Chronic underconsumption is an idea most often associated with Keynes. But while the infamous English economist published his General Theory in 1936, Hayek’s 1929 article “The ‘Paradox’ of Savings” analyzes a similar theory advanced by two Americans a decade before. [1] While the two authors have nearly vanished from history, the insights
In his seminal article on economic calculation under central planning , Mises showed that a central planner cannot allocate productive factors in a manner consistent with consumer demand because the planner does not have the ability to calculate in terms of market prices. Market prices come about as the result of a competitive bidding process
NYU Economist Nouriel Roubini, is quoted at length the Naked Capitalism blog . While the entire article is fascinating, this passage in particular is of great interest: Sixth, the existence of GSEs.is a major part of the overall U.S. subsidization of housing capital that will eventually lead to the bankruptcy of the U.S. economy. For the last 70
Chronic underconsumption is an idea most often associated with Keynes. But while the infamous English economist published his General Theory in 1936, Hayek’s 1929 article “The ‘Paradox’ of Savings” analyzes a similar theory advanced by two Americans a decade before. While the two authors have nearly vanished from history, the insights contained in
In discussion of gold as a monetary institution I often hear that the supply cannot expand fast enough to accomodate economic growth. But why should this be true? (For a related discussion, see Bob Murphy’s response to David Frum’s articles on the gold standard.). The idea that economic growth requires more money is based on a confusion of the
Atlanta Journal Constitution: “They came in droves — high school students, retirees, young moms, the unemployed — all for a shot at a job at a new Wal-Mart on Memorial Drive in central DeKalb County. In just two days, and with virtually no advertising or even any signs, a staggering 7,500 people filled out applications for one of the 350 to 400
During the Great Deflation Scare of 2002 -- you remember, the brief interlude between the collapse of the stock market bubble and the rise of the housing bubble -- researchers at the Fed authored a series of papers exploring “unconventional measures”. These studies and other musings were reported in speeches by Bernanke and papers published on
The broken window fallacy never rests: Why not spur the greatest increase in capital spending by leveling every city and rebuilding from the ground up? Who needs low-pressure induced hurricanes when you have Buba’s wrecking ball
Computerworld reports that a committee of regulators has a copy of the next version of Microsoft Windows, aka Windows 7 , schedule to ship in 2011 and are evaluating it to ensure that non-Microsoft components can replace certain features provided by Windows. The settlement of Microsoft’s anti-trust case contained a ruling specifying that, when
On Friday, the Financial Times reported Central Banks Float Rescue Ideas . The article states that central banks are considering plans involving the purchase of worthless or nearly worthless mortgage-backed securities from banks. Shortly afterwards, Reuters reported Bank of England denies mortgage purchase plan . The FT writes, Such a move would
What is the Mises Institute?
The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.