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.
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
Why Even Insiders Underestimate Markets’ Power
“There tend to be more and better substitution possibilities known to both buyers and sellers than we recognize from the outside of those exchange relationships.” ~Gary M. Galles
Competition Can’t Be Perfect
“Since if something is perfect, it must be desirable, a new generation of attorneys is attempting a wholesale takeover of antitrust enforcement.” ~Michael Munger
Breaking the Shackles of Socialism in Africa
“A new generation of Africans (Wade labels them the Cheetah Generation) are rejecting socialism and embracing entrepreneurship and markets as the path to human flourishing.” ~Marcus Witcher
Business Conditions Monthly February 2024
“Amidst mixed economic data reminiscent of most of the past two years, there are pockets of strength which are nevertheless overshadowed by inflation concerns and speculation regarding monetary policy actions in the coming quarter or two.” ~Peter C. Earle
Elon’s X Marks the Spot in Brazil
“Brazil is facing its greatest struggle for freedom of speech since the end of the military regime… Freedom of speech has been effectively limited without due process, and contrary to the Constitution.” ~Ricardo Gomes
Why Haven’t We Whipped Inflation Yet?
“The best we can do is recalibrate models when we get new data. But that’s like driving the car while looking out the rearview window…hardly ideal for knowing how to adjust your steering.” ~Alexander W. Salter
Nippon Acquisition of US Steel
“Despite its shrunken condition, the Japanese suitor looks to infuse new life into this former behemoth with an infusion of cash, technology, and vision. Blocking this acquisition will result in losses to shareholders, workers, and our economy.” ~Joel Griffith
ESG Puppeteers
“Climate financiers are not capitalists. They are corporatists who think the government should direct private industry. They want to work with government officials to benefit themselves and hamstring their competition.” ~ Paul Mueller
The Colorblind Counterattack
“How on earth could the ideas of Frederick Douglass and MLK find themselves labeled ‘white supremacist’? Two authors have shaken off the shellshock, and now stand ready to fight back.” ~GianCarlo Canaparo
The Justice of an All-Volunteer Military
“A person who voluntarily enlists in the military obviously believes that that employment option is the best one for him or her. In exchange for his or her performance of military duties, that soldier or sailor is paid.” ~Donald J. Boudreaux
Binder’s Response to Kupiec’s Review of ‘Shock Values’
“Each experiment with price controls has been different. I think it is useful to acknowledge that some have been worse than others, and even that some consequences have been good.” ~Carola Binder
Inflation We Can Feel But Don’t Measure
“Regardless of whether one thinks that the CPI should include interest rates and/or asset prices, it seems clear that consumers factor in these costs when evaluating the cost of living.” ~Joshua R. Hendrickson
Business Schools Undermine Wealth Creation
“Universities promote an obsession with social impact that ignores the vital social impact already accomplished by the realm of private enterprise.” ~Kimberlee Josephson
Another Dismal Tax Day: Can It Drive Fiscal Reform?
“The pain and uncertainty from an ever-changing federal progressive marginal individual income tax system with forced withholding and payment or refund later are destructive.” ~Vance Ginn
‘Shock Values’: An Idiosyncratic Economic History
“While it provides a concise accounting of the many efforts taken to address inflation and deflation over the history of the republic, there is a cost to recounting such a rich history in so few pages.” ~Paul H. Kupiec
Economic Development is not a Zero-Sum Game
“By equating profit-making, as such, with evidence of greed and immorality, [the Vatican] perpetuates the harmful zero-sum mentality of mercantilism and socialism. ” ~John C. Pinheiro
Biden Redoubles Effort to Crush Crypto With EIA’s Mining Survey
“Historically, the EIA has been viewed as an agency without a political agenda, but this survey suggests otherwise.” ~James Broughel and John Berlau
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
Why Even Insiders Underestimate Markets’ Power
“There tend to be more and better substitution possibilities known to both buyers and sellers than we recognize from the outside of those exchange relationships.” ~Gary M. Galles
Competition Can’t Be Perfect
“Since if something is perfect, it must be desirable, a new generation of attorneys is attempting a wholesale takeover of antitrust enforcement.” ~Michael Munger
Breaking the Shackles of Socialism in Africa
“A new generation of Africans (Wade labels them the Cheetah Generation) are rejecting socialism and embracing entrepreneurship and markets as the path to human flourishing.” ~Marcus Witcher
Business Conditions Monthly February 2024
“Amidst mixed economic data reminiscent of most of the past two years, there are pockets of strength which are nevertheless overshadowed by inflation concerns and speculation regarding monetary policy actions in the coming quarter or two.” ~Peter C. Earle
Elon’s X Marks the Spot in Brazil
“Brazil is facing its greatest struggle for freedom of speech since the end of the military regime… Freedom of speech has been effectively limited without due process, and contrary to the Constitution.” ~Ricardo Gomes
Why Haven’t We Whipped Inflation Yet?
“The best we can do is recalibrate models when we get new data. But that’s like driving the car while looking out the rearview window…hardly ideal for knowing how to adjust your steering.” ~Alexander W. Salter
Nippon Acquisition of US Steel
“Despite its shrunken condition, the Japanese suitor looks to infuse new life into this former behemoth with an infusion of cash, technology, and vision. Blocking this acquisition will result in losses to shareholders, workers, and our economy.” ~Joel Griffith
ESG Puppeteers
“Climate financiers are not capitalists. They are corporatists who think the government should direct private industry. They want to work with government officials to benefit themselves and hamstring their competition.” ~ Paul Mueller
The Colorblind Counterattack
“How on earth could the ideas of Frederick Douglass and MLK find themselves labeled ‘white supremacist’? Two authors have shaken off the shellshock, and now stand ready to fight back.” ~GianCarlo Canaparo
The Justice of an All-Volunteer Military
“A person who voluntarily enlists in the military obviously believes that that employment option is the best one for him or her. In exchange for his or her performance of military duties, that soldier or sailor is paid.” ~Donald J. Boudreaux
Binder’s Response to Kupiec’s Review of ‘Shock Values’
“Each experiment with price controls has been different. I think it is useful to acknowledge that some have been worse than others, and even that some consequences have been good.” ~Carola Binder
Inflation We Can Feel But Don’t Measure
“Regardless of whether one thinks that the CPI should include interest rates and/or asset prices, it seems clear that consumers factor in these costs when evaluating the cost of living.” ~Joshua R. Hendrickson
Business Schools Undermine Wealth Creation
“Universities promote an obsession with social impact that ignores the vital social impact already accomplished by the realm of private enterprise.” ~Kimberlee Josephson
Another Dismal Tax Day: Can It Drive Fiscal Reform?
“The pain and uncertainty from an ever-changing federal progressive marginal individual income tax system with forced withholding and payment or refund later are destructive.” ~Vance Ginn
‘Shock Values’: An Idiosyncratic Economic History
“While it provides a concise accounting of the many efforts taken to address inflation and deflation over the history of the republic, there is a cost to recounting such a rich history in so few pages.” ~Paul H. Kupiec
Economic Development is not a Zero-Sum Game
“By equating profit-making, as such, with evidence of greed and immorality, [the Vatican] perpetuates the harmful zero-sum mentality of mercantilism and socialism. ” ~John C. Pinheiro
Biden Redoubles Effort to Crush Crypto With EIA’s Mining Survey
“Historically, the EIA has been viewed as an agency without a political agenda, but this survey suggests otherwise.” ~James Broughel and John Berlau