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.
Does the Fed Control Interest Rates?
“The Fed is a failed institution in need of major reforms. But we won’t make the right changes if we don’t understand the basic relationship between central banks and capital markets.” ~ Alexander William Salter
Holidays of Luxury
“Market economies fuel incredible prosperity and the holidays provide useful examples of how we are better off today than a few decades ago. Consider the Christmas gifts and decor of years past, once deemed luxuries, now everyday goods.” ~ Laura Williams & David Waugh
The Twitter Files and FDR’s Blue Eagle
“Almost 90 years ago, for example, the US government used a different blue bird, The Blue Eagle, to coerce company compliance with the worst type of disinformation of all: that related to prices.” ~ Robert E. Wright
Consumer Inflation Expectations Fell Sharply in December
“Consumer sentiment improved in December but remains at recessionary levels. Inflation expectations fell sharply, and long-run expectations remain well anchored.” ~ Robert Hughes
New Home Sales Rose Again in November, But the Outlook Remains Cautious
“New-home sales rose in November but remain below its long-term average. High prices, bloated inventory, and elevated mortgage rates suggest a poor outlook.” ~ Robert Hughes
Durable-Goods Orders Declined in November
“Durable-goods orders fell in November while growth in real durable-goods orders and real core capital goods orders remains modest.” ~ Robert Hughes
What if New Coke Had Been a Government Program?
“Would our lives be better were land, labor, and capital still tied up making New Coke and Crystal Pepsi? People have voted pretty overwhelmingly and answered ‘no.'” ~ Art Carden
The Greatest Threat to World Peace: North Korea’s Kim Jong-un?
“The best way to enhance America’s security is for its defense-dependents to graduate and take care of themselves and their own regions. With the US off the peninsula, Pyongyang wouldn’t much care about affairs in Washington.” ~ Doug Bandow
Consumer Services Push Revised Third Quarter GDP Higher
“Headline real GDP growth was revised higher in the third quarter, but domestic demand growth remained soft. Caution is warranted.” ~ Robert Hughes
On the Need to Theorize Carefully
“Theorizing usefully about trade and other economic phenomena isn’t especially difficult, but doing so does indeed require care, wisdom, and humility.” ~ Donald J. Boudreaux
Risky Business: A Review
“Risky Business will appeal to readers more interested in selection markets than in real-world insurance products, and to people with a high tolerance for ahistorical assumptions about the need for detailed insurance regulation and other government market interventions.” ~ Robert E. Wright
Existing Home Sales Continue to Plunge
“Existing-home sales fell again in November as reduced affordability pushes buyers out of the market. The outlook for housing remains unfavorable.” ~ Robert Hughes
Consumer Confidence Rose and Inflation Expectations Fell in December
“Consumer confidence rebounded in December, but consumer expectations remain at recessionary levels. An aggressive Fed tightening cycle, elevated price pressures, and the fallout from the Russian war in Ukraine remain risks for the economic outlook.” ~ Robert Hughes
Progressives Love Suppressing Votes–But Not the Way You Think
“Suppressing people’s votes in the marketplace for the benefit of those who think themselves entitled to a comfortable life at another’s expense, or for those who really know what is good for other people, does not help the suppressed voters.” ~ Art Carden
Climate Conferences Fail on Deforestation
“No matter what virtue-signalers claim, we would be shooting ourselves in the foot by trying to mitigate the effects of industry on the environment by reversing technological advancement.” ~ Jason Reed
Not Enough Pizza
“It’s hard not to be sad about the passing of old, personalistic cultural tropes. But entrepreneurs exploiting microphone technologies on digital platforms are going to wipe out most of them. And it’s just as well, because we could never make that much pizza.” ~ Michael C. Munger
New Home Construction Outlook Remains Weak
“New housing permits fell again in November as low affordability suppresses demand. Very low homebuilder sentiment suggests an unfavorable outlook for housing.” ~ Robert Hughes
Adam Smith on Humanity’s Greatest Weakness
“Worse than simply refusing to see our self-deceit, we feel morally justified in transgressing against others. Smith was right, self-deceit is responsible for much of the suffering of humanity.” ~ Barry Brownstein
Does the Fed Control Interest Rates?
