Time Preference, Interest Rates, and Stagflation

A common conception is that the central bank is a key factor in the determination of interest rates. In this way of thinking, the key role of the central bank is to make sure that the so-called economy is placed on a trajectory of stable economic growth and stable inflation. If for whatever reason the economy appears to deviate from the specified trajectory, then it is the responsibility of central bank policy to ensure the economy remains on this path. This is attained, so it is held, by means of…

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Halfway to Secession: Unity on Foreign Policy, Disunity on Domestic Policy

When it comes to talk about secession, the strategy employed by most Washington politicians is to shrug it off, claim it’s all the plotting of extremists, and retreat to the comfort of the idea that the elites control high-ranking military officers at the Pentagon. In their minds, it will always be easy to bomb disobedient Americans into submission. As far as long-term thinking goes, these people are kidding themselves. These are the same sorts of people who assured us in 1980 that the Soviet Union would be around for centuries more. They’re…

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What Biden/Harris Will Do | Mises Wire

Paraphrasing the late Murray Rothbard, the “two party” system in America during the twentieth century worked something like this: Democrats engineered the Great Leaps Forward, and Republicans consolidated the gains. Wilson, Roosevelt, and Johnson were the transformative presidents; Eisenhower, Nixon, and Reagan offered only rhetoric and weak tea compromises. In politics, being for something always beats being against something, and Republicans were never much against expanding federal power provided they had a place at the trough. George W. Bush challenged this dynamic in the early twenty-first century. Despite his own intellectual incuriosity, he used…

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Why Governments Want More Centralization—and Less Federalism

Federalism, which Felix Morley called “the distinctively American contribution to political art,” arose from our founders’ desire to limit government’s ability to harm its citizens. The Constitution restricted nondelegated powers to states and individuals in their private arrangements, empowering citizens by allowing easier escape from abusive government by “voting with their feet” for jurisdictions with less hostile governance. That set a tighter limit on government ability to impose burdens that outweighed benefits. Government inefficiency and redistribution beyond what citizens support (which often overlap, as inefficiency is often redistribution toward unionized…

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Let’s Abolish Those Presidential Medals of Freedom

The Washington Post is outraged that Donald Trump has sullied one of Washington’s most hallowed honors—Presidential Medals of Freedom. After the White House announced plans to bestow the medals on two Republican members of Congress and a football coach, the Post thundered that “Trump just underlines his own unworthiness when he makes a mockery of the Medal of Freedom….This president cannot be trusted to hand out medals.” The Post editorial concluded with the obligatory uplift of the season: “Thankfully, the Oval Office will soon be occupied by a president—himself a…

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When It Comes to National Defense, Bigger Isn’t Always Better

Many observers of international affairs assume that larger, more populous states are necessarily more powerful. But the reality is wealth and economic development are the most critical factors in securing true military power. Original Article: “When It Comes to National Defense, Bigger Isn’t Always Better” This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Michael Stack.   Source link

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It’s Time for a National Divorce

Both spouses have become abusive, verbally and physically. Exchanging blows left and right, both literally and metaphorically speaking. There’s no common ground to be found, and even if there were, at this point neither side is interested in entertaining it. And yet a narrative continues to be pushed by politicians on both sides: unity. We must find a way to unify, they say. Biden seems to preach it every single day. “We’re going to be unified whether you deplorables like it or not” is my interpretation of his speeches. And as…

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A Welcome Attack on Churchill and Wilson

Bland Fanatics: Liberals, Race, and Empireby Pankaj MishraFarrar, Straus and Giroux, 2020218 pages Pankaj Mishra dislikes the free market, and he blames it for the imperial conquests of the nineteenth century and after. But much of his book can be read as an extended commentary on some remarks by the great champion of the free market Ludwig von Mises. In Liberalism (1927), Mises says: The considerations and objectives that have guided the colonial policy of the European powers since the age of the great discoveries stand in the sharpest contrast to all the principles…

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Inflation Breeds Even More Inflation

Mises’s firm anti-inflation view—and his recommendation for a return to sound money (that is, free market money)—rested on his awareness of the disastrous consequences of an inflationary policy. Original Article: “Inflation Breeds Even More Inflation” This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Michael Stack.   Source link

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Understanding Inequality Requires Much More Than Calling Everything Racist

To offer a semblance of solidarity with the working class, wealthy leftists have substituted identity politics for class conflict, and attempted to recast economic problems as problems of racism or bigotry. Original Article: “Understanding Inequality Requires Much More Than Calling Everything Racist” This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Michael Stack.   Source link

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