Donald J. Boudreaux is a senior fellow with American Institute for Economic Research and with the F.A. Hayek Program for Advanced Study in Philosophy, Politics, and Economics at the Mercatus Center at George Mason University; a Mercatus Center Board Member; and a professor of economics and former economics-department chair at George Mason University. He is the author of the books The Essential Hayek, Globalization, Hypocrites and Half-Wits, and his articles appear in such publications as the Wall Street Journal, New York Times, US News & World Report as well as numerous scholarly journals. He writes a blog called Cafe Hayek and a regular column on economics for the Pittsburgh Tribune-Review. Boudreaux earned a PhD in economics from Auburn University and a law degree from the University of Virginia.
Donald J. Boudreaux
Articles from Donald J. Boudreaux
Markets guided by prices daily lead each of us to share happily and abundantly with each other despite the reality that we are, to each other, mostly strangers. Familiarity, affection, and brotherly love are virtuous feelings but these feelings do not contribute as reliably to our material well being as does market exchange.
One of the most common faulty premises that infects discussions of economic policy is the premise that a country is like a private for-profit company, only larger. Nearly everything that the United States President says about trade makes sense if you understand him to believe that the United States economy is a gargantuan for-profit firm.
Producers, on average, capture a 2.2 percent of the total benefits of their successful introduction into markets of technological advances. A whopping 97.8 percent of those benefits are enjoyed by people each of whom as a consumer did nothing other than exercise his right to spend his money on those options that he judges best for himself.
Governments should treat each others’ economic policies as given, if only because almost all government interventions artificially help some producers and hurt others. Because every government is forever grasping for excuses to protect politically powerful domestic producers from foreign competition, each government can find such excuses in even the most mundane actions of foreign governments.