[Adapted from Chapter 2 of Human Action.]

The study of all the data of experience concerning human action is the scope of history. The historian collects and critically sifts all available documents. On the ground of this evidence he approaches his genuine task.

For most so-called practical economists, information regarding the state of an economy is derived from data. Thus, if an economic statistic such as real gross domestic product or industrial production shows a visible increase, it is considered indicative of a strengthening of the economy. Conversely, a decline in the growth rate is regarded as weakening. It seems that by looking at the data one can ascertain economic conditions. Is this the case, though? The so-called data that analysts are looking at is a display of historical information.

In the US, a hysterectomy or a gall bladder surgery can set you back tens of thousands of dollars. For families that do not possess medical insurance or have inadequate coverage, it can be financially stressful to visit a hospital or schedule an appointment with a doctor. Most people residing outside the US would suffer sticker shock since they receive medical treatment for free at the point-of-service, though their taxes are through the roof. Indeed, the US does have an affordability issue.

As part of the simmering war on the rich that is a central component of the progressive left’s campaign for 2020, Robert Reich recently wrote a blog post in which he argued that there were “basically only five ways to accumulate a billion dollars, and none of them has to do with being successful in free market capitalism.”