From the introductory undergraduate to the advanced PhD courses in microeconomics, most students are taught that the concept of an indifference curve is very useful in analyzing individual choice. I emphasize the term “useful” for a reason. No professor I have asked about the concept ever said it was literally true. I don’t think anyone who understands the concept would ever try to claim that this is how humans actually make choices. Rather, we have been instructed to treat the microeconomic models only as tools for prediction of phenomena.

Tibor Machan in Essay on “Government” v. “State” distinguishes between state and government, and says:

I understand Sheldon Richman’s arguments about the term capitalism, but I think we need to watch out for the tendency to be whiners. So yes, it’s true that a lot of people think the present U.S. is the epitome of “capitalism,” and as a libertarian I don’t endorse everything.

My main topic this morning is the resolution of the current financial crisis, and what might be done to fix the financial system and help avert another crisis in the future.

If this sounds like good news, it is indeed. But you should beware of economists bearing good news on a beautiful Sunday morning: economics isn’t known as the dismal science for nothing.

There is also the bad news — and then there is the very bad news.

Quote Bastiat:

“Socialism, like the ancient ideas from which it springs, confuses the distinction between government and society. As a result of this, every time we object to a thing being done by government, the socialists conclude that we object to its being done at all.” – Frédéric Bastiat

(via reddit)

You might have read the story about the Socialist Alarm Clock. Here’s one version. A friend who wishes to remain anonymous sent his libertarian version and asked me to post it (cross-posted at Division of Labour and The Beacon):