What We Can Learn from Indian Tribes about Immigration

The Americas are unusual because citizenship is often granted based on birthplace, rather than on the citizenship or place of origin of one’s parents. Countries in North and South America have historically tended to more freely grant citizenship due to their relatively low populations, abundant land, and a historical dependence […]

El premio Nobel de Ciencias Económicas fue otorgado a ridículos, políticamente correctos, tecnócratas

By: Robert Wenzel La Real Academia Sueca de Ciencias ha concedido el Premio Sveriges Riksbank de Ciencias Económicas en memoria de Alfred Nobel 2019 a Abhijit Banerjee (Instituto Tecnológico de Massachusetts) y a su esposa Esther Duflo (Instituto Tecnológico de Massachusetts) y a Michael Kremer (Universidad Harvard). Del comité del […]

Politics Drops Its Pretenses

Can the increasing politicization of life in America be stopped, or even slowed? To be sure, average Americans do not want this. Most people prefer not to lead overly political lives, beyond perhaps voting once in a while and grumbling about taxes or potholes. Most people prefer to focus on […]

New Nobel Winners Are Latest Bad Sign for Economic Theory

The 2019 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel – colloquially known as the Nobel Prize in Economics – has gone to Abhijit Banerjee, Esther Duflo and Michael Kremer “for their experimental approach to alleviating global poverty.” Banerjee, Duflo, and Kremer are pioneers in the use […]

City Hall Forbids Developer from Giving Consumers What They Want

Politicians habitually promise us greater economic prosperity, but their official policies usually contradict their promises. And if you dare to point out this contradiction, you will be ignored, as happened recently in London, Ontario. First, let’s consider the source of economic prosperity. Economic Prosperity is Driven by Entrepreneurs and Consumers […]

Have Free-Market Economists Conquered the World?

[The Economists’ Hour: False Prophets, Free Markets, and the Fracture of Society. By Binyamin Appelbaum. Little, Brown, 2019. 439 pages.] Binyamin Appelbaum is unhappy. He is the main writer on economics for The New York Times, and he thinks that economics has taken a wrong turn. In the first half […]

The Mythology of the “Natural Interest Rate”

Myth : A huge and growing global savings surplus during the first two decades of this century has pressed down the natural rate (some say neutral rate) of interest. Actual very-low and sometimes negative market rates of interest reflect this. Reality : Estimates of the neutral rate according to central […]

The Nobel Prize in Economic Science Awarded to Silly, Politically Correct, Technocrats

By: Robert Wenzel The Royal Swedish Academy of Sciences has awarded the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2019 to Abhijit Banerjee (Massachusetts Institute of Technology) and to his wife Esther Duflo (Massachusetts Institute of Technology) and to Michael Kremer (Harvard University). From the Nobel […]

Why “Worker Exploitation” Is a Myth

“In order to show that it is a half-truth, we must have recourse to long and dry dissertations.”— Frédéric Bastiat It’s still a very prevalent view that employers are somehow exploiting the people who work for them when they draw a profit from their business, despite the fact that a […]

Central Banks Are Just Getting Warmed Up

According to all central banks, one of the main problems they are called to solve is that countries cannot reach their inflation target of (close to but below) 2 percent. Even their religious trust in the long-discredited Phillips curve cannot explain why price inflation is low in many countries despite […]

The World’s Least-Free Countries Reveal Just How Much “Socialism Sucks”

[Socialism Sucks: Two Economists Drink Their Way Through the Unfree World. By Robert Lawson and Benjamin Powell.  Regnery Publishing, 2019. 192 pages.] Robert Lawson and Benjamin Powell are well-known free market economists, and they do not look with favor on a disturbing trend among American young people. “In the spring […]

Por qué el número de empresas no es importante para la innovación

By: Per Bylund Los consumidores no ganan porque hay muchos productores de la misma mercancía, el número es irrelevante. Tampoco se benefician de la competencia entre empresas, ya que sus estrategias tienen poca importancia. Los consumidores se benefician de la producción dirigida a la creación de valor. Se nos ha […]

Patrick Newman on Rothbard and his Critics

The late Murray Rothbard has passionate fans and critics alike—but was he really the intransigent person his detractors portray? Was he prickly and difficult, or actually generous and helpful to students and colleagues? Did his reputation as an economist suffer for venturing into philosophy, ethics, history, sociology, and anarchism—even though […]

Walter Block and William Barnett on Problems With the Hayekian Triangle

In a 2006 journal article, “On Hayekian Triangles,” Walter Block and William Barnett list 14 separate objections to the popular device used (in various forms) by Hayek, Rothbard, and Roger Garrison to illustrate how artificially low interest rates lead to an unsustainable boom. Block concludes that the Hayekian triangle can be […]

The Mounting Conservative Attack on Market Freedom

I haven’t run an empirical study on the number of articles published, but it sure seems like conservatives are writing more articles than usual condemning economic freedom, and the people who advocate for it. This would make some sense in the Age of Trump when the the president has pushed […]

The Hidden Costs of a Universal Basic Income

The universal basic income (UBI) is gaining popularity as the alternative to the current welfare system. The idea is to give each citizen the same amount of money, no matter if he or she works or not. Therefore, unlike traditional welfare systems, the UBI has no means test, nor willingness-to-work […]

Why the Number of Firms Doesn’t Matter for Innovation

By: Per Bylund Consumers do not gain because there are many producers of the same good, the number is irrelevant. They also do not gain from firms competing with each other, their strategies matter little. Consumers gain from production directed toward value creation. We have been taught that competition “is” many actors trying to […]

Paleolithic People Were Not Primitive Communists

The resurrection of socialist ideas at the turn of the 21st century is a fairly evident phenomenon among part of the population of Western countries. Proponents of socialism have employed various “proofs” showing the supposed advantages and naturality of the collective way of existence. There is a line of thought […]

The End of Socialism and the Calculation Debate Revisited

The Review of Austrian Economics 5, no. 2 1991 At the root of the dazzling revolutionary implosion and collapse of socialism and central planning in the “socialist bloc” is what everyone concedes to be a disastrous economic failure. The peoples and the intellectuals of Eastern Europe and the Soviet Union are […]

The Return of Hyperinflation in Zimbabwe

It has been over a decade since Zimbabwe was ravished by one of history’s worst experiences in hyperinflation, reaching 79,600,000,000 percent as prices doubled approximately every 24.7 hours in November of 2008. Today under new leadership, it seems as though the government of Zimbabwe has failed to learn from its […]