Economists use aggregate demand and aggregate supply (AS-AD model) to understand how inflation and real income growth are jointly determined. The four components of the model are: Aggregate demand (AD):…
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Economy
Too few Americans, even among the liberty-loving, exhibit sufficient understanding of America’s smaller-government past to articulate a realistic smaller-government future. Many libertarians can parse doctrinal differences between Hayek, Mises, Rand,…
Comparing Christmas today with Christmases past, David Waugh and Laura Williams eloquently explain that we ordinary Americans in 2022 are far wealthier than were ordinary Americans of just a few…
Innovation and exchange can be frustratingly uninspiring, particularly given that there are concentrated, vivid costs (in the form of lost jobs and struggling communities) and benefits dispersed across millions of…
On Christmas Eve, 2022, in North Carolina, something happened that had never happened before in living memory. People across the state were alerted by their power company, Duke Energy, that…
Polling data suggests that many Americans see government spending as one of the primary drivers of inflation. Economic theory, however, tells us that the relationship between the two phenomena is…
Seven years ago, I pointed out a problem with the “market failure” justification for state action against markets. This objection has become more, not less, important with the passage of…
Stanford University’s information technology community produced, and then hid, a document entitled “Elimination of Harmful Language Initiative.” Stanford didn’t adopt the EOHLI document. The fact that Stanford has not directly…
An interest rate is a price: the price of rented capital. Alternatively, interest is the price of time. It’s the cost borrowers pay to transfer purchasing power from their future…
If news of inflation and recession has you feeling a bit Grinchy, some historical perspective might put some joy back into the season. Our current economic woes are significant, and…