I have friends involved in construction, finance, and real estate. None of them, not even those in Bozeman, are prospering as they were two years ago. Several have asked me to speculate on the future. I’ll focus on Bozeman, but will first outline the national context. Initially note that we are among the many victims […]
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Last weekend Ramona and I joined 450 others in celebrating the 25th anniversary of the Heartland Institute, a Chicago based think tank. Its mission will resonate with many here. Those concerned with the likely consequences of current federal policies and promises may be heartened by its success — perhaps even find hope for change. Alert […]
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Last week’s “FREE Insights” (October 21, 2009) characterized our Federal Budget as a common pool. Like fish in the oceans, a classic common pool resource, the federal budget is subject to the tragedy of the commons. In such circumstances, valuable resources with no owner or manager to control takings are overexploited to everyone’s long-term detriment. […]
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There were no economics in the Garden of Eden for there was no scarcity. Economics arises when we confront scarcity and must choose among competing values. Hence, economics involves trading off one scarce thing, time for example, for another. Should I spend Sunday morning at church or walking in the woods appreciating nature? Should I […]
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Plans to create five million “green jobs” took a hit last month with the resignation of Anthony “Van” Jones, the President’s green jobs czar. Jones quit not because his claims regarding creating green jobs became exposed for the myth they are, but rather for a series of impolitic remarks and revelations of associations with unsavory […]
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Economists have few more important tasks than to dispel the misconceived notion that protectionism fosters prosperity. It doesn’t. Americans should appreciate the benefits of free trade more than others, for our 50 states trade freely with one another. Imagine how much lower your personal standard of living would be if goods or services from outside […]
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Can one create wealth by destroying value? That is precisely what the cash for clunkers program purports to do. At least $3 billion in taxpayer dollars are being used to destroy $2 billion of productive assets, on the premise that this is somehow good for the economy. This is crackpot economics. Taken to its logical […]
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“The four most dangerous words in investing are ‘This time it’s different.’” —Sir John Templeton Every decade or so since 1900, there has been a run of prosperity that detaches people’s common sense from financial realities. This generates widespread faith in a “new era” of ever-escalating wealth. If we’ll be richer next year, why not […]
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I have an architect friend who knows a great deal about American cars. He is interested in racing and auto craft, and specifically, designing for performance. Naturally, he laments the demise of the American automotive industry. He asked me why it happened and what will follow. Here’s what I told him. Detroit’s crackup is no […]
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In 1983, Professor Bruce Yandle of Clemson provided an economic perspective on prohibition. His paper, “Bootleggers and Baptists: The Education of a Regulatory Economist,” described how an alliance of bootleggers and Baptists, who for quite different reasons, had incentives to seek restrictions on the Sunday sale of alcohol. Baptists sought moral improvement, while bootleggers supported […]
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