Category Archive: 6b) Austrian Economics

God, Bitcoin, and Asymmetric Bets

Blaise Pascal was a brilliant mathematician, inventor of the calculating machine, and pioneer of probabilistic theory during the 17th century. His philosophical works were published posthumously under the title of Pensées.

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Der Wohlfahrtsverlust durch Besteuerung

Alle Studenten der Wirtschaftswissenschaften werden früher oder später mit der neoklassischen Standardanalyse des Wohlfahrtsverlusts durch Besteuerung konfrontiert. Dabei geht es nicht um die Klärung der Frage, wozu man die Steuereinnahmen des Staates verwenden sollte, sondern vielmehr darum, wie und wo der Staat besteuern sollte, damit es zu möglichst geringen Verzerrungen im Marktgefüge kommt – gewissermaßen so, dass es am wenigsten wehtut.

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New Opportunities 2021: Covid-19 and the future of shipping and aviation

The Covid-19 pandemic has disrupted transportation worldwide, sending shockwaves across supply chains, lowering demand and reducing revenue. Shipping and aviation especially experienced a steep financial decline. Companies have had to operate at limited capacity and growth prospects have dropped sharply. 

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Der Liberalismus hat immer das Wohl des Ganzen im Auge

Weit verbreitet ist die Meinung, der Liberalismus unterscheide sich von anderen politischen Richtungen dadurch, daß er die Interessen eines Teiles der Gesellschaft – der Besitzenden, der Kapitalisten, der Unternehmer – über die Interessen der anderen Schichten stelle und vertrete. Diese Behauptung ist ganz und gar verkehrt.

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Prohibition’s Repeal: What Made FDR Popular

For seventy-plus years, the case of Franklin Delano Roosevelt has vexed people of a libertarian bent. His policies, extending war socialism based on Mussolini's economic structure, expanded the American state to an unthinkable extent and prolonged the Great Depression through the horrific World War II.

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If America Splits Up, What Happens to the Nukes?

Opposition to American secession movements often hinges on the idea that foreign policy concerns trump any notions that the United States ought to be broken up into smaller pieces. It almost goes without saying that those who subscribe to neoconservative ideology or other highly interventionist foreign policy views treat the idea of political division with alarm or contempt. Or both.

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Money, Interest, and the Business Cycle

The banks very often expand credit for political reasons. There is an old saying that if prices are rising, if business is booming, the party in power has a better chance to succeed in an election campaign than it would otherwise. Thus the decision to expand credit is very often influenced by the government that wants to have “prosperity.” Therefore, governments all over the world are in favor of such a credit-expansion policy.

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“Self-control and self-respect have become undervalued”

After a year of lockdowns, social isolation, financial uncertainty and extreme political polarization, a lot of people are finding it very difficult to remain optimistic and to see a way back to some kind of normalcy. While the economic, social and political impact of the covid crisis can be easily identified and frequently discussed, the unseen, psychological pressures that millions of people are struggling with often go undiscussed.

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Down with the Presidency

The modern institution of the presidency is the primary political evil Americans face, and the cause of nearly all our woes. It squanders the national wealth and starts unjust wars against foreign peoples that have never done us any harm. It wrecks our families, tramples on our rights, invades our communities, and spies on our bank accounts. It skews the culture toward decadence and trash. It tells lie after lie. Teachers used to tell school kids...

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The Fight over Economics Is a Fight over Culture

The Left long ago figured out how to get ordinary people interested in economic policy. The strategy is two pronged. The first part is to frame the problem as a moral problem. The second part is to make the fight over economic policy into a fight over something much bigger than economics: it's a fight between views of what it means to be a good person. The Left knows how to make the war over economics into a war over culture.

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Understanding Minimum Wage Mandates: Empirical Studies Aren’t Enough

It is only through the increase in capital goods, i.e., through the enhancement and the expansion of the infrastructure, that labor can become more productive and earn a higher hourly wage. 

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In One Image, Everything You Need to Know about Government Intervention

While I freely self-identify as a libertarian, I don’t think of myself as a philosophical ideologue. Instead, I’m someone who likes digging into data to determine the impact of government policy. And because I’ve repeatedly noticed that more government almost always leads to worse outcomes, I’ve become a practical ideologue.

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The Depression of the 1780s and the Banking Struggle

It has been alleged—from that day to this—that the depression which hit the United States, especially the commercial cities, was caused by “excessive” imports by Americans beginning in 1783.

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The World Needs a Gold-Backed Deutsche Mark

The seeds of sound-money destruction were sown at the 1944 Bretton Woods Conference, which established that US dollars could be held as central bank reserves and were redeemable for gold by the US Treasury at thirty-five dollars an ounce. This was the so-called gold exchange standard, but only foreign central banks and some multinational organizations, such as the International Monetary Fund (IMF), enjoyed this right of redemption. The system...

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How Wall Street Became an Enemy of Free Markets

After decades of financialization and government favors, Wall Street now has little to do with free, functioning markets anymore and has largely become an adjunct of the central bank. Today, entrepreneurship is out, and bailouts are in.

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Impfsozialismus

Die Einlassungen der EU-Kommission zur wachsenden Kritik an ihrer Impfstoffbeschaffung und -verteilung nehmen skurile Züge an. Natürlich verteidigen nicht nur die zuständige Gesundheitskommissarin und die Präsidentin der EU-Kommission, Dr med. von der Leyen, die bisherige Einkaufs- und Verteilungsperformance.

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How Not to Argue against the Minimum Wage

Among the hotly contested list of Joe Biden’s promises is an increase of the federal minimum wage to $15 an hour. There are plenty of sound reasons to oppose government minimum wage laws, but there is one objection making the rounds that is based on bad economics and should be avoided, and that’s the "businesses will pass on the costs to consumers" objection.

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Extreme Poverty Shifts Gear… in Reverse

The coronavirus has dominated all of our lives in recent months. Radical paths were taken by politicians in the form of lockdowns to contain the pandemic. But we should recognize that even if the coronavirus is a (major) challenge for us, we always have to keep a holistic view of world events.

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Why No State Needs Thousands of Nuclear Warheads

Last week, the United States signed a five-year extension of the New START arms control treaty with Russia. Russia’s President Putin signed the treaty shortly thereafter. The “Strategic Arms Reduction Treaty” allows Russia and the US to monitor each other’s nuclear forces, facilities, and activities.

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AOC and Schumer Want Taxpayer Funding for Covid-19 Funerals

US residents whose family members died with or of covid will be eligible to receive $7,000 for funeral and related expenses, New York senator Chuck Schumer (D) and Representative Alexandria Ocasio-Cortez (D) announced.

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