Keynesians claim that through the “multiplier,” a country can spend itself into prosperity. All that is needed is for government to tax, borrow, print money and spend, and prosperity will follow. Austrian Economists, however, are not fooled by such myths.
Jamaica has emerged as a prime destination for investment under the leadership of Prime Minister Andrew Holness. The country has fostered a business-friendly environment.
One of the arguments given in favor of tariffs is that they will enable domestic manufacturers to better compete with producers abroad. While people may believe that to be true, the problem is that tariffs don't create a good foundation for capital development.
It is not just the future generation who bears the burden of increased government debt, but the current generation who pay the interest to the banks and corporations through higher taxes and higher price inflation.
Thanks to President Trump‘s brinkmanship, tariffs are in the headlines. However, while the public knows about tariffs, few people actually understand them, their history, and how they work.
The only beneficiaries of the increase in tariffs are the government and a few companies that benefit from limited competition while everyone else is worse off.
By their nature, free markets promote harmony between people and increase overall standards of living. This view is radically different from the ones promoted by Marxists who believe that only “class interests” matter.
President Trump has declared today “Liberation Day,” because many of his tariffs come into force. His team is taking a gamble that either the law of supply and demand does not apply to trade or that the American public will be uncharacteristically fine with higher prices.
Economists like to claim that expectations of more inflation lead to, well, more inflation. Such beliefs ignore the fact that inflation is an increase in the money supply and that general price increases result from fractional reserve-created monetary expansion.
Western elites repeatedly call for “reparations” payments to former Western colonies ostensibly to lift them from poverty. By turning these countries into large welfare recipients, these elites perpetuate the very poverty they claim to decry.
