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Keynesians enthusiastically point to government as the solution for the faltering recovery.
Without market competition and discipline, government has no idea what people really want. Police services are no exception.
Supporters of warfare, welfare, and Wonder Woman cheered last week as Congress passed a one trillion dollar “omnibus” appropriation bill. This funds the government for the remainder of the fiscal year. Wonder Woman fans can cheer that buried in the bill was a $10,000 grant for a theater program to explore the comic book heroine.
The current tenancy laws do not promote conflict resolution and peaceful cooperation, as laws are intended to do. Under the current regulatory system, a landlord has minimal to no benefits from providing high quality service, quite the opposite of what good laws are supposed to do.
The demand for online educational programs illustrates how useful they are in the marketplace, and the Mises Institute is already part of this new world of higher education. We seek to become the private online university of the future for Austrian economics, libertarianism, and related areas.
The minimum wage is just another weapon in the arsenal of the misguided progressive trying to “help” the poor. People whose productive value is less than the minimum wage are de facto unemployable. They are denied the opportunity to gain experience and skills, and their exclusion from the job market is a net loss to society.
Government officials talk about more entrepreneurship, but they pick particular firms, industries, or technologies, and give them subsidies and benefits. What entrepreneurs need is secure property rights, the rule of law, and sound money. The best government can do for entrepreneurs is get out of their way.
The state’s creation of patent and copyright interests doesn’t prevent innovations, but it does erect hurdles that discourage research. The “traditional enemies of innovation [are] inertia and vested interest,” factors contributed to by the government practice of giving inventors protection from competitors.
The Bernanke Fed followed Keynes’s advice. The way to avoid a new slump is to keep interest rates low for as far as the eye can see as a way to overcome a lack of “animal sprits” and thus sustain a quasi-boom. As long as inflation is low, no harm, no foul. In fact, as the thinking goes, more inflation might be beneficial.
A low wage constitutes a competitive advantage for less-skilled workers that serves to protect them from competition from more-skilled workers. In other words, a wage of $7.25 per hour for fast-food workers serves to protect those workers from competition from workers able to earn $8 to $15 per hour in other lines of work.
Japan suffers the universal results of high taxation and the wide variety of social problems that follow. No longer is one income enough to make ends meet. Government regulations make it difficult for new industries to compete against the established giants and most industries behave like state-owned enterprises.
The legal incentives created by prohibition lead to artificially restricted production, decreasing the supply, and causing the price to skyrocket. Prohibition transforms users into criminals by making their drug use a large financial burden, enticing many to commit real crimes. All of this is a disaster for the addicts.
The “public issues” of today are crucially dependent on an understanding of sound economics. Virtually every major “public” or “social” issue involves proposals for government interference with the market. That’s why it’s crucial for lovers of liberty to understand how a voluntary economic marketplace works, in order to explode the myths and lies of its enemies.
Pope Francis’s compassion for the poor is overwhelmed by his confusion about the market economy. Economic liberty has done more to elevate the living standards of the general population than any other form of social organization in history. It is the only system which does not trust in the goodness of those with power.
Mises said the causes of freedom and Austrian economics had to be advanced by a dual program: scholarly work in the defense of freedom and educating business and professional leaders with the compelling case for the Austrian School. Mises would be proud of what you have helped the Mises Institute accomplish.