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.
Unseen Innovation
“An individual innovation is small, minuscule even. But it’s real and it improves our standard of living. Yet how many of you have noticed it? Almost none. The market, therefore, gets no credit for it.” ~Donald J. Boudreaux
Milei Proves That Ideas Matter
“Rather than the thin gruel of economic grievance offered by American right-wing populists, Milei’s policies are built on his vast knowledge of sound and successful, albeit politically unpopular, economic thinking.” ~ G. Patrick Lynch
Wealth Precedes Health. Policy Should Reflect That.
“Government policies including excessive taxation and regulation, directly taking property, and weak patent and copyright protection can negatively affect wealth in rich and poor countries.” ~Richard Williams
Time for the Fed to Ease Up
“Even if Fed economists have underestimated the natural rate of interest by half, monetary policy looks slightly tight. It looks very tight if the natural-rate figures are anywhere close to correct.” ~Alexander W. Salter
Inflation On Target in December
“Monetary policy remains very tight. Interest rates are much higher than they were just prior to the pandemic. And the Fed is no longer accommodating expansionary fiscal policy.” ~William J. Luther
The (Other) Cost of Inflation: Inflation Erodes More Than the Value of Money, History Shows
“Hazlitt’s thesis is that bad money will inevitably result in bad behavior. This might be a tough thesis to swallow — particularly for those who live in the age of fiat money.” ~Jon Miltimore
Bidenomics and the Slippery Erosion of Economic Freedom
“The Biden Administration claims to promote economic growth and increase competitiveness while choking the economy with rules and regulations.” ~Nikolai Wenzel
A Statue Worth Preserving; A Man Worth Honoring
“William Penn’s 1682 ‘Frame of Government’ for Pennsylvania included elected representatives, a separation of powers, religious freedom, and fair trials, all since incorporated into our Constitution.” ~Gary Galles
Mr. Jones and the Soviet Lie
“Socialism not only hollows out economies, but also makes truth the enemy of the people. And when silence overwhelms a nation, the few who are brave enough to speak can shape history.” ~Michael Peterson
Arguments Against The Death Penalty and Gun Control Have A Few Things in Common
“We can’t say, ‘There is no point, because the average criminal won’t obey the law.’ Just because the average criminal doesn’t obey the law, that does not mean the marginal criminal won’t.” ~Art Carden
Profits Do Not Cause Inflation: Causal Fallacies as Economic Disinformation
“Fortunately, the idea that thousands of businesses have colluded to raise prices, boosting their profit margins and engineering the inflation that continues to afflict Americans, is easily disproven.” ~Peter C. Earle
Is DEI Collapsing?
“The pervasive cloud of weird, semi-threatening tension which swirls around a modern faculty corridor does a disservice to a long and venerable academic tradition.” ~Paul Schwennesen
Check Your Economic Hubris
“No matter how glorious it was for Icarus to fly and how well he thought he could do it, reality has a way of punishing excessive hubris.” ~Joakim Book
The Future of Bitcoin in Light of a Spot ETF
“While the SEC’s long-overdue approval of a Bitcoin spot ETF deserves a bit of celebration, watch out for what’s next. The state apparatus will increasingly treat Bitcoin as a regulated financial product.” ~Emile Phaneuf III
A Short Guide to ESG: Conclusions
“Unfortunately, ESG experts and government officials are convinced that they already know the answers to these questions and simply need to redirect massive resources accordingly. But if they are wrong, we will all suffer.” ~Paul Mueller
Immigration, Inflation, and Wages: Better Under Trump or Biden?
“Ten months from now, there’s a high likelihood Biden and Trump could go head-to-head again for the presidency, especially after the results from the Iowa caucus. But voters should be informed about the effects of their policies on key issues like immigration, inflation, and wages.” ~Vance Ginn
Markets and the Montgomery Bus Boycott
“The immutable laws of markets enabled Montgomery’s black community to use the withholding of bus fares through the organized boycott to effectively turn the city bus company into an ally for legal reform.” ~Blake Ball
The Gramscian March Trips Up
“The strategy aimed at shaping collective consciousness seems to have backfired, as the population, witnessing the institutional embrace of socialist ideologies, lost faith in the very institutions ostensibly meant to guide them.” ~Paul Schwennesen
Unseen Innovation
“An individual innovation is small, minuscule even. But it’s real and it improves our standard of living. Yet how many of you have noticed it? Almost none. The market, therefore, gets no credit for it.” ~Donald J. Boudreaux
Milei Proves That Ideas Matter
“Rather than the thin gruel of economic grievance offered by American right-wing populists, Milei’s policies are built on his vast knowledge of sound and successful, albeit politically unpopular, economic thinking.” ~ G. Patrick Lynch
Wealth Precedes Health. Policy Should Reflect That.
