Posts Tagged ‘ economics ’

Joseph Schumpeter the “father” of capitalist “creative destruction”

February 8, 2016
posted by

Richard M. Ebeling Future of Freedom Foundation
by Richard M Ebeling  

"Today is Austrian-born economist, Joseph A. Schumpeter's, birthday. Born on February 8, 1883, he died on January 8, 1950. Schumpeter is famous as a leading 20th century formulator of the notion of the entrepreneur as dynamic innovator of change, and also as a master of the history of economic ideas." (02/08/16)

http://fff.org/explore-freedom/article/joseph-schumpeter-the-father-of-capitalist-creative-destruction/  

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Why we need a recession

January 21, 2016
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Ronald-Peter Stoferle  

"According to the National Bureau of Economic Research (NBER), a recession is defined as a 'significant decline in economic activity spread across the economy, lasting more than a few months.' Often, this is understood as two consecutive quarters of negative economic growth as measured by a country's GDP. Public opinion is generally quite simple in regard to recession: upswings are generally welcomed, recessions are to be avoided. The 'Austrians' are however at odds with this general consensus -- we regard recessions as healthy and necessary. Economic downturns only correct the aberrations and excesses of a boom." (01/20/16)

https://mises.org/library/why-we-need-recession  

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Austrian economics is more than free-market economics

January 13, 2016
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Matt McCaffrey  

"Austrian economists are known for supporting free markets and criticizing government intervention. In fact, many people mistakenly think of Austrian economics as nothing more than a radical defense of free markets, though it's really a framework for studying human action and its social implications. Still, you can usually spot free market conclusions lurking in the background of Austrian work, and this raises important questions about how policy implications influence the development of theory." (01/12/16)

https://mises.org/library/austrian-economics-more-free-market-economics  

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The wealth of everyone

January 11, 2016
posted by

Lawrence W. Reed Foundation for Economic Education
by Lawrence W Reed  

"Adam Smith entered a world that his reason and eloquence would later transform. He was baptized on June 5, 1723, in Kirkcaldy, Scotland. It's presumed that he was either born on that day or a day or two before. He would become the Father of Economics as well as one of history's most eloquent defenders of free markets." (01/08/16)

http://fee.org/freeman/the-wealth-of-everyone/  

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What would an IS shock look like?

January 10, 2016
posted by

Scott Sumner EconLog
by Scott Sumner  

"One thing that makes it hard to discuss macroeconomics with people is the widely held assumption that changes in interest rates reflect changes in monetary policy. That misconception comes from the fact that people misinterpret the implications of two true facts: 1. In the IS/LM model, an easy money policy lowers interest rates. 2. The Fed targets short term interest rates. People think that if the Fed is controlling rates, and if an easy money policy causes rates to fall in the IS/LM model, then a fall in rates must be an easy money policy. But of course this doesn't at all follow from the previous assumptions." (01/09/16)

http://econlog.econlib.org/archives/2016/01/what_would_an_i.html  

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“Paradise for an Austrian researcher”

January 7, 2016
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by staff  

Interview with David Sanz Bas. Bas: "When I started my bachelor in economics, I considered myself a Marxist. By chance, when I was twenty (it was 2004), I had the opportunity to read Carl Menger’s Principles of Economics. This book made a deep impression on me and, after a lot of thinking and more reading, I became an Austrian. By that time, I had become interested in activism, and, in 2005, some friends and I founded an online forum where we discussed and debated lively topics on economics, defense, history, political options, environmentalism, etc. We did this with random online socialists, libertarians, neocons, fascists, and hippies. Through this, I discovered the Mises Institute and its website, and I liked it a lot." (01/06/15)

https://mises.org/library/paradise-austrian-researcher  

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Why Austrians are not neoliberals

January 4, 2016
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Philipp Baggus  

