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.

How ‘Equalizing’ School Finance Hurts Students and Taxpayers

“New Hampshire is the most fiscally decentralized state in the country, with about two-thirds of the total tax burden being municipal…Households have a lot of choice about where to live, and they exercise it.” ~Jason Sorens and Judge Glock

More Money Can’t Solve Poverty

“From a high of almost 35 percent after World War Two, the poverty rate had already fallen to 19 percent in 1964. It continued its downward trend over the next few years, then has stagnated between 10 percent and 15 percent ever since.” ~Nikolai Wenzel

Dear CFPB: Your Cure Is Worse Than the Disease 

“…Limiting access to credit through these regulations and reducing competition in credit markets would do far greater damage to Americans hoping to access credit.” ~Peter Earle and Thomas Savidge

AIER Explainer Series Demystifies Public Debt

“The debt problem is a spending problem, not a revenue problem. Research shows that raising taxes covers barely a fraction of the outstanding debt.” ~Thomas Savidge and Ryan Yonk

Industrial Policies Aren’t Working

“If other governments insist on harming their countries’ economies with such interventions, that’s their business. We can pity the citizens of those countries.” ~Donald J. Boudreaux

Business Conditions Monthly June 2024

“While the Federal Reserve’s progress in controlling inflation may provide the latitude needed to begin rate cuts aimed at supporting employment…the United States has either entered, or is on the verge of entering, a recession.” ~Peter C. Earle

Public Goods in a Free Society

“Even under this supposed solution to a market failure, we’re getting less public goods than we get shafted for. Like many other well-intentioned public finance policies, in time they turn into pure money grabs.” ~Joakim Book

The Permanent Temptation of All Governments 

“The math of 2 percent compound shrinkage demonstrates that the Fed wants to depreciate the dollar’s purchasing power by 80 percent in each average lifetime. Somehow the Fed never mentions this.” ~Alex Pollock

A Recession the Yield Curve Predicted (Again)

“We get the signal that another recession will arrive within 12-18 months, then we get the signal that says recession is imminent. The door knocks are getting harder and louder. Something’s out there.” ~Richard M. Salsman

How the Ukraine War Will End

“The United States should begin working with Ukraine to help it determine what its political future will be. Having Ukraine become a new Cold War-era Austria or Finland is probably the best outcome for a tragic situation.” ~Andrew Byers

The Federal Reserve and Pandora’s Box

“In the name of preventing a second Great Depression, then-Fed Chairman Ben Bernanke opened a Pandora’s Box of monetary ills in 2008. And like the Greek myth, there may be no way of putting these ills back in the box.” ~Paul Mueller

AIER’s Everyday Price Index Creeps up Slightly in July 2024

“Housing costs continue to drive inflation higher. Some economists had forecast that substantial rent increases would have eased by now, but the numbers suggest that the housing inflation story isn’t over yet.” ~Peter C. Earle

Loury’s ‘Late Admissions’ is Right on Time

“Economists often get lost in abstractions…By coming to terms with himself, Glenn Loury gains a deeper understanding of the challenges and opportunities facing the same communities in which he was raised.” ~Michael N. Peterson

Moderate Inflation Returns in July

“To judge whether monetary policy is loose, it is not enough to show that monetary aggregates are growing at historically low rates. What matters is whether the money supply is growing faster than money demand.” ~Alexander W. Salter

Do EV Producers Need Taxpayers’ Protection?

“Protectionist subsidy of American EV producers necessarily diverts resources away from other industries in the US. What is the value of the production that declines in America because of EV protection?” ~Donald J. Boudreaux

What Chalkboard Curves Ignore

“When dealing with public policies, however, we should remember that using just one diagram may still be misleading. More than one incentive story or relationship is usually in play.” ~Gary M. Galles

How to Really End ESG

“It’s incumbent upon ESG critics to advocate an alternative vision, not merely to fall in line with convention.” ~Russell Greene

Moderate Inflation Affirms Fed’s Path to Easing

“The Fed should ignore the political noise and follow the data. Central bankers failed to curb inflation, but that doesn’t mean they should deliberately make the opposite mistake now.” ~Alexander W. Salter

Unity in Disunity

“When ‘unity’ means government policies will substitute for choices we would make for ourselves, it means domination, even though we do not want to be dominated.” ~Gary Galles

Remembering the Truly Forgotten

“Money and finance are the font and essence of modernity. I honor and praise the memory of the professionals who worked in the World Trade Center.” ~Peter C. Earle

Overhaul for the Uninsured?

“Full reliance on a public budgeting system for providing access to medical care is a certain prescription for millions of disappointed patients.” ~James C. Capretta

Kroger Invests $1B in Antitrust Defense

“Consumers would be better served if companies could spend more time on improving their services and less on fending off litigation.” ~Noah C. Gould

Lose the Political Informality

“Politicians’ first-name basis… is a mercenary maneuver to gain our confidence on the cheap. It is literally a con game.” ~Donald J. Boudreaux

Is America’s Cultural Glue Weakening?

“Not so long ago in America it was considered rude to ask anyone other than one’s inner social circle which positive moral actions they undertook. But it now happens every second of every day.” ~David Rose

DNC Celebrates ‘Freedom,’ But Not Liberty

“As the DNC has just demonstrated so well, a host of rhetorical abuses can find a foothold in offering so many freedoms but so little liberty.” ~Gary M. Galles