Friday, November 22, 2019

Paul Krugman's Bad Nightmare

Paul Krugman
By Rober Wenzel

Paul Krugman is positively terrible when it comes to tax cuts.

He is the perfect example of someone a technician who thinks in terms of what is best for the state.

Thursday, November 21, 2019

Student Protesters Shut Down Supply-Side Economist Art Laffer Speech

On Monday, a speech, at SUNY's Binghamton University in upstate New York, by supply-side economist and Trump fanboy, Arthur Laffer,  was shut down by protesting students.

Student protesters mixed in the audience and started shouting down Laffer within the first minute of his speech. Security guards arrived to quell the disturbance and two students were arrested but the event was canceled.



-RW

Some Terrible Economics Out of the American Economic Review

Rain in India
By Robert Wenzel

Tyler Cowen retweeted this:

Wednesday, November 20, 2019

A Note to Employers About Former WeWork Employees

Thousands of WeWork employees are being laid off this week.

It is part of the company's attempt to stop the financial bleeding that has been occurring under a pretty insane business model. I warned a WeWork manager about the crazy model years ago.

I am still doubtful the company will survive once a recession hits.

Will Artificial Intelligence End the Austrian School of Economics?

Peter Thiel

By Robert Wenzel

Last week Wednesday, Silicon Valley billionaire Peter Thiel delivered the 2019 Wriston Lecture at the Manhattan Institute. During the Q&A following the lecture, the topic of artificial intelligence was raised and Thiel discussed it within the context of Austrian economics.

He said (my highlight):

WARNING: Even Going Halfway With Elizabeth Warren is Way Too Far

Elizabeth Warren

Amity Shlaes, author of the just published, “Great Society: A New History” warns, in a Wall Street Journal op-ed, about compromise with a lefty like Elizabeth Warren:

Tuesday, November 19, 2019

Paul Krugman Wishes He Had a Bigger Purpose to His Life

Paul Krugman
Economist and New York Times columnist Paul Krugman writes in his private email letter:
I’ve had a wonderful professional life, getting well paid to do work that I enjoy and even amounts to a vocation. Yet I sometimes feel the hankering for something more — a sense of serving a larger purpose, including being willing to make big sacrifices if necessary.
Oh please, Paul,

Permits for New-Home Construction Hits Post-Recession Record High in October


This is not what a recession looks like.

Permits are a leading indicator and start to decline even before an official recession hits.

Austrian-lites who believe we are about to enter a recessionary phase have no clue.

-RW

Trump Tells Fed Chairman He Wants US Interest Rates to be the Lowest in the World!


This is stunning.

In the EPJ Daily Alert, I have made clear that the Federal Reserve is aggressively pumping money into the system. This is what is causing stock market averages to hit new highs and keeping the unemployment rate as measured by the Labor Department at near 50-year lows.

But this is not apparently enough for President Trump.

President Trump and the Popularity of Socialism

By Randall G. Holcombe 

The Cold War, which effectively ended thirty years ago with the collapse of the Berlin Wall, was a contest between the capitalist democracies of the West against the socialist dictatorships of the East. The result was a decisive victory for capitalism and democracy. Now, with the rise of self-described socialists like Bernie Sanders and Alexandria Ocasio-Cortez, socialism is increasingly popular, especially among younger Americans. Why?
Most explanations point toward those who look upon socialism favorably as not understanding what socialism really is. There is much truth in that explanation. For example, Sanders points toward Sweden as an example of socialism, but Sweden has a capitalist market-oriented economy, but with a big welfare state. Venezuela, Cuba, and North Korea are examples of socialist economies.
Another factor in the rising popularity of socialism is that those who support socialism do not understand what capitalism really is. In terms of the twentieth-century tension between socialism and capitalism, people may be inclined to favor socialism because they have a mistaken perception of capitalism.
President Trump, as the leader of the preeminent capitalist economy, bears some responsibility for this mistaken perception.

