Thomas Sowell Explains How Democracy And Freedom Are Not The Same Thing.

Posted April 4, 2013 by austrianaddict
Categories: Government and Politics

Tags: , , , , ,

Here is a great article by Thomas Sowell titled, Middle East ‘Democracy‘, at jewishworldreview.com, in which he explains the difference between democracy and freedom. Here is a quote form the article.

“The Obama administration treated the creation of “democracy” in the Middle East as a Good Thing. Ironically, those who created the United States of America viewed democracy with fear-and created a Constitutional republic instead.  

Here is how Thomas Sowell defines the rule of law, freedom, and democracy. Read the rest of this post »

Electric Car Sales Crash Into Economic Reality.

Posted April 2, 2013 by austrianaddict
Categories: Econ. 101

Tags: , , , , , ,
Who Killed the Electric Car?

Who Killed the Electric Car? (Photo credit: Wikipedia)

THE  REALITY OF THE CONSUMER.

Electric car sales prove once again that consumer decisions in the market trump the President’s, and Government’s, attempt to force their utopian desires on people. Just because a person with power decrees that certain thing’s should be produced, doesn’t mean that they’ll be magically sold once they enter the market. Many an entrepreneur’s great ideas have turned to failure because, in the market, the consumer has veto power over every brilliant idea, and the “special”  brilliance of Government planners is no different.

THE REALITY OF PRICES AND COSTS.

There are three ways that Government can guarantee that electric cars will be purchased. Read the rest of this post »

We Can’t Recreate The Garden Of Eden.

Posted April 1, 2013 by austrianaddict
Categories: Econ. 201

Tags: , , , , ,
English: Adam & Eve in garden of Eden Русский:...

English: Adam & Eve in garden of Eden Русский:  (Photo credit: Wikipedia)

The story of Adam and Eve is very instructive even if you don’t believe in God or the bible. If you remember, God created the garden of Eden for Adam and Eve to live in. It was a world of abundance where every need was met. The devil tempted man by saying “…you will surely not die. For God knows that the day you eat of it your eyes will be opened and you will be like God…”. The devil tempted man by saying “you will be like God”. When man sinned, God banished him from the world of abundance and placed him in the world of scarcity, decreeing, “…Cursed is the ground for your sake; in toil you shall eat of it….both thorns and thistles it shall bring forth for you….In the sweat of your face you shall eat bread….”. You don’t have to believe in God to understand that we live in a world of scarcity instead of a world of abundance. We all know that we must first produce, by the sweat of our brow, before we can Read the rest of this post »

Keynes Was Correct In 1919!

Posted March 30, 2013 by austrianaddict
Categories: Econ. 201

Tags: , , , , , ,
John Maynard Keynes

John Maynard Keynes (Photo credit: Steve Hunnisett)

When Keynes wrote in “The Economic Consequences of the Peace”,  (1919) “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.” , little did he or we know how correct he was.

The Feds policy of counterfeiting money, and artificially lowering interest rates, created and grew the U.S.’s housing bubble from 2000 to 2007. Market forces tried to liquidate this misallocation of scarce resources (the bubble, which was the result of the Feds policies), starting in late 2007, but the Fed wouldn’t allow the correction to happen. It propped up a false bottom by Read the rest of this post »

Why Socialism Won’t Work? Human Nature.

Posted March 28, 2013 by austrianaddict
Categories: Econ. 101

Tags: , , , , , ,
From each according to his ability, to each ac...

From each according to his ability, to each according to his need (Photo credit: Wikipedia)

Socialism is defined as Government control of the means of production, instead of private ownership, (property rights). Socialism goes against human nature as you can read about in this article, “Does Socialism Work? A Classroom Experiment”, by Dan Mitchell at danielmitchell@wordpress.com. Human beings are self-interested and will work harder for their own benefit than they’ll work for the benefit of others. The human nature of a child born in today’s world hasn’t changed, it is the same as a child born in prehistoric times. A child has to be taught to share, selfishness is natural to him, and even when he becomes a civilized member of society, self-interest is still his default position. In the article mentioned above, Read the rest of this post »

Let’s Take A “Serious” Look At Conspiracy Theories.

