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 Fed and Political Independence: It’s Complicated
“We should focus less on who’s allowed to run the Fed and more on what the Fed’s allowed to do in the first place.” ~Alexander W. Salter
AI Opposition: Economic and Philosophical Sophistry
“Economic growth is by far and away the most far-reaching and compounding good mankind has ever experienced — the very phenomenon responsible for modern infrastructure, schools, and health care.” ~Jack Nicastro and Samuel Crombie
Is Learning Standard “White” English Oppressive for Black Students?
“The ‘anti-racist’ writing notions abounding today disempower black students…and actually get in the way of constructive actions. Obsessing over ‘white privilege’ doesn’t help black students succeed.” ~George Leef
How the Subsidy Straw Is Sucking The Colorado River Dry
“A trifecta of farming-sector entitlements have incentivized producers to grow thirsty plants, underpriced water extraction, and created moral hazard….Subsidies have made water 10 times cheaper in Arizona than in Michigan.” ~Peter Clark
20th Century Ideology, Modern Mixed Economies
“Neither the Chinese communists nor the Russian communists ever redistributed significant resources from the able to the needy. If anything, they did the reverse.” ~John Goodman
Quality Boosts in Sports Collectibles
“An hour of labor today might not buy many more baseball cards than an hour of labor a generation ago, but it would be a mistake to conclude that living standards haven’t changed much because the quality has improved so much.” ~Art Carden
Principleless, Panicked and Power-Hungry
“The authoritarian response to COVID amounted to the biggest inroads on our civil liberties in two hundred years… the judges were as frightened and panicked as most everyone else.” ~James Allan
US Manufacturing is Doing Just Fine
“Faced with the increased prosperity that has correlated with lowered trade barriers, making the case that trade liberalization has led to widespread harm is no easy task.” ~Colin Grabow
Eating The Rich Won’t Feed the Beast
“The hungry behemoth that is the US federal government is already eating the rich… Jeff Bezos’ great fortune would finance the government for… less than a week. ” ~Joakim Book
Assessing Bidenomics: The Fatal Conceit of National Commercial Policy
“Roughly 50 cents out of every dollar of economic activity in the US is controlled by a government, rather than an entrepreneur, consumer, or investor. That is bad news for efficiency and growth. It’s also bad news for liberty.” ~Nikolai G. Wenzel
Government Project: The Eternal Folly of Central Planning
“Edward Banfield’s careful case study of the Casa Grande project, based on his review of the detailed government records, is a sobering critique of government planning and social engineering.” ~Mark Pulliam
Did Government Red Ink Make the US More Dynamic than Europe?
“The new ‘reshuffling’ thesis of American recovery doesn’t make much sense on the evidence. It serves a convenient political purpose, helping to justify massive federal stimulus.” ~Jason Sorens
Inflation Remained Elevated in February
“Market participants continue to expect three cuts this year — and that those cuts will begin in the first half of the year. But they have adjusted the odds.” ~William J. Luther
Biden’s ‘Strike Force’ Recalls Nixon’s Economic Plan
“The so-called Strike Force is likely to act as a bludgeon for government attacks on private interests, and in particular, those viewed as adversaries to the administration.” ~Peter C. Earle
Baseball, a Beer, and a Dog
“The most expensive beer in the major leagues is found where everything seems to be most expensive: Washington, DC. At Nationals Park a single beer will set you back $14.99.” ~James R. Harrigan
Red Alert: Biden’s Biggest Chips Act Expense Yet
“When politicians resort to deficit spending to bankroll industrial ventures, they put upward pressure on interest rates by issuing more debt and competing with scarce private funds.” ~Vance Ginn
Industrial Policy’s Short-Run Booms Risk Long-Term Failures
“Small firms like GF will enjoy morsels, but legacy firms like Intel — who are already more immune to market shocks and decline — make subsidies into a buffet.” ~Ryan M. Yonk and Jacob Bruggeman
Fixing A Big Mistake in Risk-Based Capital Rules
“Both long Treasuries and mortgage-backed securities guaranteed by government agencies are in current regulation included as ‘High Quality Liquid Assets.’ But of course they both can and have created plenty of interest rate risk.” ~Alex J. Pollock
The Fed and Political Independence: It’s Complicated
“We should focus less on who’s allowed to run the Fed and more on what the Fed’s allowed to do in the first place.” ~Alexander W. Salter
AI Opposition: Economic and Philosophical Sophistry
“Economic growth is by far and away the most far-reaching and compounding good mankind has ever experienced — the very phenomenon responsible for modern infrastructure, schools, and health care.” ~Jack Nicastro and Samuel Crombie
Is Learning Standard “White” English Oppressive for Black Students?