“Government policies including excessive taxation and regulation, directly taking property, and weak patent and copyright protection can negatively affect wealth in rich and poor countries.” ~Richard Williams
Time for the Fed to Ease Up
“Even if Fed economists have underestimated the natural rate of interest by half, monetary policy looks slightly tight. It looks very tight if the natural-rate figures are anywhere close to correct.” ~Alexander W. Salter
Inflation On Target in December
“Monetary policy remains very tight. Interest rates are much higher than they were just prior to the pandemic. And the Fed is no longer accommodating expansionary fiscal policy.” ~William J. Luther
The (Other) Cost of Inflation: Inflation Erodes More Than the Value of Money, History Shows
“Hazlitt’s thesis is that bad money will inevitably result in bad behavior. This might be a tough thesis to swallow — particularly for those who live in the age of fiat money.” ~Jon Miltimore
Bidenomics and the Slippery Erosion of Economic Freedom
“The Biden Administration claims to promote economic growth and increase competitiveness while choking the economy with rules and regulations.” ~Nikolai Wenzel
A Statue Worth Preserving; A Man Worth Honoring
“William Penn’s 1682 ‘Frame of Government’ for Pennsylvania included elected representatives, a separation of powers, religious freedom, and fair trials, all since incorporated into our Constitution.” ~Gary Galles
Mr. Jones and the Soviet Lie
“Socialism not only hollows out economies, but also makes truth the enemy of the people. And when silence overwhelms a nation, the few who are brave enough to speak can shape history.” ~Michael Peterson
Arguments Against The Death Penalty and Gun Control Have A Few Things in Common
“We can’t say, ‘There is no point, because the average criminal won’t obey the law.’ Just because the average criminal doesn’t obey the law, that does not mean the marginal criminal won’t.” ~Art Carden
Profits Do Not Cause Inflation: Causal Fallacies as Economic Disinformation
“Fortunately, the idea that thousands of businesses have colluded to raise prices, boosting their profit margins and engineering the inflation that continues to afflict Americans, is easily disproven.” ~Peter C. Earle
Is DEI Collapsing?
“The pervasive cloud of weird, semi-threatening tension which swirls around a modern faculty corridor does a disservice to a long and venerable academic tradition.” ~Paul Schwennesen
Check Your Economic Hubris
“No matter how glorious it was for Icarus to fly and how well he thought he could do it, reality has a way of punishing excessive hubris.” ~Joakim Book
The Future of Bitcoin in Light of a Spot ETF
“While the SEC’s long-overdue approval of a Bitcoin spot ETF deserves a bit of celebration, watch out for what’s next. The state apparatus will increasingly treat Bitcoin as a regulated financial product.” ~Emile Phaneuf III
A Short Guide to ESG: Conclusions
“Unfortunately, ESG experts and government officials are convinced that they already know the answers to these questions and simply need to redirect massive resources accordingly. But if they are wrong, we will all suffer.” ~Paul Mueller
Immigration, Inflation, and Wages: Better Under Trump or Biden?
“Ten months from now, there’s a high likelihood Biden and Trump could go head-to-head again for the presidency, especially after the results from the Iowa caucus. But voters should be informed about the effects of their policies on key issues like immigration, inflation, and wages.” ~Vance Ginn
Markets and the Montgomery Bus Boycott
“The immutable laws of markets enabled Montgomery’s black community to use the withholding of bus fares through the organized boycott to effectively turn the city bus company into an ally for legal reform.” ~Blake Ball
The Gramscian March Trips Up
“The strategy aimed at shaping collective consciousness seems to have backfired, as the population, witnessing the institutional embrace of socialist ideologies, lost faith in the very institutions ostensibly meant to guide them.” ~Paul Schwennesen