It is time for Argentines to cash in their experience with government power, government law, government regulation, government money, and government care. They attended a hard school and paid high tuition. It taught all who cared to learn that, after every conceivable political device has been tried and found wanting, there remains freedom.
If we are to take one lesson from the current state of the world economy--and the geopolitical stresses and ideological divides which reflect this--we should alter the (oft-misquoted) phrase from the second book of Timothy. Rather than holding that "the love of money is the root of all evil," we should all fervently avow that "the existence of dishonest money is the root of all evil."
The prolonged Japanese economic slump is not due to price deflation but is the product of aggressive fiscal and monetary policies aimed at arresting the general fall in prices of goods and services. Contrary to the popular view, as a rule, price deflation is always good news for the economy. Thus, when prices are falling in response to the expansion of real wealth, this means that people's living standards are rising.
While assorted financial journalists, market pundits, policy wonks, Fed governors and even mainstream macroeconomists have been thrown into a panic by the slight whiff of price deflation they detected in the last few months in the U.S. economy, they have almost completely ignored the wrenching confiscatory deflation that is now going on in Argentina
As the history of America's Great Depression is one long regret of political follies and blunders that aggravated the suffering, so is the story of the Japanese recession from the 1990s to the present. The Japanese government tried to spend its way out of the recession, but instead merely prolonged it and created a mountain of debt.
During the early 1800s, the U.S. paper money in circulation was issued by banks, most of which were privately owned and state-chartered. There were, in fact, hundreds of banks across the country that issued their own--often distinctive--paper money. From these banking practices arose the infamous $3 bill.
The launch of the European economic and currency union is changing the political and economic landscape of Europe and may affect other parts of the financial world. In time, it may even modify the world dollar standard and give rise to a bicentric dollar-euro standard, which is the hope and dream of most Europeans.
The custom of tipping is an excellent demonstration of the market's ability to solve real-world problems of dispersed knowledge and transactions costs in order to ensure the maximum satisfaction of consumer preferences. Normally taken for granted, tipping is in fact a beautiful illustration of the power of voluntary, decentralized exchange.
Given the support unions have provided for so many politicians, their support for PLA "sweetheart deals" for unions on public construction contracts is hardly surprising, particularly since very few Americans know about them. But they are doing no favors for taxpayers or for the vast majority of workers who are not union members.
Why shouldn't the worker who is willing to render the best services for the least pay be the one who gets the job? Instinctively, most of us recoil in disgust at the suggestion that wages should reflect nothing more than the cold calculus of supply and demand. Yet few of us realize just how essential this "cold calculus" is for the long-run welfare of laborers themselves.
