Category Archive: 6b) Austrian Economics

Why is Israel a primary benefactor of United States foreign aid? Is Israel a proxy for US imperialism in the Middle East? Does American aid to Israel benefit constituencies other than the defense industry? The ongoing feud between Israel and Palestine has raised these questions to the forefront of public debate. Israel is the leading recipient of American foreign aid, despite its wealth. In 2022, The Economist ranked Israel as the fourth most...

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Over the weekend, border-policy negotiations between Senate Democrats and Republicans fell apart. The talks were meant to firm up Republican support for the president’s massive $105 billion military support proposal ahead of Wednesday’s vote by including additional funds for border security in the spending package. Now, with no imminent approval of further aid to Ukraine, hawks in government and the media are trying to stoke panic about what will...

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Money supply growth fell again in October, remaining deep in negative territory after turning negative in November 2022 for the first time in twenty-eight years. October's drop continues a steep downward trend from the unprecedented highs experienced during much of the past two years. Since April 2021, money supply growth has slowed quickly, and since November, we've been seeing the money supply repeatedly contract year over year. The last time the...

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The thirty-year mortgage, of all things, came under attack in a piece by Ben Casselman in the New York Times. The three-decade fixed rate loan is, of course, a creation of the government and adds constant fuel to the US housing market. The title of Casselman’s piece calls the most popular debt instrument for home purchases “weird,” “cushy,” and “old.” He blames low interest rate thirty-year fixed loans for the broken housing market. Casselman...

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One of the political trends of the past few years has been an expanding disconnect between political unity rhetoric and the increasing disharmony politicians’ proposals create. The root of this beltway cognitive dissonance is the rapid increase in government power. Unity rhetoric helps mobilize candidates’ political bases and can sway some independents, helping win elections. However, their postelection expansion of government power into areas...

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Paul Krugman can’t figure out why everybody is so bummed about the economy. From his perspective, we should all be jumping for joy, praising Joe Biden, and publicly signing fifty-year commitments to vote Democrat. Official statistics show that “unemployment is still near a 50-year low, yet inflation has been falling fast.” But the ignorant masses simply won’t get with the picture. Krugman admits “surveys of consumer sentiment and political polls...

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Argentina’s president-elect, Javier Milei, is set on implementing promarket policies, including a vast desocialization, or privatization, of the economy. The privatization of the Argentine airline industry is seemingly first on the agenda (along with privatization of state-owned media). Privatization is necessary, but above all else, it must be done correctly. Aerolíneas Argentina, the state-owned airline, makes up 63 percent of the domestic...

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