The words stabilization and stimulation encapsulate what the Federal Reserve and the Federal Government are trying to do to resolve the economic uncertainties. Entire textbooks have been written about each of these topics separately. I just want to introduce the concepts and open the door for numerous articles in the future. Briefly, these words refer … Continue reading Stabilization and Stimulation
Category: Intervention
In some ways the category of Economic Intervention plays the most important role on this blog site. Without intervention we would have Free Markets. The other categories become important because, to paraphrase Friedrich Hayek, to understand why intervention does not work we must first understand how free markets would work. AKA Market Intrvention
Musical Inspiration for Economic Policy
After two and one-half years, I thought I would search for music that might have inspired President Biden’s disastrous economic policies (even though he might not know an iPod from a Victrola). It would seem that he got some of his inspiration from one of my favorites, Muddy Waters: Song: Born With Nothing I don’t … Continue reading Musical Inspiration for Economic Policy
Market Intervention
Intervention in Free Markets Market Intervention disrupts three main factors and, therefore, the balance of the market: Government Spending (a.k.a. redistribution) amounts to involuntary consumption. You pay for the road, bridge, or government building whether you need it or not. Government Regulation consists of dictating individual preferences. The state mandates that you wear a mask … Continue reading Market Intervention
Economic Imbalance
Healthy economies arise from the voluntary interaction of parties in a free market. I feel it appropriate to refer to this type of interaction as Economic Balance. In this post, I want to look at Economic Imbalance. Economic Imbalance I coined the term Economic Balance to reflect the results of free market transactions. Both parties … Continue reading Economic Imbalance