Films | Econ Clips

Is government spending effective?

Ratel2021-10-18T13:02:40+00:0013 August, 2017|

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

Ratel2021-10-18T12:31:34+00:0013 May, 2017|

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

Ratel2021-10-18T12:24:51+00:0018 April, 2017|

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

Ratel2021-10-18T12:06:17+00:0019 October, 2016|

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?

Ratel2021-10-18T12:04:19+00:0019 September, 2016|

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

Ratel2022-02-02T11:52:34+00:0026 August, 2016|

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?

Ratel2021-10-18T11:58:53+00:003 June, 2016|

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

Ratel2021-10-18T11:53:39+00:009 April, 2016|

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?

Ratel2022-01-16T20:55:58+00:0017 March, 2016|

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 […]

Money vs. Barter | Why is barter ineffective?

Ratel2022-01-16T13:37:28+00:0017 March, 2016|

In a very simple economy, with very few goods, people can barter. But when the economy grows, barter trade becomes ineffective. Let me explain this with the […]