Mises Wire

Our taxes are due today. It‘s a reminder that we must get past the tax reformers’ favorite ploy of revenue neutrality.

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.

An enduring progressive myth is that racial and religious minorities can only make economic gains if government "levels the playing field." The historical record demonstrates, however, that free markets offer the best opportunities for people in minority groups.

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.

Mises explicitly says in Omnipotent Government that Soviet Russia should be allowed to expand in Eastern Europe after World War II ends, in order to prevent the rebirth of a strong Germany. Obviously this was not a fascist position.

One cannot preserve a free society merely through legal reforms or economic deregulation. One must cultivate citizens capable of living freely.

According to Keynesian “economics,” central bank interest rate cuts will make the economy stronger—unless the economy is in a “liquidity trap.” The truth is that these kinds of monetary tricks actually weaken the economy.

The principle of Occam‘s Razor states that we should avoid superfluous activity. When it comes to our monetary system, however, the Federal Reserve System doesn't simplify things, but instead complicates the economy. That alone is reason for it to be abolished.

In February, the money-supply growth rate accelerated and continued near a two-year high. Meanwhile, the Fed is chickening out in its efforts to shrink the Fed‘s balance sheet.

People like to believe that national defense is outside of economic analysis, but the reality is that laws of economics are immutable and universal. A case in point is the development of the F-35 Lightning II fighter jet.