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.

Washington’s Budget Deficits: Size and Composition Matter

– July 4, 2022

“Since entitlements are off the table under threats of touching ‘the third rail of politics,’ then proponents of fiscal discipline have been trying to reform and constrain an ever-smaller portion of the overall budget.” ~ Peter T. Calcagno & Edward J. Lopez

Happy Birthday, America; Now Mind How You Go

– July 4, 2022

“America the Beautiful, I wish you a happy birthday. I thank you for your generosity over these decades, and I say sincerely, ‘Mind how you go.’ The world needs your seeking to be fair and just, and full of possibility, not divided and rancorous, and a threat to yourself.” ~ Llewellyn King

Four Amazing Differences

– July 3, 2022

“What causes the great and overwhelmingly successful coordination across the globe of the productive efforts of billions of strangers? And why is this coordination so silent and incessant that we take it for granted? We hardly notice it.” ~ Donald J. Boudreaux

Five Ways Minimum Wage Studies Fail

– July 3, 2022

“We’d all do well to keep these five points in mind the next time we see a study touting that when it comes to the minimum wage there is, in fact, a free lunch.” ~ Caleb S. Fuller

From Victims to Pawns: New York’s About-Face on Marijuana

– July 2, 2022

“Politicians’ sudden moral awakening would be much more believable if their efforts sought to deliver maximum benefit to the people they harmed rather than to deliver maximum benefit to the political class under the guise of helping their former victims.” ~ Antony Davies

Market Solutions to Ancient Sins

– July 2, 2022

“Ferguson and Witcher make persuasive arguments in favor of the classical liberal narrative about black history, and they also provide valuable summaries of and introductions to the work of other important classical liberal and libertarian scholars on race.” ~ Jason Jewell

Manufacturing-Sector Survey Suggests Slowing Growth and Slightly Fewer Price Pressures

– July 1, 2022

“The latest manufacturing survey suggests supply and demand may be moving closer to balance. However, persistently elevated price increases and an intensifying Fed policy tightening cycle remain risks to the outlook.” ~ Robert Hughes

Inflation: Hidden Costs & Debunking Myths | Liberty Curious (Video)

– July 1, 2022

“In this episode of Liberty Curious, AIER Research Faculty Peter C. Earle discusses some of the lesser-known costs of inflation. He also provides an overview of what inflation actually is- and what really causes it.” ~ AIER

Stocks and Bonds Hurt Alike Under Stagflation

– July 1, 2022

“When bonds and stocks decline a lot and simultaneously it suggests inflation is rising rapidly even as the economy is stagnating or contracting (or will soon do so). For most economists today, that combination is near-impossible.” ~ Richard M. Salsman

Inflation Increased In May, New Data Show

– July 1, 2022

“It is difficult to say precisely when the inflation tide will turn. But consumers should expect inflation to remain high throughout the rest of the year.” ~ William J. Luther

Tocqueville’s Worst Fears

– July 1, 2022

“Piketty is less concerned with promoting either political or individual freedom than he is with building a ‘state’ strong enough to push ‘to its logical conclusion ‘the movement towards ‘real equality’ as he conceives it.” ~ David Lewis Schaefer

Real Disposable Income and Real Consumer Spending Fell in May

– June 30, 2022

“Personal income rose in May, but real disposable income and real consumer spending fell. The outlook for the economy remains highly uncertain.” ~ Robert Hughes

Average Weekly Initial Claims Rose for a Fourth Consecutive Week

– June 30, 2022

“Weekly initial claims fell, but the four-week average continues on a modest upward trend. Sustained elevated price increases and an intensifying Fed tightening cycle remain risks to the outlook.” ~ Robert Hughes

The Perpetual Tragedy of New York’s Rent Control

– June 30, 2022

“If the city keeps reducing real rents by capping increases below the inflation rate (as it is doing now), and if inflation continues for more than a few years, we will see building abandonments once again.” ~ Raymond C. Niles

Inflation and Time

– June 30, 2022

“The monetary regime that we have had since Richard Nixon closed the gold window is one of persistent price inflation. A comparison of money prices today and money prices in 1971 are essentially meaningless.” ~ Joshua R. Hendrickson

You Should Care About Martin Van Buren

– June 30, 2022

“Martin Van Buren may not be everyone’s favorite President, but he is worth studying. After all, an estimated 28 percent of Americans identify with the Democratic Party. People should at least know how their political party came to be and why it endured.” ~ Garion Frankel

Better Explanations for Inflation

– June 29, 2022

“We have enough information to conclude policy mistakes, especially on the demand side, go a long way toward explaining today’s inflation.” ~ Alexander William Salter

The Death of Separationism and the Life of School Choice

– June 29, 2022

“Carson v. Makin energizes a political movement that is essential to improving the human capital of the next generation as well as sustaining the ideological and religious diversity that makes for a pluralist society.” ~ John O. McGinnis