If the cost of labor increases, someone has to pay for it. Laborers may pay in the form of decreased work opportunities, investors may pay in the form of decreased returns on capital, or consumers may pay in the form of higher prices required by increased costs.
We are now on our third (and counting?) attempt by the Keynesians (and their occasional Chicago School comrade, Sumner) to use statistics to beat the Austrian theory.
All the things you use every day started out as good ideas. In the market economy, good ideas are built upon by better ideas. And the results are not just felt in the abstract but become very real to millions.
In this small gem of a book Professor Bagus has given us much more than an explanation of why the euro will fail the common man in Europe.
For a comedy movie, The Other Guys is a shining example of the kind of problems that plague our current financial system. While it is doubtful that the writers meant to use the movie to display the kind of underhanded affairs big business has with the government, it is certainly a subject interwoven throughout the film.
Any diamond that enters the market must be certified by the WDC; those that aren't are considered conflict diamonds, and the individuals involved are prosecuted. Regulatory authority is used to control the global supply and price.
According to David Beckworth, the problem with our economy is that people aren't spending enough. This simple idea is very powerful; it permeates our financial press when they wring their hands and wonder if "the consumer" will buy enough to fix the economy.
