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.
Economists’ Advocacy for a Carbon Tax Is Misguided
“The reality is that bureaucrats and politicians would likely choose a metric aligned with their self-interest or with the interests of those who currently hold power.” ~Kenneth W. Costello
Weaving Stable Neighborhoods
“It’s simply unconscionable that so many of us continue to invest our charitable time and treasure into projects that undermine social cohesion rather than building it.” ~Rachel Ferguson
Sanders’s 4-Day Week Will Kill Flexible Jobs
“Many Americans juggle multiple or part-time jobs to make ends meet. This policy would add another layer of complexity and constraint in a market that requires more flexibility, not less.” ~Vance Ginn
Inflation Declined in March, But Remains High
“Market participants continue to expect the Fed will cut its federal funds rate target this year — just not anytime soon.” ~ William J. Luther
US Economic Growth Plunges in First Quarter 2024
“Much of the post-COVID economic growth has been built atop the unsustainable pillars of fiscal and monetary stimuli.” ~Peter C. Earle
The Wasteful Cruelty of “Stakeholder Capital”
“When institutional investors vote to destroy the wealth of Chevron, they vote to destroy the dreams of single mothers in Wisconsin, pensioners in California, and small business owners in Nebraska.” ~Jeremy Kidd
Is Argentine Disinflation Sustainable?
“Milei’s lack of political support in Congress adds to the uncertainty surrounding his ability to successfully pass deregulatory reforms… it is premature to declare victory on the fiscal and inflationary fronts in Argentina.” ~Nicolás Cachanosky
Take the Government Out of GDP
“Tax revenues are harvested from private citizens by means of coercion and extractive measures… Paying taxes to remain free of incarceration or not face withering financial penalties is hardly indicative of cooperative exchange. ” ~Tom Savidge and Peter C. Earle
Bitcoin Mining and Icelandic Bananas
“Stranded energy and unused electricity are magnets for bitcoin miners, as they take electricity that can’t readily be used for other purposes and turn it into one of the world’s most liquid and globally transferable assets.” ~Joakim Book
The New Zimbabwean ZiG: Sixth Time a Charm?
“Even the most faithfully implemented commodity-backed money standard is fundamentally predicated on the integrity and competence of its overseers.” ~Peter C. Earle
Parity in Labor Transparency
“If workers are going to grant a labor union the extensive powers over them that federal law has authorized, workers should be able to know whether the ‘coworkers’ advocating the union are paid representatives of Big Labor. ” ~Michael Watson
Will Caitlin Clark Be Grossly Underpaid?
“There simply isn’t enough demand for seats at, merchandise related to, and streaming of women’s sports to support WNBA players at NBA salaries.” ~Art Carden
A Better Model Won’t Fix The Fed
“The whole point of expectations-responsive monetary policy is to remove the discretionary and technocratic elements from central banking. Disappointingly but unsurprisingly, the Fed is doing the opposite: doubling down on discretion and technocracy.” ~Alexander W. Salter
Why Even Insiders Underestimate Markets’ Power
“There tend to be more and better substitution possibilities known to both buyers and sellers than we recognize from the outside of those exchange relationships.” ~Gary M. Galles
Competition Can’t Be Perfect
“Since if something is perfect, it must be desirable, a new generation of attorneys is attempting a wholesale takeover of antitrust enforcement.” ~Michael Munger
Breaking the Shackles of Socialism in Africa
“A new generation of Africans (Wade labels them the Cheetah Generation) are rejecting socialism and embracing entrepreneurship and markets as the path to human flourishing.” ~Marcus Witcher
Business Conditions Monthly February 2024
“Amidst mixed economic data reminiscent of most of the past two years, there are pockets of strength which are nevertheless overshadowed by inflation concerns and speculation regarding monetary policy actions in the coming quarter or two.” ~Peter C. Earle
Elon’s X Marks the Spot in Brazil
“Brazil is facing its greatest struggle for freedom of speech since the end of the military regime… Freedom of speech has been effectively limited without due process, and contrary to the Constitution.” ~Ricardo Gomes
