money

Where Does Money Come From?

– September 7, 2020

“Money makes possible an incredible amount of interpersonal coordination in the market. Rules of private property and contract, of various kinds, predate money. But widespread market integration and economic growth only result when there is a critical mass of people in a single commercial network linked by money.” ~ Alexander W. Salter

READ MORE
tesla

What Raised the S&P 500 Price-Earnings Ratio?

– September 7, 2020

“For those who find stock price gains inexplicable and therefore terrifying, the Yardeni-Reynolds Model offers a purely empirical explanation of a seemingly high trailing P/E ratio – extremely low global inflation and bond yields combined with an artificially low P/E denominator of past earnings that includes the terrible second quarter of 2020.” ~ Alan Reynolds

READ MORE
empty shelves

Mandatory Shortages And Concentrated Pain: What “Price Gouging” Laws Do

– September 6, 2020

“Disasters and emergencies are bad enough without policies that make things worse. That’s exactly what price gouging laws are: rules that actually make these worse for the least of these among us by snuffing out the signals that would tell the rest of us precisely what is needed where.” ~ Art Carden

READ MORE
inflation targeting

Average Inflation Targeting and Expectations

– September 6, 2020

“If credible and clearly articulated, an average inflation targeting regime would provide a better anchor for inflation expectations than a period-by-period inflation targeting regime. Alas, the Fed’s new policy strategy has not been clearly articulated, leaving short-run inflation expectations unanchored.” ~ William J. Luther

READ MORE
space x dragon

For-Profit Companies Must be the Backbone of the New Space Age

– September 5, 2020

“Space remains the final frontier. Just as with the terrestrial frontier, private enterprise should be the driving force for exploration, development, and settlement.” ~ David R. Henderson & Alexander W. Salter

READ MORE
golden gate bridge

The Myth of the Crowding-Out Myth

– September 4, 2020

“Recognizing that private investment usually works better than public investment does not mean that public investment is never desirable. But it does put the burden of proof on those who champion public investment projects. Rather than offering faux refutations of the crowding-out argument and citing anecdotal evidence, as Skidelsky does, those in favor of a public investment project should make the case for why it is desirable.” ~ William J. Luther & Nicolás Cachanosky

READ MORE

The Covid-19 Catastrophe

– September 3, 2020

“When the next crisis comes along they will land on the same sorts of heavy-handed solutions they did this time. The only thing that will chasten them is the anger of the American people. Politicians did far more harm to Americans than Covid-19 did, and that’s what the American people need to remember next time our politicians start down the same pointless road.” ~ James Harrigan & Antony Davies

READ MORE

Raising Inflation Expectations by Targeting the Average Rate of Inflation

– September 3, 2020

“The Federal Reserve has increased its commitment to offset a fall in the total level of expenditures in response to an economic downturn. Absent a systematic disruption in the structure of international monetary arrangements or another factor that cannot be offset by monetary policy, the FOMC will ensure that downturns are met with accommodation from monetary policy.” ~ James L. Caton

READ MORE
public school

Reform the K-12 Government- School Monopoly: Economics and Facts

– September 2, 2020

“The economics and facts support the logic of freeing parents to obtain private education and alternative public education for their children. To further facilitate this decision, parents should be given vouchers and credits equal to the cost of public school in their area, which they can freely use to fund their choice of better education in the private sector.” ~ Gregory van Kipnis

READ MORE

Vegan Butter and the History of Regulatory Capture

– September 2, 2020

“At any point in time, say at present, the cost of this instrumentalization of regulatory agencies for private purposes appears minimal. After all, only an infinitesimal fraction of the economy is affected. Yet, try picturing a counterfactual America where the regulatory waltz that began in the late 19th century never actually started. How much richer would Americans be today?” ~ Vincent Geloso

READ MORE

Profit and Loss and Mr. Biden

– September 2, 2020

“Sound bites may be good for political harangues but they are never enough for true understanding. Dissing profits is misleading if no distinction is made between consumer-driven competitive profits and crony-capitalist ones, or if losses are overlooked.” ~ Warren C. Gibson

READ MORE
plato statue

Plato v. Mises: Mises Wins

– September 1, 2020

“The Noble Lie is not noble; if we all repeat it and we are taught it in state schools, before long it’s not even a lie. Because worshippers of the state actually persuade themselves that the whole thing is true. Yes, we are all born equal, but some of us are more equal than others. People want power so they can do good in the world; the result is that they sacrifice their intellect for the sake of their daydreams.” ~ Michael Munger

READ MORE