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.
Capitalism is a “DDoLL”
“One thousand people can be unimaginably more wealthy than eight people. Division of labor is the most important source of increasing returns to scale in the market system.” ~Michael Munger
Do Shortages Signal the Fragility of Free Trade?
“If protectionism makes supply chains more robust, then we should expect to see that in the data. A quick overview shows, however, that protected industries are more vulnerable to shocks than less-protected industries.” ~Jon Murphy
Junk Insurance
“Obamacare offerings are often inferior to those available in the short-term market, even with huge taxpayer subsidies and transfers from the real suckers who are forced to overpay for their care.” ~Gary M. Galles
The Awestruck and the Awws
“No matter how much higher standards of living for nearly everyone in today’s market-oriented economies are, living standards could be even higher. The costs of obtaining, maintaining, and further raising these living standards could be even lower.” ~Donald J. Boudreaux
The Embargo at 50: Regulatory Causality vs. Anti-Oil Narrative
“What was obvious then should be more obvious today: Energy crises are governmental. Market challenges and solutions are entirely different from full-blown emergencies.” ~Robert L. Bradley
The FTC’s Amazonian Snipe Hunt
“The FTC argues that Amazon’s market power inhibits the ability of competitors to enter the retail superstore marketplace. Such concerns are likely overblown.” ~David Gillette and Warren Barge
Weak Economy Provides Key Policy Lessons
“Sure, supply-side factors contributed to higher prices in some markets, as did supply chain bottlenecks. But those are short-term fluctuations that don’t tell the entire story of reduced purchasing power for everyone.” ~Vance Ginn
Liberalism: What Does It Even MEAN? Political Scientist Explains
“Progressives and conservatives are both convinced that their morality and vision for society is correct, and have no qualms about using the power of the state to impose it upon the rest of us.” ~Michael Munger
Why “Free College” is a Terrible Idea
“If the US were to embrace the idea that college should be an entitlement, the results would be very undesirable. More resources would be drawn into providing college education, and we’d get less educational value in return.” ~George Leef
To Live for Grievances Risks Liberty
“How many minor and major irritations and grievances occupy your thinking throughout the day? What do we sacrifice when our attention is centered on grievances?” ~Barry Brownstein
Curtailing Violence with Economic Freedom
“Allow individuals to build it and make clear that they cannot force others to build it for them, and they will build it. And, most likely, they will not want to blow it up.” ~Robert E. Wright
Not Only to No Single Person, But to No Council or Senate Whatever
“Some Republicans’ apparent assumption that the American economy would benefit if American companies operated fully within the US badly misperceives the basic realities of globalized trade.” ~David B. McGarry
Inflation Ticks Up Again. Keep an Eye on Oil
“Major changes in oil prices seem likely to drive the near-term changes in CPI inflation, both headline inflation and possibly core as well.
Another big question is how the Fed will respond.” ~Thomas L. Hogan
Critical Race Theory in Data: What the Statistics Show
“While CRT may have been a niche subject as recently as the 1990s, academic journal citations of CRT scholars exploded around the time of the ‘Great Awokening’ (2013-2014).” ~Phillip W. Magness
Forced Reconversion to that “Old-Time Fiscal Religion”
“Circumstances beyond our control will likely compel us to revert to something like the ‘old-time fiscal religion’ of balanced budgets during ordinary times, reserving deficits for extraordinary times.” ~Alexander W. Salter
Bookstore Protectionism
“Both past and present suits claimed that the problem was dominant sellers unfairly harming independents, which thereby undermined competition. But in that, they misrepresented both what competition means and who was harming less-successful competitors.” ~Gary M. Galles
Mound Bayou Takes the Lead in the Modern Civil Rights Movement
“Visitors often got their first exposure to a Southern town where members of their race voted, held office, enforced the laws, spoke freely, and walked through the front door. Their day-to-day experiences in Mound Bayou were an inspiration for changing their own communities.” ~David T. Beito
Abolish Parking Minimums. Yes, All of Them
“Zoning codes require parking based on rough estimates of demand for ‘free’ parking at the time of development, ignoring how subsequent economic changes could affect demand.” ~Jason Sorens
Capitalism is a “DDoLL”
“One thousand people can be unimaginably more wealthy than eight people. Division of labor is the most important source of increasing returns to scale in the market system.” ~Michael Munger
Do Shortages Signal the Fragility of Free Trade?
