All Posts Tagged With: "economics"
Post-Clunker Slump
MSNBC is reporting retail sales have fallen to a YTD low now that the Cash for Clunkers program has ended. Is anyone surprised? The first time home buyer will probably lead to similar a collapse in home sales. That’s the problem with “stimulus,” by definition it can’t be sustained, and the subsequent crash is probably [...]
14Oct2009 | Mike Van Winkle | 1 comment | ContinuedThe Distress Index (A Better 'Misery' Index)
I was thinking a few months ago that FEE should develop a new and more accurate “Misery Index”. The original “Misery Index” is really not all that useful since it measures only unemployment and inflation. Deflating prices bring the index down but do not necessarily indicate a healthy economy. Sometimes it’s the opposite. We need [...]
18Sep2009 | Mike Van Winkle | 16 comments | ContinuedThe Complete Idiot’s Guide to Economics
For years the series of Complete Idiot’s Guide books has been a great commercial success, dealing mostly with “practical” topics as varied as dog training and wedding planning. Useful to be sure, but not exactly intellectually stimulating. The Complete Idiot’s Guide to Global Economics, by economist Craig Hovey and former FEE staff member Gregory Rehmke, [...]
19Aug2009 | George C. Leef | 5 comments | ContinuedSon of “Stimulus”
Bad economic policy proposals usually have a superficial logic that fools the economically illiterate into thinking the policies really make sense. For example, anti-price-gouging laws seem to keep goods affordable during emergencies. The government says no one may raise prices “excessively” on generators, batteries, and bottled water. Hurray for wise government policy. It takes some [...]
10Jul2009 | Sheldon Richman | 0 comments | ContinuedEconomics Reporters Ignorant of Economics
I just watched David Mark of Politico say on MSNBC that there is no positive side to the closing of auto dealerships. No positive side? What about the freeing up of labor and resources for projects that will create — rather than destroy — value?It is outrageous — though hardly new — that major news [...]
14Jun2009 | Sheldon Richman | 0 comments | ContinuedBad Regulation Drives Out Good
In 1969 economist Harold Demsetz identified an important flaw in much public policy analysis, the “Nirvana Fallacy.” We would do well to keep it in mind as we think about solutions to the current economic problems. Demsetz described the fallacy thus: “The view that now pervades much public policy economics implicitly presents the relevant choice [...]
9Apr2009 | Sheldon Richman | 2 comments | ContinuedFree to Consume, Or Not
As someone who is rather less eager to consume than previously, I feel harassed by the government, mainstream economists, and news media. You may feel the same way. Apparently, we aren’t consuming enough to suit them. At least that’s what they want us to think. More than that, they want us to feel guilty and [...]
6Mar2009 | Sheldon Richman | 1 comment | ContinuedAll About Greed
It comes down to greed. That’s what the economic turmoil is all about for many people. Too many of us were greedy, and now everyone is paying the price. Luckily this belief is wrong, because if it were right we’d be up the creek. Greed, however defined, presumably has always been and will always be [...]
27Feb2009 | Sheldon Richman | 0 comments | ContinuedThe Perverse Genius of Politics
Barack Obama held another town meeting today, this one in Fort Myers, Fla. People in the audience stood up and directly told the President of the United States they are hurting because of the recession. Obama listened sympathetically and explained how he will help them. It was all captured on television.It takes some understanding of [...]
10Feb2009 | Sheldon Richman | 0 comments | ContinuedQuestions for Obama
Mr. President. During your press conference last night you made a few rather interesting comments that are worth following up on.1. You said: We stand to lose about $1 trillion worth of demand this year and another trillion next year. And what that means is you’ve got this gaping hole in the economy.Is this year’s [...]
10Feb2009 | Mike Van Winkle | 0 comments | ContinuedJob Loss Statistics
The media is buzzing this morning about job loss statistics because the BLS is estimating we lost 598,000 jobs in January. This, according to the press, is the worst in 34 years, since December of 1974.It’s bad. I’m not saying it isn’t bad. But the tendency for the press is to jump to historic conclusions. [...]
6Feb2009 | Mike Van Winkle | 0 comments | ContinuedGood News! New Spontaneous Rainforest Orders
The Jan. 30 front page NYT article (“New Jungles Prompt a Debate on Saving Primeval Rain Forests”) does a nice job of reporting the benefits of economic growth in Brazil and Central America.As economies grow, people leave the rural areas for jobs in or near cities. Jungles are less competitive for most agricultural uses, compared [...]
4Feb2009 | Greg Rehmke | 0 comments | ContinuedWashington Logic
Let me see if I have this straight. The U.S. government is going to borrow $819-$??? billion, largely from the Chinese (if they’ll lend it, which they may not) and put that money into people’s pockets in a hundred different ways, from paying workers for filling potholes, to extending unemployment benefits, to expanding Medicare, to [...]
30Jan2009 | Sheldon Richman | 0 comments | ContinuedLudwig von Mises: Political Realist
Here’s Ludwig von Mises, in Human Action (4th rev. ed., 793), writing about what governments–and individuals–can and cannot do during economic crises: We may admit that for the British and American governments in the ‘thirties no way was left other than that of currency devaluation, inflation and credit expansion, unbalanced budgets, and deficit spending. Governments [...]
21Jan2009 | Sheldon Richman | 0 comments | ContinuedGun Control: An Economic Analysis
In Economics 101 we teach students about several fundamental concepts, including the relationship between means and ends, forward-looking behavior, the use of substitutes, opportunity cost, and the role of moral hazard. Further, we insist that these concepts can be used to help understand the world around us and have applicability far beyond the classroom. Yet, [...]
20Jan2009 | Scott A. Kjar | 12 comments | ContinuedMoney Supply Watch
I’m not a trained economist. But shouldn’t this worry us? This chart tracks M1 data over the last year. M1, according to Wikipedia, is “currency in circulation + checkable deposits (checking deposits, officially called demand deposits, and other deposits that work like checking deposits) + traveler’s checks.” This is a primary measure of money supply. [...]
9Jan2009 | Mike Van Winkle | 0 comments | ContinuedBarack Obama's Economic Plan: Clintonomics
Barack Obama will reportedly annouce his economic team today and it can’t come too soon. Uncertainty seems to be killing the already fragile market. Obama, at least in word, is quickly committing to a safe, pro-trade economic plan. He’s backing off his pledges to raise taxes and promoting an economic stimulus plan.
24Nov2008 | Mike Van Winkle | 0 comments | Continued-
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