President Trump’s tariff blitz has shocked and alienated almost all students of economic science, but he seems to have a loyal following of support among the electorate. Students of economic science have a rich history of theory to support their opposition to tariffs, such as David Hume’s Price-Specie Flow Mechanism, David Ricardo’s Law of Comparative Advantage, and Jean Baptiste-Say’s Law of Markets.
One of the reasons the American political establishment really hates it when Trump is president is that his administration has a tendency to bring out and exaggerate dynamics at play in Washington, DC that the establishment would prefer to keep hidden.
One such example is the weaponization of media access.
Fannie Mae and Freddie Mac (also known as “GSEs”) have released their April reports on their mortgage portfolios and mortgage delinquencies. Both Fannie and Freddie report that serious delinquencies in multifamily are rising to multiyear highs.
American elected officials and taxpayers ignore at their own peril the recent May 16 reduction in the US credit rating. From the highest AAA rating to the next-lower Aa1 rating by Moody’s Ratings, this reduction is the third since 2011, when S&P Global Ratings reduced its rating, followed by Fitch Ratings in 2023.
“America, above all countries, was born in an explicitly libertarian revolution, a revolution against empire; against taxation, trade monopoly, and regulation; and against militarism and executive power.”—Murray Rothbard, For a New Liberty: The Libertarian Manifesto
The 19th century brought creation and expansion of railroads in the United States that hauled freight and carried paying passengers. One offshoot from privately-owned railroads was the creation of company-built and -operated hospitals to treat their employees in remote locations. Railroad worker professions had a high injury rate with loss of limbs, severe injuries, and death. This is an example of private businesses seeing a real problem and initiating a process to solve it without federal government help.
As the language of Marxism becomes increasingly disguised in moralistic slogans such as “social justice” and “inclusiveness,” many people fail to recognize Marxist theories when they encounter them. They expect theories derived from Marxism to be littered with red flag phrases like “dialectical materialism” or “class conflict,” which would be the dead giveaway that they are dealing with Marxist interpretations. In the absence of such phrases, they deny that social justice theories are Marxist at all.
Alex Pollock has questions for the Federal Reserve in the Financial Times.
Various tools and machinery that individuals have produced were produced in order to better produce consumer goods. The quantity and the quality of various tools and machinery—capital goods—places a limit on the quantity and the quality of the production of consumer goods. Through the introduction of better capital goods, greater output can be secured more productively and efficiently.
