4 Questions to Ask When Debating Inequality
The change in the presidency is not going to reduce the amount of time and energy people will be spending debating the question of rising inequality. In […]
Is government spending effective?
Let us start by asserting that the money the government holds is not its own. In general the government does not produce anything, nor create wealth, nor […]
Price system: free market vs. government intervention
What is the role of the prices on the market? What happens when the government interferes with the market and sets a maximum or minimum price at […]
Frédéric Bastiat | That Which is Seen, and That Which is Not Seen
What distinguishes a good economist from a bad economist? We may invoke Hazlitt’s question: Why is it that economics is haunted by more fallacies than any other […]
Inflation and Deflation | A Hidden Tax
We often hear in the mainstream media that inflation is desirable, that it’s positive for the economy. Central banks are not happy when inflation doesn’t reach the […]
Investment Loan vs Consumer Loan | What’s the difference?
Two good friends from childhood – Jack and Paul – met after years in the bar. They began to talk about their life and when it came […]
? How is wealth created? | Savings and Investments 2021
Wealth is created through self-sacrifice and taking risks. Imagine a world in which suddenly all the tools disappear. All buildings, cars and machinery or even basic tools […]
How does The Law of Supply and Demand work?
I am going to ask you a weird question: What was the demand for cars in year 1120? Someone could answer without any hesitation: “None, there was […]
Interest Rates and Time Preference
If people only had high time preference, we would probably still be in the Stone Age. Increases in production are only possible through saving and capital formation. […]
Monopoly in a free market | Is it possible?
A great number of people think that free market is just a way for monopolies to prey on poor customers. The same people think that only […]