Category Archive: 6b) Austrian Economics

Where Did the US Government Get the Power to Assassinate People?

In an August editorial, the New York Times called for an investigation into the attack on Russian dissident Aleksei Navalny, who was recently transported to Germany in a coma after apparently being poisoned.

Read More »

You cannot print your way to prosperity – Part II

Looking at the damage inflicted upon supply chains, production facilities and global trade in particular, how quickly could these operations snap back even if all COVID-related restrictions were lifted tomorrow? Do you think we’ll eventually get back to business as usual, or have we now experienced a permanent shift to a “new normal”?

Read More »

The EU’s Drive toward Political Centralization Will Doom Its Economy

In the wake of the economically disastrous covid-19 shutdowns, the political class has desperately tried to save the failing euro system. On July 21 European leaders agreed on what they called a "historic" deal. It was nothing more than a multitrillion euro stimulus package.

Read More »

We’re Headed toward Stagnation—Unless the Fed Reins In Its Money Printing

The US Fed is considering lifting its inflation target above 2 percent in order to revive the economy. Contrary to the accepted practice, the Fed is not expected to raise an alarm if the measured price inflation begins to rise.

Read More »

Bankruptcies Rise Despite Trillions in New Liquidity

Misguided lockdowns have destroyed the global economy and the impact is likely to last for years. The fallacy of the “lives or the economy” argument is evident now that we see that countries like Taiwan, South Korea, Austria, Sweden, and Holland have been able to preserve the business fabric and the economy while doing a much better job managing the pandemic than countries with severe lockdowns.

Read More »

How Capitalists Improve Human Productivity

To quote the last paragraph of this 2008 article by Robert Murphy, when asked why Austrian school economics should be studied, the best answer is: the Austrian theory of capital is the best one you can find if you really want to grasp how the economy actually works—beyond sterile mathematics and static timeless analysis.

Read More »

The Failures of Federal Race-Based Paternalism

In an address to the Massachusetts Anti-Slavery Society in 1865, Frederick Douglass noted that he had often been asked “What should we do with the Negro?”

Read More »

Monetary and Fiscal Sorcery Make Home Price Magic

Make the money cheap enough and government intrusive enough, and incongruous headlines appear side by side. For instance, from the Las Vegas Review-Journal comes this head-scratcher: “Las Vegas Housing Market ‘on Fire’ as Economy Limps Along.”

Read More »

The Fed’s Latest Lie: It Can Make Everything Go Back to Normal

The Fed Emperor’s New Clothes Show is a continuous comedy without laughter. The latest act, the virtual Jackson Hole conference (August 27), was dreadful. The show's audiences are accustomed to the Fed chair and his board delivering solemn pronouncements about their aims—low inflation, high employment, and financial stability.

Read More »

Why Economics Cannot Be Understood through Experimentation

In the natural sciences, a laboratory experiment can isolate various elements and their movements. There is no equivalent in the discipline of economics. The employment of econometrics and econometric model building is an attempt to create a laboratory where controlled experiments can be conducted.

Read More »

Industrialization and Free Trade Are the Way out of Poverty

Progressive politicians repeatedly tell us that capitalism is a system rooted in the wealthy’s exploitation of the poor. To convey this in an emotionally resonant way, they employ images of "sweatshops" in the developing world. While some people labor away in factories, often in terrible conditions, the owners of Walmart and Nike rake in profits, enjoying their luxurious penthouses in Manhattan. Many find this compelling.

Read More »

Protectionism and “Weak Dollar” Trade Policy

Until disco came back to me at dance clubs and via the great “boogie nights” in the 1990s, I didn’t recall a whole lot from my childhood in the 1970s. Trying to build my own “Speed Racer” and being in awe of the rock group KISS stand out. “Too many dollars chasing too few goods” was another.

Read More »

Coming Apart, Coming Together

Last time we met in Orlando, Bob Murphy mentioned how much worse our political and social divide would be if the economy crashed like 2008. Now we face this very problem—with COVID-19 lockdowns and George Floyd protests decimating the economy and social media exposing raw animosity along racial and "woke" lines.

Read More »

America’s Riots Are Just the Latest Version of Marxist “Syndicalism”

The year 2020 is one of the most disrupted times in at least the last half century, maybe longer. Global protests and riots, the covid-19 virus, lockdowns, and police killings of unarmed citizens. Add to that widespread rioting, looting, arson, homelessness, and destruction of property, including the tearing down of statues.

Read More »

Why Americans Are Looking for a Safe Haven from the Dollar

As the Federal Reserve’s quantitative easing practices generate the biggest debt bubble in history, gold futures are trading at record highs, a phenomenon some have called "a bit of a mystery." However, this "mystery" was solved long ago by the laws of economics.

Read More »

Mises on Syndicalism

As political tactics Syndicalism presents a particular method of attack by organized labour for the attainment of their political ends. This end may also be the establishment of the true Socialism, that is to say, the socialization of the means of production. But the term Syndicalism is also used in a second sense, in which it means a sociopolitical aim of a special kind.

Read More »

How the CARES Act Is Still Kicking the Can

During Real Vision’s Daily Briefing of August 13, Ed Harrison asked rhetorically, “How is it possible for you to have a bull market, a new leg up in the business cycle when bank stocks, the traditional value cyclical trade are 30% off their highs? That's not a signal of bull, it's a signal of secular stagnation.”

Read More »

2020 Will Be a Record-Breaking Year for Debt. How Long Can This Last?

The deficit narrowed during July after months of record shortfalls in federal tax revenues. During April, May, and June of this year deficits surges to unprecedented highs as economic activity dried up, workers were furloughed and laid off, and tax payments were deferred.

Read More »

Growth and Income Inequality in Africa

There are two kinds of inequality. One develops as societies innovate and become more productive. The other kind results from government corruption and intervention.

Read More »

The Global Jobless Recovery

The United States added 1.76 million Jobs in July 2020, compared to a consensus estimate of 1.48 million. Unemployment fell to 10.2 percent versus the 10.6 percent expected.

Read More »