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.

Substitution Effects and Steering-Wheel Daggers

“Because of substitution effects, we should always be aware that outcomes quite different from those that seem most obvious are possible. Mandating greater automobile safety might reduce traffic fatalities. Or it might not.” ~Donald J. Boudreaux

Illiberal Youth Threaten Freedom

“Like National Socialist youth, individual rights mean nothing to young people today. The loss of talented people with different opinions was a plus for the Nazis.” ~Barry Brownstein

Importing Votes, Not Steel 

“Cooperation between conglomerates can be swept aside by the government for political gain. Ultimately, it is the public who pays for these political plays.” ~Stefan Bartl

Climate “Reparations” Numbers Are Rigged

“Human living standards have improved in unprecedented ways over the past 300 years. These remarkable improvements in human welfare are not limited to wealthy, developed economies but are enjoyed around the world.” ~Paul Mueller

Every Village a Republic

“Article I, Section 10 might protect local communities from federal abuse, as intended by the Founders, but offers no tools to simultaneously protect ourselves from local tyrannies.” ~David Gillette and Thaddeus Meadows

Chairman Powell and The Fed’s Limits

“Congress should applaud Chairman Powell’s candor on uncertainty and strongly support his principle of operating the Fed within the limits of its mandate.” ~Alex J. Pollock

The Magic Food Cupboard

“Every small aspect of the work that people do to deliver and stock those Whole Foods grocery shelves is noble, in its own way. Dismissing the parts as meaningless fails to understand the power of the larger system.” ~Michael Munger

The Bourgeois Deal Brought Us More than Pie in the Sky

“We didn’t need a worker’s revolution to get and enjoy pie in the here and now… Innovation and profit-seeking in a society that embraced the Bourgeois Deal made workers so much more productive that the pie grew. A lot.” ~Art Carden

Apple’s Big Business: Mises is Right, Sen Warren is Wrong

“The government’s ever-growing interest in deterring business expansion, along with granting federal agencies greater say over marketplace matters, is a complete disservice to our nation’s progress.” ~Kimberlee Josephson

Getting Monetary Policy Back on Track

“Experts seemingly identify much more closely with the central bankers — the practitioners of monetary policy — than with those forced to contend with the negative consequences of bad decisions.” ~Judy Shelton

Is Texas Really the Future of Freedom?

“Texas does several big things really well, and I’m rooting for them to improve elsewhere. But let’s not pretend Texas is the free-market archetype for the country.” ~Jason Sorens

Unlimited Growth, Forever

“Every popular scare of the past has been side-stepped, improved, or solved, by one or another human effort, usually serendipitously and rarely at all with well-meaning bureaucrats directing the process. ” ~Joakim Book

The Ratchet Effect on the Fed’s Balance Sheet

“The ratchet effect has locked us in a world with a massive Fed balance sheet — and the insidious problems of runaway deficit spending and easy bailout monetary expansion that come with it.” ~ Paul Mueller

Florida’s Faux-Meat Ban Slaughtered Free Enterprise 

“The public interest is served when fraud, deception, and misleading labeling are prevented. Unfortunately, the Florida legislature has gone far beyond this, at the behest of the ranchers’ lobby.” ~Paul Mueller

Does Market Concentration Signal Monopoly?

“The Coasean theory of the firm is noticeably absent from antitrust discussions. Failure to understand that firms arise to lower costs can lead to incorrect conclusions.” ~Jon Murphy

Stakeholder Statism is Coming

“ESG follows the trajectory of efforts by the progressive left to replace a free, voluntary, and competitive society… with centrally ordered institutions… to engineer their preferred society.” ~Richard M. Reinsch

‘Tyranny’ by Any Other Name

“The liberal version of true democracy is everyone getting to decide, peaceably, how to manage their own lives — not everyone being perpetually subjected to the whims of 50-percent-plus-one of their fellow men.” ~Richard Morrison

Business Conditions Monthly March 2024

“We remain cautious, as economic statistics have been both volatile and reflective of highly unusual underlying conditions since pandemic policies were lifted three years ago.” ~Peter C. Earle

The Demise of the Dual Banking System 

“The issue comes down to whether a state-chartered bank that fulfills the legal requirements for a master account can be denied one by the Federal Reserve.” ~Gerald P. Dwyer

Creating So Many Jobs that Destroy Wealth 

“Many of the jobs created directly or indirectly by government policies impose net costs on society rather than producing benefits, which worsens rather than improves Americans’ wellbeing.” ~Gary M. Galles

FISA Destroys the Rule of Law

“Evidence…cannot be challenged by opposing counsel and are highly classified. This has resulted in the drone-like ‘rubber stamping’ of warrantless surveillance conducted without oversight or challenge.” ~Spence Purnell

Protectionists’ Cheap Tricks

“Gains from trade are mutual, a reality that isn’t changed one iota by imposing a political boundary between the traders. Protectionism therefore strips both foreigners and Americans of these gains.” ~Donald J. Boudreaux

Bootlegger in a Baptist’s Mask

“Bob Lighthizer wants you to join him in what he claims is a moral crusade to save a few American jobs. He fails to mention that ultimately, we will all pay much higher costs to do this.” ~G. Patrick Lynch

Are You a Servant of Tyranny or Liberty? 

“What happens to a country with no constitution or deep-seated commitment to curbing the use of power? Absent those limits, virtue wanes, and it is easy for people to become servants of tyranny.” ~Barry Brownstein

When Ideological Bubbles Trump Economic Thinking

“That a Nobel Prize-winning economist can hold these naïve views and fail to use simple economic reasoning should give us pause about how ideology and echo chambers can dull our reasoning.” ~Paul Mueller

‘Consumer Reports’ Jettisons Objectivity on Climate Change

“Scaring the public into action simply does not work — indeed, Chicken Little can proclaim only for a short time that the sky is falling until people begin to see through the ruse that Chicken Little is really Chicken Liar.” ~David Legates and E. Calvin Beisner

April’s Disinflation Delivery

“In the first quarter of 2024, the US economy expanded at a rate of 1.6 percent per year. That’s hardly an impressive growth rate, but it’s significantly faster than money supply growth. Money looks somewhat tight.” ~Alexander W. Salter

Private Governance Will Make You Free

“Enforcement of these emergent rules can be accomplished largely by what Adam Smith called ‘propriety,’ rather than by armed employees of the state.” ~Michael Munger

Sloppy Utopia

“The book is irrelevant in the exact meaning of that word: It does not answer the question it sets for itself, does not rise to the task of chronicling the big economic changes of the extended twentieth century, does not adequately and accurately capture a believable grand narrative.” ~Joakim Book

AIER Everyday Price Index Rises for Fifth Consecutive Month

“April’s core CPI data represents the lowest of 2024 and may signal the resumption of disinflation, particularly where shelter costs are concerned. Despite some favorable signs, though, there remains a persistent inflationary pressure in certain categories.” ~Peter C. Earle

Japanese Immigrant Exclusion: 100 Years Later

“Scientists and academics nationwide embraced these outward intentions to divide the ‘desirable’ immigrants from those more susceptible to crime, disease, and incompetence.” ~Will Sellers

Is The Fed Manipulating the Market?

“We cannot just look at the Fed’s target rate to determine whether it is manipulating the market. We must consider its target rate relative to the natural rate.” ~Bryan Cutsinger