Like every other government program designed to make something “more affordable,” the student loan program has managed to drive college tuition to atmospheric levels and saddle students with massive levels of debt.
Original Article: Federal Student Loans Drive Up College Tuition Levels
The classical liberal economist Edmund Phelps wants government to aid poor people, but he clearly is not an egalitarian. His philosophy would be unacceptable to today's "woke" egalitarians.
Original Article: "Edmund Phelps on Egalitarianism"
Because of inflation and a lack of a savings ethic, Americans are less prepared for retirement than ever. The numbers are discouraging.
Original Article: "Ready for Retirement? Fewer and Fewer Americans Are Saving for That Time"
This Audio Mises Wire is generously sponsored by Christopher Condon.
The standard line from progressives is that free markets usually fail in developing countries. The economic numbers tell a much different story.
Original Article: "Free Markets DO Work in Developing Countries"
This Audio Mises Wire is generously sponsored by Christopher Condon.
The modern progressive narratives claim that the wealth of the West and especially of the USA was built upon the backs of slaves. In fact, slavery retarded economic growth.
Original Article: "The West Didn't Become Rich Because of Slavery But in Spite of It"
This Audio Mises Wire is generously sponsored by Christopher Condon. '
Turkey's economy is reeling under inflation rates likely reaching 170 percent. Not surprisingly, the worst of it is felt by regular people just trying to make a living.
Original Article: "The Turkish Way"
This Audio Mises Wire is generously sponsored by Christopher Condon. '
Entrepreneurship is the key to real development, but cultural attitudes are often a significant barrier to entrepreneurship in the developing world.
Original Article: "Entrepreneurship in Developing Countries: Still a Work in Progress"
This Audio Mises Wire is generously sponsored by Christopher Condon.
Elites are attacking the government of Mauritius for having lower tax rates than other African countries. The real issue is the levels of taxation in other African countries.
Original Article: "If Mauritius Is a Tax H(e)aven, Other African Countries Must Be Tax Hells"
This Audio Mises Wire is generously sponsored by Christopher Condon.
The standard line among the Great Reset crowd is that capitalism exploits poor nations and causes poverty. In reality, capitalism and free markets have reduced poverty around the world.
Original Article: "Developing Countries Don't Need Wealth Transfers; They Need Free Markets"
This Audio Mises Wire is generously sponsored by Christopher Condon.
Forget the notion that the Fed "fights inflation." In fact, the Fed exists to promote inflation.
Original Article: "Even When There Is Inflation, the Fed STILL Fights Falling Prices"
This Audio Mises Wire is generously sponsored by Christopher Condon.
Why did Barbados postslavery develop a more robust economy than Jamaica even though the people had similar ethnic backgrounds?
Original Article: "History and Institutions Matter: The Postslavery Development of Jamaica and Barbados"
This Audio Mises Wire is generously sponsored by Christopher Condon.
From the beginning of history, sincere reformers as well as demagogues have sought to abolish or at least to alleviate poverty through state action. In most cases their proposed remedies have only served to make the problem worse.
The most frequent and popular of these proposed remedies has been the simple one of seizing from the rich to give to the poor. This remedy has taken a thousand different forms, but they all come down to this. The wealth is to be "shared," to be "redistributed," to be "equalized." In fact, in the minds of many reformers it is not poverty that is the chief evil but inequality.
All schemes for redistributing or equalizing incomes or wealth must undermine or destroy incentives at both ends of the economic scale. They must reduce or abolish the incentives of the unskilled or shiftless to improve their condition by their own efforts; and even the able and industrious will see little point in earning anything beyond what they are allowed to keep. These redistribution schemes must inevitably reduce the size of the pie to be redistributed. They can only level down. Their long-run effect must be to reduce production and lead toward national impoverishment.
The problem we face is that the false remedies for poverty are almost infinite in number. An attempt at a thorough refutation of any single one of them would run to disproportionate length. But some of these false remedies are so widely regarded as real cures or mitigations of poverty that if I do not refer to them I may be accused of having undertaken a book on the remedies for poverty while ignoring some of the most obvious.
The most widely practiced "remedy" for low incomes in the last two centuries has been the formation of monopolistic labor unions and the use of the strike threat. In nearly every country today this has been made possible to its present extent by government policies that permit and encourage coercive union tactics and inhibit or restrict counteractions by employers.
As a result of union exclusiveness, of deliberate inefficiency, of featherbedding, of disruptive strikes and strike threats, the long-run effect of customary union policies has been to discourage capital investment and to make the average real wage of the whole body of workers lower, and not higher, than it would otherwise have been.
