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.

Failed Proof that Every Vote Counts

“Many candidates who have vociferously insisted that ‘every vote counts’ push policies that deny vast numbers of Americans the right to get what they would vote for if given the choice.” ~Gary Galles

Take National Security Off Auto-Pilot

“We have squandered our own scarce resources, bred animosity overseas, and frequently made existing conditions worse.” ~Andrew Byers

They Can Afford It!

“Even companies with unusually high net worth cannot, in fact, afford to pay workers more than those workers contribute to the companies’ bottom lines.” ~Donald J. Boudreaux

Taxpayer Rights Revival in California

“With inflation shrinking the purchasing power of their dollar and faced with higher tax bills because of ‘bracket creep,’ taxpayers are starting to push back against wasteful government spending again.” ~Thomas Savidge

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

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

Sense and Nonsense on Petrodollars

“Myths and hyperbole aside, the weakening US-Saudi relationship is one instance amid a growing trend of diminishing US influence in global currency markets and international finance.” ~Peter C. Earle

How Nations Defeat Poverty

“What these stories all have in common is that these nations rose from poverty by embracing a common formula: more economic freedom and free trade… not international aid or central planning.” ~Jon Miltimore

Bitcoin Is ‘Resistance Money’

“Freedom money, wielded by its users and resistant to capture, identification, and censorship, doesn’t dispel unfair laws or make evil rulers go away — but almost nothing else does that either.” ~Joakim Book

Boosters Beware: Stadiums Aren’t Magic

“Just about every economist knows publicly financed stadiums are boondoggles that, if anything, imperil cities’ financial positions.” ~Art Carden

FOMC Holds Rates, Revises Forward Guidance

“Just as the FOMC was slow to adjust policy when inflation surged in late 2021, it will be slow to adjust policy as inflation returns to and falls below its target in 2024.” ~William J Luther

Prices Stable in May: Time to Cut Rates?

“M2, the most commonly cited measure of the money supply, is up 0.53 percent from a year ago. Since real income and population are growing faster than this, current M2 growth also suggests money is tight. But this is speculative.” ~Alexander W. Salter

AIER’s Everyday Price Index Unchanged in May 2024

“The recent data, combined with the deceleration in core CPI in April, suggests the resumption of disinflation. But policymakers have indicated a need for several months of reduced price pressures before considering interest rate cuts.” ~Peter C. Earle

The Super Market

“Something that you can purchase with income you’ve earned with just a few minutes of your work-time is something that includes the work-effort of thousands or millions of strangers.” ~Donald J. Boudreaux

Protectionists Are Wrong: Free Trade is the Path to Prosperity

“Consumers and producers in America are better off with more domestic and international trade. As we don’t want to produce everything we consume daily, trading with others is the most efficient way to meet our needs.” ~Vance Ginn

Government Failure in One Lesson

“Perhaps the easiest way to explain government failure in one lesson is to remember that there is no such thing as ‘the state.’ Instead, essential decisions about resource use will be made by political actors.” ~Michael Munger

AI Eases Its Own Labor-Market Transitions

“Not long ago, search engines like Google were not understood by the masses, which forced people through experience to learn how to ‘Google’ webpages in the proper way. Submitting a search query is similarly a new language to learn, just like prompting a language model.” ~Samuel Crombie and Jack Nicastro

Trade Deficits: Accounting Masquerading as Economics 

“Reducing ‘imports’ would not, in fact, increase GDP at all. At best, doing so would leave GDP unchanged since we would be adding less to consumption, investment, and government spending while subtracting equally less from imports.” ~David Hebert

Politicizing Monetary Policy Won’t Fix the Fed’s Failings

“Even if one thinks Trump is well-suited to make interest rate decisions (and there is little reason to think he is), it does not follow that Trump’s proposed solution would improve monetary policy.” ~Nicolás Cachanosky

The Dollar and its Domestic Enemies

“The greatest threat to the soundness and utility of the US dollar comes not from shadowy figures in faraway lands, but from unremarkable apparatchiks carrying out the edicts of US officialdom.” ~Peter C. Earle

Governments Shouldn’t Be In the Lending Business

“When government officials approve and guarantee loans, lenders don’t have to worry about taking the loss. They can be very generous, pursuing what they regard as socially beneficial goals, and never worrying about the losses the taxpayers will have to bear.” ~ George Leef

Defense Manual for The War on Prices

“The book advocates for a substantial policy shift toward minimal governmental interference, allowing market mechanisms to function unimpeded. Sadly, we are moving in the opposite direction.” ~Vance Ginn

Confounding the Case for Oil and Gas Collusion

“Oil is produced and sold in a global market. Even true cartels like OPEC don’t have total control over prices. It comes down to supply and demand.” ~Alexander W. Salter