Saturday, October 27, 2012
So GDP is growing at about 2 percent. (That's not the same as "the economy.") The rub is that it's driven by consumer and government spending. Real economic growth requires investment, and investment has not recovered. But private (real) investment requires savings--that is, deferred consumption. So increased consumption is not a path to economic growth. Increased sustainable consumer spending is an effect not a cause of economic growth.
Government of course tries to stimulate consumer spending, since policymakers are stuck in the Keynesian mindset (that is, uninterested in the time structure of production). One way it does this is by keeping interests abysmally low. Why save if you get so little for your money, perhaps less than the increase in the CPI? You're just losing purchasing power.
Wednesday, October 24, 2012
Monday, October 22, 2012
Sunday, October 21, 2012
This is the topic of my lecture tomorrow night at Hanover College in Hanover, Indiana, Horner Center 102. I'll also be lecturing at a political science class in the afternoon. If you're in the area, come to the evening lecture.
Churches finally get around to condemning the abuse of Palestinians.
Friday, October 19, 2012
Wednesday, October 10, 2012
President Barack Obama, Republican presidential candidate Mitt Romney, and Israeli Prime Minister Benjamin Netanyahu have at least one thing in common when it comes to Iran. All are guilty of flagrant self-contradiction.Read the full op-ed at The Future of Freedom Foundation website.
Sunday, October 07, 2012
Friday, October 05, 2012
Two months from now the World Conference on International Telecommunications (WCIT) will convene in Dubai, United Arab Emirates, sponsored by the UN’s International Telecommunication Union (ITU). Depending on whom you believe, this is either the gravest threat to the Internet to date or a justifiable effort to free the Internet from U.S. domination.Read the full article at The Project to Restore America. My first article at the site was "What’s Next for the Audit-the-Fed Bill?"
Monday, October 01, 2012
From Cato Unbound:
In a sweeping essay, Sheldon Richman explains why private property and free competition are superior to state-provided goods and services. He warns against granting "private" corporate monopolies, which are not true privatizations, but act as arms of the state. He adds that for many state activities, the best way to privatize is not to provide the service at all — as in the case of punishing victimless crimes, which no one should do. For legitimate services, he recommends a "homesteading" approach, in which stakeholders in a public service, such as a school, would receive shares in a new, independent corporation.See the full article.