In this article, I wish to introduce the reader to the theory of entrepreneurship advanced by Frank Knight (1885–1972), and show that the common, everyday work of the physician could be considered a form of entrepreneurial activity in the Knightian sense.

The Bill of Rights turns 232 years old today. Adopted in 1791 as a consolation prize for the Anti-Federalists,  it has been perhaps the most important part of American legal history since the eighteenth century, and has served as an inconvenient reminder of the laissez-faire libertarian philosophy that permeated American political theory in the late 18th century.

Martin Shkreli — the professional rent seeker to who fancies himself as some sort of entrepreneur — has been arrested on fraud charges.

Robert Wenzel calls attention to a post by Charles Hughes of the Cato Institute that discusses a far-reaching investigation in Finland, which will last several years, about proposals for a basic income. The Cato author thinks that that “some aspects of a basic income are intriguing.” The flaws of current welfare programs are extensive, but questions remain about the costs of the basic income and its effect on work incentives. He hopes that the Finnish studies will help answer these questions.

The European Central Bank (ECB) made waves recently with its decision to lower interest rates on its deposit facility to -0.30%. That means that banks wanting to park their money at the ECB have to pay the ECB for that privilege. The supposed reason for introducing negative interest rates is to spur lending on the part of banks. Rather than being able to park their money at the ECB for free or for a small guaranteed return, the ECB wants banks to put that money to use by lending it.

Wired reports that the Securities and Exchange Commission (SEC) has approved a plan for Overstock.com to issue company stock using blockchain technology.  As Cade Metz notes, this represents “a significant shift in the way financial securities will be distributed and traded in the years to come.”  

The Fed today announced that it will increase the target Federal Funds rate from 0.00-0.25 percent up to 0.25-0.5 percent.

The last time the target rate exceeded 0.25 percent was in November of 2008 when the higher bound of the target rate was 1 percent. In December of 2008, the Fed lowered the target rate to 0.00-0.25 and it has stayed there ever since. 

We live in a time like never before in human history. Our scientific knowledge and technological capabilities are rapidly advancing, affecting nearly every aspect of human life. Examples are rife, from smart phones and robotics, to thought-controlled prosthetics, wireless power, even force fields. Countless others that sounded like science fiction a few years ago don’t even deserve mention today as they have become so commonplace.

After the Fed’s November meeting, when the Fed decided not to hike interest rates, the stock market fell, indicating the disappointment of market participants.  Because lower interest rates tend to raise asset prices, the market decline was an indication of disapproval from market participants.

At the Fed’s December 16th meeting, in keeping with expectations, they announced they will increase interest rates for the first time in nearly a decade. After the announcement, the stock market surged.