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Nothing has changed in over two hundred years

Wednesday, July 30th, 2014 by posted in Economics, Politics.

From Edmund Burke’s Reflections on the Revolution in France. (Just substitute “dollar” for “assignats“.  Nothing has changed.) “Assignats.  Is a fleet to be fitted out?  Assignats.  If sixteen millions sterling of these assignats forced on the people leave the wants of the state

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Raw Communism

Wednesday, July 30th, 2014 by posted in Economics, History, Philosophy.
communist-revolution teaser

[This article is excerpted from volume 2, chapter 10 of An Austrian Perspective on the History of Economic Thought (1995). An MP3 audio file of this chapter, narrated by Jeff Riggenbach, isavailable for download.] Reprinted from Another important reason for Marx’s

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Six Current Economic Myths and Realities

Tuesday, July 29th, 2014 by posted in Economics, Education.

The following are six of the most prevalent economic myths that appear time and again in the mainstream media.  I will give a brief description of each and a brief description of the economic reality, as seen from an Austrian

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I’m Shocked! Shocked!

Tuesday, July 29th, 2014 by posted in Economics, Politics.

From today’s Open Europe news summary: In its quarterly report, the Greek Parliament’s State Budget Office has warned that Greece will require a third bailout package to avoid a default, and that despite capital injections, the problems of the country’s banks

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The Right Way to View Entrepreneurship

Tuesday, July 29th, 2014 by and posted in Capitalism, Economics.
lightbulb- teaser

Reprinted from Mises Institute Senior Fellow Peter Klein and Associated Scholar Nicolai Foss were interviewed by Ángel Martín Oro for Klein and Foss discuss their 2012 book Organizing Entrepreneurial Judgment: A New Approach to the Firm, published by Cambridge University Press. Sintetia: The

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Mathematical Economics vs. “Literary” Economics?

Monday, July 28th, 2014 by posted in Economics.

Famed Chicago economist John Cochrane has recently returned from a seminar at the National Bureau of Economic Research (NBER, the organization tasked with determining whether the economy is in a recession or not, and where Ludwig von Mises was employed


The Mighty Return of the Twinkie: A One-Year Retrospective

Monday, July 28th, 2014 by posted in Capitalism, Economics, Regulation.
twinkies teaser

Reprinted from It was November 2012 when the bankrupt Hostess company pulled the Twinkie from production and sent many generations of sponge-cake lovers, including me, into panic. Then only a 8 months later, July 15, 2013, all became right

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Easy Money Blood Thinners

Monday, July 28th, 2014 by posted in Banking, Capitalism, Economics.
Lehman Brothers fascia goes on sale at Christie's

Reprinted from the Pembroke Observer Since the collapse of Lehman Brothers investment bank in 2008, central banks around the world have created trillions of additional dollars, yen, euros and renminbi. In the immediate aftermath of Lehman’s bankruptcy other banks, unsure

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Distinguishing “Land” From “Capital Goods”

Saturday, July 26th, 2014 by posted in Economics.

Gene Callahan asks why Austrian economists distinguish between “land” and “capital goods” as separate factors of production.  It’s an interesting question. In the present post, I’ll go over the prima facie reasons one would be tempted to abandon the classical

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Governments Collude to Fleece the World

Friday, July 25th, 2014 by posted in Capitalism, Economics, Politics.

Re: Luxembourg tax regime under siege This recent article by Vanessa Houlder of the Financial Times, London, details the economic success that Luxembourg has enjoyed by keeping its business tax rates at a moderate level and the threat to that success

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How To Have Law Without Legislation

Friday, July 25th, 2014 by posted in Economics, Law, Philosophy.
law teaser

[Adapted from Rothbard’s book review of Freedom and the Law by Bruno Leoni. This review first appeared in New Individualist Review , edited by Ralph Raico.] [In his book Freedom and the Law,] Professor [Bruno] Leoni’s major thesis is that even the staunchest free-market economists


On Mises’ Definition of the Term “Inflation”

Thursday, July 24th, 2014 by posted in Economics.

Lately an old controversy has flared up again, but with an interesting twist. Literally for decades, followers of Ludwig von Mises have lamented the fact that the word “inflation” now generally means “an increase in (consumer) prices,” whereas historically it


Bastiat the Great

Thursday, July 24th, 2014 by posted in Economics, Education, History.
bastiat-pic teaser

This article originally appeared as the introduction to Bastiat’s Economic Sophisms (FEE, 1962). Reprinted from Frédéric Bastiat was born at Bayonne, France, on June 29, 1801. His father was a wholesale merchant, but Frédéric was orphaned at the age of nine and

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From the “You can’t make this stuff up” department

Wednesday, July 23rd, 2014 by posted in Economics.

Re: EU threatens Germany with fine for running too large a surplus Ambrose Evans-Pritchard of the Daily Telegraph reports that the International Monetary Fund is criticizing Germany for running too large a trade surplus with the other European Monetary Union states

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My letter to the Financial Times, London re: Eurozone needs quantitative easing

Monday, July 21st, 2014 by posted in Economics.

Re: Eurozone needs quantitative easing Dear Sirs: All the so-called benefits that you expect the eurozone countries to derive from a European Central Bank program of quantitative easing are myths.  Myth number one: QE will spur an economy to greater production.

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How Smugglers Made America

Monday, July 21st, 2014 by posted in Capitalism, Economics, War on Drugs.
border teaser

Reprinted from [Smuggler Nation: How Illicit Trade Made America by Peter Andreas, Oxford University Press, 2013.] Whenever I receive a book to review that is written by some hotshot ivy leaguer, I brace myself for all the deception and tomfoolery

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Krugman: CBO Doesn’t Know How to Read Its Own Report

Sunday, July 20th, 2014 by posted in Economics.
CBO Forecast

Paul Krugman reads the latest long-term forecast from the US Congressional Budget Office (CBO) and he likes what he sees. Even though the nearby graph is the CBO’s projections for the growth of federal debt, Krugman nonetheless offers this rosy


Continuing My Chats With Noah Smith

Saturday, July 19th, 2014 by posted in Economics.
Noah Smith Doppelganger

Economist Noah Smith has fired another volley against Austrian economics, in response to my Mises Canada defense against his original attack featured on Bloomberg. Much to my surprise, several of my followers asked that I answer Noah yet again. I thus


MH17 Madness

Saturday, July 19th, 2014 by posted in Civil Liberties, Economics, Events.

The more things change, the more they stay the same. The furor over the downing of MH17 has brought forward the predictable public ire. Blood for blood seems to be the most advocated solution now, and politicians in the Western


More Bubble Trouble

Friday, July 18th, 2014 by posted in Banking, Economics.

With stocks at all-time highs, it’s hard not to think that we are in the midst of a bubble. According to one analyst, not only are we in a bubble, but it’s one of the biggest of all time. Stocks