Janet Yellen recently gave her first press conference as the new Fed Chair-person. Being the stalwart Keynesian that she is, emphasis was given on the Fed’s targeted inflation rate. One of the problems here being in how modern economists define inflation. Over the course of history inflation has gone through a type of metamorphosis as…
The Austrian School of Economics has been at the forefront of price theory. Beginning with Carl Menger, the founding patriarch, through others such as, Böhm-Bawerk, Mises, Hayek, Rothbard, Lachmann, Kirzner and more have advanced the theory of prices. It is generally accepted that prices are a function of supply and demand. But, there’s more.
It is apparent that some who advocate for the Austrian School of Economic Theory haven’t quite grasped the basics tenants of Austrianism. One of the basic tenants is the Mengarian theory of subjective value. One of those advocates is none other than Peter Schiff.
One of the fundamental laws of economics is that human beings act on incentives. People make choices to act every day, all the time. The choices they make, are without fail, whether they will be left better or worse off. As a matter of fact, people remain inactive until they have made their choice whether…
How many have gotten themselves into that usual Twitter or maybe a Facebook debate about “capitalism” or “the free market” with someone who doesn’t even understand the definition of the terms? It can be equally frustrating because these social media environments aren’t really suited for an honest debate. When anonymity is introduced during any discussion, the…
Main stream economics teaches that deflation is a bad thing, while inflation is beneficial if held to a certain level. How this arbitrary level is ascertained is known only by those who believe in their macroeconomic models. Just what is inflation and deflation? Inflation Truths In recent history the term “inflation” has taken on new…
In the last article we discussed fascism and how it has crept into all segments of the economy. We learned that it had its beginnings in Alexander Hamilton’s “American System” which was not much more than a newer version of British mercantilism. Also, how fascism evolved out of Otto Von Bismarck’s large regulatory state apparatus…
The Blue Collar Economist 