Pursuit of Happiness
Unintended Consequences in Energy Policy
On the first day of every economics class I teach I start with The Ten Pillars of Economic Wisdom. This is a list I have put together of the ten most important principles in economics. Pillar number six is, “Every action has unintended consequences; you can never do only one thing.” U.S. energy policy illustrates [...]
2Mar2009 | David R. Henderson | 11 comments | ContinuedHow Bad Can it Get?
In August the Evergreen Freedom Foundation (EFF) in Washington state released its State of Labor 2008 (the Report), which warns of several perils emanating from the growth of government-sector collective bargaining and offers suggestions for ameliorating them. (The Report is available in PDF here .) I predict these perils will soon be much more severe [...]
20Jan2009 | Charles W. Baird | 1 comment | Continued
Fuzzy Thinking
George Orwell warned, “But if thought corrupts language, language can also corrupt thought.” That is the challenge—not allowing language and ill-defined terms to corrupt thought—that I face teaching economics to both graduate and undergraduate students. Terms that are widely used can have considerable emotional worth but little or no analytical value, ambiguous meaning, or unappreciated [...]
1Dec2008 | Walter E. Williams | 9 comments | ContinuedAre You Being Served?
“In the animal kingdom,” said psychiatrist Thomas Szasz, “the rule is, eat or be eaten; in the human kingdom, define or be defined.” It is important to use words carefully, to use words that have as exact a meaning as you can achieve. Those who manage to persuade others to use the words they wish [...]
1Nov2008 | David R. Henderson | 3 comments | ContinuedWorker Freedom in Peril
The Alliance for Worker Freedom (AWF) recently published its 2007 Index of Worker Freedom (IWF).The index ranks each of the 50 states on the basis of ten variables that affect the freedom of workers. “Freedom” is defined properly as the absence of interferences with individual worker choices. After explaining the ten variables used and identifying [...]
1Oct2008 | Charles W. Baird | 0 comments | ContinuedUnpleasant Economists
Economists are not the most pleasant people to have around when others are delightfully praising the benefits of this or that public policy. We acknowledge the existence of scarcity, the fact that to enjoy more of one thing requires having less of another, which in turn forces us into bringing up the unpleasant topic of [...]
1Sep2008 | Walter E. Williams | 0 comments | ContinuedFreedom, Drugs, and the Workplace
Imagine that you work for an employer whom you respect, and you like your job. Then you find out that your employer uses marijuana for a medical condition. On further inquiry, you learn that he uses it completely legally and, as far as you can tell, it doesn’t affect his performance as an employer. Should [...]
1Jul2008 | David R. Henderson | 0 comments | ContinuedFaculty Unions Versus Academic Legitimacy
The faculty at Montana State University in Bozeman will soon vote on whether to unionize. If a majority vote yes, the school will gradually descend into academic mediocrity or worse. The vast majority of unionized faculty in higher education are employed in government colleges and universities. This is because in 1980 the U.S. Supreme Court, [...]
1Jun2008 | Charles W. Baird | 2 comments | ContinuedRights Versus Wishes
Critics of the U.S. health-care system often suggest that we should adopt the single-payer universal systems of other countries. The serious problems encountered by those systems are increasingly documented and well known, such as the long waiting lists, restrictions on physician choice, and rationing in countries such as Canada, Italy, Greece, and the United Kingdom. [...]
1May2008 | Walter E. Williams | 0 comments | ContinuedHow Free Markets Break Down Discrimination
One of my favorite lines in the classic movie The Magnificent Seven comes when a traveling salesman and his partner offer to pay the local undertaker to haul a dead Indian to boot hill. The undertaker refuses. He’d like to oblige, he explains, but the townsfolk are so prejudiced against burying Indians alongside whites that [...]
1Apr2008 | David R. Henderson | 3 comments | ContinuedStealing for Union Bosses
Charles Baird is a professor of economics emeritus at California State University at East Bay. H. L. Mencken opined that “Every election is a sort of advance auction sale of stolen goods.” The November 2006 congressional elections are an excellent example of Mencken’s proposition. The attempts by the 110th Congress to steal property and other [...]
1Mar2008 | Charles W. Baird | 1 comment | ContinuedEconomics and Property Rights
Economic theory does not operate in a vacuum. Institutions, such as the property-rights structure, do not change economic theory but influence how the theory manifests itself. Similarly, the law of gravity is not repealed when a parachutist floats gently down to earth. The parachute simply determines how the law of gravity manifests itself. Failure to [...]
1Jan2008 | Walter E. Williams | 0 comments | ContinuedThe Intellectual Defense of Liberty
All too often defenders of free-market capitalism base their defense on the demonstration that free markets allocate resources more efficiently and hence lead to greater wealth than socialism and other forms of statism. While that is true, as Professor Milton Friedman frequently pointed out, economic efficiency and greater wealth should be seen and praised as [...]
1Oct2007 | Walter E. Williams | 0 comments | ContinuedDemocracy or Republic?
Walter Williams is the John M. Olin Distinguished Professor of Economics at George Mason University. How often do we hear the claim that our nation is a democracy? Was a democratic form of government the vision of the Founders? As it turns out, the word democracy appears nowhere in the two most fundamental founding documents [...]
1Jun2007 | Walter E. Williams | 0 comments | ContinuedHayek on Closed Shops and Yellow Dogs
Charles Baird is a professor of economics and the director of the Smith Center for Private Enterprise Studies at California State University at East Bay . In my December 2006 column I discussed some of Hayek’s classical-liberal views on the rule of law and labor unions. In brief, Hayek approved of voluntary unionism based on [...]
1Apr2007 | Charles W. Baird | 0 comments | ContinuedMinimum Wage, Maximum Folly
The big Associated Press story for last October 11 was that “More than 650 economists, including five winners of the Nobel Prize for economics, called Wednesday for an increase in the minimum wage, saying the value of the last increase, in 1997, has been ‘fully eroded.’ ” Among these economists were Nobel laureates such as [...]
1Mar2007 | Walter E. Williams | 0 comments | ContinuedHayek on the Rule of Law and Unions
In F. A. Hayek’s mind the rule of law has two equally important parts. Like most writers on the subject he argued that the rule of law requires everyone, including those who wield government powers, to be bound by the same set of rules. He called this principle “isonomia” (Greek for “equal law”). Isonomia, by [...]
1Dec2006 | Charles W. Baird | 2 comments | Continued-
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