"The neoclassical mainstream profession was unable to predict the Great Recession. As neoclassical economists believed in a new age of macroeconomic stability, dubbed the Great Moderation, in which central banks had basically abolished harsh recessions, they were taken by surprise by the immense problems the financial system and the world economy started to experience in 2008." (01/04/16)

https://mises.org/library/why-austrians-are-not-neoliberals  

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Comparative advantage: An idea whose time has passed

December 28, 2015
posted by

Foundation for Economic Education Foundation for Economic Education
by Michael Munger  

"The notion of comparative advantage is empirically misleading, because it sounds deterministic. There are few situations where fixed factors make the relative opportunity costs of different actions immutable. Instead, cost and productivity differences are endogenous, the consequence of human ingenuity and the division of labor. Today's cost advantage for one country may disappear if another country finds a better, cheaper way to produce the product. And the way to specialize is to exploit the division of labor." (12/28/15)

http://fee.org/freeman/comparative-advantage-an-idea-whose-time-has-passed/  

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Adam Smith on public policy: Occupational licensing

December 23, 2015
posted by

Libertarianism.org Libertarianism.org
by Paul Mueller  

"Recent Left Smithian scholarship has rightly highlighted Smith's concern for the poor. Ignoring how Smith talked about the poor misses a key aspect of his thought: the poor benefit tremendously from free exchange and the division of labor. Smith saw markets, not government aid, as the primary means of bettering the condition of the poor. When Smith discusses the necessary expenses of the sovereign, he makes no mention of aid programs for the poor." (12/23/15)

http://www.libertarianism.org/columns/adam-smith-public-policy-occupational-licensing  

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Labor econ versus the world: Ecumenical edition

December 23, 2015
posted by

Bryan Caplan EconLog
by Bryan Caplan  

"Most courses in labor economic don't strive to undermine our society's secular religion. Mine does. I suspect that most labor econ professors would object to my efforts. Shouldn't a college class provide a balanced discussion of the issues, instead of trying to change the way students see the world? Yes and no. Of course college class should provide a balanced discussion of the issues. But if students arrive with a bunch of silly preconceptions, changing the way students see the world is a precondition for balanced discussion." (12/23/15)

http://econlog.econlib.org/archives/2015/12/labor_econ_vers_2.html  

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Labor econ versus the world: Further thoughts

December 22, 2015
posted by

Bryan Caplan EconLog
by Bryan Caplan  

"In my youth, I saw Industrial Organization as the heart of our secular religion. My history textbooks loudly and repeatedly decried 'monopoly;' teachers, peers, and parents echoed their complaints. Since the late-90s, however, such complaints have faded from public discourse. The reason isn't that plausible examples of monopolies have vanished. If anything, firms that look like monopolies -- Amazon, CostCo, WalMart, Starbucks, Uber, Facebook, Twitter -- are higher-profile than ever. But the insight I preached in my youth -- the main way firms obtain and hold monopoly on the free market is reliably giving consumers great deals -- is almost conventional wisdom. What modern consumer fears Amazon or Starbucks?" (12/22/15)

http://econlog.econlib.org/archives/2015/12/labor_econ_vers_1.html  

1 Comment »

Simple economic truths for entrepreneurs

December 22, 2015
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Per Bylund  

"It's no news to Austrians that the world is suffering from a lack of economic understanding. With the sorry state of mainstream economics education, this economic illiteracy is an expected result. (And with the popular belief in large-scale, one-size-fits-all political solutions to [politically created] problems, dismissing economic sense is all but necessary.) Yet the whether or not people wish it, economic truths remain true - and they affect our everyday lives. Entrepreneurs, who spend every waking hour trying to make ends meet in untested market territory, are bound to learn this lesson. But without a proper economic understanding, they struggle with fitting the pieces of the puzzle together and see the whole picture." (12/21/15)

https://mises.org/blog/simple-economic-truths-entrepreneurs  

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Why capitalists are repeatedly “fooled” by business cycles

