-
Follow
Following
Already have a WordPress.com account? Log in now.
It was Austrian economist Ludwig von Mises that described what he called “Katastrophenhausse.” Roughly translated into English, it is the Boom that sets up a later bust, or “crack-up.” Sort of like an airplane that exceeds it altitude ceiling, loses control, and crashes to the ground. Each crack-up boom is usually preceded by an onslaught … Continue reading
Did you ever notice how an idea can get so deeply embedded in society that thinking the opposite would be impossible? Imagine traveling 500 years back in time to Hawaii, and trying to convince natives that periodically sacrificing a virgin in a volcano would not prevent its disastrous eruption. You would be laughed out of … Continue reading
One of my favorite sayings is, “Today’s welfare state is tomorrow’s police state.” It comes from an observation of nations throughout history. People often ask me why the transition is nearly inevitable, and how it works. The answer is that democratic republics almost invariably go through a progression, with the terminal stage being tyranny and … Continue reading
Effort is needed to maintain life. Our bodies must work constantly to replace dying cells, repair damaged tissue, fight invading microorganisms, and remodel bone for changing demands- to name a few tasks. Without this work, human beings, or for that matter any plant or animal, will soon die. Likewise, to preserve human civilization, work is … Continue reading
Once upon a time, some well-meaning politicians sought to make procurement of homeowner’s insurance for single family dwellings universal and affordable. They recruited an economics professor at MIT to design the Affordable Fire Protection Act. (AFPA) The professor employed Yale and Harvard Law School graduates to write the bill’s 2000 pages of implementing legislation. The … Continue reading
The 2008 downturn was the worst US post-WW2 recession on record. It was a credit crisis recession, rather than an excess inventory recession. According to accounts I have read, and anecdotal data from my business, the depth of the recession was reached in the summer of 2010. Usually, deep economic contractions are followed by … Continue reading
While all taxes hurt the economy by discouraging productive activity, a capital gains tax specifically targets investment, and capital investment is the lifeblood of a healthy economy. As it turns out, taxing capital gains at a rate as high as earned wages would stymie economic growth and make all of us all worse off. As … Continue reading
Our Federal Reserve Bank turned 100 years old this December 24th. Most humans pass away before they reach 100 years of age, but unfortunately this is not true of our central bank. Conceived after the bank panic of 1907, the Fed was finally created about 70 years after the Second Bank of the US was … Continue reading
Imagine this scenario. A man owns a commercial office building. It has 10,000 square feet of rentable space. This man has an unusual tape measure in his toolbox. The tool is made of a material that contracts 5% in length per year. At the first of every new year, the man measures the building with … Continue reading
Who are those “rich” people? We hear so much hatemongering from liberals about the rich not paying their “fair share” of taxes. But who are these dreadful rich people? Some are obvious, like Warren Buffet or George Soros. But there aren’t very many people like that! Please help me here, and decide which of these … Continue reading
Three Pillars 