Economists and other pundits have been discussing the deal struck between Obama and the Republicans. It is an interesting topic because it showcases the enormous gulf between what makes good political sense and what policies are economically beneficial. Paging Orwell: Baseline Budgeting Perhaps the single biggest oddity in this affair has been the
Jim Manzi is a private-sector expert in statistical analysis . He is my favorite commentator on the economics of climate change, because he dove into the IPCC reports and found that the proposed legislative “cures” (cap-and-trade or carbon-tax laws) are arguably worse than the disease, even according to the “consensus” numbers. Lately, Manzi has
In last Monday’s article I discussed Jim Manzi’s debate with economist Karl Smith. I pointed out that Smith’s evidence in favor of mainstream macroeconomic models was actually consistent with the view that fiscal and monetary “stimulus” policies only stoke economic crises. In the present article, I’ll show a different example of this same pattern.
For his Sunday column, Paul Krugman wrote a piece titled “ When Zombies Win. “ Krugman claims that “free-market fundamentalists” — including Ron Paul — have been successful politically, despite being thoroughly discredited by recent events. As we’ll see, it’s a good thing that these ideas of shrinking government refuse to die, no matter how often
In a recent article in the Wall Street Journal , Alan Blinder listed numerous alleged benefits of a phased-in carbon tax. Out of his entire column, he devoted a single sentence to the possible downside of his plan when he wrote, “No one likes to pay higher taxes.” A more balanced assessment shows that a carbon tax presents very real dangers, even
It’s not newsworthy when Paul Krugman contradicts himself. However, in two recent blog posts on the varying economic fortunes of US states, Krugman’s about-face was so complete and so fast that I just have to share. Krugman’s Kind of Contradiction At the outset I should note that Paul Krugman is a very clever, careful guy. It’s extremely rare when
Everyone knows that the unemployment situation is very bad, but the official figures (not surprisingly) understate the problem. In this article I’ll outline the severity of the stalled labor market, and explain some of the major causes. The Employment Outlook According to the Bureau of Labor Statistics (BLS), the official civilian unemployment
After the catastrophic earthquake, the tsunami, and the nuclear-reactor scares, the Japanese currency ironically strengthened quite sharply. In response, the Bank of Japan and other major central banks last week launched a coordinated “intervention” into the currency markets in order to intentionally weaken the yen. In this article I’ll explain
Five months into the second round of quantitative easing — “ QE2 “ — it is useful to take stock of what it has, and has not, accomplished. In short, the monetary base is way, way up, price inflation is up, long-term interest rates are up, and bank lending is down . QE2 has thus begun to deliver on all the dangers of which the critics warned, but
An amusing story on NPR recently explained the origin of a new collection of Dr. Seuss stories. The tale involves an entrepreneurial dentist with a passion for Seuss and a knack for exploiting price spreads. Explaining profits that are fat? We here at Mises know a lot about that! Is There a Doctor in the Magazine? We can excerpt from the NPR
What is the Mises Institute?
The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.