Once a recession sets in, markets can only repair themselves if prices — including wages — are allowed to fall where necessary. The resulting increases in real interest rates are the key to spurring new economic activity.
If all work and all workers were homogenous, we might be able to say that the gender wage gap is caused by sexism, but the gap is better explained by big differences in the life goals and chosen industries of men and women.
Jonathan Newman reports from this year's Austrian Economics Research Conference at the Mises Institute. As usual, this year's conference brought together some of the finest Austrian-school faculty and students from around the globe.
Reserve currencies serve an important economic purpose. If the dollar loses its status as a reserve currency, the resulting adjustments will be painful for many. So, the global economy would benefit from a new US monetary policy devoted to a sound dollar.
The world is teeming with skyscraper building from China to London, and a new record-setting skyscraper is planned for 2016 in Saudi Arabia. Will this skyscraper herald the next global economic crisis as Dubai's Burj Khalifa presaged the 2009 crisis?
Political dependence and economic dependence are two very different things. Political dependence is fostered by coercion and monopoly power, but economic dependence is simply a choice we make when we especially like one thing more than the alternatives.
Austrians today are nearly alone in asserting what the classical economists all knew. You cannot create prosperity by creating more money, but only through increases in technological progress, frugality, trade, and a division of labor.
The government cripples the economy a little more each day, but thanks to the resilience of markets, we've avoided economic destruction. Nevertheless, we're still a lot poorer than we would have been without big government.
Unable to compete with cheap, government-subsidized services designed for the low end of the market, entrepreneurs find they must turn to higher-end customers who will pay more. Some wrongly interpret this as proof that markets are more expensive than government services.