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Taking Inventory of Conventional GDP Accounting

Friday, May 16th, 2014 by posted in Economics, Uncategorized.

From a Misesian perspective, there are numerous problems with conventional GDP accounting. The most fundamental problem is that it focuses on spending as the measure of production. So long as we’re dealing with genuine market transactions, this is somewhat defensible–if

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Nicholas Kristof on the Canadian Dream

Friday, May 16th, 2014 by posted in Capitalism, Economics.

Nicholas Kristof, writing for the New York Times, is lamenting the death of the American Dream, the idea that someone can come from nothing and make a new life for himself due to equality of opportunity. Today, he argues, it

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Ontario Teachers: A Failure According to Wynne Government

Premier Wynne

In a great essay, Lawrence Reed points out that government’s constant efforts to reform its own policies is an implicit admission that they couldn’t get things right the first 50 attempts. This is instructive; as Ontario’s political debate now turns


Larry Summers on Piketty: Low Bar for Nobel Prizes These Days

Thursday, May 15th, 2014 by posted in Capitalism, Economics.
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When he’s not botching basic historical facts about tax rates and minimum wages–in ways that conveniently serve his political narrative–Thomas Piketty, author of the celebrated Capital in the 21st Century, is botching the basic theory of capital and interest. Here


On the Nature of Employment

Thursday, May 15th, 2014 by posted in Capitalism, Economics.
fastfood teaser

The study of economics depends on clear, logical thinking expressed in clear, logical terms free from euphemism or doublespeak. A sloppiness in language is responsible for more than one damaging popular misconception. For example, the implied analogy between a budget

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The end game of Keynesianism: Savings confiscation to force spending now

Wednesday, May 14th, 2014 by posted in Capitalism, Civil Liberties, Economics.

From today’s Open Europe news summary: Reuters: ECB readies negative deposit rate and target liquidity for June WSJ: Bundesbank ready and willing to back further easing of ECB policy Reuters reports that the ECB is working on detailed policy plans


Boobeoisie Economics

Wednesday, May 14th, 2014 by posted in Capitalism, Economics.
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Reprinted from It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most people consider to be a “dismal science.” But it is totally irresponsible to have a loud and vociferous opinion on economic subjects

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My letter to National Review Magazine re: Not quite at the source of the banking problem

Tuesday, May 13th, 2014 by posted in Banking, Economics, Law.

Dear Sirs: I read with great interest Ms. Diana Furchtgott-Roth’s glowing review of Fragile by Design: The Political Origins of Banking Crises and Scarce Credit.  I decided not to buy the book, because, unlike the reviewer, I do not believe that the

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Bond Bubble in Europe’s Periphery?

Tuesday, May 13th, 2014 by posted in Economics, Law.

Re: A Bond Bubble in Peripheral Europe? Open Europe’s Raoul Ruparel asks an important question and hints that the answer is YES.  To much self-congratulations the nations of peripheral Europe have been selling their sovereign bonds at very low interest

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The Myth of Overpopulation

Monday, May 12th, 2014 by posted in Capitalism, Economics.

The world is overpopulated. The street are clogged, traffic is in a snarl, and people are living – both figuratively and literally – right on top of each other. There’s hardly enough room to swing a cat these days, right?


Is College Expensive?

Monday, May 12th, 2014 by posted in Capitalism, Economics, Education.
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I gave my last lecture of the semester on Monday, which means it´s that time of the year again. Graduates throughout the country will soon be walking the stage, in a proud display of their four (or more) years of


Indian Stock Market at its Highest

Sunday, May 11th, 2014 by posted in Banking, Capitalism, Economics.

The world is watching the ongoing election for India’s federal government, the biggest voting exercise ever, with 814 million people eligible to vote. Narendra Modi is seen as the next Prime Minister (PM). In anticipation of a major expected positive


Better Red Than Dead: 4 Ways to Price the Dow Jones

Saturday, May 10th, 2014 by posted in Banking, Capitalism, Economics.

Check out the latest episode of Better Red than Dead, where Mises Canada Executive Director Redmond Weissenberger speaks to Dave Howden on how to price the stock market. The discussion is related to Howden’s recent Mises Canada Daily piece “Four

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Marginal *Physical* Product of Capital Neither Necessary Nor Sufficient For Interest

Friday, May 9th, 2014 by posted in Banking, Economics.

The debate rages over Thomas Piketty’s runaway bestseller, Capital. As I explain in this post, it’s not just free-market Austrian economists who are critical of Piketty’s framework; even “heterodox” economists hailing from the progressive camp are aghast at its treatment


Patents and Birdmen

Friday, May 9th, 2014 by posted in Capitalism, Economics, Intellectual Property, Law.

In his new book “Birdmen: The Wright Brothers, Glenn Curtis, and the Battle to Control the Skies”, Lawrence Goldstone tells the story of the feud between America´s two early air pioneers.  The interesting part of the book is not the

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Foreword to The Failure of the “New Economics”

Friday, May 9th, 2014 by posted in Capitalism, Economics, History.
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[This foreword to Henry Hazlitt's Failure of the New Economics was first published inNational Review, August 15, 1959.] Reprinted from For most people, economics has ever been the “dismal science,” to be passed over quickly for more amusing sport. And yet,


To Become Worthy of a Free Economy

Thursday, May 8th, 2014 by posted in Economics, Education, History, Philosophy.

Panel Presentation Delivered at the 18th Annual Civitas Conference – May 3, 2014 Why is it that, every single time we board an aircraft, a flight attendant says, “In case there’s a loss in cabin pressure, please secure your own

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The Market Is Rigged

Thursday, May 8th, 2014 by posted in Banking, Capitalism, Economics.
highfrequencytrading teaser

Reprinted from When Michael Lewis’s new book Flash Boys came out, the author caused a stir while making the media rounds to promote it. “The market is rigged,” he told 60 Minutes flatly. His comments set off a firestorm of debate as to

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Minimum Wage in Under Ten Words

Wednesday, May 7th, 2014 by posted in Economics, Education.

David Howden is Chair of the Department of Business and Economics, and professor of economics at St. Louis University, at its Madrid Campus, Academic Vice President of the Ludwig von Mises Institute of Canada, and winner of the Mises Institute’s

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Four Ways to Value the Stock Market

Wednesday, May 7th, 2014 by posted in Banking, Capitalism, Economics.
stock-market teaser

Analysts and investors were ebullient the other week as the Dow Jones Industrial Average – widely considered as the bell-weather stock index of the United States, and the World – reached its highest level of all time. The intraday high