Arnold Kling takes on Oren Cass (who continues to deeply misunderstand the case for free markets). Here’s Arnold’s opening sentence: In “When Market Economists Fail” (Fall 2020), Oren Cass sets up a strawman version of free-market economics, which he proceeds to burn up in a blaze of rhetoric. Pierre Lemieux tries to demystify the mysterious shortage of microchips. My colleague Bryan Caplan asks “What does the success sequence mean?” Nobel-laureate economist James Heckman will discuss the role of families in human flourishing. Who’d a-thunk it?! Robby Soave reports on the ominous trend of government officials pressing private citizens to control the dissemination of information. Scott Lincicome and Revana Sharfuddin ponder the demise of the department store. A slice: As we’ve
Don Boudreaux considers the following as important: creative destruction, Economics, Hubris and humility, inflation, Monetary Policy, Myths and Fallacies, Seen and Unseen
This could be interesting, too:
Daily Pfennig writes The Dollar Bugs Fight Back!
Don Boudreaux writes Dan Klein’s Open Letter to Tyler Cowen
Daily Pfennig writes Currencies Post Gains Vs The Dollar…
Don Boudreaux writes Some Non-Covid Links
Arnold Kling takes on Oren Cass (who continues to deeply misunderstand the case for free markets). Here’s Arnold’s opening sentence:
In “When Market Economists Fail” (Fall 2020), Oren Cass sets up a strawman version of free-market economics, which he proceeds to burn up in a blaze of rhetoric.
As we’ve discussed here previously, other data on middle-class wages and incomes show that the primary cause of the “shrinking” middle class is Americans moving up, not down, the financial ladder. Thus, there’s little data to suggest that “the collapse of America’s middle class crushed department stores.” Instead, this is far more likely a simple case of – pandemic aside – increasingly wealthy Americans preferring the convenience and variety of e-commerce or the uniqueness of brick-and-mortar niche retail over the traditional department store model – a preference that anyone who’s recently wandered a cavernous department store looking for a shirt or toaster, only to find it’s out of stock, probably understands. (And don’t even get us started on the parking garages.)
So we already know that the money supply will likely increase by at least another $2.3 trillion over the current year. In other words, even without any new lending or further purchases of securities by banks, the M2 money supply will grow by nearly 12% this year. That’s twice as fast as its average growth rate from 2000-19. It’s a rate that spells trouble—inflation trouble.