“The Fed is a failed institution in need of major reforms. But we won’t make the right changes if we don’t understand the basic relationship between central banks and capital markets.” ~ Alexander William Salter
Holidays of Luxury
“Market economies fuel incredible prosperity and the holidays provide useful examples of how we are better off today than a few decades ago. Consider the Christmas gifts and decor of years past, once deemed luxuries, now everyday goods.” ~ Laura Williams & David Waugh
The Twitter Files and FDR’s Blue Eagle
“Almost 90 years ago, for example, the US government used a different blue bird, The Blue Eagle, to coerce company compliance with the worst type of disinformation of all: that related to prices.” ~ Robert E. Wright
Consumer Inflation Expectations Fell Sharply in December
“Consumer sentiment improved in December but remains at recessionary levels. Inflation expectations fell sharply, and long-run expectations remain well anchored.” ~ Robert Hughes
New Home Sales Rose Again in November, But the Outlook Remains Cautious
“New-home sales rose in November but remain below its long-term average. High prices, bloated inventory, and elevated mortgage rates suggest a poor outlook.” ~ Robert Hughes
Durable-Goods Orders Declined in November
“Durable-goods orders fell in November while growth in real durable-goods orders and real core capital goods orders remains modest.” ~ Robert Hughes
What if New Coke Had Been a Government Program?
“Would our lives be better were land, labor, and capital still tied up making New Coke and Crystal Pepsi? People have voted pretty overwhelmingly and answered ‘no.'” ~ Art Carden
The Greatest Threat to World Peace: North Korea’s Kim Jong-un?
“The best way to enhance America’s security is for its defense-dependents to graduate and take care of themselves and their own regions. With the US off the peninsula, Pyongyang wouldn’t much care about affairs in Washington.” ~ Doug Bandow
Consumer Services Push Revised Third Quarter GDP Higher
“Headline real GDP growth was revised higher in the third quarter, but domestic demand growth remained soft. Caution is warranted.” ~ Robert Hughes
On the Need to Theorize Carefully
“Theorizing usefully about trade and other economic phenomena isn’t especially difficult, but doing so does indeed require care, wisdom, and humility.” ~ Donald J. Boudreaux
Risky Business: A Review
“Risky Business will appeal to readers more interested in selection markets than in real-world insurance products, and to people with a high tolerance for ahistorical assumptions about the need for detailed insurance regulation and other government market interventions.” ~ Robert E. Wright
Existing Home Sales Continue to Plunge
“Existing-home sales fell again in November as reduced affordability pushes buyers out of the market. The outlook for housing remains unfavorable.” ~ Robert Hughes
Consumer Confidence Rose and Inflation Expectations Fell in December
“Consumer confidence rebounded in December, but consumer expectations remain at recessionary levels. An aggressive Fed tightening cycle, elevated price pressures, and the fallout from the Russian war in Ukraine remain risks for the economic outlook.” ~ Robert Hughes
Progressives Love Suppressing Votes–But Not the Way You Think
“Suppressing people’s votes in the marketplace for the benefit of those who think themselves entitled to a comfortable life at another’s expense, or for those who really know what is good for other people, does not help the suppressed voters.” ~ Art Carden
Climate Conferences Fail on Deforestation
“No matter what virtue-signalers claim, we would be shooting ourselves in the foot by trying to mitigate the effects of industry on the environment by reversing technological advancement.” ~ Jason Reed
Not Enough Pizza
“It’s hard not to be sad about the passing of old, personalistic cultural tropes. But entrepreneurs exploiting microphone technologies on digital platforms are going to wipe out most of them. And it’s just as well, because we could never make that much pizza.” ~ Michael C. Munger
New Home Construction Outlook Remains Weak
“New housing permits fell again in November as low affordability suppresses demand. Very low homebuilder sentiment suggests an unfavorable outlook for housing.” ~ Robert Hughes
Adam Smith on Humanity’s Greatest Weakness
“Worse than simply refusing to see our self-deceit, we feel morally justified in transgressing against others. Smith was right, self-deceit is responsible for much of the suffering of humanity.” ~ Barry Brownstein