“The ‘anti-racist’ writing notions abounding today disempower black students…and actually get in the way of constructive actions. Obsessing over ‘white privilege’ doesn’t help black students succeed.” ~George Leef
How the Subsidy Straw Is Sucking The Colorado River Dry
“A trifecta of farming-sector entitlements have incentivized producers to grow thirsty plants, underpriced water extraction, and created moral hazard….Subsidies have made water 10 times cheaper in Arizona than in Michigan.” ~Peter Clark
20th Century Ideology, Modern Mixed Economies
“Neither the Chinese communists nor the Russian communists ever redistributed significant resources from the able to the needy. If anything, they did the reverse.” ~John Goodman
Quality Boosts in Sports Collectibles
“An hour of labor today might not buy many more baseball cards than an hour of labor a generation ago, but it would be a mistake to conclude that living standards haven’t changed much because the quality has improved so much.” ~Art Carden
Principleless, Panicked and Power-Hungry
“The authoritarian response to COVID amounted to the biggest inroads on our civil liberties in two hundred years… the judges were as frightened and panicked as most everyone else.” ~James Allan
US Manufacturing is Doing Just Fine
“Faced with the increased prosperity that has correlated with lowered trade barriers, making the case that trade liberalization has led to widespread harm is no easy task.” ~Colin Grabow
Eating The Rich Won’t Feed the Beast
“The hungry behemoth that is the US federal government is already eating the rich… Jeff Bezos’ great fortune would finance the government for… less than a week. ” ~Joakim Book
Assessing Bidenomics: The Fatal Conceit of National Commercial Policy
“Roughly 50 cents out of every dollar of economic activity in the US is controlled by a government, rather than an entrepreneur, consumer, or investor. That is bad news for efficiency and growth. It’s also bad news for liberty.” ~Nikolai G. Wenzel
Government Project: The Eternal Folly of Central Planning
“Edward Banfield’s careful case study of the Casa Grande project, based on his review of the detailed government records, is a sobering critique of government planning and social engineering.” ~Mark Pulliam
Did Government Red Ink Make the US More Dynamic than Europe?
“The new ‘reshuffling’ thesis of American recovery doesn’t make much sense on the evidence. It serves a convenient political purpose, helping to justify massive federal stimulus.” ~Jason Sorens
Inflation Remained Elevated in February
“Market participants continue to expect three cuts this year — and that those cuts will begin in the first half of the year. But they have adjusted the odds.” ~William J. Luther
Biden’s ‘Strike Force’ Recalls Nixon’s Economic Plan
“The so-called Strike Force is likely to act as a bludgeon for government attacks on private interests, and in particular, those viewed as adversaries to the administration.” ~Peter C. Earle
Baseball, a Beer, and a Dog
“The most expensive beer in the major leagues is found where everything seems to be most expensive: Washington, DC. At Nationals Park a single beer will set you back $14.99.” ~James R. Harrigan
Red Alert: Biden’s Biggest Chips Act Expense Yet
“When politicians resort to deficit spending to bankroll industrial ventures, they put upward pressure on interest rates by issuing more debt and competing with scarce private funds.” ~Vance Ginn
Industrial Policy’s Short-Run Booms Risk Long-Term Failures
“Small firms like GF will enjoy morsels, but legacy firms like Intel — who are already more immune to market shocks and decline — make subsidies into a buffet.” ~Ryan M. Yonk and Jacob Bruggeman
Fixing A Big Mistake in Risk-Based Capital Rules
“Both long Treasuries and mortgage-backed securities guaranteed by government agencies are in current regulation included as ‘High Quality Liquid Assets.’ But of course they both can and have created plenty of interest rate risk.” ~Alex J. Pollock