Mises Wire

Good Economic Theory Focuses on Explanation, Not Prediction

Philosophy and Methodology

Blog12/18/2019

Many modern economists think the standard for a "good" economic theory is how well it predicts future trends. Not only are most economists terrible at making predictions, but the whole premise of economics as being about predicting things is a flawed idea.

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GDP Growth Isn't the Same Thing as Economic Growth

Money and BanksMoney and Banking

Blog08/12/2019

Given the way it's calculated, GDP can be driven up just as much by squandering wealth, as by building it up.

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Greg Mankiw Loves the Federal Reserve—and the Labor Theory of Value

04/19/2019Power & Market

Economist Greg Mankiw confesses: I love the Federal Reserve. And I suspect that, in their heart of hearts, most other economists love the Federal Reserve, too.

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Government Spending Isn't Always Inflationary

Money and BanksMoney and Banking

Blog02/23/2019

While government spending re-allocates and distorts resources, it is not necessarily inflationary. Inflation really just stems from money creation and fractional-reserve lending carryied out by central banks and private banks — thus creating money "out of thin air."

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Government Spending Doesn't Create Economic Growth

Blog01/25/2019

Government spending doesn't create wealth. It destroys wealth.

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Gilets Jaunes: French Protesters Demand Lower Taxes and More Spending

Blog01/19/2019

The Gilets Jaunes are a crisis for the French state, and it remains to be seen if the French leviathan will use it to expand their powers.

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GDP Growth Is Not the Same Thing as Real Economic Growth

Money and BanksMoney and Banking

Blog09/25/2018

A strong GDP growth rate, in most cases, is likely to be associated with the intensive squandering of the pool of real wealth.

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Government "Funding" Can't Grow the Economy

Blog11/10/2017
Government cannot increase its spending without hurting those who produce real wealth.
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