Some Men Just Want to Watch Mexico Burn

If you share this romantic vision, you might even welcome my analysis: “Yes, I’m inspired by revolutionary idealism.  At least they tried.”  Yet calmly considered, this romantic vision is inexcusable.  Launching a bloody war without even asking, “How likely is this war to improve the world?” is as “romantic” as drunk driving at a playground.  Giving revolutionaries credit for “trying” is ridiculous.  If you combine brutality with wishful thinking about the consequences, your real goal isn’t to make those consequences a reality.  Your real goal is just to exercise brutality.

Jeffrey Herbener: Demystifying the Federal Reserve (26m)

This episode features an interview of economics professor and department chairman Jeffrey Herbener from 2016 by Jeff Deist, host of the Human Action podcast. They cover the basics of central bank mechanics: how commercial bank reserves are created, the difference between the monetary base and the money supply, and how the Fed Funds rate impacts lending and the structure of production. They consider how Austrian business cycle theory describes the distortions created by artificially low interest rates, and how interest rates ought to operate as price signals. Finally, they discuss how early recipients of newly created money and credit benefit in ways that ordinary citizens don’t.

I Win My European Unemployment Bet

In 2009, the U.S. unemployment rate exceeded Europe’s for the first time in decades.  Apologists for European labor market regulation rejoiced, so I publicly bet that European unemployment would exceed U.S. unemployment over the next decade.  The original authors I targeted turned me down, even after I offered a 1 percentage-point spread.  But noted economist John Quiggin took the bait.