Mathematical economic models have a poor record of making accurate predictions, which makes sense since human action cannot be quantified by numbers. On the other hand, an understanding of sound economics can help us make good qualitative predictions.
Japan finally joined the US and the EU in their grand 2-percent-inflation-forever experiment in 2005. Many Japanese politicians have benefited from this. Meanwhile, nothing has been done in Japan to actually help the economy defend itself against the next economic disaster.
The state was being even more sadistic than usual when it handed down an unwarranted life sentence to Ross Ulbricht. Many libertarians hail Ulbricht, founder of Silk Road, as a hero of freedom. But did he really forward the cause of free markets?
Governments worldwide are turning to "financial repression" to manipulate the economy through easy money and aggressive regulation. In the end, we'll find it will amount to little more than slapping a band-aid on a serious problem.
All that is necessary for free trade to flourish is for governments to get out of the business of punishing people who import goods without government approval. We don’t need a system of government agreements and regulations like the Trans Pacific Partnership.
The European Central Bank is continuing with its negative interest rate policy, but it's not having the desired effect. Instead, the central bank is just filling the void by buying up government debt with newly created money.
The video game industry has been criticized for taking advantage of tax breaks, with critics claiming that the industry is being "subsidized" by a smaller tax bill. But, there's a very big difference between a tax break and a subsidy.
The Fed and the government have gone to great lengths to prop up home prices. But it seems a bit odd to try to increase the cost of a basic necessity like housing. Why not do the same with food and clothing?
Billions of tax dollars have been spent on scientific studies and public programs designed to tell Americans what to eat and how to be healthy. The experiment has failed, and we have nothing to show for it.
In the wake of the Amtrak railway disaster, we’re likely to hear that the solution to the problem is more tax funding and regulation. Few will suggest privatizing the railways. But the historical record suggests that privatization does indeed make for safer railroads.
