Under free competition, and without government support and enforcement, there will only be limited scope for fractional-reserve banking. Banks could form cartels to prop each other up, but generally cartels on the market don’t work well.
By borrowing money and “creating” new jobs, the government is creating the illusion of a strong economy. This does not end well.
Javier Milei has begun his presidency by taking action against much of Argentina’s vast welfare state. One hopes it is the beginning to a successful term in office.
The natural tendency of government, once in charge of money, is to inflate and to destroy the value of the currency. To understand this truth, we must examine the nature of government and of the creation of money.
The New York Federal Reserve released the results of its January Empire St
Most of us have heard of “critical race theory” (CRT) and know that it’s a bad thing, but few know exactly what it is.
“That’s not cool. That’s not cool.
As Oregon struggles with the aftermath of drug legalization, some are calling for new criminalization of drugs. The problem, however, isn’t the drugs but rather the socialistic mindset of people in Oregon who refuse to protect property from drug users.
There is a lack of buyers for US Treasury debt. Rating agencies have recently downgraded the US debt, and entitlement benefits’ “trust funds” will go into the red in a few years. The classical economists offer few answers to the depth of this problem.
History has shown that as the US economy inches closer to recession, government jobs take up a larger and larger share of new job growth. We're seeing this trend right now.