Monday, November 18, 2019

President Trump Unexpectedly Summons Fed Chair Jay Powell to White House



President Trump summoned Federal Reserve Chair Jerome H. Powell to the White House this morning, reports the Washington Post.

This comes only a few weeks after Trump labeled Powell a “bonehead,” a “terrible communicator” and an “enemy.”

How a Bernie Sanders Proposed Tax Would Screw Small Investors and Also Raise Mortgage Rates

Bernie Sanders
Bernie Sanders has long supported the George Soros promoted financial transaction tax (also known as the Tobin tax). He calls it a “tax on Wall Street speculation.” That's deceiving.

Sunday, November 17, 2019

Vladimir Putin: The US Dollar Will Collapse Soon

Vladimir Putin

Russian President Vladimir Putin nailed it on Saturday at the "Russian Energy Week 2019" conference in Moscow.

He told attendees that

Saturday, November 16, 2019

The Most Incredible Estate I Have Ever Seen is Now on Sale for.....$195 Million



-RW

(ht The Gambler)

My Apologies to Austrian-Lites...

The Dow hit 28,000 for the first time on Friday after posting a fourth straight week of gains, while the S&P500 index rallied for a sixth week, its longest winning streak since November 2017.

Austrian-lites have been warning about a stock market crash and a recession for years. They just don't have a deep understanding of Austrian business cycle theory to understand what needs to occur before a crisis.

The Truth About Keynes on Race and Eugenics



By Edward W. Fuller
The literature on John Maynard Keynes’s life and ideas is enormous. However, his defenders have neglected his views on population. Why? His ideas in this area are highly problematic. This article provides documentation that shows Keynes advocated extensive government controls on the size and quality of the population.
Keynes was interested in eugenics from the very beginning of his academic career. His first major academic project was his fellowship dissertation, submitted in December 1907. In the dissertation, he refers to Sir Francis Galton’s essay Probability: The Foundation of Eugenics. This shows that Keynes was already interested in eugenics by 1907.1

The famous British economist Alfred Marshall was extremely close to the Keynes family. Keynes’s biographers note that he and Marshall debated Karl Pearson in 1910, but they suppressed the debate’s relation to eugenics.2 Marshall wrote to Keynes on July 14, 1910, “I am keeping as clear as I can of your ground & urging every one interested in Eugenics to read your paper. It is splendid.”3 In 1911, Keynes became treasurer of the Cambridge University Eugenics Society. On May 18, Marshall sent Keynes payment for lifetime membership in the society.4

Friday, November 15, 2019

Kissinger Says Failure to Mend U.S.-China Trade Relations Would Be ‘Worse Than the World Wars that Ruined European Civilization’

As long as nations cling to protective tariffs, migration barriers, compulsory education, interventionism and etatism, new conflicts capable of breaking out at any time into open warfare will continually arise to plague mankind.
 -Ludwig von Mises Liberalism, pp. 150–51

Henry Kissinger
Not always sound on economics or global affairs former Secretary of State Henry Kissinger nails it this time.

He is beginning to sound like Ludwig von Mises.

The Most Important Book For Our Age on Socialism

When I first heard that Rand Paul was coming out with a book on socialism, The Case Against Socialism, my initial thought was "not another book on the topic, there are some good ones that have already been recently published."

I had no intention of reading the book.

Then a friend, whose opinions I respect, asked me when I was going to review the book. I responded that I wasn't planning to. He then said, "You should, it is really good."

And so I bought the book and here I am bowled over by how good this book is.

It exceeds any other recent books that have been written about socialism. It is the assassination of socialism.

Thursday, November 14, 2019

Fed Chairman Jay Powell Goes Full Denial

Fed chairman Jay Powell
I am certainly in the camp that believes a recession is not imminent.

However, this doesn't mean I hold the view that we aren't in a Federal Reserve-manipulated boom-bust business cycle. We are and it will eventually bust. Though, I expect the first crisis to emerge will be an unanticipated acceleration in price inflation.