Why people hate capitalism.
If you want to know why so many people hate capitalism when the capitalist system of economic management has allowed humanity to raise it’s standard of living by leaps and bounds since it was first implemented read The Anti-Capitalistic Mentality by Ludwig von Mises.[1]
von Mises was an influential Austrian economist of the 20th century who emigrated to the United States in 1940.[2] Read more
How to save the financial system the old fashioned way: lessons from Walter Bagehot
If you do a search for Walter Bagehot on the web-sites of major newspapers around the country you’ll probably find numerous articles written during the past six months citing his book Lombard Street: A Description of the Money Market and praising the Federal Reserve for following his advice of “lending freely” and averting financial meltdowns in March (Bear Stearns) and again in July (Fannie Mae and Freddie Mac).[1]
I read Lombard Street recently and found Bagehot’s wisdom especially relevant given our current financial crises. Read more
Why Bailouts Are Bad For Business
The New York Times recently ran an article titled “Given a Shovel, Americans Dig Deeper Into Debt.”[1]
While the article raises a variety of issues regarding the proper use of debt and individual responsibility, here is the paragraph that stuck out to me: Read more
Fannie Mae and Freddie Mac: it all comes down to you.
I’m sure you’ve heard about the trouble at the two government sponsored mortgage giants and the government’s plan to help.
While there are many implications of recent events for individuals I want to make one point: if you have faith in the government’s plan to help out Fannie and Freddie you really have faith in yourself. Read more
What are economic value and capital?
Value is the material result of ideas applied to physical reality to yield a good or service that enhances human life.
For example, if three people are on a deserted island, the person who decides to collect materials to build a shelter and does it has created economic value. Read more
Is it really worth it to wait in line for cheap gas?
I went to Wal-Mart the other day and noticed huge lines at the gas station where a gallon of regular was selling for $3.749.
Cars were lined up 2-3 deep. Read more