The Myth of Good Government

[Originally published November, 2008.] One of the great and most persistent errors of classical liberals is to believe in “good government,” a government that does “what it is supposed to do.” There is nothing the state can do, and which society needs done, that cannot be done far better by […]

The Hidden Costs Behind Every Government Program

When the state constructs a new bike lane, school, or begins a new space mission, the natural inclination of the majority is to cheer this new endeavor as progressive. We possess one new structure or have accomplished one new task than before; society has moved forward, the thinking goes. The […]

The Coming Whiskey Bubble?

As Austrians we are always looking for evidence to lead us to the next bubble. I think most of us are on high alert after a decade of easy money, stock price inflation, and ever decreasing bond yields. However, identifying the specific bubble sector(s) ahead of time is extremely difficult […]

Economic Nationalism Is a Philosophy of War

[This article is excerpted from “The Conflicts of Our Age” in chapter 24 of Human Action, the Scholar’s Edition.] Popular opinion sees the source of the conflicts which bring about the civil wars and international wars of our age in the collision of “economic” interests inherent in the market economy. […]

¿Son las recesiones inevitables?

By: Ron Paul Las acciones cayeron la semana pasada tras la noticia de que la curva de rendimiento de los bonos del Tesoro se había invertido. Esto significa que una nota del Tesoro a corto plazo estaba pagando tipos de interés más altos que una nota del Tesoro a largo […]

Bernie Sanders’s Upside-Down Concept of “Morality”

Bernie Sanders’s presidential campaign has served to once again confirm that his — and those of the “democratic socialist” and “progressive” movements — vision for society endorses an aggressive threat of violence against innocent individuals, and seeks to negate morality itself. While often declaring goods like health care and day […]

Bring Back the Constitution’s Prohibiton of Double Jeopardy

When Donny Clark was arrested in 1990 as part of a twenty-eight-man conspiracy to grow marijuana, he was the only defendant who refused to accept a plea bargain. Clark insisted he was innocent. Five years earlier, Clark was convicted in a Florida court for growing marijuana, but he served his […]

The Freedom to Reject the “Best”

A new study suggests that private schools are not inherently better than public schools. Surprised? Enough people were such that the study, funded by the US Department of Education, has created a stir in the education arena, as well as in the national news. But I want to argue that […]

The Disaster of Negative Interest Policy

Those who had hoped that things could not get worse with the monetary policy of the European Central Bank (ECB) have been proven wrong. At its last meeting on 25 July 2019, the Governing Council of the ECB kept interest rates unchanged: the main refinancing rate was kept at 0.00% […]

Real Savings Are the Key for Economic Growth

As long as the pool of real wealth is expanding, easy monetary policy will appear to “work,” and  loose monetary policy is likely to be incorrectly held as generating economic growth. Once, however, the pool becomes stagnant or starts declining, the “music stops” and no amount of central bank monetary […]

The Impossibility of Equality

[Excerpt from chapter 7 of Power and Market in Man, Economy, and State with Power and Market, pp. 1308–12.] Probably the most common ethical criticism of the market economy is that it fails to achieve the goal of equality. Equality has been championed on various “economic” grounds, such as minimum […]

Government Prosecutors Are Out of Control

When Paul Hayes was arrested in Kentucky for writing a fraudulent check, he faced his third felony charge. At the time, Kentucky had a law in effect known as the Habitual Criminal Act, which imposed a life sentence for any third-time felony conviction. The prosecutor in the case, however, was […]

If a Pure Market Economy Is So Good, Why Doesn’t It Exist?

If a pure market economy is so good, why does it not already exist? If governments are so bad, why are they dominant throughout the world today? Indeed, is the widespread adoption of free markets ever likely to occur? Many recent authors, including Tyler Cowen,1 Cowen and Daniel Sutter,2 Randall […]

Happy Birthday Ron!

The remarkable life of Ron Paul began in Pittsburgh 84 years ago today, in 1935—seven months after Elvis Aaron Presley came into the world. We wish him a very happy birthday, and many more years of health and productivity.  It’s a rare person who peaks later in life, but Dr. […]

Cheryl and Cliff Pia on the Economics of Creativity

There are many, many pathways of entrepreneurial opportunity in creative services, where it is eminently possible to succeed on talent, where big companies are eager to work with small creative companies and individuals, where agile low-overhead business models are thriving, and where technology is the entrepreneur’s friend. It’s an exciting […]

Are Recessions Inevitable?

By: Ron Paul Stocks fell last week following news that the yield curve on Treasury notes had inverted. This means that a short-term Treasury note was paying higher interest rates than long-term Treasury note. An inverted yield curve is widely seen as a sign of an impending recession. Some economic […]

Bylund: Entrepreneurship Involves Uncertainty. Here’s How to Deal With It Productively.

By: Per Bylund Late South African economist Ludwig Lachmann once wrote, “The future is unknowable, though not unimaginable.” What he meant is, it’s beyond our ability to know what the future will bring. We cannot plan without errors, because we do not actually know anything about the future before it’s […]

Money Printing Can’t Replace Saving and Production as the Real Engine of Economic Growth

There are some signs that the pace of US economic activity is starting to slow down. For instance, the yearly growth rate of industrial production, which closed at 5.4% in September 2018, fell to 1.3% by June this year (see chart). In addition, the annual growth rate of the consumer […]

When State Governors Tried To Take Back Control of the National Guard

A West Virginia state lawmaker plans to re-introduce a bill next session that would require Congress declare war or call forth the state militia before the West Virginia National Guard could be released from state control and sent into combat. Currently, as The Intelligencer (of Wheeling) puts it: “the authority […]

Nicholas Oresme and the First Monetary Treatise

The practical offshoot of the Austrian theory of money is that the production of money should best be left to the free market. Government interventionism does not improve monetary exchanges; it merely enriches a select few at the expense of all other money users. And on the aesthetic side, the […]