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.

War Of Words Over Inflation Stirs Questions for the Fed

– May 15, 2021

“Does it make sense, for a nation founded on the notion of individual liberty, equality under the law, and personal property rights, to allow a government agency to manipulate the value of the currency used by its citizens? Would it be better to have a stable monetary foundation to facilitate free-market outcomes, rather than empower the Federal Reserve to distort interest rates and dilute dollars in the service of government policy?” ~ Judy Shelton

Restricting Freedom Didn’t Defeat Covid

– May 15, 2021

“Even though freedom is its own wondrous virtue, panicky politicians erased it in 2020 on the supposition that personal and economic desperation was the best solution for a spreading virus. Historians will marvel at the abject stupidity of the political class in 2020.” ~ John Tamny

Setting the Table for Covid-X

– May 15, 2021

“Covid-19 struck a robust, arguably healthy economy; a less productive, more heavily-indebted, higher tax economy awaits Covid-X.” ~ Peter C. Earle

Fears of Price Instability Pull Down Consumer Sentiment in Early May

– May 14, 2021

“Consumer sentiment fell in early May, driven by fears of rising prices as government lockdown policies are eased and economic activity picks up.” – Robert Hughes

Industrial Output Rises in April Despite Weakness in Autos

– May 14, 2021

“Industrial output rose for a second consecutive month in April, recovering from a weather-related drop in February; the sector still has a way to go until pre-pandemic levels of output. In general, cessation of government restrictions on consumers and businesses is boosting the economic outlook.” – Robert Hughes

Frank Knight and the Place of Principles in Economics and Politics

– May 14, 2021

“This counterrevolution can be repulsed and reversed. But it will require the type of defenses of the principle of freedom in politics and economics that Frank Knight called for and reasoned about seventy years ago. We must cultivate a new age of enlightened liberty so as not to fully sink into a new dark age of tyranny and despair.” ~ Richard M. Ebeling

There Is No Avoiding the Long Run: A Low Interest Rate Environment Is a Low Growth Environment

– May 14, 2021

“We’ve trod down the post-Bernanke path long enough to learn that the cost of following a policy of resource allocation by the Federal Reserve instead of allowing a modestly higher rate of inflation is lower growth of real income.” ~ James L. Caton

Retail Sales Stall in April, But Remain Well Above Trend

– May 14, 2021

“Retail sales were mixed in April but a reopening economy and improving fundamentals suggest a strengthening economic outlook.” – Robert Hughes

The Industrial Revolution Was Not a Wash!

– May 14, 2021

“The findings of these recent articles are incredible for anyone seeking to bridge the divide between scholarly knowledge and the popular imagination. They show that even the worst-case scenario implies that the Industrial Revolution constituted a momentous and positive development in terms of the quality of life of the poorest.” ~ Vincent Geloso

Liberals Turning Against the Lockdown Left

– May 14, 2021

“The left, including the U.S. mainstream media, has always pushed a hysterical approach to both Covid spread and severity. But chinks in the armor are now appearing as it becomes clear that many want a permanent Covidocracy – lockdown forever and ever, amen.” ~ Michael Fumento

Monetary Control: Central Banks Today

– May 13, 2021

“The Fed’s operating framework systematically tends towards the abuse of life, liberty, and property. If we want to fix this, we need to take a much closer look at the relationship between money and freedom. Only if we understand this relationship, philosophically, economically, and historically, will we be in a position to fix what’s gone wrong with our monetary institutions.” ~ Alexander W. Salter

Weekly Initial Claims for Unemployment Benefits Continue to Trend Lower

– May 13, 2021

“Initial claims for unemployment benefits continue to trend lower, suggesting a strengthening labor market and improving economic outlook.” – Robert Hughes

Canadian Doctors Are Being Censored

– May 13, 2021

“This move is fundamentally opposed to the values of liberal democracy which have now been jeopardized on a global scale. With the lights of an enlightened and modern civilization going out across the world, it would be fair to ask, will they ever be turned back on in our lifetime?” ~ Ethan Yang

The Many Errors of the Dred Scott Decision

– May 13, 2021

“The Dred Scott Decision reworked the history of the country to fit a narrative. It was factually wrong in stating that the country was founded on racism. The country was founded on the ideals of freedom and equality, and the continuation of slavery in half of the country was a contradiction of those ideals. Most of the Founders hoped for a peaceful resolution of that contradiction; but, as we know, slavery was only ended by a civil war.” ~ Clifford F. Thies

The Economic Revelations of Buddhism

– May 12, 2021

“Matthew D. Milligan, visiting fellow at AIER and Ph.D specialist in epigraphy and material culture joins Aleksandra Przegalinska for an inside look at the intersection of religious cultures and market entrepreneurialism in the sphere of Buddhism and beyond.” ~ AIER

Assessing Potential for Higher Inflation

– May 12, 2021

“Monetary policy is intentionally supporting fiscal policy and supporting levels of indebtedness from the Federal government that are unprecedented. The result has been an explosion of M2 that increases the risk of inflation. There is a fair chance that policymakers will succeed. But, for the possibility of success, they risk a monetary-fiscal crisis.” ~ James L. Caton

Retail sales

Everyday Prices Rise 6.1 Percent from a Year Ago

– May 12, 2021

“AIER’s Everyday Price Index posted the largest yearly rise since 2011. Many prices across the economy are still reflecting distortions from government lockdowns that have caused a wide range of materials shortages, logistical, supply chain, and labor problems. As these issues are worked out, price pressures are likely to ease.” – Robert Hughes

Regulatory Capture, Teacher Unions, and CDC Abuse

– May 12, 2021

“There is no doubt that this unprecedented and deviant child experiment has inflicted significant harm on its human subjects. Thus, while some might say that it is wrong to demonize public health officials, we say that their actions, especially as they relate to children, have been demonic. Regulatory capture of the CDC by teachers unions is a scandal of epic proportions.” ~ Donald S. Siegel & Robert M. Sauer