Elizabeth Warren’s Antitrust Crusade is an Economic and Civil Liberties Nightmare

Elizabeth Warren has made antitrust a major public policy issue in her campaign for the Democratic presidential nomination. She has argued that several high-tech companies such as Amazon, Google and Facebook are just too big and that they should be broken up by the Justice Department in a major antitrust […]

What the Number Crunchers Get Wrong about the “Velocity of Money”

The idea of “velocity of circulation” arose from the quantity theory of money, which links changes in the quantity of money to changes in the general level of prices. This is set out in the equation of exchange. The basic elements are money, velocity and total spending, or GDP. The […]

Central Banks Aren’t Really In Control of Interest Rates

For most experts the central bank determines short-term interest rates by setting the target to the benchmark policy rate such as the federal funds rate in the US. Many economists are of the view that through the manipulation of short-term interest rates, the central bank by means of expectations regarding […]

Richard Cantillon As a Proto-Austrian

Dr. Mark Thornton, our in-house Cantillon expert, joins the Human Action Podcast to discuss the contributions of this important proto-Austrian thinker. Cantillon may well have written the first true economic treatise, one which lays out a comprehensive theory of production, money, interest, value, method, and trade—almost 150 years before Menger’s […]

The Alleged Absence of Depressions under Totalitarianism

[This article is excerpted from chapter 20 of Human Action: The Scholar’s Edition and is read by Jeff Riggenbach.]   Many socialist authors emphasize that the recurrence of economic crises and business depressions is a phenomenon inherent in the capitalist mode of production. On the other hand, a socialist system […]

People Keep Moving to the Low-Tax, Business Friendly States

By: José Niño ZeroHedge recently reported an interesting trend occurring in the United States. A U.S. Census Bureau map details some interesting patterns. Areas highlighted in purple, where the population is growing, are located in the West and the South. Those in orange, areas where the population is dropping are […]

The Supreme Court’s Dubious “Wall of Separation” between Church and State

The Supreme Court has just issued its American Legion vs. American Humanist Assn. ruling that a nearly century-old cross built to honor WWI dead in Bladensburg, Maryland, does not violate the Establishment Clause. Hot Air’s Allahpundit wrote that the primary takeaway was: The Court doesn’t want to be bothered anymore […]

The Zombie (Company) Apocalypse Is Here

One of the most significant economic developments since the Great Recession has been the zombification of the economy. A zombie company is a term introduced to the lexicon by an influential paper, Zombie Lending and Depressed Restructuring in Japan, by economists Ricardo J. Caballero, Takeo Hoshi, and Anil K. Kashyap. […]

Is Mexico Richer after NAFTA?

By: Roberto Ledezma In November a year will have passed since the renegotiation of NAFTA. Although this version has new guidelines, for the most part its main principle prevails: free trade is beneficial for both parties. This is true with or without free trade agreements or the existence of “fair” […]

The Velocity of Circulation

[From Money, the Market, and the State, edited by Nicholas B. Beales and L. Aubrey Drewry, Jr., Athens: University of Georgia Press, 1968, pp. 35–44.] The quantity theory of money is very old. But it has been most influential in the last half century in the form given it by […]

4 Reasons to Oppose a Universal Basic Income

Beyond the usual arguments about incentives and taxes, a Universal Basic Income is a dangerous policy that supercharges the state and threatens to heighten tensions between different groups in society. Original Article: “4 Reasons to Oppose a Universal Basic Income” Powered by WPeMatico

Why the Swiss Voted for More Gun Control

What is particularly scary is that the whole argument for the new law was not really about saving lives or reducing gun violence, but is about Brussels ordering Switzerland to modify gun laws to comply with EU gun control standards. Original Article: “Why the Swiss Voted for More Gun Control” […]

The Last Thing Europe Needs Is to Further Loosen the EU’s Fiscal Rules

By: Pietro Bullian, Pietro Mistura The environment of persistently low interest rates is not going to last forever. But a recent drive to change European fiscal rules assumes low rates forever, and may have dangerous and unintended consequences. So far, after years of continuous growth, many European countries have not […]

Why It’s Important to Understand “Economic Costs”

The concept of economic cost seems to confuse people. It is not the price you pay for a good, but the reason you pay it. The cost of one action is the value you could otherwise have gained from taking another action. In other words, if you have $100 and you […]

Austerity: When It Works and When It Doesn’t

Austerity: When It Works and When It Doesn’tby Alberto Alesina, Carlo Favero, and Francesco GiavazziPrinceton: Princeton University Press, 2019, xvi + 245 pp. Mark Thornton (mthornton@mises.org) is Senior Fellow at the Mises Institute and Book Review Editor at the QJAE. Quarterly Journal of Austrian Economics 22, no. 1 (Spring 2019), […]

The Standing Army: A Threat to Peace

By: Andrew Kern “What, sir, is the use of a militia? It is to prevent the establishment of a standing army, the bane of liberty. …Whenever Governments mean to invade the rights and liberties of the people, they always attempt to destroy the militia, in order to raise an army […]

Why Are Progressives so Bad at Governing?

In the aftermath of Hurricane Katrina, Paul Krugman declared that the Bush administration failed in its response to the flooding of New Orleans because the administration consisted of people, according to Krugman, who didn’t “believe in government.” One cannot say that about progressives who truly believe in government, and believe […]

Economics is the Most Important Science for the Layman

By: Gor Mkrtchian Of all the natural and social sciences, economics1 is the most crucial for the intelligent laity. This is because economic understanding among the public makes the difference between barbarism and a healthy society. While the other sciences are important, they only require a small minority of specialists […]

Capitalism in America: A History

Capitalism in America: A HistoryAlan Greenspan and Adrian WooldridgeNew York: Penguin, 2018, 486 pp. Joakim Book (j@joakimbook.com) is a graduate student at Oxford University. Quarterly Journal of Austrian Economics 22, no. 1 (Spring 2019), full issue, click here. What could possibly go wrong when a former Fed chairman and the […]

How to Assemble a Winning Combination of Resources — Steven Phelan

Austrian Capital Theory holds that capital assets are heterogeneous and complementary. In business language, that means an entrepreneur can assemble set of assets that are special to his or her firm and combined in such a way that the combination is unique, or at least hard to copy. If the […]