Daily economy news from the American Institute for Economic Research: data, stories, research, and articles touching on economics, politics, culture, education, policy, opinion, technology, markets, healthcare, regulation, trends, and much more.
Chin Scratchers Bias Flame Throwers
“Frank Bruni has reached the phase in life where the young activists of his own team are alarming him with their crusading zeal and over-the-top methods.” ~Rachel Lu
Schedule F vs. Reality
“Reforming the administrative state and rewriting statutes and regulations is hard work, requiring careful policymaking, talented people, and consensus-building. It’s not the product of gimmicks like Schedule F and databases of inexperienced people.” ~Thomas A. Firey
Business Conditions Monthly April 2024
“The road ahead remains uncertain, though, with potential outcomes ranging from a slow, steady economic rebalancing to sluggishness or even a recession.” ~Peter C. Earle
Want Better Higher Ed? Get the Feds Out
“Market-like responses to dissatisfaction with schools are heavily muted by subsidies. The Biden administration is working for wide cancellation of student debt, which would squelch even these limited market forces.” ~Neal McCluskey
There’s No Good Reason to Raise the Inflation Target
“Why not give the central bank a wider berth, if it helps to stabilize the economy? Because it doesn’t actually help. Interest rates are a distraction.” ~Alexander W. Salter
The Magna Carta’s Constitutional Tradition
“While not perfect by any means, the Magna Carta was the first example of a bloodless revolution in which the rule of law and rights in contracts lead to the advancement of civilization.” ~Will Sellers
Foot Voting Reconsidered: How Should I Think About Leaving?
“Compared to ballot voting, moving has larger individual impacts, which mean greater incentives to acquire knowledge; it provides a better signal to both the country you’re leaving and the one you’re joining.” ~Joakim Book
Conserving the Conversation
“The best defense of economic freedom rests not on statistics calculated yesterday, but rather the enduring knowledge of human nature at the heart of Western civilization.” ~Michael Lucchese
Only Economic Freedom Pulls People Out of Poverty
“The primary focus should be on enhancing economic freedom, as it is the key mechanism that enables individuals to elevate themselves out of poverty.” ~Vincent Geloso
Democrats Play the Blame Game on Rent Inflation
“Imposing new costly regulations will not make housing more affordable — unleashing the housing supply by deregulating zoning and overly strict building codes will.” ~Louis Rouanet
Stiglitz: When Good Minds Seek Fools’ Favor
“Stiglitz believes ‘education’ should be explicitly designed to attack property rights and to weaken the sense of American exceptionalism, the tradition of classical liberalism.” ~Michael Munger
Don’t Let a Crisis Go to Waste in 2025
” By returning to principles of fiscal responsibility and market-driven activity, America can navigate away from the fiscal abyss and toward a future of economic stability and prosperity.” ~Vance Ginn
Is Promoting to Customers a Crime?
