Suppose you bring a fur coat to a dry cleaner and later discover that the owner allowed his wife to wear it before cleaning it (an episode from Seinfeld). Or suppose you gave your car keys to a hotel valet and was told he lent your car to teenagers who took it for a joyride while you were sleeping at the hotel. You would not be too happy and for good reason. When you surrendered your clothes or your car keys, it was a bailment. You retained ownership and gave the clothes or car keys for safekeeping. In no shape or form did you surrender ownership of the items or lend out your property.Suppose you lived in the eighteenth century and had a hundred ounces of gold. It’s heavy, and you do not live in a safe neighborhood, so you decide to bring it to a goldsmith for safekeeping. In exchange for

Zurechtkommen mit der Komplexität des Klimawandels. Eine genauere Betrachtung der wissenschaftlichen Methode und ihrer Einschränkungen

The physical sciences have greatly advanced knowledge by elucidating the workings of simple phenomena. In a simple phenomenon, we have a limited number of important variables, all of which are identifiable and measurable. This allows us to run a scientific experiment. In such an experiment, we hold all other variables constant and examine the influence of one variable on the phenomenon. We can therefore measure this variable’s direction and how important it is to this phenomenon. We can then do this same experiment to all the other variables to determine their direction of influence and relative importance. We can identify which assumed relationships are correct and which are wrong. We can draw conclusions on hypotheses about simple phenomena.
Complex phenomena, on the other hand, have

In the realm of macroeconomics, a legion of PhD economists in central banks passionately contends that interest rates are a pivotal policy tool for managing the economy. Simultaneously, these economists firmly uphold that the Consumer Price Index (CPI) is an accurate gauge for measuring inflation—a widespread acceptance of this CPI as a valuable metric.
The current theoretical state of macroeconomics should be classified as negative knowledge, akin to asserting that the earth is flat. One should have a better understanding of macroeconomics before delving into the topic.
John Maynard Keynes is to blame for this massive loss of knowledge in macroeconomics. He singlehandedly set macroeconomic theory back to the Stone Age. According to Keynes, interest rates are determined by the supply and

Listen to the Audio Mises Wire version of this article. Listening to the news, you might have the impression that its Christmas and the government is Santa Claus. Under legislation recently introduced in Congress, Americans over the age of sixteen would receive $2,000 per month for at least six months. This follows the government’s $1200 giveaway in progress.

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The European Central Bank is ramping up its easy-money policies in an effort to spur inflation, which it hopes will improve the economy. The wealthy and powerful will benefit from this, but most everyone else is in big trouble, writes Frank Hollenbeck.This audio Mises Daily is narrated by Robert Hale.

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Website powered by Mises Institute donors

Mises Institute is a tax-exempt 501(c)(3) nonprofit organization. Contributions are tax-deductible to the full extent the law allows. Tax ID# 52-1263436