Posted March 27, 2013 by austrianaddict
Categories: Hall of Fame, Miscellaneous

Tags: , , , ,

Let’s take a break and laugh at ourselves concerning conspiracy theories. Many of us fall into the trap of thinking their has to be complex explanations for everything. Many times there are simple explanations for complex situations. The simple fact that the earth is tilted on its axis explains why the seasons change. Seasonal change sets in motion complex processes from photosynthesis to bird migration.

Always remember correlation is not causation.

Luke’s Change: An Inside Job (view here)

 

This Star Wars conspiracy theory video is really funny. But let’s also understand that many people try to discredit arguments that they can’t refute with logic and facts, by labeling the person who puts forth the argument  a “conspiracy theorist”. The red flag should always go up when the person is being attacked, instead of his argument being  answered.

Murray Rothbard Warns About Coordinated Counterfeiting Of Paper Money by Governments.

Posted March 25, 2013 by austrianaddict
Categories: Econ. 101

Tags: , , , , , ,

Watch this video of Murray Rothbard being a prophet about Governments wanting to coordinate their counterfeiting of paper money.

The Federal Reserve, the European Central Bank, the Bank of China, and the Bank of Japan, are all counterfeiting paper dollars, in a seemingly coordinated way. This starts the world down the road of consuming faster than the rate of production. Read, “What Comes First, Production Or Consumption“. It also creates malinvestment, Read the rest of this post »

Ticket Scalping, The True Free Market In Action.

Posted March 21, 2013 by austrianaddict
Categories: Econ. 101

Tags: , , , , , ,

I’m going to the Ohio High School Basketball Tournament this weekend not and not just to watch the games. I like to observe the economic principles at play in the free market for tickets,(aka scalping) that takes place outside of the arena, it is a real education. This video explains whats going on.

Most of the people who participate in the free market of ticket scalping, have no understanding of the economic principles they are demonstrating by their actions. Supply and demand, subjective value, Read the rest of this post »

Marriage, Why Is It Protected By The Law?

Posted March 18, 2013 by austrianaddict
Categories: Government and Politics, Hall of Fame

Tags: , , , , , ,
Marriage Day

Marriage Day (Photo credit: Fikra)

I wrote a post titled, “We’re All Born In The Middle Of The Story“, in which I quote Thomas Sowell who said, “results observed at a given point in time may be part of a process that stretches far back in time.” This quote is the first thing everyone should think about when they are trying to understand any particular issue that is being discussed. Most people think history started the day they were born. They give little thought, or have no understanding of how the world that existed the day they were born came to exist as it did. Being born in the middle of the story automatically makes us ignorant, sometimes blissfully ignorant, about the beginning of the story. When it comes to the issue of marriage vs. gay marriage, we are all born in the middle of the story.

The issue of gay marriage is not a question of understanding why gays don’t  have the “right to marry”, it is an issue of understanding why marriage, defined as a union between one man and one woman, was legally acknowledged in the first place. This issue doesn’t seem that complicated if you look at it logically and not emotionally, but that’s the problem in today’s society, emotions and feelings trump logic and reason in our therapeutic world.

MARRIAGE PREDATES GOVERNMENT

Marriage existed as a private institution before Governments acknowledged it as a legally protected public institution. Just because Read the rest of this post »

Senator Ted Cruz Stirs Up A Hornets Nest.

Posted March 17, 2013 by austrianaddict
Categories: Government and Politics

Tags: , , , , ,
English: Detail of Preamble to Constitution of...

(Photo credit: Wikipedia)

Respect is something that is earned, not given just because of someone’s status. Sen. Cruz is starting to earn my respect because, as you will see in the video, he doesn’t worry about the consequences of challenging  senior members of the Senate who think they are his betters. How dare this freshman Senator talk to these senior Senators like this, doesn’t he know his place? I love the fact that he seems not to care what happens when he hits the hornet’s nest with a seven iron.

Sen. Cruz asks some important questions about the constitution which is that pesky little document that gets in the way of what central planners want to do. The best part of this is toward the end when Sen. Feinstein says, “…sir, congress is in the business of making law, the Supreme Court interprets the law….”. Her comment shows exactly why are country is in the chaotic Read the rest of this post »