Category Archives: Business & Economy

Government Spending on “Innovation”: The True Cost Is Higher Than You Think

University of Sussex Professor Mariana Mazzucato is making headlines with her 2013 book The Entrepreneurial State, which argues that government, not the private sector, ultimately drives technological innovation. In a series of detailed case studies from information technology, pharmaceuticals, biotech, and other industries she argues that government labs and public agencies are mainly responsible for the fundamental, high-risk discovery and development […]

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Wealth Must Be Created Before We Can Give It To the Poor

Business is often portrayed as being crude and cruel. According to the popular narrative — the Charles Dickens view of the world — businesses are filled with cold-hearted scrooges who value profits more than people. This is then contrasted with the kindness and altruism of charities, non-profits, and governments, which are all supposedly created to help people. Charity, in particular, […]

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Let’s Hope Machines Take Our Jobs: We Want Wealth, Not Jobs

The job-threatening rise of the machines is an economically illiterate meme that refuses to die. We’re actually probably in the early stages of it, a bull-market in neo-luddism, if you will. Bastiat’s “Candlemakers Petititon” answered this one long ago, but today I’ll run a little thought experiment that owes it all to good old Bastiat. Share This ArticleFacebookTwitterPinterestLinkedinemail

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Our (Not So) Safe Deposit Boxes–Will Texans Ride to the Rescue?

As I reported recently, banks are beginning to collaborate in the campaign by governments to stamp out the use of cash among the public.  Chase, for example, rolled out a new program in several markets in March that restricts borrowers from using cash for making payments on credit cards, equity lines, mortgages and auto loans. Share This ArticleFacebookTwitterPinterestLinkedinemail

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The Fed Considers a More Seasoned Approach

Just as the steady torrent of awful economic data, which began in the First Quarter and continued well into April and May, had forced many market analysts to grudgingly concede that 2015 would not see the robust economic growth that most had expected, the statisticians arrived on the scene like a cavalry charge and routed the forces of pessimism with […]

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Monetary Policy Will Bring Stock Disaster; 30-40% Correction Ahead [Video]

Renowned investor Bill Gross warns in his latest investment outlook that the stock market’s bull supercycle is coming to an end. Gross believes that the “new normal” of zero-percent interest rates and growing government debt will push asset markets into a new era of very low or negative growth. Share This ArticleFacebookTwitterPinterestLinkedinemail

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Do We Want High Prices or Low Prices?

In an almost daily debate over economic and monetary policy politicians complain if prices — such as home prices — do not rise, and some complain if they think other prices — such as health care prices — are going up too much. This situation begs the question: do we want rising prices or falling prices? Share This ArticleFacebookTwitterPinterestLinkedinemail

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A Portrait of the Classical Gold Standard

“The world that disappeared in 1914 appeared, in retrospect, something like our picture of Paradise,” wrote the economist Cecil Hirsch in his June 1934 review of R.W. Hawtrey’s classic, The Art of Central Banking (1933). Hirsch bemoaned the loss of the far-sighted restraint that had once prevailed among the “bankers’ banks” of the West, concluding that modern times “had failed […]

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A Patient Fed Considers Losing Patience

I have always argued that quantitative easing and zero percent interest rates were misguided policies to combat economic weakness. But as the years went on, misguided turned into irresponsible, which led to ridiculous, and then turned into dangerous. But lately, the only word that comes to mind is “surreal.” How should we react when central bankers begin to speak like Willie Wonka? Share This […]

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