When bonds and stocks decline a lot and simultaneously it suggests inflation is rising rapidly even as the economy is stagnating or contracting (or will soon do so). For most economists today, that combination is near-impossible.
Richard M Salsman
Cronyism isn’t a brand of capitalism, but a symptom of hybrid systems. The root problem of cronyism isn’t one of demanders who bribe, but of suppliers who extort.
Central banking “independence” from politics (fiscal profligacy) seems to be a thing of the past.
The gold standard wasn’t suspended because it caused the Great Depression or bank failures, nor did it disappear in 1971 because it “didn’t work.” It’s been gone because fiscal alchemists couldn’t expand the gold supply as they expanded government.
Banks, businesses, and households tend not to hoard money in good times, or when they have confidence in the credibility and predictability of policymakers; they hoard in bad times, when they lack sufficient confidence. That is precisely the case today, even if officials won’t admit it.
For religious reasons, mainly, conservatives like Dennis Prager are unable to defend capitalism. They share more premises with socialists-fascists than they admit, yet rightly recognize them as fellow religionists.
If history (especially more recent history) is a guide, U.S. equity gains over the next two years of full Democratic control will be inferior, a result that is more probable given that the party is currently more anti-business, anti-profit, and anti-capitalist than at any other time since 1970.
What explains today’s bi-partisan violence? When reason is out, persuasion and peaceful assembly-protest also are out. What remains is emotionalism – and violence.
If science had been followed in 2020 – in all fields – we’d be much healthier and wealthier than we now are. But control freaks have used Covid-19 to justify still more government controls, still more statism.
The ten varieties of anti-capitalism are anarchism, medievalism, nationalism, socialism, communism, fascism, populism, racism, environmentalism, and subjectivism.
Does capitalism exist in “varieties,” as scholars began to insist two decades ago, or is it a unique social system fundamentally unlike all others? If there is a “pure” form of capitalism, what alterations or transformations render it impure? How impure must it become before we should cease calling it capitalism and call it something else instead?
Anti-price gouging laws are not only unjust, but to the extent they cause shortages in emergencies they also deprive people of things they need badly and would be willing to pay more for.
The “we fallacy” is ubiquitous, especially among professors, politicians, policy wonks, and pundits. The fallacy of “we” is a form of the fallacy argumentum ad populum or “appeal to the people,” to “popular opinion.”
Capitalism (and economic analysis) requires reason, not faith, facts, not what feels good. The supply side is the right side, but the Pollyannas must cease their bias and at least try becoming more objective. They must defend the right policies, not merely those imposed by politicians they deem to be in the right because they are on the right.
The point of the principle of indivisibility is to remind us that the various freedoms rise or fall together, even if with various lags, even if some freedom, for a time, seems to be rising as others fall; in whatever direction the freedoms move, eventually they tend to dovetail.
There are three main types of governance: public governance, private governance, and personal governance. Think of these as “the 3 Ps of governance.”
Today it’s no mystery why non-sober Keynesians like Paul Krugman might love the demand-side, anti-capitalist, Trump-Kudlow policy mix, or why Trump foes might eagerly insist that the economy remain closed, not to preserve the nation’s health but to dissipate its wealth (and the probability of Trump’s re-election). But why would Trump do this? It seems politically suicidal.
To the extent capitalism fosters the creation of wealth – a truth denied today only by the hopelessly biased – it also fosters the creation of health.
Libertarians are right that the size, scope and power of government expand amid crises, but there’s no necessity to this, as they assume, and they have no remedy – even during crises – because they hate the state more than statism; but a new book takes a better approach.
The false principle that fueled Trump’s trade war relates closely to his authoritarian response to the Wuhan (Covid-19) virus.
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