Category Archive: 6b.) Mises.org

Why Monetary “Stimulus” Won’t Prevent an Economic Bust

The increase in the growth rate of the Consumer Price Index (CPI) has fueled concerns that if the rising trend were to continue the Fed is likely to tighten its interest rate stance. Observe that the yearly growth rate in the CPI climbed to 4.2 percent in April from 2.6 percent in March and 0.3 percent in April 2020.

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A Libertarian Approach to Disputed Land Titles

The recent spate of bombing violence in Israel's West Bank, East Jerusalem, and Gaza demonstrates the enduring attachment both Israelis and Palestinians have to physical land in the country. Both sides make claims—legal, moral, and political—to land within Israel, from the southernmost tip of Gaza to the northernmost tip of the Golan Heights.

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The Economics of the Extended Family: From Risk Management to Human Capital

When we think of analyzing economic organizations, we generally think of firms and corporations. But there is another organization that is just as critical to economic development: the extended family. Indeed, the advantages offered by this institution are numerous and include risk sharing, mutual aid, human capital building, social capital building, and resource complementarity and coordination.

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The Fed’s Policies since the 2020 Coronavirus Panic

In chapter 7 we summarized some of the major changes in how central banks have operated since the 2008 financial crisis. In the present chapter, we detail some of the even more recent changes in Federal Reserve operations since the onset of the coronavirus panic in March 2020.

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Private Security Isn’t Enough: Why America Needs Militias

In late May we learned that, after a five-month deployment to one of the most dangerous cities in the world, the American military would finally be going home. Well, not really. They already were home. The dangerous warzone was the American federal capital, Washington, DC. And the “danger” that the military was supposed to be countering was entirely government made.

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Decentralization: Why the EU May Be Better than the US

Over the years, I’ve been pretty hard on the European Union. Both as an editor and a writer, I’ve published articles criticizing its central bank and its unelected, bureaucratic central government. Especially objectionable is the EU ruling class’s propensity for cynical politics built around threatening and intimidating voters and national governments who don’t conform to Brussels’ wishes.

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More Evidence the American Economic “Recovery” Will Disappoint

The University of Michigan consumer confidence index fell to 82.8 in May, from 88.3 in April. More importantly, the current conditions index slumped to 90.8, from 97.2 and the expectations index declined to 77.6, from 82.7. Hard data also questions the strength of the recovery.

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The Real Estate Boom in Vegas Is More Frenzied Than Ever

In Las Vegas, asset price inflation is combining with rising prices on building materials to create a real estate bubble of remarkable proportions. 

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Public Debt Got a Lot Worse from The Great Recession to The Great Lockdown

The 2020 recession, which many countries are still going through, now has an “official” name: the Great Lockdown. In economic terms, the public sector’s response in practically all countries has been very swift and bold (which is not necessarily a good thing).1 This has caused the global public debt to skyrocket as never before.

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How Monetary Expansion Creates Income and Wealth Inequality

“Every change in the money relation alters … the conditions of the individual members of society. Some become richer, some poorer.” – Mises, Human Action, p. 414. New money enters the economy at a particular point. It does not enter in the form of a proportional and simultaneous increase in everybody’s incomes.

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Money-Supply Growth Finally Slows in March, Drops to 10-Month Low

After three months in a row of hitting new all-time highs, money supply growth slowed in March, dropping to a 10-month low. This slowdown, however, does not suggest any significant departure from the past year's high growth in money supply—which came in the wake of unprecedented quantitative easing, central bank asset purchases, and various stimulus packages.

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Yes, Paul Krugman, Booms Are Unsustainable

That Austrians and Keynesians do not share many views on economics (or probably anything else) is obvious, so a difference of opinion between the two hardly should surprise anyone.

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Vaccine Passports and Medical Paternalism

Vaccine passports have been implemented, or are being developed, in a number of countries around the world. In February 2021, Israel introduced its "Green Pass," which becomes "effective the week after receiving the second dose" of the vaccine and expires after six months.

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The US Government Is On Track to Top Last Year’s Record-Breaking Deficits

The Treasury department has issued its spending and revenue report for April 2021, and it’s clear the US government is headed toward another record-breaking year for deficits. According to the report, the US federal government collected $439.2 billion in revenue during April 2021, which was a sizable improvement over April 2020 and over March 2021.

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Excess Mortality in The US Has Plummeted to Pre-Covid Levels

In any given year during the past decade in the United States, more than 2.5 million Americans have died—from all causes. The number has grown in recent years, climbing from 2.59 million in 2013 to 2.85 million in 2019. This has been due partially to the US’s aging population, and also due to rising obesity levels and drug overdoses.

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The Corrupt Bargain and the Preservation of Slavery

The most important battle of the August days of the Constitutional Convention was waged, as had been the battle over the three-fifths clause, between the North and South and had at its heart the institution of slavery.

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How Markets Have Delivered More Economic Equality

People must still compete for resources in a socialist economy. In fact, the competition is intense. On the other hand, thanks to markets, basic necessities—and even basic luxuries—are now more more accessible than ever.  Original Article: "How Markets Have Delivered More Economic Equality​" This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Michael Stack.

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The Bureaucrat as a Voter

The bureaucrat is not only a government employee. He is, under a democratic constitution, at the same time a voter and as such a part of the sovereign, his employer. He is in a peculiar position: he is both employer and employee. And his pecuniary interest as employee towers above his interest as employer, as he gets much more from the public funds than he contributes to them.

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No, Conservatives Should Not Embrace MMT

Reading Jonathan Culbreath’s “Modern Monetary Theory for Conservatives” one can’t help but think of Murray Rothbard’s quip that “it is not a crime to be ignorant of economics … but it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance.“ Culbreath’s case for modern monetary theory (MMT) rests on an ignorance of basic economic principles regarding the role of money in a free...

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Thanks to the Fed, the High-Risk, Small-Time Borrower Is Becoming a Thing of the Past

Banks and accounting trickery go together. Last year, as I remember back to my banking days, financial institutions followed the advice once proffered by one of our board members, “If we’re going to the dump, let’s take a full load.”  When the pandemic struck, banks dumped plenty in their loan-loss provisions, $60 billion, expecting the worst.

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