Tuesday, January 24, 2017

Economics

Should Renters Subsidize Homebuyers and Banks?

Should renters subsidize homebuyers and banks? That question may sound rhetorical. But judging by the reaction to President Trump's action on the subject, a surprising number of people would answer it in the affirmative. Last Friday...

Why Fractional-Reserve Banking Would Be Limited in an Unhampered Market

The so-called multiplier arises as a result of the fact that banks are legally permitted to use money that is placed in demand deposits. Banks treat this type of money as if it was...

Obama Economists’ Bad Obamacare Economics

President Obama’s Council of Economic Advisers (CEA) has issued its valedictory report on the state of Obamacare. The gist of its argument is that Obamacare is doing fine, on the verge of overcoming its...

Economic Stimulus? Try More Savings and Lower Debt

President-elect Donald Trump's proposed $1 trillion infrastructure spending program promises “accelerated economic growth.” But an analysis of data from the IMF's World Economic Outlook database revealed that more government spending is not the path...

TGIF: NPR Marketplace Blows a Chance to Teach Sound Economics

This week, thanks to the Independent Institute (which lists me as a research fellow), I was interviewed by NPR's Marketplace (American Public Media) for a piece on Donald Trump's threat to impose tariffs on goods that...

Will Trump’s Infrastructure Stimulus Spending Work?

Well, government spending never has increased economic growth. (Part one of two) President-elect Donald Trump proposed a new $1 trillion infrastructure spending and tax cut package which his campaign promised is “a golden opportunity for accelerated...

Congress Just Punched a Big Hole in Obamacare

President Obama signed the 21st Century Cures Act on December 13. Promoted as a pro-innovation bill, the new law will improve the Food and Drug Administration’s regulatory processes; as well as fund Vice-President Biden’s...

Marxist Vegan Diner Collapses like Soviet Union

Sorry, Vegan Eatery—Good Intentions Don’t Absolve Your Economic Sins Prices and private property rights are fundamentally important. Failure to grasp how these forces work leads to positively detrimental outcomes. A recent example of what happens when one...

Living Off the Fat of Washington

This piece, reprinted from Jim Bovard, originally ran at the Wall Street Journal on December 11, 2016. If Trump is going to ‘drain the swamp,’ he might start with wasteful ag subsidies. President-elect Donald Trump’s vow to “drain the...

Tax Code Complexity Now Costs U.S. Economy up to $1 Trillion Annually

74,608 pages, 2.4 million words. That is the present size of Title 26 of the U.S. Code, i.e. the “Internal Revenue Code.” One would think this would be nearly impossible for an enterprise wielding an army of tax...