The Fed’s Policies since the 2020 Coronavirus Panic
[This article is part of the Understanding Money Mechanics series, by Robert P. Murphy. The series will be published as a book in 2021.] In chapter 7 we summarized some of the major changes in how central banks have operated since the 2008
Entrepreneurs Are Motivated by Profit, Not Risk
According to modern portfolio theory (MPT), financial asset prices fully reflect all available and relevant information, and any adjustment to new information is virtually instantaneous. For instance, if the central bank raises interest rates by 0.5 percent, and if market participants
There’s No Conflict Between Profit and “Social Responsibility”
The "People over Profits" mantra is once again is being heard in Washington. But this time we're hearing about it from business lobbyists themselves who are now parroting leftwing slogans about "social responsibility." Original Article: "There's No Conflict Between Profit and
More Evidence the American Economic “Recovery” Will Disappoint
Two things should concern us. First, the weakness of the recovery in the middle of the largest fiscal and monetary stimulus seen in decades, and second, the short and diminishing effect of these programs. Original Article: "More Evidence the American Economic
The Abuse of Public Debt—and How It Sets the Stage for Economic Disaster
The 2020–21 recession has been devastating for the global economy. It has been ninety years since the global economy last suffered through a recession of this magnitude (in the Great Depression). Nonetheless, it seems that the social effects of the current recession have not
“What Did Bob Learn?” Part 2 of 3
In response to a listener request, Bob continues a 3-part series explaining areas where his views have changed. In this episode, he covers government debt and future generations, accuracy in polemical writing, the Fed being a private corporation, whether nice
Myths of the Mixed Economy
The planned economy was all the rage in 1937, when Prentice-Hall published a 1,000- page tome on The Planned Society: Yesterday, Today, Tomorrow: A Symposium by Thirty-Five Economists, Sociologists, and Statesmen. The "question that confronts us today is not if
The Case of Joe Rogan: Vaccine Policy and Freedom of Speech
Recently, Joe Rogan, one of the largest podcast hosts in the United States (10.6 million YouTube subscribers), expressed the following opinion about the vaccination of young adults: If you are 21 and ask me if you should get the vaccine, I would say "no". If
Mark Schaefer on Cumulative Advantage
Economists recognize the phenomenon of increasing returns. Knowledge markets such as those for software, operating systems and platforms, tend to tilt in favor of a product or service or brand that gets ahead, even to the point of lock-in. There
The Bogus January 6 Commission Poses a Real Threat to Freedom
Biden and congressional Democrats are seeking to turbocharge their push for a new domestic terrorism law to permit widespread federal crackdowns on their opponents. Any rigged commission would likely pour gasoline on a fire that could singe far more American