Fractional Reserve Banking vs. 100% Reserve Banking
What is the difference between fractional reserve banking and full reserve banking? How do they work? Do they have advantages and disadvantages? Is one better than the other? [...]
Money Creation
Money creation: described by many as the biggest scam in the history of mankind; for others it’s a blessing and a driving force of the economy. For John [...]
Opportunity Cost | The Road Not Taken
Imagine the following situations: 1) A young man enrolls in a tuition-free public university. From his point of view he gets the education for free. He [...]
The Methodology of the Austrian School
When we refer to the Austrian School of Economics, we do not mean an institution located in a building in Vienna, nor we mean the Austrian economy. Instead, [...]
A Petition – Frédéric Bastiat | Candlestick makers’ Petition
A Petition - Frédéric Bastiat. Animation of famous candlestick makers' petition by Frédéric Bastiat. It's a great lesson about free trade, and a big blow to the [...]
Price Discovery | How prices are determined?
In our previous videos entitled "The Value of Things" and "Scarce Resources" we have discussed how value is a subjective phenomenon. Two diverse people can estimate value of [...]
Why Can’t We Have Everything We Want? | Scarcity & Choice
We live in a world of scarcity. This fact is beyond question. Our time, land, and work are scarce. Producer and consumer goods are scarce as well. Human [...]
Housing bubble and the great recession
Without a question we can all remember the financial crisis of 2007–2008. Perhaps you learned of its effects the hard way. The media told us that greed and [...]
The Great Depression | What Caused It?
The Great Depression of the 1930s is still considered by many to be a failure of the free market and of the laissez-faire capitalism. At a first glance, [...]
Is legal the same as moral?
Freedom of the market doesn’t imply the absence of law. To the contrary: free market is impossible without good law. Then what function should the law fulfill? If [...]