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Mihai Macovei



Articles by Mihai Macovei

Lockdowns Are More Economically Devastating Than Voluntary Social Distancing

14 days ago

Lockdowns advocates claim fear of the virus is really what kept people home—and has thus led to the economic destruction of the past year. But they also claim that without forced lockdowns, people will quickly go back to normal. Both can’t be true.  Original Article: “Lockdowns Are More Economically Devastating Than Voluntary Social Distancing” This …

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Lockdowns Are More Economically Devastating Than Voluntary Social Distancing

23 days ago

Once again, several European countries have extended and tightened lockdowns, despite the continent having been under recurrent strict confinement measures since the beginning of the pandemic. The population watched in disbelief how new restrictions were added to the already heavily curtailed access to restaurants, bars, cultural gatherings, sport events and international travel. The authorities are …

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Capital and Labor Both Suffer under Minimum Wage Mandates

March 13, 2021

Rising unemployment is just one outcome of minimum wage mandates. Capital accumulation and labor productivity will also be hurt.  Original Article: “Capital and Labor Both Suffer under Minimum Wage Mandates” This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Michael Stack.  

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Capital and Labor Both Suffer under Minimum Wage Mandates

March 8, 2021

President Biden and the Democratic Party have pushed hard to more than double the national minimum wage from $7.25 per hour to $15 per hour over the next four years. This aggressive intervention in the functioning of labor markets has been heavily criticized, including in two recent Mises Wire articles. Resorting to both theoretical arguments …

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China Needs More Economic Freedom—Not a Bigger Welfare State

February 23, 2021

Mainstream economists claim China needs more consumption and a bigger welfare state. They think China’s high savings rate is a bad thing. These economists are wrong.  Original Article: “China Needs More Economic Freedom—Not a Bigger Welfare State” This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Michael Stack.  

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China Needs More Economic Freedom—Not a Bigger Welfare State

February 18, 2021

China has not been spared heavy criticism about its growth mode since it joined the World Trade Organization (WTO) in 2001. Leading the choir of discontent, the International Monetary Fund (IMF) claimed that “high savings are at the heart of China’s external and internal imbalances.” Other mainstream pundits also believe that China’s mercantilist policy was …

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There Are No Winners in the US-China “Tech War”

July 28, 2020

After unleashing a disruptive trade conflict with China, the Trump administration has also escalated the lingering “cold tech war” between the two rival powers. Over the last two years, the US has passed new rules limiting China’s investments in the US, restricting bilateral information and communications technology (ICT) trade and controlling exports of sensitive and emerging technology …

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Facing Economic Disaster, France Turns against Globalism

May 5, 2020

Listen to the Audio Mises Wire version of this article. Since mid-March, the French people have been coping with one of the strictest lockdowns in Europe. Large gatherings have been banned, and schools, bars, restaurants, and all shops (except for grocery stores) have been closed. Only “essential” trips outside home are allowed, and most businesses …

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Facing Economic Disaster, France Turns against Globalism

May 5, 2020

France faces a future of spiraling debt and declining economic growth. So Emmanuel Macron has now embraced economic nationalism as a way out. It’s not likely to work. This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Millian Quinteros. Original Article: “Facing Economic Disaster, France Turns against Globalism”

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While the West Panicked, Some Asian Regimes Took a Different Path

April 9, 2020

More and more voices are questioning the rationale for the general lockdown imposed in most of Europe and the US in response to the coronavirus epidemic. Such unprecedented suppression of civil and economic liberties during peace continue to strike many as hardly justified. Whether from a legal, ethical, or economic standpoint, we may soon find that …

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Japan’s Productivity Has Been Slashed By Government Meddling, Not Demographics

April 3, 2020

Mainstream economists have turned Japan’s adverse demographics into a scapegoat for its economic debacle. Be it the Financial Times or the IMF, the general narrative is that Japan’s shrinking and rapidly aging population has stifled both economic growth and productivity. Allegedly, in a fast-aging society such as Japan’s individuals increase savings for retirement and curtail consumption, while companies …

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South Korea’s Neo-Mercantilist Growth Engine Has Stalled

February 4, 2020

Capital accumulation and productivity growth are the outcome of free market investment and not of government spending. This is well known to Austrian school economists. Rothbard1 argued that only the free market can ensure an efficient allocation of factors of production whereas government sponsored investment is “either malinvestment or not investment at all, but simply …

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China’s Mercantilism Is a Recipe for Stagnation

December 4, 2019

Over the past two decades, fears about China’s rapid economic and technological advancement have grown exponentially and culminated in the recent trade war unleashed by President Trump. But only supporters of government intervention could think of China’s market socialism as a redoubtable challenger to a market-oriented economy. But that’s not how it works. Murray Rothbard, …

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Stimulus Brings Stagnation: The Case of Japan

October 17, 2019

Efforts to stimulate growth end up hampering growth. The Austrian Theory of the Business Cycle (ATBC), pioneered by Ludwig von Mises, explains this seeming paradox. Government reduction of interest rates below the would-be market rate triggers an expansion of fiduciary credit in the context of fiat currency and fractional-reserve banking. It leads to a boom …

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Why Tariffs Won’t Create Jobs or Help the Auto Industry

December 6, 2018

At a mid-November hearing before the United States International Trade Commission, several U.S. automaker groups complained that proposed car tariffs would undermine the success of the U.S.-Mexico-Canada Agreement (USMCA) and cause heavy job losses for the car sector.1 The main U.S. car-producer association — the US Alliance of Automobile Manufacturers disapproved2 of (i) the rules …

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The Swiss Franc and The Euro: What Now?

January 9, 2018

In January 2015, the Swiss National Bank (SNB) unexpectedly removed the de facto peg of the franc to the euro.1 The move was welcomed by free-market economists, including in contributions on Mises Wire2. It was deemed that the short-run adjustments to the Swiss economy triggered by the appreciation of the franc were preferable to the macro-economic stability risks posed by the inflation imported from the euro area during the peg. Yet, it would have been difficult to anticipate that the SNB’s interventionist monetary policy would continue aggressively also after the peg.Let’s give some background. Since the onset of the Great Recession, investors flocked into the Swiss franc as a safe haven asset. They feared that ultra-loose monetary and fiscal policies would damage

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