Tag Archives: 6b) Mises.org

Governments and central banks have become the lender of first resort instead of the last resort, and this is immensely dangerous. Global debt soars, inflation creeps in, and many of the so-called supply chain disruptions are the result of zombification after years of subsidizing low productivity and penalizing high productivity with increased taxes. There are many reasons why nations should not “spend now and deal with the consequences later.” First, the spending is...

Quantitative easing was designed as a tool to provide time for governments to implement structural reforms, boost growth, and strengthen the economy. However, it has become a tool to increase the size of government and take increasingly riskier levels of debt. The United States economy has not strengthened in the period of enormous fiscal and monetary stimuli, as the latest data shows. It needs increasing units of debt to generate a new unit of gross domestic product...

For many commentators, a change in the shape of the differential between the long-term interest rate and the short-term interest rate—i.e., the yield spread provides an indication of the likely direction of the economy in the months ahead. Thus, an increase in the yield spread raises the likelihood of a possible strengthening in economic activity in the months to come. Conversely, a decline in the yield spread is seen as indicative of a possible economic downturn...

Such is the intellectual stature of Ludwig von Mises that even many decades after his passing the opponents of classical liberalism and laissez-faire capitalism continue to attack his life’s work. A recent instance of this phenomenon is an article published in Jacobin by Matt McManus, which, rather unoriginally, accuses Mises of being a “market ideologue” rather than a “hardheaded thinker.” As readers of this website may expect, McManus fails to substantiate his...

The “new history of capitalism” (NHC) continues to receive widespread acclaim despite mounting inaccuracies. Although critical reviews have punctured adherents’ arguments many still cling to wrongheaded assumptions that exaggerate the role of slavery and cotton in powering America’s economic progress. Several industries were complicit in fueling slavery, but their success was never hinged on slave production. In fact, slavery proved to be a hindrance to commercial...

Media reports claim this debt prevents economic recovery. Chuck Schumer would erase it with the flick of a pen. Elizabeth Warren would remove it to free students’ ability to buy a house and form a family. Janet Yellen opines paying off student loan debt (SLD) will free up venture capital. Alexandria Ocasio-Cortez claims the proposed Biden plan is inadequate. The complexities of SLD are simplified for the public by moving details into an abyss of aggregates; “average...

An energy policy that bans investment in some technologies based on ideological views and ignores security of supply is doomed to a strepitous failure. The energy crisis in the European Union was not created by market failures or lack of alternatives. It was created by political nudging and imposition. Renewable energies are a positive force within a balanced energy mix, not on their own, due to the volatile and intermittent nature of the technology. Politicians have...

In my second article on the college problem, I discussed the public policy factors that contribute to the rising cost of higher education. But politics makes its way into education through more than public policy, as professors bring their political views into their classrooms and research. Nothing has contributed more to my personal disillusionment with higher education than seeing the extent to which the ideological problem has affected the university system. At...

Pascal Salin is an economist, professor emeritus at the University of Paris-Dauphine, and was president of the Mont-Pelerin Society from 1994 to 1996. Among the extensive list of books Professor Salin has published, mention can be made of the following titles: La vérité sur la monnaie (Paris: Odile Jacob, 1990), Libéralisme (Paris: Odile Jacob, 2000), Français, n’ayez pas peur du libéralisme (Paris: Odile Jacob, 2007), Revenir au capitalisme pour éviter les...

The subject of time and money has hit a boiling point. Just look at Sri Lanka and Iran, where food riots have turned deadly, or, shall we say, currency riots have. People can’t buy food, and “protesters angry at the soaring prices of everyday commodities including food, have burned down homes belonging to 38 politicians as the crisis-hit country plunged further into chaos, with the government ordering troops to ‘shoot on sight,’” reports invesbrain.com. Murray...