Monday , July 15 2019
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The Economics of Healthcare: Market Failure or Faulty Models? (Part 1)

It is commonly believed that healthcare is a sector plagued by “market failure.” A heavy dose of government intervention is therefore necessary to optimize the needs of society. A paper most commonly cited in support of that view is one published in 1963 by Nobel Prize winner Kenneth Arrow, one of the giants of economic theory in the twentieth century, and titled “Uncertainty and the Welfare Economics of Medical Care.” But how does economic theory arrive at the concept of market failure and...

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Money-Supply Growth Remained Sluggish in May

Money supply growth inched up in May, rising slightly above March's and April's growth levels. But overall growth levels remain quite low compared to growth rates experienced from 2009 to 2016. March's growth rate, for examples, was at a 12-year (145-month) low. In May, year-over-year growth in the money supply was at 2.21 percent. That was up from April's growth rate of 2.00 percent. May 2019's growth rate was well down from May 2018's rate of 4.19 percent.    The money-supply metric used...

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Why the Swiss Voted for More Gun Control

Listen to the Audio Mises Wire version of this article. On May 19, 2019, Swiss voters approved a new set of gun control restrictions. This newly-approved gun control measure would put Switzerland’s gun control laws in line with European Union standards. Under this new law, military-style, semi-automatic weapons would be heavily restricted, while also tightening up gun registration standards. A few exemptions were made for participants in shooting sports who will still be able to nominally...

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Austerity: When It Works and When It Doesn’t

Austerity: When It Works and When It Doesn’tby Alberto Alesina, Carlo Favero, and Francesco GiavazziPrinceton: Princeton University Press, 2019, xvi + 245 pp. Mark Thornton ([email protected]) is Senior Fellow at the Mises Institute and Book Review Editor at the QJAE. Quarterly Journal of Austrian Economics 22, no. 1 (Spring 2019), for full issue, click here. Austerity is, plain and simple, living within one’s means for normal people. The policy of austerity is for governments who spend a...

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Confucian Capitalism: Shibusawa Eiichi, Business Ethics, and Economic Development in Meiji Japan

Confucian Capitalism: Shibusawa Eiichi, Business Ethics, and Economic Development in Meiji Japanby John H. SagersCham, Switzerland: Palgrave Macmillan, 2018, xvi + 245 pp. Jason Morgan ([email protected]) is an associate professor at Reitaku University in Chiba, Japan. Quarterly Journal of Austrian Economics 22, no. 1 (Spring 2019), for full issue, click here. Shibusawa Eiichi (1840–1931) is one of the most respected figures in modern Japanese history. Often referred to as the “father...

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Why It’s Important to Understand “Economic Costs”

The concept of economic cost seems to confuse people. It is not the price you pay for a good, but the reason you pay it. The cost of one action is the value you could otherwise have gained from taking another action. In other words, if you have $100 and you have the choice to buy two goods, each at a price of $100, you'll naturally choose whichever is more important (valuable) to you. The cost of it is not the $100, which you give up to purchase it, but the value of the other good, which you...

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4 New Reasons to Fear a Universal Basic Income

Listen to the Audio Mises Wire version of this article. Most of us have heard the arguments from the Left on the emancipatory power of the Universal Basic Income Guarantee to free us from the chains of work, stress and poverty, and to liberate the creative impulses of man. We also hear from conservatives like Charles Murray, who stress that welfare cliffs under the current system create a poverty trap, where by earning more people will take home less, creating a permanent disincentive to work...

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The Fed’s Endless Boom-Bust Cycle

When people talk about the economy, they generally focus on government policies such as taxation and regulation. For instance, Republicans credit President Trump’s tax cuts for the seemingly booming economy and surging stock markets. Meanwhile, Democrats blame “deregulation” for the 2008 financial crisis. While government policies do have an impact on the direction of the economy, this analysis completely ignores the biggest player on the stage — the Federal Reserve. One cannot grasp the...

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