Tuesday , February 25 2020
Home / Tag Archives: The Economy

Tag Archives: The Economy

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My intrepid Mercatus Center colleague Veronique de Rugy exposes yet more of Trump’s endless ignorance about trade. A slice: Underneath Trump’s policies is a profound ignorance of the tight connection between imports and exports. Foreigners sell goods and services to U.S. buyers in order to acquire American dollars. They want these dollars, in part, to buy American exports. So when U.S. imports grow, so do U.S. exports. The reverse is also true: reducing American imports causes Americans...

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My intrepid Mercatus Center colleague Veronique de Rugy wisely warns us of Bernie Sanders’s economically ignorant radicalism. George Will warns us of the dangers in Elizabeth Warren’s hypocritical and opportunistic embrace of teachers’ unions. A slice: Nationwide per-pupil public expenditure (in constant dollars) doubled between 1960 and 1980, and doubled again by 2016. Warren’s and Sen. Bernie Sanders’s jeremiads against “greed” exempt that of teachers unions. Alberto Mingardi is...

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Quotation of the Day…

… is from page 54 of Razeen Sally’s excellent 2008 book, New Frontiers in Free Trade: Globalization’s Future and Asia’s Rising Role (footnote deleted; link and emphasis added): The naysayers, from the hard and soft Left, and the conservative Right, hold that liberalization has not delivered the goods. They argue for various forms of government intervention, at national and international levels, to tame “market fundamentalism” and “neoliberal globalization.” Interventionist ideas on trade...

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Bonus Quotation of the Day…

… is one to which Oren Cass, Daniel McCarthy, and other enthusiasts for protectionism and industrial policy should pay attention; it is from pages 68-69 of Chapman University’s Bas Van Der Vossen’s and Georgetown University’s Jason Brennan’s 2018 book, In Defense of Openness (original emphasis; footnote deleted): However, it’s one thing to say that in principle such protectionist measures could pay off. It’s quite another to say that in the real world, we should pursue them. One problem...

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Let’s hope that the truly good folks at the Institute for Justice succeed in their quest to stop this instance of that banana-republic practice called civil asset forfeiture. Bruce Yandle asks if the coronavirus can end the trade war. I didn’t know Rudy Gonzales. My loss. “Today, though, journalists are becoming zealous to silence their ideological rivals—and the fervor is mainly on the left.” – so wrote John Tierney a few months ago. Mark Perry gives us a good picture of just how...

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Quotation of the Day…

… is from page 250 of Matt Ridley’s great 2010 book, The Rational Optimist: It is the planned economy, not the market, that requires perfect knowledge. DBx: The core, ’tho not sole, reason for this truth is that agents who are part of a plan have much less scope to adjust to mistakes and new opportunities than do individuals acting within markets. Individuals acting within markets pursue the fulfillment only of their own plans (and in doing so they better enable a large number of other...

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My intrepid Mercatus Center colleague Veronique de Rugy continues her campaign against the U.S. government’s fiscal incontinence. Another Mercatus Center colleague, Jayme Lemke, argues that history should pay more attention to the many ways that ordinary people solve problems without the assistance of – indeed, often in spite of – governments and Great Men. George Melloan writes wisely about the rise today of sympathy for socialism. A slice: And millennials fear, for good reason, that...

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My GMU Econ colleague Dan Klein talks with Russ Roberts, at EconTalk, about honest income – and other matters. I enjoy and learn much from Anton Howes’s newsletter on economic history. Here’s the January 29th, 2020, posting. Pete Boettke explains why Armen Alchian explained property rights to economists. A slice: So, why did Alchian have to recapture such a basic point of common economics knowledge that had been recognized from Adam Smith onward? My conjecture is that Alchian was...

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Proponents of Industrial Policy and Protectionism Know No Economics

In my latest column for AIER I do my best to expose more of the economic fallacies that infect the case made by Daniel McCarthy and other ‘conservative nationalists’ against a policy of free trade. A slice: From Adam Smith forward, economists and market liberals have explicitly addressed – patiently, repeatedly, and in countless different ways – the incessant protectionist assertion that the home country will suffer if it doesn’t impose tariffs on imports from countries whose governments...

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Quotation of the Day…

… is from page 139 of Peter Bauer’s penetrating 1969 article “Dissent on Development,” as it is reprinted in the original 1972 edition of Bauer’s invaluable collection of the same name (Dissent on Development): The collection of resources for government financed or sponsored investment often has a substantial disincentive effect on saving, effort and enterprise, because of the taxation or controls imposed for this purpose. These disincentive effects can easily offset, or more than...

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