Introduction All taxes represent the first step in the process we politely refer to as “tax” and “spend.” We should refer to these two steps more accurately as theft and redistribution. All taxes distort the resource allocation processes of free markets. The citizens of most countries accept the distortions caused by taxation as a cost … Continue reading The Effect of Tariffs
Month: May 2025
Danger – The Growing Popularity of MMT
I just encountered another book about Modern Monetary Theory (MMT.) When I first encountered MMT several years ago I never thought such a boneheaded idea would achieve so much traction. Even within the growing environment of socialism, I believed that people would see through the flaws and fallacies of MMT. I actually believed that by … Continue reading Danger – The Growing Popularity of MMT
Premise That Killed Comparative Advantage
Introduction All markets exist for the sole purpose of supporting consumption. Workers work to produce goods that can be either consumed or exchanged for other consumables. If a worker wants more, he must work harder, or longer, or smarter. In a free market, the worker gets no breaks. This fact may seem harsh, but people … Continue reading Premise That Killed Comparative Advantage
Introduction to Comparative Advantage
Introduction From the network of actors we refer to as a “market,” how do people know who should do which activities? Many projects require numerous steps for completion. To complete those steps in a timely manner requres the employment of several workers. Simply dividing a project into different parts, however, does not resolve the problem … Continue reading Introduction to Comparative Advantage
The Fallacy of Trade Deficits
Introduction Deficit. The word alone creates a negative image. If you have a food deficit, you must be hungry. If you have a water deficit, you must be thirsty. If you have a financial deficit, you must be poor. Should we worry about the national "trade deficit?" This question contains two basic premises that require … Continue reading The Fallacy of Trade Deficits
GDP Leads to Stupid Policy
Introduction Ever since President Trump announced his tariff policy, I have wondered why he keeps insisting that other countries are "ripping us off." I knew that nothing harmed American consumers when they bought more from overseas than they did from the United States. I just couldn't understand why President Trump thought otherwise. Recently, I saw … Continue reading GDP Leads to Stupid Policy
Mistaken Philosophy
Mistaken Philosophy Introduction I would consider Claudius Ptolemy a very intelligent person. The Egyptian philosopher, mathematician, and geographer who lived over 2,000 years ago had what we would today consider a very strange view of the universe. The graphic representation below shows the beliefs of Ptolemy and many others about the structure of the universe. … Continue reading Mistaken Philosophy