Economists’ Advocacy for a Carbon Tax Is Misguided
“The reality is that bureaucrats and politicians would likely choose a metric aligned with their self-interest or with the interests of those who currently hold power.” ~Kenneth W. Costello
Weaving Stable Neighborhoods
“It’s simply unconscionable that so many of us continue to invest our charitable time and treasure into projects that undermine social cohesion rather than building it.” ~Rachel Ferguson
Sanders’s 4-Day Week Will Kill Flexible Jobs
“Many Americans juggle multiple or part-time jobs to make ends meet. This policy would add another layer of complexity and constraint in a market that requires more flexibility, not less.” ~Vance Ginn
Inflation Declined in March, But Remains High
“Market participants continue to expect the Fed will cut its federal funds rate target this year — just not anytime soon.” ~ William J. Luther
US Economic Growth Plunges in First Quarter 2024
“Much of the post-COVID economic growth has been built atop the unsustainable pillars of fiscal and monetary stimuli.” ~Peter C. Earle
The Wasteful Cruelty of “Stakeholder Capital”
“When institutional investors vote to destroy the wealth of Chevron, they vote to destroy the dreams of single mothers in Wisconsin, pensioners in California, and small business owners in Nebraska.” ~Jeremy Kidd
Is Argentine Disinflation Sustainable?
“Milei’s lack of political support in Congress adds to the uncertainty surrounding his ability to successfully pass deregulatory reforms… it is premature to declare victory on the fiscal and inflationary fronts in Argentina.” ~Nicolás Cachanosky
Take the Government Out of GDP
“Tax revenues are harvested from private citizens by means of coercion and extractive measures… Paying taxes to remain free of incarceration or not face withering financial penalties is hardly indicative of cooperative exchange. ” ~Tom Savidge and Peter C. Earle
Bitcoin Mining and Icelandic Bananas
“Stranded energy and unused electricity are magnets for bitcoin miners, as they take electricity that can’t readily be used for other purposes and turn it into one of the world’s most liquid and globally transferable assets.” ~Joakim Book
The New Zimbabwean ZiG: Sixth Time a Charm?
“Even the most faithfully implemented commodity-backed money standard is fundamentally predicated on the integrity and competence of its overseers.” ~Peter C. Earle
Parity in Labor Transparency
“If workers are going to grant a labor union the extensive powers over them that federal law has authorized, workers should be able to know whether the ‘coworkers’ advocating the union are paid representatives of Big Labor. ” ~Michael Watson
Will Caitlin Clark Be Grossly Underpaid?
“There simply isn’t enough demand for seats at, merchandise related to, and streaming of women’s sports to support WNBA players at NBA salaries.” ~Art Carden
A Better Model Won’t Fix The Fed
“The whole point of expectations-responsive monetary policy is to remove the discretionary and technocratic elements from central banking. Disappointingly but unsurprisingly, the Fed is doing the opposite: doubling down on discretion and technocracy.” ~Alexander W. Salter
Why Even Insiders Underestimate Markets’ Power
“There tend to be more and better substitution possibilities known to both buyers and sellers than we recognize from the outside of those exchange relationships.” ~Gary M. Galles
Competition Can’t Be Perfect
“Since if something is perfect, it must be desirable, a new generation of attorneys is attempting a wholesale takeover of antitrust enforcement.” ~Michael Munger
Breaking the Shackles of Socialism in Africa
“A new generation of Africans (Wade labels them the Cheetah Generation) are rejecting socialism and embracing entrepreneurship and markets as the path to human flourishing.” ~Marcus Witcher
Business Conditions Monthly February 2024
“Amidst mixed economic data reminiscent of most of the past two years, there are pockets of strength which are nevertheless overshadowed by inflation concerns and speculation regarding monetary policy actions in the coming quarter or two.” ~Peter C. Earle
Elon’s X Marks the Spot in Brazil
“Brazil is facing its greatest struggle for freedom of speech since the end of the military regime… Freedom of speech has been effectively limited without due process, and contrary to the Constitution.” ~Ricardo Gomes