1. Railroads: The First Big Business and the Failure of the Cartels
1. Subsidizing the Railroads
Railroads were the first Big Business, the first large-scale industry, in America.
Crisis or Stagnation: Why China Cannot Deleverage
The latest figures of the Chinese economy show a third quarter GDP growth of 6.8%, suspiciously in line with the government mandate and consensus estimates. However, it is not the top line that worries me. It is the evidence of debt saturation and diminishing returns of the central-planned model.
Chinese total debt has surpassed 300%. In the first nine months of the year, money supply has increased by 9.2%, significantly above estimates.
Price Inflation Is Not the Worst Part of Easy Money Policy
There are many critics of the Fed’s recent money supply expansion, especially since 2008, whose chief criticism is that it will result in consumer price inflation. While proponents of the Austrian School agree that high consumer price inflation is one possible result of an expansionary monetary policy, we neither hold it as necessary nor as the worst consequence of money creation.
Concealed Carry on the March
What a difference a generation can make. In 1987 crime in the United States was out of control. That same year Gallup asked Americans if they would support a ban on handguns, and a worrying forty-two percent answered “yes.”
While almost half the country wanted to ban handguns, nine states were trying something different. “Shall issue” concealed-carry laws were passed, meaning non-felons could apply for a license to carry a concealed handgun and their state government was obliged to respect their right to carry for self-defense.
Malice: In Western World, Fragmentation Is the New Normal
Great article from Michael Malice on the growing trend of political decentralization:
Trump’s Tax Reform Dissected
Two weeks ago, the Trump administration presented a detailed version of one of Trump’s most important election promises: a tax reform. Not only does the Trump administration propose to lower corporate taxes, their proposal also includes other tax reforms. However, the trouble is that Trump wants to lower taxes without cutting spending. As a result, the budget deficit and the enormous public debt are bound to swell. And, moreover, what does all this have to do with the Federal Reserve?
Bank of Canada Holds Key Rate at 1 Percent
The Bank of Canada today is holding its key rate at 1 percent, after two increases early this year. According to the BofC’s press release, it must proceed with caution:
From the Reformation to Austrian Economics
[This article is adapted from a talk delivered at the Austrian Student Scholars Conference in February 2017.]
