Monthly Archives: August 2011

Why socialism does not work

It is entirely fallacious when it is sometimes argued that the great power exercised by a central planning board would be “no greater than the power collectively exercised by private boards of directors”. There is, in a competitive society, nobody … Continue reading

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Why Keynesian Economics is a Disaster

Not only does the Keynesian system require arbitrary controls, but the particular form of inflation which Keynes recommended – the socialization of investment which he thought would facilitate the spending of income – means… the transfer of power to determine … Continue reading

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Why Government Spending Does Not End Recessions

By Brian Riedl[i] The important question is why government spending fails to end recessions. Spending-stimulus advocates claim that Congress can “inject” new money into the economy, increasing demand and therefore production. This raises the obvious question: From where does the … Continue reading

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Why free trade benefits everyone

Free trade is the system that results when there are no – or few – barriers to shipping goods from one place to another.  You can see that system within the United States. Oranges grow well in Florida. Potatoes grow … Continue reading

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Why are some countries rich and others poor?

There appears to be a tradition among our country’s lawmakers of using the law to redistribute wealth rather than to help create it. From this standpoint, the law is essentially a mechanism for sharing a fixed stock of wealth among … Continue reading

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What determines the price of anything

Most people think that the price of anything is determined by the sellers: the companies that manufacture or sell the products. In the short run, that may be true; but it is not true in the long run.  A product … Continue reading

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The structure of Production

It is an essential feature of our modern “capitalistic” system of production that at any moment a far larger proportion of the available means of production is employed to provide consumer’s goods for some more or less distant future than … Continue reading

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The Industrial Revolution

A series of events in England in the 1700s let up to the magical period from 1760 to 1830 called The Industrial Revolution. It changed England and the world forever.[i]  Farming had gotten much more efficient in the 1700s and … Continue reading

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The Cost of Production

Cost is that which the decision-maker sacrifices or gives up when he selects one alternative rather than another… Cost must be borne exclusively by the person who makes decisions; it is not possible for this cost to be shifted to … Continue reading

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How Rent Control Destroys Cities

In many cities governments maintain rent control ordinances which date back to the 1960′s or even earlier. These laws make it a crime for a landlord to charge rents higher than they were at the time the law was originally … Continue reading

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