The brilliant thinking of Ludwig von Mises (1881-1973) has been unfairly besmirched by a rather absurd “money multiplier” theory puzzlingly embraced by his more modern followers. Mises’s self-proclaimed disciples have long promoted the fiction about money somehow multiplying itself via bank lending… Continue reading on Forbes.
Berkshire’s $358 Billion Question & the Money Multiplier Myth Read More »
“We thought Grease was going to be a disaster.” That’s how Barry Diller bluntly puts it in his memoirs (Who Knew) about one of the many blockbuster films that Paramount Pictures released during his tenure as CEO. When it comes to audience tastes, it’s frequently true that no one knows. All of this is worth remembering
If Xi Jinping Is All-Powerful, Then Why Do We Fear China? Read More »
In an ideal world, every credentialed economist would spend a day, week or semester in Orlando as a way of facing up to the myriad fallacies that stalk their profession. What gives Orlando life is reality about how economies work, and it runs counter to what economists teach. Think the popular notion about the
Orlando and Disney World Are Where Economic Myths Go To Die Read More »
As has been said here before, the most important line in Henry Hazlitt’s Economics In One Lesson has rarely, if ever, been referenced. Hazlitt wrote, “What is harmful or disastrous for an individual must be equally harmful or disastrous to the collection of individuals that make up a nation.” It deserves more attention. Think
Jason Furman Continues To Show Us How Economies Do Not Grow Read More »
Why is Ray Dalio’s debt alarmism so wrongheaded? The view here is that successful investing (Dalio is brilliant at it) is incredibly difficult, while economics is blindingly simple. The investor in Dalio is complicating what isn’t. See his recent post on X: “When an empire runs out of its own money, it is able
Ray Dalio’s Debt Alarmism Is Belied by His Genius As An Investor Read More »
Blockbuster could have had Netflix for south of $100 million. Twice. It’s worth thinking about in consideration of Netflix’s present-day market cap of $437 billion. Of much greater importance, it’s worth thinking about Netflix now versus the one when the 21st century began as Democrats and Republicans muster the heft of government to restrain
Lest We Forget, Blockbuster Twice Passed on Netflix Read More »
Why doesn’t West Virginia have more debt? The question rates asking in response to a Wall Street Journal editorial which observes that California “is facing huge budget deficits despite an ebullient stock market and capital-gains rush.” The answer to the West Virginia question can be found in the Journal editorial’s observation. Explaining the California deficit and debt situation,
California Is the Answer to the Federal Debt Riddle Read More »
George Will describes it as “presentism” whereby modern views on morality are imposed on past actions. Will’s crucial point is that if we continue down this path of judging the past through a present-tense lens, eventually those judging and canceling will find themselves being judged and canceled. It’s just a comment that whatever the
Why Was Lawrence Summers So In Demand to Begin With? Read More »
Economists don’t know economic growth. See New York Times columnist and economist Rebecca Patterson. In “Watch Out, It’s the Jenga Economy,” Patterson expresses worry that “Without income from jobs, consumers pull back on spending.” Except that no non-PhD would ever think about consumption. That’s because consumption is a certain effect of what truly matters: production. Yet
Watch Out, It’s More Economic Analysis From An Economist Read More »
A weak dollar wrecked Jimmy Carter’s presidency. This requires mention as the long ago Carter economic plan rises in the estimation of the right. Looking back, they appreciate that Carter didn’t stand athwart Rep. William Steiger’s insertion of a capital gains tax cut in his 1978 tax package. Carter also oversaw industrial deregulation, most
As Jimmy Carter Rises In Right’s Eye, Remember Why He Lost Read More »
