Many people think that tipping is a results from stingy employers not paying a "living wage." But tipping solves multiple economic problems while making employers more likely to hire untried workers, writes Kenneth Zahringer.
This audio Mises Daily is narrated by Robert Hale.
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The Death of Easy Money Has Been Greatly Exaggerated
2024-02-21
Reports on the death of the present cycle of politically motivated monetary easing, in the words of Mark Twain, grossly exaggerated. Contemporary market analyses are full of how the Fed and ECB are dialing back on previous hints of Spring 2024 rate cuts. In tune with this, commentators are lauding the central banks, especially the Fed, for a show of political independence as elections approach.
The bigger picture though suggests otherwise. In the economic aftermath of the pandemic, monetary policy has again been blatantly political.
Yes, in both the US and Europe, central banks have had the chutzpah to claim credit for slowing down the rise of consumer prices. The truth is they have taken advantage of the supply boost from fading pandemic dislocations to pursue continued—but now partially
Private Medical Care STILL Is a Better Deal Than Government Care
2023-11-24
Most people have a negative view of business monopolies. Whether for allegedly exploiting workers, causing inefficiency, or crowding out potential challengers, most government-granted monopolies undoubtedly hurt entrepreneurs and customers.
This basic distrust of monopolization disappears as soon as one enters the floors of the United States Senate or Congress. Government-forced monopolization arises in virtually every industry, but nowhere is it as costly as in healthcare.
Just like the government gives special privileges to big tech companies and massive pharmaceutical firms, the state also has an affinity for big hospitals over smaller independently run clinics. Consider that one of the largest government-funded medical programs (Medicare) would pay private clinics nearly 80 percent
The United States Needs Its Own Javier Milei
2023-11-22
On Sunday, the populist Austrolibertarian Javier Milei was elected president of Argentina. In the United States, the reaction ranged from concerned curiosity on the part of the political establishment to enthusiastic celebration across the populist Right—including, notably, some economic nationalists. Several renowned libertarians also brought attention to some of Milei’s many flaws, such as his views on geopolitics.
Milei’s libertarian skeptics make many good points. And odds are a man with a legislature stacked against him will not be able to address Argentina’s many problems without some political backup. But still, there is much to admire about Milei’s rise and plenty to learn from his campaign’s bold, spirited rhetoric. Because our country is also in desperate need of a similar course
Easy Money Undermines Social Mobility
2023-11-21
Central banks around the world target a stable price inflation rate of 2 percent annually over the medium term. This is widely considered to be monetary policy’s most important contribution to the smooth functioning of a dynamic economy. This view is wrong on multiple grounds, but there is one problem with it that is commonly ignored. Inflation, even if it remains relatively moderate, can contribute to rising inequality and undermine social mobility. It therefore poses a serious threat to a free and market-based economy. Few things are as potent as inequality, especially inequality caused by the inherently unjust process of inflation, in stimulating further fiscal interventions, higher taxes, and redistribution.
Inflation, even if it remains around 2 percent, creates strong incentives for
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