August 20th, 2015
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I just have to laugh every time I read an article (usually from some proponent of big government) about “raising the minimum wage,” “lowering prices,” “raising tax revenues,” “controlling excess profits,” etc. None of these things can be made so (sustainably) by law, rule or regulation. Market incentives cannot be overcome simply by saying so […]
A couple of years ago, I took my family on a photo safari to South Africa to see the majestic animals there (many of which I worried would not exist in the wild a generation from now). We stayed on the Zululand Rhino Preserve and learned that the preserve had been established to repopulate the […]
It still surprises me how often the profit motive is demonized. Terms such as “Obscene Profits,” “Greedy Business,” “Corporate Greed” are prevalent in the media (which, by the way, generates HUGE profits from advertising in order to pay the salaries of the very journalists attacking “profits”).
In Economics, unemployment is often treated as some sterile measure that can be easily adjusted up or down, and which is somewhat a natural byproduct of a modern economy.
In a free-market economy, preferences (regarding the quantity offered and the quantity demanded of any good or service) determine prices. As we discussed in “The History of Economics in Three Lessons,” exchange occurs in only one of two ways: “political exchange” (whereby coercion is used to effect the exchange) OR “economic exchange” (whereby both parties […]