Soham Patil



Articles by Soham Patil

The Myth of Market Failure

A prominent topic that economics students anywhere cannot avoid is market failure. Students everywhere are taught that the free market is inherently unstable and causes problems that can only be fixed through legislation and regulation. As a result, most of those who take an economics class come out of it believing that the state helps counter the shortcomings of the free market.However, the concept of market failure is fallacious as it is based upon faulty economic reasoning. Belief in market failure is often complementary with seeking to promote politically desirable goals rather than to promote economic growth.First, a free market operates on freedom of association and property rights. Therefore, for any transaction or exchange to be conducted on a free market, it must be voluntary.

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The State Does Not Create Value-Enhancing Jobs

For quite a considerable amount of time, the topics of job creation and unemployment have been central to every political campaign in almost every country. It hasn’t been without good reason, either, since job security is one of the most important factors in someone’s career. Therefore, a candidate who can promise to create more jobs and sustain job growth would appear on paper to be the better candidate. However, there are few policies that promote greater havoc than job-creation programs. This should not be a surprise since the state is ultimately not responsible for financing jobs, so it need not worry about profit or loss.Politicians are inclined to include job-creation programs in their promises because they are often popular with voters. After all, if there are more jobs in the

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The Best Thing Governments Can Do for Business Is Get Out of the Way

What is the Mises Institute?

The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard. Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.

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Welfare Policies have Great Consequences

In discussions of politics, it is common to see politicians praised for policies and programs that expand the welfare state. Politicians who sign off or approve spending at a greater magnitude than other politicians are often seen as more generous.

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Democracy Is Not the Same Thing as Freedom

In our modern world, most states are democracies or at least call themselves “democratic.” The adoption of democracy is hailed as one of humanity’s greatest achievements. Once upon a time, humanity broke out of the shackles of monarchies and has never looked back since. Nowadays, all citizens in democratic countries are free and safe from despots. Except, that is far from the truth.Democratic systems have been around for a long time. Ancient Greece comes to mind as the most prominent example of democracy in antiquity. While modern democracies are wildly different from the ones in ancient Athens, they are still susceptible to the pitfalls applicable to all democracies.Democracies violate freedom of association. Proponents of democracies often argue that everyone is given a vote and that

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The Best Thing Governments Can Do for Business Is Get Out of the Way

The “ease of doing business” rankings is a list of countries ranked according to how easy it is to register, start, and maintain a business in that country. While its methodology is not perfect, it does attempt to take into account several important factors such as cost and time to start a business, property registrations, tax burdens, and the enforcement of contracts. It should be no surprise that the countries that hover around the top of these rankings are some of the most prosperous in the world.Politicians often use improvements in the ease of doing business as an electoral promise to boost their popularity. Fortunately, when some of these programs are implemented properly and serve to create a freer business environment, it can be good for economic prosperity. This was the case in

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Profit Is Not Plunder

What is the Mises Institute?

The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard. Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.

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Profit Is Not Plunder

Frédéric Bastiat in his book The Law distinguishes between profit and plunder. Profit is financial gain earned through industrious behavior. Business owners make a profit by selling products at a greater amount than what it costs to produce that product. Plunder, by contrast, is the theft of property through nonvoluntary means, such as theft, coercion, or fraud. Bastiat noted that while most plunder is illegal, there remains one major exception: the state.All plunder is an act of aggression against someone else’s natural rights, hence why it is morally wrong. Regular plunder is a tough business, even for delinquent thieves. There is risk involved in robbing or defrauding someone, leading to no return on the effort of the thief. There is also the issue of the victim or potential victims of

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There Is No Prosperity without Private Property

Private property rights are crucial to economic prosperity. Without them, it becomes impossible to set up a system of free markets that allows for rational economic calculation. Despite this, property rights are under attack in today’s world by progressives seeking to build a more “just” society through equity.When property is originally appropriated, it belongs to its owner. The owner may use, transform, sell, or even not use his property at all, based solely on his own discretion. The owner of something has the most incentive to use his property responsibly. This might occur in the form of consuming a good with moderation or using a tool in the most efficient production process. The appropriation of property is a path towards wealth. In a free market system, one can acquire property,

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Low Time Preference Leads to Civilization

What is the Mises Institute?

The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard. Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.

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Low Time Preference Leads to Civilization

Time preference refers to the preference of satisfaction in the present as compared to a future time. A person who heavily prefers current consumption to future consumption has a high time preference as he places a heavy premium upon satisfaction as soon as possible. By contrast, a person who does not place a heavy premium upon instant satisfaction has a low time preference. People with low time preferences are more likely to save and invest their money for greater future rewards. This tendency to delay consumption for the sake of increased production leads to the accumulation of wealth that propels the process of civilization.In Democracy: The God That Failed, Hans-Hermann Hoppe states:However, no matter what a person’s original time-preference rate or what the original distribution of

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CNN Is Wrong. Deflation Is a Good Thing

Tu ne cede malis, sed contra audentior ito

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CNN Is Wrong. Deflation Is a Good Thing

A recent video by CNN states that lower prices are bad for the United States economy and that consumers must get used to the newer, higher prices. The video goes so far as to say, “We’re never going to pay 2019 prices again.” The video claims that deflation is responsible for a long list of problems including layoffs, high unemployment, and falling incomes. Americans should simply get used to paying more and more each year and be happy about it. Except, deflation is actually good for consumers despite the contentions of inflation-supporting economists.The conclusion that inflation is a good thing is reached by the mishandling of economic terms. While Austrian economics accepts that inflation is the expansion of the money supply, mainstream economics contends that inflation is an increase

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