“McKinsey allegedly tried to help Purdue tailor its sales efforts…. There’s nothing mysterious or nefarious about this. To do otherwise would be inefficient and wasteful.” ~ David R. Henderson and Charles L. Hooper
Sense and Nonsense on Petrodollars
“Myths and hyperbole aside, the weakening US-Saudi relationship is one instance amid a growing trend of diminishing US influence in global currency markets and international finance.” ~Peter C. Earle
How Nations Defeat Poverty
“What these stories all have in common is that these nations rose from poverty by embracing a common formula: more economic freedom and free trade… not international aid or central planning.” ~Jon Miltimore
Bitcoin Is ‘Resistance Money’
“Freedom money, wielded by its users and resistant to capture, identification, and censorship, doesn’t dispel unfair laws or make evil rulers go away — but almost nothing else does that either.” ~Joakim Book
Boosters Beware: Stadiums Aren’t Magic
“Just about every economist knows publicly financed stadiums are boondoggles that, if anything, imperil cities’ financial positions.” ~Art Carden
FOMC Holds Rates, Revises Forward Guidance
“Just as the FOMC was slow to adjust policy when inflation surged in late 2021, it will be slow to adjust policy as inflation returns to and falls below its target in 2024.” ~William J Luther
Chin Scratchers Bias Flame Throwers
“Frank Bruni has reached the phase in life where the young activists of his own team are alarming him with their crusading zeal and over-the-top methods.” ~Rachel Lu
Schedule F vs. Reality
“Reforming the administrative state and rewriting statutes and regulations is hard work, requiring careful policymaking, talented people, and consensus-building. It’s not the product of gimmicks like Schedule F and databases of inexperienced people.” ~Thomas A. Firey
Business Conditions Monthly April 2024
“The road ahead remains uncertain, though, with potential outcomes ranging from a slow, steady economic rebalancing to sluggishness or even a recession.” ~Peter C. Earle
Want Better Higher Ed? Get the Feds Out
“Market-like responses to dissatisfaction with schools are heavily muted by subsidies. The Biden administration is working for wide cancellation of student debt, which would squelch even these limited market forces.” ~Neal McCluskey
There’s No Good Reason to Raise the Inflation Target
“Why not give the central bank a wider berth, if it helps to stabilize the economy? Because it doesn’t actually help. Interest rates are a distraction.” ~Alexander W. Salter
The Magna Carta’s Constitutional Tradition
“While not perfect by any means, the Magna Carta was the first example of a bloodless revolution in which the rule of law and rights in contracts lead to the advancement of civilization.” ~Will Sellers
Foot Voting Reconsidered: How Should I Think About Leaving?
“Compared to ballot voting, moving has larger individual impacts, which mean greater incentives to acquire knowledge; it provides a better signal to both the country you’re leaving and the one you’re joining.” ~Joakim Book
Conserving the Conversation
“The best defense of economic freedom rests not on statistics calculated yesterday, but rather the enduring knowledge of human nature at the heart of Western civilization.” ~Michael Lucchese
Only Economic Freedom Pulls People Out of Poverty
“The primary focus should be on enhancing economic freedom, as it is the key mechanism that enables individuals to elevate themselves out of poverty.” ~Vincent Geloso
Democrats Play the Blame Game on Rent Inflation
“Imposing new costly regulations will not make housing more affordable — unleashing the housing supply by deregulating zoning and overly strict building codes will.” ~Louis Rouanet
Stiglitz: When Good Minds Seek Fools’ Favor
“Stiglitz believes ‘education’ should be explicitly designed to attack property rights and to weaken the sense of American exceptionalism, the tradition of classical liberalism.” ~Michael Munger
Don’t Let a Crisis Go to Waste in 2025
” By returning to principles of fiscal responsibility and market-driven activity, America can navigate away from the fiscal abyss and toward a future of economic stability and prosperity.” ~Vance Ginn
Is Promoting to Customers a Crime?
“McKinsey allegedly tried to help Purdue tailor its sales efforts…. There’s nothing mysterious or nefarious about this. To do otherwise would be inefficient and wasteful.” ~ David R. Henderson and Charles L. Hooper
Sense and Nonsense on Petrodollars
“Myths and hyperbole aside, the weakening US-Saudi relationship is one instance amid a growing trend of diminishing US influence in global currency markets and international finance.” ~Peter C. Earle
How Nations Defeat Poverty
“What these stories all have in common is that these nations rose from poverty by embracing a common formula: more economic freedom and free trade… not international aid or central planning.” ~Jon Miltimore
Bitcoin Is ‘Resistance Money’
“Freedom money, wielded by its users and resistant to capture, identification, and censorship, doesn’t dispel unfair laws or make evil rulers go away — but almost nothing else does that either.” ~Joakim Book
Boosters Beware: Stadiums Aren’t Magic
“Just about every economist knows publicly financed stadiums are boondoggles that, if anything, imperil cities’ financial positions.” ~Art Carden
FOMC Holds Rates, Revises Forward Guidance
“Just as the FOMC was slow to adjust policy when inflation surged in late 2021, it will be slow to adjust policy as inflation returns to and falls below its target in 2024.” ~William J Luther