Tag Archives: economics

Yes, students still need Econ 101

Source: James G. Martin Center for Academic Renewal
by Donald J Boudreaux

“In an article published recently in the Atlantic, ‘The Curse of Econ 101,’ University of Connecticut law professor James Kwak argues against what he assumes to be the content, thrust, and effect of the basic principles course, Economics 101. He thinks it’s too simplistic. And he’s sure that in its simplicity, it masks the complexities that must be accounted for when passing judgment on economic reality and especially on government policies.” (02/22/17)


The goal of socialists is socialism — not prosperity

Source: Ludwig von Mises Institute
by William L Anderson

“As I observe (and participate in) a few discussions on Facebook and elsewhere about socialism, I have come to a few conclusions about the nature of the arguments and the reasons why socialists remain socialists even as we see the utter failure of socialist economies throughout history. Maybe the meme that appears once in a while — ‘“If socialists understood economics, they wouldn’t be socialists’ — might be true, but I doubt it. As I see it, the purpose of establishing socialism is to further promote socialism, not improve the lot of a society and certainly not to promote prosperity.” (02/14/17)


Protectionism is not inflationary

Source: EconLog
by Scott Sumner

“Protectionism is clearly a bad policy. But it’s not bad for the reasons that many people assume. If you put barriers on the import of a specific good, it tends to raise the relative price of that good. But an across the board import tax does not raise the overall cost of living. Recall that the Fed determines the rate of inflation, which is likely to be about 2% regardless of whether policy is protectionist or not.” (02/13/17)


Economic roundtable: Predictions for 2017

Source: Heartland Institute
by Christopher Casey

“This roundtable discussion of independent investment minds is moderated by Heartland Institute Policy Advisor Christopher Casey. Casey interviews Rick Rule, President and CEO of Sprott US Holdings, Inc; Brett Rentmeester, President of WindRock Wealth Management; Axel Merk, President and CIO og Merk Investments; and Bud Conrad, author of the book ‘Profiting from the World’s Economic Crisis.'” (02/12/17)


The skinny on Trumponomics

Source: Common Sense
by Paul Jacob

“President Donald Trump does not trust economists. So he is demoting the Council of Economic Advisors, booting out of the Cabinet the Council’s chairperson. If this were only because economists as economists cannot do what he has been able to do — make a big success in business and trade –— we could give him something like a pass. … But all this may be irrelevant. Trump’s problem seems to be that he cannot find enough reputable economists to jump on board his protectionist bandwagon.” (02/13/17)


Economic ideas: Karl Marx, the man behind the communist revolution

Source: Future of Freedom Foundation
by Richard M Ebeling

“When Karl Marx died in March 1883, only about a dozen people attended his funeral at a cemetery in London, England, including family members. Yet, for more than a century after his death — and even until today — there have been few thinkers whose ideas have been as influential on various aspects of modern world history. Indeed, as some have said, no other faith or belief-system has had such a worldwide impact as Marxism, since the birth of Christianity and the rise of Islam. Marx’s critique of capitalism and capitalist society has shaped much of the social thinking in Western countries that led to the welfare state and extensive government intervention into economic affairs.” (02/13/17)


The Austrian prescription

Source: Cobden Centre
by Sean Corrigan

“Philosophically, we Austrians are believers in the idea that each and every man is best placed to know both the ordering and intensity of his own wants. We hold, too, that from his own efforts to satisfy them — through what is usually a mutually self-enriching interaction with his fellows as they in turn try to satisfy theirs — emerges all the rich order of the economy. That being the case, that economy is something which is not to be thought of either as emerging by conscious design from on high, nor as best being described by a set of disembodied aggregates, each of them operating in some kind of ghostly, yet quasi-mechanical independence from the actions of the myriad of individuals which comprise them.” (02/09/17)


How governments destroy consumer sovereignty

Source: Ludwig von Mises Institute
by Per Bylund

“It is easy to fall into the trap of the ‘cost-plus’ method. That is, to consider prices for consumer goods to be a function of the costs of production. Unfortunately, the cost-plus method of pricing is commonly taught to MBA students worldwide, thereby cementing a bureaucratic view of business and the economy. The fact is that prices are not a result of costs; it is the other way around. Actually, prices and costs are not even ‘set’ by the same types of economic actors.” (02/08/17)


Inflation: How it occurs and what are its consequences

Source: Cobden Centre
by Tim Lucas

“Guided by Austrian school economics, I have attempted to outline firstly the different mechanisms through which inflation may occur. Secondly, I have noted some of the second-order consequences that might be expected as a result of these primary mechanisms. Finally, I have made some observations about how this framework relates to investment today.” (02/08/17)


A surprising supply of communist dupes

Source: EconLog
by Bryan Caplan

“When I was first learning economics, I was surprised by how pro-communist many economics textbooks were. I don’t mean, of course, that economics textbook ever said, ‘Communism is good.’ What I mean, rather, is that textbooks were very positive relative to communism’s historical record. Indeed, many seemed deeply ignorant of actual communism, basing their assessment on second-hand information about communists’ stated intentions, plus a few anecdotes about inefficiencies. Many textbook authors were, in a phrase, communist dupes: Non-communists who believe and spread a radically overoptimistic image of communism. At least that’s what my admittedly flawed memory says. This homeschool year, I’m prepping my sons for the Advanced Placement tests in Microeconomics and Macroeconomics …” (02/06/17)