Nearly all of these customary union policies have been dishearteningly shortsighted. When unions insist on the employment of men who are not necessary to do a job (requiring unneeded firemen on diesel locomotives; forbidding the gang size of dock workers to be reduced below, say, twenty men no matter what the size of the task; demanding that a newspaper's own printers must duplicate advertising copy that comes in already set in type, etc.), the result may be to preserve or create a few more jobs for specific men in the short run, but only at the cost of making impossible the creation of an equivalent or greater number of more productive jobs for others.
The same criticism applies to the age-old union policy of opposing the use of labor-saving machinery. Labor-saving machinery is installed only when it promises to reduce production costs. When it does that, it either reduces prices and leads to increased production and sales of the commodity being produced, or it makes more profits available for increased reinvestment in other production. In either case its long-run effect is to substitute more productive jobs for the less productive jobs it eliminates.
A similar judgment must be passed on all "spread-the-work" schemes. The existing Federal Wage-Hour Law has been on the books for many years. It provides that the employer must pay a 50% penalty overtime rate for all hours that an employee works in excess of 40 hours a week, no matter how high the employee's standard hourly rate of pay.
This provision was inserted at the insistence of the unions. Its purpose was to make it so costly for the employer to work men overtime that he would be obliged to take on additional workers.
Experience shows that the provision has in fact had the effect of narrowly restricting the length of the working week…. But it does not follow that the hour restriction either created more long-term jobs or yielded higher total payrolls than would have existed without the compulsory 50% overtime rate.
No doubt in isolated cases more men have been employed than would otherwise have been. But the chief effect of the overtime law has been to raise production costs. Firms already working full standard time often have to refuse new orders because they cannot afford to pay the penalty overtime necessary to fill those orders. They cannot afford to take on new employees to meet what may be only a temporarily higher demand because they may also have to install an equivalent number of additional machines.
Higher production costs mean higher prices. They must therefore mean narrowed markets and smaller sales. They mean that fewer goods and services are produced. In the long run, the interests of the whole body of workers must be adversely affected by compulsory overtime penalties.
All this is not to argue that there ought to be a longer work week, but rather that the length of the work week, and the scale of overtime rates, ought to be left to voluntary agreement between individual workers or unions and their employers. In any case, legal restrictions on the length of the working week cannot in the long run increase the number of jobs. To the extent that they can do that in the short run, it must necessarily be at the expense of production and of the real income of the whole body of workers.
A selection from The Conquest of Poverty.
People must still compete for resources in a socialist economy. In fact, the competition is intense. On the other hand, thanks to markets, basic necessities—and even basic luxuries—are now more more accessible than ever.
Original Article: "How Markets Have Delivered More Economic Equality"
This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Michael Stack.
The empirical evidence shows that neither minimum wages or welfare reduce poverty. In fact, minimum wages tend to increase the cost of living while poverty rates have gone nowhere since the Great Society was introduced.
Original Article: "Progressivism's Failures: From Minimum Wages to the Welfare State"
This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Michael Stack.
“Poverty in society is overcome by productivity, and in no other way. There is no political alchemy which can transmute diminished production into increased consumption.”
Original Article: "Biden’s Rescue Plan Won't Reduce Poverty"
This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Michael Stack.
To offer a semblance of solidarity with the working class, wealthy leftists have substituted identity politics for class conflict, and attempted to recast economic problems as problems of racism or bigotry.
Original Article: "Understanding Inequality Requires Much More Than Calling Everything Racist"
This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Michael Stack.
Murray Rothbard wrote, “The rate of interest is the price of ‘time.’” It’s safe to say the world’s central banks have manipulated and mispriced what time is worth.
Original Article: "Today's Negative Rates Are the Path to Poverty"
This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Michael Stack.
The World Economic Forum and its related institutions in combination with a handful of governments and a few high-tech companies want to lead the world into a new era without property or privacy.
Original Article: "No Privacy, No Property: The World in 2030 According to the WEF".
This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Millian Quinteros.
Ryan McMaken joins the show to discuss Adam Fergusson's seminal history of Weimar-era hyperinflation in Germany, When Money Dies. Americans accustomed to the dollar's king status have no idea how quickly and brutally a currency can lose value, especially when war finance distorts the entire structure of a nation's economy.
What follows is sobering: hunger, violence, crime, and degradation. This fascinating book makes for a great study of how and why inflation rises quickly, and provides a cautionary tale for central banks and fiscal policy makers today.Plus listen to the show for a link to your free copy of the book!
Read Hans Sennholz on Hyperinflation at Mises.org/HyperInflation
Find Henry Hazlitt's What You Should Know About Inflation at Mises.org/InflationHazlitt
Read Lyn Alden's article on inflation at Mises.org/Alden
As Thanksgiving approaches, we should be thankful to society’s economic benefactors rather than condemning them because of the wrongheaded ideology of egalitarianism.
Original Article: "Giving Thanks to Society’s Economic Benefactors".
This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Millian Quinteros.
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