Tag Archives: 6b) Mises.org

In August of 1963, Human Events published an article written by Howard Buffett entitled “’Thou Shalt Not Steal!’ But Government Confiscation Has Been Legalized.”1 Buffett began it with satire, suggesting that the Seventh Commandment (eighth in some religions) had become obsolete. Indeed, throughout history, he said, the commandment had “always been a thorn in the side of many people, both great and small.” The strong and the powerful saw it as an “unwarranted...

In an August editorial, the New York Times called for an investigation into the attack on Russian dissident Aleksei Navalny, who was recently transported to Germany in a coma after apparently being poisoned. No one knows who did the poisoning, but the Times has strong suspicions: A hit on so prominent a figure, with the inevitable eruption of global and domestic fury, would presumably require sanction from the highest echelons of power….Mr. Putin has certainly shown...

In the wake of the economically disastrous covid-19 shutdowns, the political class has desperately tried to save the failing euro system. On July 21 European leaders agreed on what they called a “historic” deal. It was nothing more than a multitrillion euro stimulus package. However, it is more probable that the “recovery fund” will delay any chance of a much-needed economic restructuring taking place. What it will do is waste scarce resources and capital while...

Misguided lockdowns have destroyed the global economy and the impact is likely to last for years. The fallacy of the “lives or the economy” argument is evident now that we see that countries like Taiwan, South Korea, Austria, Sweden, and Holland have been able to preserve the business fabric and the economy while doing a much better job managing the pandemic than countries with severe lockdowns. One of the most alarming facts about this crisis is the pace at which...

The US Fed is considering lifting its inflation target above 2 percent in order to revive the economy. Contrary to the accepted practice, the Fed is not expected to raise an alarm if the measured price inflation begins to rise. The US central bank is not expected to counter this increase with a tighter monetary stance as in the past. In fact, the idea is to continue robust monetary pumping until the economic data points toward a strong economy. According to most...

To quote the last paragraph of this 2008 article by Robert Murphy, when asked why Austrian school economics should be studied, the best answer is: “the Austrian theory of capital is the best one you can find if you really want to grasp how the economy actually works—beyond sterile mathematics and static timeless analysis.” The Austrian school’s understanding of capital and production relies upon three main pillars. First: the factors of production comprise both...

In an address to the Massachusetts Anti-Slavery Society in 1865, Frederick Douglass noted that he had often been asked “What should we do with the Negro?” Douglass remarked: I have had but one answer from the beginning. Do nothing with us! If the apples will not remain on the tree of their own strength, if they are worm eaten at the core, if they are early ripe and disposed to fall, let them fall….And if the Negro cannot stand on his own legs, let him fall also. All...

Make the money cheap enough and government intrusive enough, and incongruous headlines appear side by side. For instance, from the Las Vegas Review-Journal comes this head-scratcher: “Las Vegas Housing Market ‘on Fire’ as Economy Limps Along.” Almost Daily Grant’s reminds us the Federal Reserve is on the job 24/7/365, There’s more where that came from. Last week’s release of the minutes to the Federal Reserve’s July meeting indicated that the Open Market Committee...

The Fed Emperor’s New Clothes Show is a continuous comedy without laughter. The latest act, the virtual Jackson Hole conference (August 27), was dreadful. The show’s audiences are accustomed to the Fed chair and his board delivering solemn pronouncements about their aims—low inflation, high employment, and financial stability. These officials play their parts according to script. They never explain how they will fulfill their promise—it is all boast and no substance....

In the natural sciences, a laboratory experiment can isolate various elements and their movements. There is no equivalent in the discipline of economics. The employment of econometrics and econometric model building is an attempt to create a laboratory where controlled experiments can be conducted. Building an Economic Model The idea of having such a laboratory is very appealing to economists and politicians. Once the model is built and endorsed as a good...