“If protectionism makes supply chains more robust, then we should expect to see that in the data. A quick overview shows, however, that protected industries are more vulnerable to shocks than less-protected industries.” ~Jon Murphy
Junk Insurance
“Obamacare offerings are often inferior to those available in the short-term market, even with huge taxpayer subsidies and transfers from the real suckers who are forced to overpay for their care.” ~Gary M. Galles
The Awestruck and the Awws
“No matter how much higher standards of living for nearly everyone in today’s market-oriented economies are, living standards could be even higher. The costs of obtaining, maintaining, and further raising these living standards could be even lower.” ~Donald J. Boudreaux
The Embargo at 50: Regulatory Causality vs. Anti-Oil Narrative
“What was obvious then should be more obvious today: Energy crises are governmental. Market challenges and solutions are entirely different from full-blown emergencies.” ~Robert L. Bradley
The FTC’s Amazonian Snipe Hunt
“The FTC argues that Amazon’s market power inhibits the ability of competitors to enter the retail superstore marketplace. Such concerns are likely overblown.” ~David Gillette and Warren Barge
Weak Economy Provides Key Policy Lessons
“Sure, supply-side factors contributed to higher prices in some markets, as did supply chain bottlenecks. But those are short-term fluctuations that don’t tell the entire story of reduced purchasing power for everyone.” ~Vance Ginn
Liberalism: What Does It Even MEAN? Political Scientist Explains
“Progressives and conservatives are both convinced that their morality and vision for society is correct, and have no qualms about using the power of the state to impose it upon the rest of us.” ~Michael Munger
Why “Free College” is a Terrible Idea
“If the US were to embrace the idea that college should be an entitlement, the results would be very undesirable. More resources would be drawn into providing college education, and we’d get less educational value in return.” ~George Leef
To Live for Grievances Risks Liberty
“How many minor and major irritations and grievances occupy your thinking throughout the day? What do we sacrifice when our attention is centered on grievances?” ~Barry Brownstein
Curtailing Violence with Economic Freedom
“Allow individuals to build it and make clear that they cannot force others to build it for them, and they will build it. And, most likely, they will not want to blow it up.” ~Robert E. Wright
Not Only to No Single Person, But to No Council or Senate Whatever
“Some Republicans’ apparent assumption that the American economy would benefit if American companies operated fully within the US badly misperceives the basic realities of globalized trade.” ~David B. McGarry
Inflation Ticks Up Again. Keep an Eye on Oil
“Major changes in oil prices seem likely to drive the near-term changes in CPI inflation, both headline inflation and possibly core as well.
Another big question is how the Fed will respond.” ~Thomas L. Hogan
Critical Race Theory in Data: What the Statistics Show
“While CRT may have been a niche subject as recently as the 1990s, academic journal citations of CRT scholars exploded around the time of the ‘Great Awokening’ (2013-2014).” ~Phillip W. Magness
Forced Reconversion to that “Old-Time Fiscal Religion”
“Circumstances beyond our control will likely compel us to revert to something like the ‘old-time fiscal religion’ of balanced budgets during ordinary times, reserving deficits for extraordinary times.” ~Alexander W. Salter
Bookstore Protectionism
“Both past and present suits claimed that the problem was dominant sellers unfairly harming independents, which thereby undermined competition. But in that, they misrepresented both what competition means and who was harming less-successful competitors.” ~Gary M. Galles
Mound Bayou Takes the Lead in the Modern Civil Rights Movement
“Visitors often got their first exposure to a Southern town where members of their race voted, held office, enforced the laws, spoke freely, and walked through the front door. Their day-to-day experiences in Mound Bayou were an inspiration for changing their own communities.” ~David T. Beito
Abolish Parking Minimums. Yes, All of Them
“Zoning codes require parking based on rough estimates of demand for ‘free’ parking at the time of development, ignoring how subsequent economic changes could affect demand.” ~Jason Sorens