’s masterful poem gives economists and students many opportunities to learn about property rights, self-governance, and peaceful cooperation.” ~ Byron B. Carson

Myth America: Our Facts are the Real Facts. Trust Us.

“If history is not a debate about the facts, then it is not history. When you see your opponents’ views as all lies, myths, and legends, it might say more about the way you engage your opposition than the content of their arguments.” ~ Michael J. Douma

Embrace Dynamism: The Future and Its Enemies at 25

“The Future and Its Enemies is a well-written, lucid argument for decentralized progress and the intellectual, political, and commercial liberty that makes it possible.” ~ Art Carden

Wage and Price Controls Are Not the Answer to Inflation

“If the US imposed economy-wide price controls, as Krugman proposes, it would not stop inflation, just as the Emperor Diocletian’s economy-wide controls did not stop Roman inflation and just as the 1970s economy-wide controls did not stop US inflation.” ~ Raymond C. Niles

Taxation in the Data Economy: The ‘Invisible’ Competition

“It remains to be seen whether data experts and policymakers will come up with a tax that encapsulates ‘fairness, certainty, convenience, and efficiency’ as Adam Smith argued for, but each idea is worth hearing in today’s data-governed market.” ~ Virginia Fournari & April Liu

The Twitter Files: Lenin Would Be Proud

“When your main mission is to do the bidding of the state, rather than serving consumers in the voluntary marketplace, you are not really a private company in the true sense of the term. Your company is not a market phenomenon.” ~ Brian Balfour

Three Errors Paul Ehrlich Keeps Making

“In Ehrlich’s worldview, humanity only transgresses and can only cause harm. In Simon’s view, humanity takes primacy and the sources of its enrichment also repair many harms done to the environment, and eventually allows improvements.” ~ Vincent Geloso

Services-Sector Sees a Plunge in New Orders in December

“Services-sector survey suggests contraction in December and is consistent with weak results from the manufacturing-sector survey. Should these results persist, it would be an ominous sign for the economy.” ~ Robert Hughes

Labor Market Shows Early Signs of Loosening

“Payrolls rose in December, but the pace appears to be slowing. Mixed signs for the labor market, sustained price pressures, and an aggressive Fed tightening cycle remain risks to the outlook.” ~ Robert Hughes

Why Don’t You Go Somewhere Else?

“As an entreaty from an employer to a worker, ‘Why don’t you go somewhere else?’ deserves more respect. In many areas of our lives, to exit (to other opportunities) is often a more effective mechanism than to negotiate (talking others into adopting your point of view).” ~ Gary M. Galles

Goodhart’s Law Explains School Decay

“By disentangling ourselves from measures and rankings, we can return to a focus on what education does for the human mind, not just the data sheets.” ~ Laura Williams

Unit Auto Sales Weakened in December

“Light-vehicle sales slowed again in December and remain well below pre-pandemic rates. Inventories rose, and prices fell in November.” ~ Robert Hughes

Weekly Initial Unemployment Claims Fell, but Risks Linger

“Initial claims fell to a 14-week low, but job cut announcements are trending higher. Elevated consumer price increases and aggressive Fed tightening remain major risks for the economic outlook.” ~ Robert Hughes

Manufacturing-Sector Contracts Again in December

“The latest manufacturing survey suggests broad weakness and falling price pressures for manufacturers. The outlook remains highly uncertain. Caution is warranted.” ~ Robert Hughes

Weekly Initial Unemployment Claims Fell Slightly

“Initial claims fell slightly, but job cut announcements are trending higher. Elevated consumer price increases and aggressive Fed tightening remain major risks for the economic outlook.” ~ Robert Hughes

Chatbots Killed the Academic Star

“The standard career strategy (‘write and publish a whole bunch of papers even if no one ever reads them’) will no longer be viable. It’s not clear this is bad, in most disciplines.” ~ Michael C. Munger

The Economics of Mending Wall

“Robert Frost’s masterful poem gives economists and students many opportunities to learn about property rights, self-governance, and peaceful cooperation.” ~ Byron B. Carson

Myth America: Our Facts are the Real Facts. Trust Us.

“If history is not a debate about the facts, then it is not history. When you see your opponents’ views as all lies, myths, and legends, it might say more about the way you engage your opposition than the content of their arguments.” ~ Michael J. Douma

Embrace Dynamism: The Future and Its Enemies at 25

“The Future and Its Enemies is a well-written, lucid argument for decentralized progress and the intellectual, political, and commercial liberty that makes it possible.” ~ Art Carden

Wage and Price Controls Are Not the Answer to Inflation

“If the US imposed economy-wide price controls, as Krugman proposes, it would not stop inflation, just as the Emperor Diocletian’s economy-wide controls did not stop Roman inflation and just as the 1970s economy-wide controls did not stop US inflation.” ~ Raymond C. Niles

Taxation in the Data Economy: The ‘Invisible’ Competition

“It remains to be seen whether data experts and policymakers will come up with a tax that encapsulates ‘fairness, certainty, convenience, and efficiency’ as Adam Smith argued for, but each idea is worth hearing in today’s data-governed market.” ~ Virginia Fournari & April Liu

The Twitter Files: Lenin Would Be Proud

“When your main mission is to do the bidding of the state, rather than serving consumers in the voluntary marketplace, you are not really a private company in the true sense of the term. Your company is not a market phenomenon.” ~ Brian Balfour

Three Errors Paul Ehrlich Keeps Making

“In Ehrlich’s worldview, humanity only transgresses and can only cause harm. In Simon’s view, humanity takes primacy and the sources of its enrichment also repair many harms done to the environment, and eventually allows improvements.” ~ Vincent Geloso

Services-Sector Sees a Plunge in New Orders in December

“Services-sector survey suggests contraction in December and is consistent with weak results from the manufacturing-sector survey. Should these results persist, it would be an ominous sign for the economy.” ~ Robert Hughes

Labor Market Shows Early Signs of Loosening

“Payrolls rose in December, but the pace appears to be slowing. Mixed signs for the labor market, sustained price pressures, and an aggressive Fed tightening cycle remain risks to the outlook.” ~ Robert Hughes

Why Don’t You Go Somewhere Else?

“As an entreaty from an employer to a worker, ‘Why don’t you go somewhere else?’ deserves more respect. In many areas of our lives, to exit (to other opportunities) is often a more effective mechanism than to negotiate (talking others into adopting your point of view).” ~ Gary M. Galles

Goodhart’s Law Explains School Decay

“By disentangling ourselves from measures and rankings, we can return to a focus on what education does for the human mind, not just the data sheets.” ~ Laura Williams

Unit Auto Sales Weakened in December

“Light-vehicle sales slowed again in December and remain well below pre-pandemic rates. Inventories rose, and prices fell in November.” ~ Robert Hughes

Weekly Initial Unemployment Claims Fell, but Risks Linger

“Initial claims fell to a 14-week low, but job cut announcements are trending higher. Elevated consumer price increases and aggressive Fed tightening remain major risks for the economic outlook.” ~ Robert Hughes

Manufacturing-Sector Contracts Again in December

“The latest manufacturing survey suggests broad weakness and falling price pressures for manufacturers. The outlook remains highly uncertain. Caution is warranted.” ~ Robert Hughes