The authors of the Time article are correct in that coming energy crises are brewing. However, they are wrong when they assume that such problems occur because of the ineptitude of capitalists and the lack of political will by members of Congress. Whether it be gasoline or the making of bread, the production of goods is best left to economic, not political entrepreneurship.
Why has the Concorde failed? The market determines whether and to what extent certain services such as speed are desired by society relative to competing demands on resources. No one can say a priori that faster is always and everywhere better. It may need to take a back seat to other priorities, like cheap tickets or mass availability or frequency of travel opportunities.
In Portland, the restaurant chain Pizza Schmizza offered to pay homeless people a slice of pizza, soda and a few dollars in exchange for holding a sign for 40 minutes on downtown sidewalks that read: "Pizza Schmizza paid me to hold this sign instead of asking for money." Ralph Nader didn't like it one bit.
While the Federal Reserve-induced stock market bubble has been flattened, despite continuous inflating by Greenspan's troops, the land price bubble continues to expand in Las Vegas.
There is no radical disconnect between the interest of consumers (who always want lower prices) and overall economic health. What's good for consumers is good for everyone, writes Lew Rockwell. Thus one can only marvel at the many economists and commentators who try to convince the public that deflation is a very scary thing.
Why is the dollar falling? Many commentators blame the balance of payments deficit. In fact, writes Frank Shostak, this has nothing to do with it. The main influnce on exchange rates is the purchasing power of money, which is mainly determined by supply and demand. The dollar is falling because the Fed has been pumping money.
A few years ago, Paul Cwik came across an e-mail that was impossibly dumb. It called for a "Gas-Out." The idea was to boycott gasoline for a few days. This action would drive the price of gas down, and at the same time, it would show "Big Oil" that if they tried to raise prices again, we'd hurt them. The email is circulating again.
How are fiat money and the business cycle related? Without sound money, calculation is less efficient and the economy will be prone to business cycles. With sound money policy, no boom-bust cycle will emerge and monetary calculation and planning will be as efficient as possible in an uncertain world. John Cochran explains.
Stagflation is a term that originated in the early 1970s to identify the simultaneous occurrence of recession and inflation—a phenomenon that Keynesian theory had previously suggested was impossible. The industrialized world is being rudely reminded that stagflation is indeed possible, and policymakers are at a loss as to what to do about it.
Those who speak of "commodification," which apparently has become a buzzword in socialist circles, actually have things backwards. The presence of a price upon a good does not make it scarce; rather, it is the scarcity that creates the price. To put it another way, the very nature of scarcity means that a good must be rationed, as it cannot be given freely to everyone who wants it.
