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The Efficient Majors Hypothesis

Thursday, September 18th, 2014 by posted in Economics.

One day a smart young graduate from the University of Chicago named Eugene barged his way into the office of the Cubs’ owner, Tom Ricketts. The following conversation ensued: EUGENE: Mr. Ricketts! You’re throwing away millions of dollars in your

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The Strike to End All Strikes

Tuesday, September 16th, 2014 by posted in Economics, Education.

The teachers’ strike in British Columbia is over… almost. On Thursday, 40,000 public school teachers in the province will vote on whether to accept the proposed contract. Neither side got everything it wants, and the main headline is that teachers

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Economic Policy Treats Symptoms, Not Underlying Causes

Tuesday, September 16th, 2014 by posted in Economics.

Take a look at the breathtaking array of government policies designed to fix every conceivable problem citizens might encounter. Look at the laws governing labor unions, minimum wage laws, occupational licensure, unemployment insurance, stimulus spending; look at the endless efforts

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Property Rights as Social Justice – from John Locke’s Perspective

Tuesday, September 16th, 2014 by posted in Economics.
john locke

John Locke holds that property rights are just. This conviction is implied in his notion that justice is of nothing but the preservation of the individual’s natural rights,[1] of which property rights are an essential component. It seems clear that,

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Krugman Shucks and Jives on Minimum Wage Hike

Monday, September 15th, 2014 by posted in Economics.
fast food strike

In a recent Business Insider interview Paul Krugman showcased his uncanny ability to utterly mislead viewers on the state of economic science, without actually lying. Here’s a portion of the exchange (which I am typing from the verbal interview): JOE

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Europe decides to eat its capital

Monday, September 15th, 2014 by posted in Banking, Economics.

Re: The Death Spiral of Capitalism, by Martin Hutchinson We now see why the profligate countries of the European Monetary Union allowed the European Central Bank to institute a negative interest rate against reserves AND now have allowed it to buy

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The Hubris of the Monetary Social Contract

Monday, September 15th, 2014 by posted in Banking, Capitalism, Economics.
money-addiction teaser

Reprinted from Casey Research Money was once in the state of nature. Goods were once bartered until especially saleable goods emerged to be used in indirect exchange. A variety of saleable items became money until gold and silver became the

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The Regret of War

Sunday, September 14th, 2014 by posted in Economics.

We all have regrets. But if you find yourself consistently ruing your past decisions, maybe it’s best to rethink your rashness. Writing in the Financial Times this weekend, Richard McGregor gives some perspective on Americans’ change of heart for wars.

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Employment Insurance Is Not Insurance

Friday, September 12th, 2014 by posted in Capitalism, Economics, Law.
unemployment_line teaser

The federal government’s 2013 decision to change some of the rules governing Employment Insurance (EI) has received considerable criticism from some provinces and unions among others. Unfortunately, most of it is wrong because it is based entirely on the mistaken

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The insanity of majority vote at the ECB

Thursday, September 11th, 2014 by posted in Banking, Economics, Politics.

From today’s Open Europe news summary: The FT reports that the ECB will press ahead with its plans to purchase Asset Backed Securities (ABS) despite both the French and German government rejecting the bank’s calls for them to provide public guarantees to

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Scotland’s goal: Out of the frying pan and into the fire!

Thursday, September 11th, 2014 by posted in Economics, Politics, Regulation, Socialism.

Re: Alex Salmond says Scotland could join the EU in 18 months Why in the world would Scotland want to jump from one socialist union to an even bigger socialist union? Independence from the UK is Scotland’s chance to become the

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Americans Must Choose Non-Intervention for Peace, Prosperity

Thursday, September 11th, 2014 by posted in Economics, Foreign Policy, Philosophy, Politics.
Ron_Paul_WRLC teaser

Reprinted from Voices of Liberty August 26, 2014 – Ron Paul and Mark Spitznagel are passionate about non-interventionism, free markets, and Austrian economics. In spite of their years, these passions former Congressman Paul and Mr. Spitznagel hold dear are growing in

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Government Interest Payments

Thursday, September 11th, 2014 by posted in Economics.

It’s not just homeowners who have to worry about rising interest rates, the Federal government might soon get a taste of its own medicine. With the Fed doing all it can to stimulate inflation, increases to interest rates are taking

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The Myth of the Unchanging Value of Gold

Wednesday, September 10th, 2014 by posted in Banking, Capitalism, Economics.
gold_standard teaser

Reprinted from According to mainstream economics textbooks, one of the primary functions of money is to measure the value of goods and services exchanged on the market. A typical statement of this view is given by Frederic Mishkin in

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What Gave Bitcoin Its Value?

Tuesday, September 9th, 2014 by posted in Banking, Capitalism, Economics.

Reprinted from the Freeman Many people who have never used bitcoin look at it with confusion. Why does this magic Internet money have any value at all? It’s just some computer thing that someone made up. Consider the criticism of

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Why Isn’t Monetary Pumping Helping the Economy?

Monday, September 8th, 2014 by posted in Banking, Capitalism, Economics.
dollar-printing teaser

Reprinted from Despite all the massive monetary pumping over the past six years and the lowering of interest rates to almost zero most commentators have expressed disappointment with the pace of economic growth. For instance, the yearly rate of

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Richmond Fed President See Fed as the Problem

Monday, September 8th, 2014 by posted in Banking, Economics.

How large a problem is moral hazard caused by the Fed helping out troubled bank during financial crises? Pretty large, at least according to Jeffrey Lacker, President of the Federal Reserve Bank of Richmond. One argument for central bank credit

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The Fed and Mr. Krugman: The Price of Nuts

Friday, September 5th, 2014 by posted in Banking, Economics.
Screen Shot 2014-09-05 at 4.37.42 PM

The pine nuts I like to sprinkle on my salads have become so precious the price jumped from an already outrageous $5.99 per 4 ounce container to $6.99 this past week. One person who is happy about this is the

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The IMF, the SDR, and the Dollar: One Big Happy

Thursday, September 4th, 2014 by posted in Banking, Capitalism, Economics.

Reprinted from The SDR is a fake currency issued by the International Monetary Fund. It was invented in 1969, the first year of the Nixon administration. It was a stop-gap measure to save the fixed exchange rate system of

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Finally, the Fed Blames Itself

Wednesday, September 3rd, 2014 by posted in Banking, Capitalism, Economics.

This is an historic time. After six years of the most novel and expansive monetary policies since its creation 100 years ago, the Fed is finally ready to admit its role in prolonging the current recession… kind of. Two economists

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