Topic: Economic Theory

Economic Education, Economic Theory, Fiscal Policy

Rich Man, Poor Man: Comparing the Value of a Dollar to Each

– August 3, 2021

“As is so often true in economics, being attuned to more than what is immediately obvious yields insights very different from those that arise from looking only at what is immediately obvious.” ~ Donald J. Boudreaux

Economic Education, Economic Theory

No, Economists Do Not Assume Perfect Knowledge

– April 14, 2021

“The perfect knowledge assumption humbles economists. Gone is the notion that we economists are the enlightened philosopher kings of the social sciences and that the rest of the naves need only listen to our sagely wisdom. Instead, we are, as Boettke, Coyne, and Leeson argue, students of society, not saviors of society. Our job is not to critique nor justify, but to understand and explain.” ~ David Hebert

Crisis, Economic Theory, International

Lockdowns Have Devastated the Global Poor

– February 10, 2021

“Lockdowns affect the global poor as well as the global elite and it seems that the poorer countries have seen a dangerous decline in living standards which will have lasting consequences that are a public crisis in and of themselves. It should now be abundantly clear that economic hardship is not a minor inconvenience and action must be taken to alleviate existing damage and to prevent the further exacerbation of existing calamity.” ~ Ethan Yang

Central Banking, Economic Education, Economic Theory

That Mystical Monetary Theory

– February 5, 2021

“The MMT mistake lies in believing that any alleged shortfall in money or supply of U.S. Treasuries is big enough to finance their entire policy wish list for the foreseeable future. It also assumes that any potential labor or capital goods not currently used can be effortlessly moved to whatever production line politicians desire, without causing prices or wages to increase.” ~ Joakim Book

Economic Theory, Free Markets, History

Tales of the Crypt

– January 24, 2021

“Best of all, nobody was forced to subsidize others. They gave to charity, joined with like-minded people, or sought profit. The system wasn’t perfect — nothing is — but it was a far cry better than taxing people to support inefficient, uniform government educational and welfare programs.” ~ Robert E. Wright

Central Banking, Economic Theory, Monetary Policy

Galbraith Offers a Poor Defense of MMT

– January 16, 2021

“The rise of MMT on the political left will no doubt continue. It is politically expedient. It provides a justification for spending. Political expediency does not imply theoretical soundness, however. And defenses along the lines offered by Galbraith do little to assuage very real concerns.” ~ Nicolás Cachanosky

Economic Education, Economic Theory

HeterosKedasticity or HeterosCedasticity, That Is the Question

– December 10, 2020

“The deviation of the real world from normal gives opportunity for improvement, if we are able to take advantage of positive deviations and minimize the harm of negative deviations. If we can do that, things don’t average out. Progress can come out of the filtering of randomness. Our worth, as individuals, comes not merely how we are similar to others, but to how we are different.” ~ Clifford F. Thies

Crisis, Economic Theory, History

Fauci Is Wrong: New York Did Not Do it “Correctly”

– July 23, 2020

“The deep human costs of this virus and its corresponding policies have been exacerbated by blind hubris and unfounded pride––which, to no small extent, saw their expression in the conceit of rule by models. Though it might be too little too late, diligent reflection and readjustment in future pandemic combat efforts will be the only way to honor those who were lost so unnecessarily.” ~ Fiona Harrigan and Peter C. Earle

Crisis, Economic Theory

The Models Were Wildly Wrong about Reopening Too

– July 23, 2020

“These flawed models begin with an unproven assumption, namely that lockdowns are effective at combating the coronavirus. The models are therefore automatically calibrated to produce a sharp spike in deaths after the removal of lockdowns or any move toward reopening.” ~ Phil Magness

Capitalism, Crisis, Economic Theory

Where Did The Wealth Go?

– June 24, 2020

“The cost of the lockdown is the forgone economic activity, all the meals and haircuts and vacations and flights and trips to the theater and the movies and the nightclub. Those things are gone, and they cannot be made up. We had access to fewer desirable things; that’s where the wealth went.” ~ Michael

Crisis, Economic Theory

Smart Society, Stupid People

– June 21, 2020

“If economies come to be restored, eventually, to their former selves, it will not be because we or our leaders somehow beat a virus. The virus outsmarted everyone. What will fix what the political class has broken is the freedom once again to piece back together the institutions and processes that create the extended order that makes us all feel smarter than we really are.” ~ Jeffrey Tucker

Art and Culture, Crisis, Economic Theory, Policy

The Desperate Loneliness of Social Media

– June 15, 2020

“Other-directed voters go on social media to try to figure out which politicians and policy proposals will earn them the most plaudits from assorted avatars and social influencers. They value fitting in over logic or consistency and many seem genuinely puzzled when the inconsistencies in their expressed opinions are pointed out to them.” ~ Robert Wright