They say “all politics is local.” But economic decisions impact the whole economy and reverberate internationally. That is why politicians’ meddling with the economy creates so many disasters. The time horizon of politics seldom reaches beyond the next election. But, in economics, when an oil company invests in oil explorations today, the oil they eventually … Read more
In his dogged quest to boost employment, President Barack Obama has searched far and wide for new solutions. One provision in his American Jobs Act may very well have a positive impact on hiring. Just not in America. The section consists of a ban on discrimination against the unemployed. Some companies have posted ads that … Read more
As Barack Obama huffs and puffs about his tax plan, which is unlikely to pass in the Democratic-majority Senate much less the Republican-controlled House, Robert Zoellick, president of the World Bank, has provided a much broader view of where the United States stands amid great changes in the world and some useful guidance on what … Read more
The Greek government is in a gigantic financial hole and is teetering on the brink of defaulting on its debt. It has been able to limp along since last year only with bailouts from outside of Greece. According to the latest reports, the Greek government will run out of money in October unless it receives … Read more
The following will explain the most important idea in the history of social analysis. The notion (actually, it’s a description of reality that is all around us but rarely noticed) has been around for many centuries. It was first discovered by late-medieval monks working in Spain. It was given scientific precision in the classical period. … Read more
This past Fourth of July marked 235 years since the Declaration of Independence was published. In this immortal document, the Spirit of ’76 was given its fullest, most eloquent expression. The Declaration is a timeless document, espousing eternal principles that, while forever historically identified with America, are universal in their application. The Fourth provided an … Read more
The debate over an extension of the debt ceiling remains the central focus of financial news and has generated an increasing level of heated comments and extreme predictions as the self-imposed August 2nd deadline by the Treasury comes clearly into view. It is the prime cause of the increased volatility of the financial markets. … Read more
The Department of Labor is about to release figures on long-term unemployment that suggest a major shift in employment patterns in the U.S. According to a report in the Wall Street Journal, about 26 percent of the unemployed have not held a job in more than a year. Liberals point to these figures as proof … Read more
Greece is a microcosm for most of the developed world. It is mired in debt and at the mercy of forces beyond its financial control. The downward spiral is accelerating. As a condition for granting the May, 2010 rescue package, the IMF imposed severe austerity measures which included reductions in government social spending and … Read more
When governments want to encourage what they believe is beneficial behavior, they subsidize it. Sounds like good public policy. But there can be problems. Behavior that is beneficial for most people may not be so for everybody. And government subsidies can go too far. Subsidies create incentives for what economists call rent-seeking behavior. Providers of … Read more
I just read two very interesting articles on the U.S. economy, written from historical perspectives. They compelled me to share my own historical perspective. And what I want to say is more about our changing culture than our economy. One of the articles, by Julie Crawshaw of MoneyNews.com, notes that the “Misery Index”—the combined unemployment … Read more
In 2010, there was a “tax gap” — i.e., the difference between federal taxes owed and those actually paid — of $410-$500 billion. Some of the gap stems from the complexity of the tax code. Much of it, though, is deliberateÂÂ: self-employed individuals working for cash, table-servers under-reporting tips, taxpayers claiming unauthorized credits and deductions. … Read more
Life has many good things. The problem is that most of these good things can be gotten only by sacrificing other good things. We all recognize this in our daily lives. It is only in politics that this simple, common sense fact is routinely ignored. In politics, there are not simply good things but some … Read more
It was once suggested, as a general rule of staying alive, never to fly on an airline named after a state or the owner. As a general rule of sound government, it’s also a good idea never to enact a law named after a person. Personalizing criminal law usually stems from fruitless outrage at a … Read more
It’s hard to keep up with all the arguments and proposals in the debt limit struggle. But what’s at stake is fundamental. The bedrock issue is whether we should have a larger and more expensive federal government. Over many years, federal spending has averaged about 20 percent of gross domestic product. The Obama Democrats have … Read more
History proves that fiscal policies can be effective in stimulating private demand in a downturn. To be meaningful, however, the actions must be large enough to restart influential economic sectors and sufficiently broad-based to incentivize consumption. History also shows that temporary measures or narrowly targeted programs simply do not work. The Obama Administration came … Read more
As chairman of our country’s central bank, the Federal Reserve Board, Ben Bernanke is expected to put the economy on a sound footing and foster strong economic growth. Unfortunately, Bernanke faces “mission impossible”—partly because the policies implemented by Congress, the president, and bureaucrats account for much of what happens to the economy, and partly because … Read more
God has granted me a reprieve. Seven whole days have passed without a major American state abolishing marriage, or a Catholic hero dying prematurely at 98. That frees me up to return to the happy task of unfolding a layman’s understanding of the market economy, viewed through the lens of Christian ethics and prudent political … Read more
When Donald Rumsfeld was Secretary of Defense, he coined some phrases about knowledge that apply far beyond military matters. Secretary Rumsfeld pointed out that there are some things that we know that we know. He called those “known knowns.” We may, for example, know how many aircraft carriers some other country has. We may also … Read more
Economics is not a business science, although it has applications to business. Rather, it is part of the liberal arts and is a science of human action. Economics studies the actions that most people take in response to circumstances in their lives, but especially those actions that are visible to us. This is why economists … Read more
With so much happening in the Church right now, we are hard at work drawing out the battle plans so we can keep the faithful informed—but we need to know who we have on our side. Do you stand with Crisis Magazine?