Summary::Money does not measure value; people do. A bad cold has made editing my next article ("Federal Deficit and Monetary Expansion") a little difficult. I have decided to republish an article that I published several months ago. Some people argue that money—or a monetary unit e.g. dollars, pounds, lira—acts as a measure of value. A … Continue reading Money Not a Measure of Value Revisited
What is Money?
This title represents a trick question. Nothing "is" money. Usage determines what we call "money." Before I continue any further, I will repeat the definition of "money" that I use: Money consists of any economic good, or any claim on such a good, that serves as a general medium of indirect exchange and that acts … Continue reading What is Money?
Charlie Says, “See you next year.”
Charlie Brown stopped by my office a couple of days ago. He happened to look at my production schedule and gasped, "You don't have time to get all of that done by January. Thanksgiving falls on your publication day (Thursday), and so do Christmas and New Years. The other days, people will not have money, … Continue reading Charlie Says, “See you next year.”
Conflicting Objectives
I want to develop an easy-to-understand basis for people to comprehend the disruptive nature of government intervention in any market. Generally, people get a view of only one side of most economic issues. If a particular intervention helps a specific group of people, the idea seems good. In addition, I think that most people view … Continue reading Conflicting Objectives
Trade Deficits, Tariffs, and Other Stupid Policies
Introduction I’m one of those who believe that all government intervention does damage to the market economy. Taxes shift costs and distort the allocation of resources. The government always implements regulations that waste resources or have no real justification. Most government deficits create an expansion of the supply of money, which has the same effect … Continue reading Trade Deficits, Tariffs, and Other Stupid Policies
Subjective Theory of Value – Expanded
Introduction All economic theory rests on some assumption about value, but, similar to Newton's vague allusion to gravity, few economists clearly and precisely define the source and measure of value. Even my friends who espouse the Austrian methodology tend to regress to some intrinsic theory of value after they have given a clear and concise … Continue reading Subjective Theory of Value – Expanded
Where does inflation start?
Introduction I have written before that the only source of generalized price inflation consists of monetary expansion. The old saying about “too many dollars chasing too few good” does contain an element of truth. It does not, however, seem to contribute to a deeper understanding. The same people who frequently quote the old bromide often … Continue reading Where does inflation start?
Tools for Thinking
Introduction Read an online post or watch an online video, and you may find yourself asking, "How can they be so certain about the claims they make?" and "Where's the empirical evidence that supports that argument?" I argue that "facts" and "empirical data" do not provide the best place to start. If you apply sound … Continue reading Tools for Thinking
Tariffs are Taxes
There seems to be some confusion amongst high-ranking members of President Trump’s cabinet as to whether tariffs are or are not taxes. To settle the question, I spoke to one of the few economists whom I really trust. I asked sincerely, “Are tariffs taxes or not?” He turned red in the face and said, “Jim, … Continue reading Tariffs are Taxes
Regular Schedule
I returned to my publications with every intent of posting a newsletter every day of the work week. It didn’t take me long to realize that, given my overall work schedule, this level of production was a little overambitious. Something had to give. I didn’t want to sacrifice quality for quantity, so I have cut … Continue reading Regular Schedule