December 21, 2015
posted by

Frank Shostak Ludwig von Mises Institute
by Frank Shostak  

"According to the Austrian business cycle theory (ABCT) the artificial lowering of interest rates by the central bank leads to a misallocation of resources because businesses undertake various capital projects that -- prior to the lowering of interest rates -- weren't considered as viable. This misallocation of resources is commonly described as an economic boom. As a rule, businessmen discover their error once the central bank -- which was instrumental in the artificial lowering of interest rates -- reverses its stance, which in turn brings to a halt capital expansion and an ensuing economic bust. From the ABCT one can infer that the artificial lowering of interest rates sets a trap for businessmen by luring them into unsustainable business activities that are only exposed once the central bank tightens its interest rate stance." (12/21/15)

https://mises.org/library/why-capitalists-are-repeatedly-fooled-business-cycles  

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My view of macro

November 16, 2015
posted by

Scott Sumner EconLog
by Scott Sumner  

"Several other bloggers have recently described how they visualize macro, so I'll play copycat. I see three types of macro, each radically different from the other two: Long run nominal is the easiest to explain, then business cycles, and long run real growth is the most complex." (11/16/15)

http://econlog.econlib.org/archives/2015/11/my_view_of_macr.html  

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Deaton wins economics Nobel Prize for work on consumption, poverty

October 12, 2015
posted by

Reuters Reuters    

"British-born economist Angus Deaton has won the 2015 economics Nobel Prize for his work on consumption, poverty and welfare that has helped governments to improve policy through tools such as household surveys and tax changes. The Royal Swedish Academy of Sciences said the microeconomist's work had been a major influence on policy making, helping for example to determine how different social groups are affected by specific changes in taxation." (10/12/15)

http://reut.rs/1jrRffX  

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Yes, you do understand economics

September 16, 2015
posted by

Mises Canada
by Michael McKay  

"The other day I was having coffee with a new friend, a retired businessman who customized luxury cars in California. I mentioned I had recently retired from owning an investment firm and had many years of study of economics, especially Austrian Economics. As so many people I have met before him, he said, 'I really don't understand economics and always have been confused by it.' To which I surprised him with, 'Of course you understand economics; it is the thought process you use every day to deal with three things: Scarcity, Property and Relationships.'" (09/15/15)

https://mises.ca/posts/articles/yes-you-do-understand-economics-2/  

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Austrian economics and the time for monetary freedom

September 15, 2015
posted by

Richard M. Ebeling The Daily Bell
by Richard M Ebeling  

"When the economic downturn began and then worsened, many were the critics who were sure that this proved the 'failure' of capitalism in bringing such financial and real economic disruption to America and the world. There were resurrected long questioned or rejected theories from the Great Depression years of the 1930s that argued that only far-sighted and wise government interventions and regulations could save the country from economic catastrophe and guarantee we never suffer from a similar calamity in the future." (09/15/15)

http://tinyurl.com/o5w5fma  

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Why economics matters

September 3, 2015
posted by

Jeff Deist Ludwig von Mises Institute
by Jeff Deist  

"Bernie Sanders or Hillary Clinton simply are not going to talk much in economic terms or present detailed economic 'plans.' On the contrary, they -- will assume rightly -- that most Americans just don't have any interest beyond sloganeering like '1%,' 'social justice,' 'greed,' 'paying their fair share,' and the like. Candidates on the Right won't be much better. They'd prefer to talk about other subjects, but when they do broach economics they're either outwardly protectionist like Donald Trump or deadly dull. Who is inspired by flat tax proposals? Americans simply aren't much interested in the details, or even the accuracy, of the economic pronouncements of the political class. We want bread and circuses." (09/03/15)

https://mises.org/library/why-economics-matters-0  

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The war over Hayek’s intellectual legacy: A response to John Gray

August 25, 2015
posted by

Foundation for Economic Education Foundation for Economic Education
by Georgi Vuldzhev  

