David Hume emphasized that commerce and trade were among the most important avenues to offer opportunities to raise people’s standards of living, and to bring refinement and cultural betterment to a growing portion of a nation’s population.
Category: Free Markets
How Government Regulation Makes Us Poorer
Oftentimes people, including so-called experts, compare apples and oranges by looking at data “before” and “after” an event, for instance, when discussing the effects of raising the minimum wage. So they might say that employment before was similar to after the hike, and then conclude that the change had no effect. But this is wrong, because there are plenty of changes in the economy that took place between the before and after — not only the minimum wage. So in order to figure out the effect of the minimum wage specifically, we must compare the “after” situation with what would have been had there been no minimum wage hike — the unseen.
“Buying Local” Is as Senseless as “Buying Tall”
Many advocates of “buying local” insist that buying local is good for the local economy and, hence, economically good for each person in the local economy. For a number of reasons, the economics on which the “buy local” movement rests is remarkably weak.
Economic Localism Is No Better than Economic Nationalism
As Black Friday has continued to expand in recent years, one response to its orgy of discounts and deals has been to promote the following day as “Small Business Saturday.” The idea is to encourage people to shop at their local stores rather than at national chains or big-box stores, or perhaps on the Internet. Doing so, argue its proponents, is both moral and good for the local economy, as it keeps jobs and money in “our communities” rather than, presumably, in the hands of faceless and distant corporate masters.
The Pretense of Omniscience
The tragedy of the Great Leap Forward illustrates that the differences between a command and a market economy reflect a deep difference in mentality and attitude. A market economy can only be tolerated when no one is confident enough to claim omniscience.
The Five Institutions of the Market Economy
Let us see what the basic institutions of the market economy are. We may subdivide them for convenience of discussion into (1) private property, (2) free markets, (3) competition, (4) division and combination of labor, and (5) social cooperation. As we shall see, these are not separate institutions. They are mutually dependent: each implies the other, and makes it possible.
Thanksgiving Was a Triumph of Capitalism over Collectivism
This time of the year, whether in good economic times or bad, is when we gather with our family and friends and enjoy a Thanksgiving meal together. It marks a remembrance of those early Pilgrim Fathers who crossed the uncharted ocean from Europe to make a new start in Plymouth, Massachusetts. What is less appreciated is that Thanksgiving also is a celebration of the birth of free enterprise in America.
Immigration Controls Are Socialist
The liberal thinkers of the 19th century got a few things wrong, but they were steadfast in their defense of a free market in labor. They upheld freedom of migration as an axiomatic principle, as Stolper put it. They won the argument. And they lived in a time of unprecedented peace and economic growth.
Desperate For Real Change
These two candidates were the choices we gave ourselves, and each came with a heaping helping of vulgarity and impropriety. Yeah, it was dirty job for sure, but the winner was NOT decided by a racist and craven nation – it was decided by millions of disgusted Americans desperate for real change.
The Buy Local Fallacy
Advocates of the “buy local” movement claim doing so betters the local economy. The economics and reasoning behind this claim are misguided at best. Here are three areas the locavore’s rationale is wrong.