In their 1990 paper, “A Model of Growth Through Creative Destruction,” 2025 Nobel winners Philippe Aghion and Peter Howitt attempt to formalize Joseph Schumpeter's theory of “Creative Destruction.” Their mathematical model is not creative, but it is destructive of the theory itself.
Stability has been earned. The next task is to convert it into structural strength.
Ironically, normal market pressures would make housing more affordable, but easy money undermines that prospect.
While some economists are celebrating the awarding of the Nobel Memorial Prize in Economics to three economists who are relatively friendly to free markets, we should not forget that most Nobel winners have been unrepentant statists and socialists.
"...the fundamental problem with the conservatives ... was that they were looking in the wrong direction. The revolution that they were trying to prevent had already happened..."
By honoring Mokyr, Aghion, and Howitt, the Nobel Committee has recognized that the future of growth depends on innovation, and that innovation begins with an idea. Ideas drive progress, and progress defines civilization.
We should stop using terms such as “trade surplus” or “trade deficit.” Trade is always a surplus and the only deficit comes from government interventions.
Many fans of Austrian economics know the MP Materials and US Rare Earth REM financing agreements will end badly with crony capitalism sourced from nonsense.
Murray Rothbard recognized that the Bureau of Labor Statistics provides the lifeblood for government intervention. It doesn't need to be “reformed,” but rather should be outright abolished.
By trying to protect dairy farmers and raise their incomes, the government created a massive cheese surplus, then gave it away, thus harming the farmers they were trying to support.
