by George Reisman, mises.org
Raising the minimum wage is a formula for causing unemployment among the least-skilled members of society. The higher wages are, the higher costs of production are. The higher costs of production are, the higher prices are. The higher prices are, the smaller are the quantities of goods and services demanded and the number of workers employed in producing them. These are all propositions of elementary economics that you and the President should well know.
by Nick Hubble, Daily Reckoning
The Occupy Wall Street movement and most of academia love to wail about the evils of capitalism. Economist Richard Duncan reckons it's a bit late for that. About 100 years too late.
Capitalism died a grisly death in 1914 and 1939. What makes Duncan's take unique is how he sees its replacement.
It's called "Creditism".
by Chris Casey, mises.org
The fear of deflation serves as the theoretical justification of every inflationary action taken by the Federal Reserve and central banks around the world. It is why the Federal Reserve targets a price inflation rate of 2 percent, and not 0 percent. It is in large part why the Federal Reserve has more than quadrupled the money supply since August 2008. And it is, remarkably, a great myth, for there is nothing inherently dangerous or damaging about deflation.
by Richard Duncan, Daily Reckoning
Central bank forward guidance and communication are all fine and good, but it is liquidity that moves the markets. When liquidity is plentiful asset prices tend to rise and when it is scarce asset prices tend to fall. What investors require, therefore, is a simple way to measure and forecast liquidity, a liquidity gauge.
The liquidity gauge becomes a useful tool for investors when it is used to forecast future levels of liquidity.
April 5th, 2014
in Op Ed
by David Schulz and Vladimir Jankovic, The Conversation
The IPCC's latest climate change report has made it clear that global temperature rises will be the cause of more extreme weather events around the world. Indeed, weather disasters increasingly provoke the question: "Was this event (directly) caused by anthropogenic climate change?" - as was the case with the flooding that struck the UK this winter.