If We Want “Unity,” Government Must Become Weaker

By: Ryan McMaken Last week, a gunman opened fire on a group of Republican members of Congress. Letters sent by the gunman to his local newspaper suggest he was obsessed with Republican policies, and concluded that Donald Trump “Has Destroyed Our Democracy” [sic] and that “It’s Time to Destroy Trump and Co.”  In the […]

Our Lawless Central Bank

By: Ryan McMaken The economic arguments against central banks are numerous to say the least. Through the writings of Lduwig von Mises and Murray Rothbard we have a wide variety of critiques that explain the many ways the central banks distort economies, cause booms and busts, punish savers, and chose […]

Four Reasons Central Banks are Wrong to Fight Deflation

By: Jörg Guido Hülsmann The word “deflation” can be defined in various ways. According to the most widely accepted definition today, deflation is a sustained decrease of the price level. Older authors have often used the expression “deflation” to denote a decreasing money supply, and some contemporary authors use it […]

Will Our Grandchildren Work Only Four Hours Per Day?

By: Ryan McMaken Chinese billionaire and Alibaba founder Jack Ma predicted this week that in 30 years, people will be working less than they do now. According to NBC:  I think in the next 30 years, people only work four hours a day and maybe four days a week,” Ma […]

Money Supply Growth Fell to a 104-Month Low in May

By: Ryan McMaken Last month, the money supply growth rate in the United States fell to a 104-month low, rising by 5.91 percent. This is the lowest growth rate recorded since July 2008 when the growth rate was 5.24 percent. Given the imprecise nature of these estimates, however, it is […]

A Theory of Entrepreneurship and Institutional Uncertainty

By: Per Bylund, Matthew McCaffrey [Editor’s Note: Bylud and McCaffrey have a new article in the Journal of Business Venturing. The executive summary is below and the full article is available online for a limited time.]  Highlights We investigate the relationship between entrepreneurs and uncertainty. We clarify the structure of […]

A New Mythology

By: David Gordon If Genevieve Valentine has given us an accurate account, Nancy MacLean has written an incredibly bad book on libertarianism. The book is called Democracy in Chains, and according to Valentine, MacLean traces modern libertarianism to none other than James Buchanan, the founder of the Virginia school of […]

Help Wanted: Lenders with No Experience (or Short Memories) to Make Risky Mortgages

By: Doug French They’re back. Subprime mortgages. And loan brokers are needed to start making them. Kirsten Grind, who, by the way, wrote a wonderful book about Washington Mutual (WaMu) entitled The Lost Bank, writes for the Wall Street Journal, “Brokers willing to learn the lost art of making risky […]

Trump Turns Back the Clock With Cold War Cuba U-Turn

By: Ron Paul Nostalgia seems to be very popular in Washington. While the neocons and Democratic Party hard-liners have succeeded in bringing back the Cold War with Russia, it looks like President Trump is determined to take us back to a replay of the Bay of Pigs! In Miami on […]

Fed Raises Rates — Will Other Central Banks Follow?

By: Ryan McMaken Last week, the Federal Reserve announced an increase in the Federal Funds rate to 1.25 percent. The last time the target rate reached so high was in September of 2008, when the rate was 2.0 percent. In October of that year, the target rate fell to 1.0 […]

Week in Review: June 17, 2017

By: Mises Institute The Federal Reserve this week raised the Federal Funds Rate a quarter point to 1.25 percent, bringing the rate to the highest it’s been in eight years. One might now say monetary policy has progressed from a policy of “ultra low” rates to simply a policy of […]

Peter Klein on How Not to Reform the Fed

By: Peter G. Klein, Jeff Deist Arguments for a “rules based” Fed are gaining momentum on both the political Left and Right— and even among some libertarians. Would the adoption of ideas like NGDP targeting and the “Taylor Rule” really make make the Fed less dangerous? Would they be an improvement […]

Government as the Source of Monopoly: US Airlines Edition

By: Peter G. Klein “Is Government the Source of Monopoly?” asked Chicago economist Yale Brozen in an essay first published in 1968. Yes, he answered — not only directly, by awarding exclusive licenses and contracts, but also indirectly, via regulation, minimum-wage legislation, and other forms of government intervention. Austrian economists […]

With Cuba Policy, Trump Strikes Another Blow Against Economic Freedom

By: Ryan McMaken One of the few good things President Obama did was partially liberalize the US government’s policy toward Cuba. While it should have gone much further than it did, the Obama Administration expanded the types of travel and trade allowed with Cubans in Cuba.  In the wake of […]

Terry McAuliffe’s Fuzzy Math on Gun Homicides

By: Ryan McMaken Terry McAuliffe’s Wednesday press conference on the Alexandria shooting offers an instructive lesson on what passes for quantitative analysis among politicians.  Asked about the shooting, in which as left-wing activist opened fire upon a group of GOP politicians, Virginia governor Terry McAuliffe opined that the real problem […]

What If Taxpayers Could Choose if Taxes Went to the State Level or Federal Level?

By: Ryan McMaken In recent years, we’ve examined any number of ways of decentralizing the American political system. These step-by-step moves can include decentralizing the monetary system, decentralizing the military, decentralizing immigration policy, and decentralizing elections. Most recently, we looked at decentralizing the welfare state, and found that each US […]

June FOMC Announcement: Rate Hike and Balance Sheet Plans

By: C.Jay Engel June’s FOMC meeting concluded today and the meeting announcement revealed an interest rate hike of .25% to bring the Federal Funds target to between 1 and 1.25%. Additionally, we also learned that the FOMC anticipates one more rate in 2017, 3 more in 2018, and the beginning of […]

Mises-Influenced MP Becomes Brexit Minister

By: Tho Bishop Steve Baker, a Conservative Member of Parliament, was announced today as junior Brexit minister under fellow libertarian David Davis. Baker, who has referenced Austrian scholars such as Ludwig von Mises, Jesús Huerta de Soto and F.A. Hayek in the House of Commons, has long been a Eurosceptic […]

Jeff Deist Joins Power Trading Radio to Discuss the Economy

By: Mises Institute Jeff join John O’Donnell and Merlin Rothfeld to discuss the health of the US economy. https://www.youtube.com/watch?v=bNEyMrsnmlY         Powered by WPeMatico

The Myth of Infrastructure Spending

By: Ryan McMaken Trump’s $1-trillion infrastructure spending plan continues to be one of his less controversial proposed policies. In Washington, and even among many in the general public, there is a consensus that government spending on more roads and bridges is always necessarily a slam dunk.  This is stated matter-of-factly […]