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The Most Ethically Chilling Use of a “Steady State Equilibrium” I’ve Ever Seen

Wednesday, August 20th, 2014 by posted in Economics.
Everest

On the one hand, I obviously understand that economist Scott Sumner is being whimsical in this recent blog post where he offers “A utilitarian defense of reckless young men.” Yet on the other hand, Sumner’s analysis is horribly flawed, in

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Who Cares for Toronto’s Sidewalks?

Wednesday, August 20th, 2014 by posted in Capitalism, Economics, Environment, Law, Politics, Regulation.

In Toronto an important debate is starting to stir about who controls the sidewalks – the city or the owners of the adjacent properties. Sparking this debate is a bicycle owner, Lisa Ferguson, who thought her bike was stolen when

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World War One and the End of the Bourgeois Century

Wednesday, August 20th, 2014 by posted in Capitalism, Civil Liberties, Economics, History.
wwit

Reprinted from Mises.org Last week (two weeks ago – ed. note) marked the 100 Anniversary of the beginning of World War I. That war, which produced over 37 million casualties, not counting the related famines and epidemics that came in the

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Does Sexism Explain Dry Cleaning Prices?

Tuesday, August 19th, 2014 by posted in Capitalism, Economics.
Dry Cleaner

A recent Vox article claimed in its title: “Dry cleaners charge women more, and it matters more than you realize.” Yet as with most of these analyses, the discussion ignores basic principles of economics. Rather than viewing an initially surprising

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Mainstream Economists Rediscover the Marginal Pair

Tuesday, August 19th, 2014 by posted in Economics.
eugen

In his book, The Positive Theory of Capital,[1] Eugen von Böhm-Bawerk developed a theory of price formation centered around the valuations of the “marginal pairs.”[2] That is, there are four market participants whose subjective valuations play a special role in

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Bird Lovers of the World, Unite!

Tuesday, August 19th, 2014 by posted in Economics, Environment.

Environmentalists think there are some free lunches out there, at least when it comes to energy production. Over the past decade green alternatives, such as solar and wind, have become popular alternatives to the older providers of energy, such as

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Ferguson’s Segregated Ruling Class

Monday, August 18th, 2014 by posted in Civil Liberties, Economics.

There might not be any easy answers to what’s going on in Ferguson, Missouri, but there are points that might make it just an extreme case of a more general problem. Some commentators have chimed in to claim that the

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Oh, no! Not lower prices!

Monday, August 18th, 2014 by posted in Economics.

From today’s Open Europe news summary: Italian Finance Minister Pier Carlo Padoan has said in an interview that the ECB “has to be consistent and bring [eurozone] inflation close to 2%…which is very far from current levels.” Separately, Handelsblatt reports that the

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Germany cannot carry Europe any longer

Monday, August 18th, 2014 by posted in Economics, Politics.

From today’s Open Europe news summary: Persson: Eurozone still an awfully long way from becoming a healthy and vibrant economic bloc In the Sunday Telegraph, Mats Persson argued that while the risk of a euro breakup has subsided, “the currency zone

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Low Interest Rates Harm Everyone

Monday, August 18th, 2014 by posted in Banking, Capitalism, Economics.

It’s not just poor pensioners who are harmed by central banks’ ultra-low interest rate targets. Governments are now also getting squeezed. Pension plans like social security rely on, historically, fixed-income investments to provide returns for the future payouts. With interest

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Elizabeth Warren and the 11 Commandments of Progressive Statism

Monday, August 18th, 2014 by posted in Capitalism, Economics.
warrent

Reprinted from LewRockwell.com Elizabeth Warren has become a true “rock star” among American Progressives, and especially among the hard-left wing of the Democratic Party, which would love for her to run for President of the United States as a candidate

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Debunking Piketty’s Capital with George Reisman

Saturday, August 16th, 2014 by posted in Capitalism, Economics.
piketty_capital

John O’Donnell and special guest George Reisman discuss Piketty’s new book Capitol in the Twenty-First Century. They discuss Reisman’s recent review of the book entitled Wrong Theory/Destructive Program. They also discuss education and its lack of substance in the U.S.

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The Economics of Immigration

Thursday, August 14th, 2014 by posted in Economics.
children-climbing-fence

In economist George Borjas’ new book Immigration Economics, he poses a problem, which, on the surface appears to be unexplainable using the tools of classical economics. The problem is this: if an increase in the supply of a good tends

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The Amazing Crash in Clothing Prices

Thursday, August 14th, 2014 by posted in Capitalism, Economics.
clothing teaser

Reprinted Liberty.me I was out shopping for a new winter coat, hopping from store to store looking for a good deal. To my astonishment, it was almost impossible not to find a good deal. Coats of a quality that once

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The Case Against a Maximum Wage

Wednesday, August 13th, 2014 by posted in Economics, Regulation.
ceiling

The minimum wage has been such a hot topic of debate over the last year or so that journalists and commentators have apparently gotten sick of it and are instead proposing still crazier ideas of ways in which the government

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No Matter Who Wins, a Sociopath Is Elected

Tuesday, August 12th, 2014 by posted in Economics, Politics.
dc_capitol teaser

Reprinted from Casey Research The midterm election season is upon us, and it’s a tossup whether the Republicans will win the Senate, or if President Obama, seemingly oblivious as conflict flares up around the world, will, through his continuous campaigning,

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Fed Fueled M & A Destroys Capital

Monday, August 11th, 2014 by posted in Banking, Economics.

The world’s central bankers have given companies the urge to merge. Merger and Acquisition (M&A) activity has already reached $2.2 trillion this year according to Thomson Reuters Deals Intelligence, up 70% from this time a year ago. The deals are

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The Greatest Thinker You’ve Never Read: Ludwig von Mises

Monday, August 11th, 2014 by posted in Economics, History, Philosophy.
MisesLibrary (1) teaser

Reprinted from Forbes Had he not passed away at the tender age of 92 in 1973, Ludwig von Mises would have turned 131 years old today. In my humble opinion, he was the greatest social thinker of the twentieth century.

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Fighting Fires

Friday, August 8th, 2014 by posted in Capitalism, Economics.
Forest-Fire teaser

Reprinted from LewRockwell.com According to Terry L. Anderson and Daniel Botkin, “Fighting Western Fires with Economics” is a good idea. Were I writing an essay with this title, I would emphasize the role of private property rights. If all forests

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Krugman Admits His Inflation Model Has Been Wrong Since Great Depression

Thursday, August 7th, 2014 by posted in Economics.
Krugman Inflation Call

Precisely because Paul Krugman and I have had an unpleasant exchange of views on the subject, I realize there is a danger in me beating a dead horse, or appearing to be making excuses, whenever I return to the topic of

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