"According to British philosopher John Gray, economist F.A. Hayek failed to grasp the fundamental inefficiency of capitalism, held to an ahistorical theory of business cycles, misunderstood the Great Depression, and offered policy recommendations that would have been disastrous had any government listened. Gray offers these critiques in the July 30 issue of New Statesman, in an article on the life, intellectual achievements, and mistakes of the renowned Austrian economist and Nobel laureate. Gray even claims that Hayek's greatest intellectual rival, John Maynard Keynes, was the better economist of the two. Gray's analysis is full of problems." (08/24/15)

http://tinyurl.com/q6ra4x8  

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Economics is dead, and it is being killed again

August 23, 2015
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Per Bylund  

"Economics is dead, and economists killed it. What we have seen over the course of the last eighty years is a systematic dismantling of the contribution of economics to our understanding of the social world. Whatever the cause, modern economics is now not much more than formal modeling using mathematics dressed up in economics-sounding lingo. In this sense, economics is dead as a science, assuming it was ever alive. Economics in mathematical form cannot fulfill its promises and neither the scientific literature nor advanced education in the subject provide insights that are applicable to or useful in everyday life, business, or policy. But apparently what is dead can be killed again." (08/22/15)

https://mises.org/library/economics-dead-and-it-being-killed-again  

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John Stuart Mill and the dangers from unrestrained government

August 11, 2015
posted by

Richard M. Ebeling The Daily Bell
by Richard M Ebeling  

"One of the great voices for personal liberty was that of the British economist and political philosopher, John Stuart Mill. His essay, 'On Liberty,' though penned well over 150 years ago, is a classic statement that the individual should be respected in his right of freedom of thought, speech and action. But John Stuart Mill (1806-1873) was also one of the most important economists of the nineteenth century. His Principles of Political Economy, originally published in 1848, became the leading textbook for at least two generations of students, from which they learned the nature of a market economy and its alternatives." (08/11/15)

http://tinyurl.com/njut7qb  

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The only form of permanence

August 6, 2015
posted by

The Cobden Center
by Sean Corrigan  

"Perhaps the first great lesson of economics, as emphasized by Henry Hazlitt, is that there is no free lunch. The second, courtesy of Frederic Bastiat, is that if it sometimes appears that there is one, it means that we simply have not looked deeply enough into the consequences of our attempt to enjoy it. The third, the joint insight of several generations of Austrians, is that the attempt to buy one for ourselves by resort to monetary manipulation is eventually doomed to fail. A cynic might say that the fourth and final lesson is that no-one ever wishes to abide by the strictures inherent in the first three rules." (08/06/15)

http://www.cobdencentre.org/2015/08/the-only-form-of-permanence/  

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Are Austrian criticisms of mainstream economics still relevant?

August 4, 2015
posted by

Mises Canada
by Ash Navabi  

"Occasionally, when Austrians try to distinguish their brand of doing economics from the mainstream, they get hit with accusations that they are attacking straw men; that no one believes what Austrians claim is the mainstream approach. Is this true? Are Austrians attacking enemies that don't exist anymore? I say no." (08/03/15)

http://tinyurl.com/polvl25  

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Money, currency, and fractional reserve banking: An overview

July 15, 2015
posted by

Reformed Libertarian
by C Jay Engel  

"Being as we subscribe to what has been labelled 'The Austrian School' of economics, we often refer positively to things such as 'The Fed' and the 'Gold Standard' and 'Fiat Money.' Perhaps then an overview is in order." (07/14/15)

http://tinyurl.com/phubysh  

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Hillaritynomics

July 14, 2015
posted by

Don Boudreaux Cafe Hayek
by Don Boudreaux  

"[A] voter tempted to take Ms. Clinton's assertions seriously should first demand that Ms. Clinton explain how a government policy of preventing her -- the voter -- from buying from sellers who offer her the best deals, and from selling to buyers who offer her the best prices, would make this voter better off. This voter should also insist that Ms. Clinton spell out just how less automation -- say, replacing automobiles with horses and buggies, replacing refrigerators with iceboxes, and forcing workers to use spoons rather than bulldozers to clear the construction site for her dream house -- would truly improve the standard of living of this voter's family." (07/13/15)

http://cafehayek.com/2015/07/hilaritynomics.html  

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