Category Archive: 6b) Austrian Economics

The Idea of Liberty Is Western

[This article is excerpted from chapter 21 of Money, Method, and the Market Process, a collection of essays selected and edited by Margit von Mises and with an introduction by Richard M. Ebeling.] I The history of civilization is the record of a ceaseless struggle for liberty. Social cooperation under the division of labor is the ultimate and sole source of man's success in his struggle for survival and his endeavors to improve as much as...

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The Fed Is Finally Seeing the Magnitude of the Mess It Created

When asked about price inflation in his Sunday interview with 60 Minutes, President Biden claimed that inflation "was up just an inch...hardly at all." Biden continued the dishonest tactic of focuses on month-to-month price inflation growth as a means of obscuring the 40-year highs in year-over-year inflation. This strategy may yet work to placate the most ignorant voters, but people who are paying attention know that price inflation...

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What Economics Is

Economics is an exciting field. The economics of old sought to uncover how the world works. It showed, or even proved, that there is a natural order to it. There is structure to the apparent chaos. The economy has something of a life of its own: it has a nature.

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Does Capitalism Itself Create Economic Instability or Is Central Banking the Culprit?

Instability in financial markets has brought back the ideas of post-Keynesian school of economics (PK) economist Hyman Minsky. Minsky held that the capitalist economy inherently is unstable, culminating in severe economic crisis, accumulation of debt being the key mechanism pushing the economy toward a crisis.

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Central Bankers Are Gaslighting Us about the “Strong Dollar”

On February 8, the Japanese yen fell to a 24-year low against the dollar, dropping to 143 yen per dollar. Not much has changed since then with the yen hovering between 142 and 144 per dollar. In September of 2021, one only needed 109 yen to buy a dollar. 

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Why the Fed Usually Ignores its Mandate for “Stable Prices”

In recent years, Congress has attempted to add various new mandates to the Federal Reserve's mission. In 2020, Democrats introduced the "Federal Reserve Racial and Economic Equity Act."  Then, in 2021, pundits and politicians were telling us that it's the Fed's job to "combat climate change."

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Review: Free Market: The History of an Idea

Jacob Soll is a distinguished historian, and Free Market contains much of value, but the book cannot be considered a success, and indeed as it reaches the twentieth century, it becomes a disaster. Even in the parts of the book worth reading, Soll is in the iron grip of a central thesis, one that his historical approach by its nature makes impossible to prove.

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Right-Wing Hypocrisy on DeSantis’s Clownish Thuggery

Right-wingers are making a big deal out of the decision by people in Martha’s Vineyard not to take into their homes the immigrants that Florida Gov. Ron DeSantis shipped to them a few days ago. The right-wingers are saying that feeding the immigrants and caring for them was not sufficient.

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Socialism Is Not Groupthink, but Statethink: A Brief Comment on Jordan Peterson

According to Jordan Peterson, left-wing totalitarians are characterized by an ideology in which group identity is paramount. I will demonstrate that this is a misconception. Historically, socialists have fought against feudalism and capitalism in the name of emancipating the individual from any kind of group or class identity.

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Wages, Unemployment, and Inflation

Our economic system—the market economy or cap­italism—is a system of consumers' supremacy. The customer is sovereign; he is, says a popular slogan, "always right." Businessmen are under the neces­sity of turning out what the consumers ask for and they must sell their wares at prices which the con­sumers can afford and are prepared to pay.

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The Truth about American Inequality

Economist and Mises Institute Associated Scholar Robert Ekelund recently teamed up with former US Senator Phil Gramm and John Early to write The Myth of American Inequality: How Gernment Biases Policy Debate.  The book was released this month by Rowman and Littlefield Publishers. In it, the authors explore some of the many ways that the debate over inequality in the United States is based on bad research, bad data, and a variety of other...

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Molinari Explains the Difference between Monarchy and Popular Government

With the impending burial of the United Kingdom’s Queen Elizabeth II, republicans from London to Sydney have ramped up their efforts to end the British monarchy. The resulting war of words between monarchists and their opponents has highlighted the sheer diversity of opinions over the desirability of monarchy.

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Government Intervention into International Currency Exchange Rates: Japan as a Case Study

The recent hefty depreciation of the yen to a twenty-four-year low against the dollar has raised eyebrows due to the yen’s traditional safe haven role in times of turmoil, such as the war in Ukraine. The yen’s decline had already started when major central banks signaled a tightening of monetary policy to fight inflation while the Bank of Japan (BoJ) doubled down on its loose monetary policy and zero target for ten-year bond yields.

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Powell’s Pivot to “Pain” but No Gain: Triggering the Coming Recession

Jay “The Inflation We Caused Is Transitory” Powell finally did it. On Friday, the Fed chair finally mustered the courage to say that he is going to do the job he has been hired to do: the Fed will not “pivot” to cut interest rates until inflation slows meaningfully and persistently—even if the stock, bond, and housing bear markets become much worse and the economy goes into recession.

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The Fed Is Wrong to Make Policies Based upon the Phillips Curve

Speaking at Jackson Hole, Wyoming, on August 26, 2022, the chair of the Federal Reserve, Jerome Powell, said the Fed must continue to raise interest rates—and keep them elevated for a while—to bring the fastest inflation in decades back under control.

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Insatiable Government

In the minutes of the Chicago City Council, May 12th last, is the perfect example of how commonly we regard public credit. From bad taxation, reckless borrowing and reckless spending, the city of Chicago had so far prejudiced its own credit that for months it had been unable to meet its municipal payrolls either out of revenues or by discounting its notes at the bank.

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The many perils of “Stockholm syndrome” politics

It’s been a tumultuous couple of months in UK politics. After a troubled time in office, plagued by scandal, internal party frictions and much public embarrassment, Boris Johnson exited the stage leaving behind a big old mess for his successor to clean up. An economy in tatters, inflation at record highs and an energy crisis the likes of which this generation hasn’t seen before.  It’s a miracle that anyone in the kingdom could be found that...

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August’s Price Inflation Soared, and That Means Earnings Fell Yet Again

The federal government’s Bureau of Labor Statistics released new price inflation data today, and the news wasn’t good. According to the BLS, Consumer Price Index (CPI) inflation rose 8.3 percent year over year during August, before seasonal adjustment. That’s the seventeenth month in a row of inflation above the Fed’s arbitrary 2 percent inflation target, and it’s six months in a row of price inflation above 8 percent.

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Military Self-Delusion on the Constitution

Several former U.S. defense secretaries and retired generals recently published an open letter about the current political environment in America. The letter stated, among other things: “Military officers swear an oath to support and defend the Constitution, not an oath of fealty to an individual or to an office.”

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Promoting Natural Rights Instead of Conservatism: Looking at Rothbard and Jaffa

This is the story of a man, an intellectual, born after World War I, who spent studying his university years in New York and became acquainted and studied under German Jewish émigré who fled the Nazi regime in Germany, later becoming mentor and protégé.

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