Fans of goosing the minimum wage should acknowledge that raising the price of labor by legislative fiat costs jobs.
The reserve balances are there for one reason: to cushion against unforeseen shocks that would cause dramatic reductions in public services or tax increases nobody really wants.
China is a mosaic of different “economies”—part subsistence agriculture, part controlled by the People’s Liberation Army, and only part more or less “capitalistic”. The State still calls far too many of the shots.
In recent days, the tug of war between economic interest and other human passions have played out in the dance between Greece and its eurozone creditors.
Many economists who differ over whom to blame for Greece’s financial disaster agree in thinking it is a good idea for the Greeks to leave the euro and go back to using the Greek drachma. A good idea for both Greece and the future of the eurozone.
The only cartels that persist for any length of time are those propped up by government sanction. Horne v. U.S. Department of Agriculture perfectly illustrates our point.
As Milton Friedman once observed, if all you want is a “jobs” program, might as well hire people to dig ditches and fill them up again … with spoons.
At stake is whether people in the 36 states where the federal government runs the Obamacare health insurance exchanges are entitled to receive health insurance subsidies.
Why should we be surprised when another cartel bites the dust?
At least since the time of Adam Smith, economists have recognized that specialization and trade are the keys to prosperity. And at least since that time, economists have had a hard time explaining why this is true.
Innovation is capitalism. Only under capitalism does innovation flourish.
Hoosiers should be sensitive to outside criticism. But it is also possible to be oversensitive to outside criticism and to overreact. That can’t be good for our image.
We’ve fought a 50-year War on Poverty with a cornucopia of public dollars. Poverty is winning.
We never thought we’d toss a bouquet to Bernie Sanders, the socialist senator from Vermont and recently declared Democratic presidential candidate. But he has one thing right: The Export-Import Bank should be abolished.
“Negative real interest rates are impossible.” That’s econ-speak for the simple idea that you have to be nuts to pay someone to borrow money from you. Styring would have to be smoking a controlled substance to lend Bohanon $100 on his promise to pay back $99.75 a year from now. He’s better off just stashing […]
All of us want better schools for our kids. But beware of how to get there. More money isn’t the answer.
One big hurdle remains before our legislators can leave by their April 29 deadline: the two-year state budget. As is so often the case, the main budget item up in the air is the school formula, the complex calculations that determine how much money each district receives from the state.
Economic actors are constantly bringing supply and demand into balance, although they are rarely aware of this. However, responding to market incentives tends to undermine discrimination.
One piece of legislation must pass before we can wave the General Assembly bye-bye: the budget.
The widely publicized unemployment rate is one of those chameleon numbers, where apparent good is sometimes bad, and vice versa. All is not always what it seems when you peek behind the wizard’s curtain.