The Economics and Ethics of Government Default, Part II

The economic analysis of repudiation applies to the debt of all levels of government and to all countries. The central question is not how big the government is or how much it owes, but rather whether the debt is funded by taxes. Original Article: “The Economics and Ethics of Government Default, Part II” This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Michael Stack.   Source link

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The Fed’s Money Supply Measures: The Good News—and the Really, Really Bad News

Last week the Fed announced that, retroactive to May 2020, its M1 money stock measure would include savings deposits, which were reclassified as transaction accounts similar to other deposit components of M1 such as demand deposits and other checkable deposits (i.e., NOW accounts and ATS accounts). Previously, savings deposits were considered to be nontransaction accounts and relegated exclusively to the broader monetary aggregate M2, which included, in addition to M1, other nontransaction accounts such as small-time deposits (CDs of less than $100,000) and retail money market mutual fund shares (MMMFs).…

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The V-Shaped Recovery Never Happened

In a display of unconvincing enthusiasm, NBC reported today that payroll employment “surged” in February. Specifically, total nonfarm payrolls (seasonally adjusted) grew 379,000, month-over-month which was above the expected increase of 210,000. That might sound great to some, but a closer look suggests jobs growth is quite a bit more sedate than the media narrative suggests. Moreover, a look at the job growth situation in recent months is a helpful reminder that the “V-shaped recovery” we were promised last spring never happened.  Some may remember all that talk about a V-shaped…

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To Understand Economics, First Understand Private Property

In Man, Economy, and State, Murray Rothbard expounds the principles of economics by reconstructing an economy from the ground up. Following the practice of classical economists, he opens the book by imagining Robinson Crusoe alone on an island. After identifying the operative laws that apply even to isolated individuals, Rothbard’s second chapter considers Crusoe on an island with one other person, introducing the concept of direct exchange, or the barter economy. In the third and fourth chapters, Rothbard considers the origins of money and prices in an economy of indirect…

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To Stop the Left, America Needs a Rothbardian Right

The official slogan of this year’s Conservative Political Action Conference (CPAC) was “America UnCancelled,” and the conference featured a slate of topics confined to such controversial viewpoints as “Why the Left Hates the Bill of Rights … and We Love It” and “California Socialism: Promising Heaven, Delivering Hell.” Fitting for the single largest annual event for America’s conservative movement, CPAC was hosted at a corporate hotel that strictly enforced a Democrat-controlled local government’s mask mandates and featured a controversial stage constructed by a major Democrat donor. All of this gave the familiar…

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The True Cost of Taxation Is Much Higher Than Your Tax Bill

If we look beyond the mere tax revenue totals, we begin to understand that the cost of taxation to society is far higher than the tax revenue raised and that the costs to society of taxation grow faster than the size of government. Original Article: “The True Cost of Taxation Is Much Higher Than Your Tax Bill” This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Michael Stack.   Source link

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Rothbard's Underappreciated Contributions to Public Goods Analysis

The assertion that “tax-financed public goods can make us all better off” is just that: an assertion. As Rothbard showed, there is no reason to just assume consumers would pay for these amenities were they not forced to through taxation.  Original Article: “Rothbard’s Underappreciated Contributions to Public Goods Analysis” This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Michael Stack.   Source link

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Aggregated Data Hides the Damage Done by Minimum Wage Hikes

Democrats are again pushing to increase the federal minimum wage, this time roughly doubling it to $15 per hour. And as with every such push, that has involved invoking “rosy scenario” sales pitches about how low-wage workers will be big winners. However, such “help the poor” claims must confront the fact that, as labor economist Mark Wilson put it, “evidence from a large number of academic studies suggests that minimum wage increases don’t reduce poverty levels.” If higher minimum wages are supposed to help the poor, why don’t poverty rates fall? One…

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The Primer We Need! | Mises Wire

How many times has a friend or family member asked you: “What is this Austrian economics stuff you’re always talking about?” What if you could hand them a small book, not much more than a pamphlet, and say: “Here, read this”? What if you could change their entire world view, even their path in life, with one simple volume? We plan to publish exactly such a book later this year, but we need you! Professor Per Bylund has agreed to write it, and he’s committed to creating an Austrian primer…

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Rothbard Roundtable | Mises Wire

For Rothbard week, we asked some of our writers and scholars to talk about why Rothbard is worth remembering. Here’s what they had to say. Gary Galles March 2 marks the birth of Murray Rothbard. Given his importance to the cause of liberty, that makes it a date worth recalling the man and his work. In fact, I have done that in the past, recalling some of what I find are some of his most inspiring words. But not long ago, my research led me to something that made me think of another…

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