If it is a Miracle, any sort of evidence will answer, but if it is a Fact, proof is necessary. —Mark Twain
Miracles do not, in fact, break the laws of nature. —C.S. Lewis
The “Miracle of Wörgl,” refers to the story of currency demurrage and the impact it had on the economy of Wörgl, a small town in Austria.
Years ago I began to cease eating pork because I came to despise it, but at the time, I didn’t really know why that was the case.
I was turned off by the dry, white, crumbly texture and the inability to cook most pork cuts—with the exception of some ribs or roasts—in such a manner that I could retain the moisture and integrity of taste. The boneless, center-cut pork chops, that were considered to be prime cuts, had become unpalatable.
This article by Thorsten Polleit explains how Bernanke can get away with his monetary policy and the likely outcomes of that policy. Well worth reading.
Most of the handwringing over the recent “fiscal cliff” legislation has been over massive tax credits for favored interests amidst huge tax increases for everybody else. See especially this Wall Street Journal editorial and this column by Tim Carney. It is important to remember, however, that tax credits and loopholes are good things.
Over at EconLog Bryan Caplan makes some very interesting and important observations on “How I Was Wrong About Government Debt.”
Most economists when gauging the impact of the massive government debt on the economy compare Debt to GDP, but per Caplan:
My greatly esteemed friend Vernon Smith turned 86 years of age yesterday. Vernon is, among other things, the leading figure in the development of experimental economics, for which he shared the Nobel Prize in 2002. For various methodological reasons, I have never been a fan of experimental economics. To me, it represents the sort of positivism that Austrian economists reject for good reason.
Robert Wenzel makes this important point.
