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.

The Horrors of Hyperinflation

– June 16, 2021

“Governments have few universally accepted goals. National defense, protection of property, and stability of the unit of account are arguably the three most important because all else rides on them. Hyperinflation destroys all three, so any serious risk of hyperinflation is simply unacceptable from a policy standpoint.” ~ Robert E. Wright

Pandemic Pressures Continue to Unwind in Housing

– June 16, 2021

“Home construction activity showed additional signs of cooling in May. The combination of a reopening economy that may be reversing pandemic-related housing preferences and rising single-family prices appear to be impacting activity.” – Robert Hughes

Has the Government Forgotten How Society Works?

– June 16, 2021

“The premise for the modern administrative state is the dubious notion that the federal government can scientifically plan the lives of hundreds of millions of people. The practical outcome is a regime of sheer incompetence and counterproductive policymaking that is fundamentally at odds with the normal functioning of society. It is a system meant not for a nation of pioneers and entrepreneurs, but hall monitors and clerks.” ~ Ethan Yang

Defining Down Freedom

– June 16, 2021

“Politicians vindicated lockdowns by claiming that all the sacrifices are justified if they ‘save just one life.’ But what about ‘just one freedom’ – especially freedoms previously enjoyed by hundreds of millions of people? Instead of ‘Build Back Better’ further empowering reckless rulers, we need to ‘Build Back Freer.'” ~ James Bovard

Industrial Output Rose in May on Broad Gains; Capacity Utilization Remains Low

– June 15, 2021

“Industrial output rose in May and is closing in on pre-pandemic levels. However, substantial excess capacity still exists. While reopening the economy is boosting demand, incomes, and confidence, rising prices are a concern. However, a runaway inflationary spiral remains unlikely.” – Robert Hughes

You Are Not Paying a Higher Relevant Tax Rate Than Billionaires

– June 15, 2021

“Allegations that higher income earners don’t pay their ‘fair share’ of taxes are a mainstay misrepresentation of the political left. When the facts say otherwise, they simply twist the facts and ignore more serious studies. ProPublica’s latest effort is just one more of a long line of such analytical abuses, whose details have varied over time in search of what can be most effectively used to mislead citizens.” ~ Gary M. Galles

Everyday Price Index

Discretionary Spending Categories Drag Down May Retail Sales

– June 15, 2021

“Retail sales fell in May with noticeable weakness among discretionary spending. However, solid consumer fundamentals suggest a positive economic outlook, despite some recent upward pressure on prices.” – Robert Hughes

El Salvador Is Not the Birthplace of Bitcoin’s Future

– June 15, 2021

“Imposing the use of Bitcoin by force through a software oligopoly–through a scheme which may ultimately pose a threat to the entire El Salvadoran economy–is almost as far from Satoshi’s Bitcoin objectives as the fiat dollar is.” ~ Peter C. Earle

This Claim of Market Failure Deserves No Credit

– June 15, 2021

“If you who claim to identify a market failure could, but don’t, voluntarily put your own money where your mouth is in an attempt to address that alleged failure, why should anyone listen to your pleas for government to coercively put other people’s money where your mouth is?” ~ Donald J. Boudreaux

Special Issue on China

“The United States and China are beginning to compete more closely all around the world, and collisions of interest are occurring more frequently. This issue is dedicated to US-China topics.” ~AIER

Wuhan Lab Controversy Illustrates How Government Funding Throttles Scientific Integrity

– June 14, 2021

“We must separate government completely from science for the same reason we separate church from state and press from state. Don’t force our scientists to become supplicants to government bureaucrats in order to pursue truth. That will be the death of reason, science, and truth, and lead to disasters, such as misunderstanding the origins of deadly viruses.” ~ Raymond C. Niles

The Labor Shortage Is a Government-Contrived Scarcity

– June 14, 2021

“Contrived scarcities, in principle, could be gone tomorrow if the government’s economic policies fostering, creating and sustaining them were abolished and eliminated. The individual’s freedom of choice and action as both consumer and producer will have been more fully restored with a less intervening government.” ~ Richard M. Ebeling

Saving America From the Counterrevolution

– June 14, 2021

“Defenders of the great revolution of enlightenment values and modernity have our work cut out for us. Harwood’s book is just as relevant today as it was in 1951 and at less than 100 pages, it is a manifesto for those who are up to the task of standing watch over the well-being of our society.” ~ Ethan Yang

Doomed by Politics

– June 13, 2021

“How we prepare and what we do with the worldly events that face us matter: even catastrophes that stem from pathogens or poor harvests are man-made, a message for which Ferguson’s fidgitive book only narrowly succeeds.” ~ Joakim Book

Where Economics and Management Studies Overlap: A Brief Review of Austrian Perspectives on Entrepreneurship, Strategy, and Organization

– June 13, 2021

“Elements is a good refresher for people who haven’t thought about it in a while, and I think it’s also a good jumping-off point for teachers looking to organize lectures and classroom activities. Yes, markets tend toward equilibrium, but this Element points us to the journey, and that’s where all the entrepreneurial action is.” ~ Art Carden

Why British House Prices Went Up When They Should Have Gone Down

– June 12, 2021

“Two other developments undermine the idea that houses got more expensive in the last year: real interest rates and plenty of household savings. Those two trends mean that even though the sticker prices of many British homes are higher than they were before the pandemic, the ease with which the typical household could acquire them has improved.” ~ Joakim Book

The American Public Favors Competitive Energy Markets – So Does the Environment

– June 12, 2021

“With public opinion lining up with the practical advantages of competitive energy markets, deregulating energy markets and promoting competition among energy sources and producers is a no-brainer – both for consumers and the planet.” ~ Christopher Barnard

The 1980s Called, And It Wants Its Industrial Paranoia Back

– June 11, 2021

“Sad about it all is that formerly free market conservatives have joined the echo chamber this time around, and turned the volume way up. A $250 billion industrial policy bill reminiscent of ‘80s paranoia is the result. Good work, conservatives.” ~ John Tamny