Government Intervention Distort’s Market Signals, Unintended Consequences are the Result.

Posted October 23, 2012 by austrianaddict
Categories: Econ. 201, Government and Politics
Tags: , , , ,
Unintended Consequences by John Ross, 1996

Unintended Consequences by John Ross, 1996 (Photo credit: Wikipedia)

When Government tries to steer the economy, unintended consequences happen because individuals don’t act the same after Government steering as they did before. The only way central planners have a chance to make their plans work is if people are made to act the way planners want. The only way to make people obey is to have a totalitarian state which can enforce the rules of the central planners. Even though our individual freedoms have been slowly taken away over the last fifty years, enough of a free market remains allowing us to make enough individual decisions, which ultimately thwarts the plans of the planners. Each of us Read the rest of this post »

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Currency Debasement Unleashes More Then Just The Economic Forces Of Correction.

Posted October 20, 2012 by austrianaddict
Categories: Econ. 201, Government and Politics
Tags: , , , ,
The execution of Robespierre and his supporter...

The execution of Robespierre and his supporters on 28 July 1794 (Photo credit: Wikipedia)

This article at Zero Hedge, “From Currency Debasement To Social Collapse“, talks about processes that are put into play when the currency is debased. The inevitable destruction of the present capital structure, leading to a loss of wealth, is one process that more of us are starting to understand because we have been operating inside of this counterfeiting reality since the mid 90’s. The tech bubble and the housing bubble  destroyed capital which was misallocated during these bubbles. The present financial and asset bubble will destroy more misallocated capital when the Fed has to pull out the expansionary rug from underneath it.

It’s uncomfortable to allow a passing thought about social collapse to enter our mind. To actually look at some present and historical examples of debasement and collapse Read the rest of this post »

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Wasting Tax Dollars Usually Upsets Me.

Posted October 20, 2012 by austrianaddict
Categories: Government and Politics, Miscellaneous
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LibertyPen put up this video about Government wasting our tax dollars. Hearing reports about tax dollars being wasted usually upsets me, but when Megyn Kelly and Shannon Bream report this news it doesn’t bother me as much. Mary Poppins was right, “a spoon full of sugar helps the medicine go down.”

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Walter E. Williams Talks About Individual Liberty.

Posted October 15, 2012 by austrianaddict
Categories: Government and Politics, Hall of Fame
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Dr Williams talks about private property rights, legalized theft by Government, and Government as the enemy of the people, in a speech at The Independent Institute. Dr. Williams is a defender of individual liberty because of its moral superiority. Liberty minded people should read everything he writes.

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Unelected EPA Driving up The Cost of Food and Energy

Posted October 12, 2012 by austrianaddict
Categories: Econ. 101, Econ. 201, Government and Politics
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The administrative regions of the United State...

The administrative regions of the United States Environmental Protection Agency. (Photo credit: Wikipedia)

Don’t be mad at evil greedy businesses for the rise in the price of food and energy. Lets focus on the agency that makes the rules which force businesses to operate under new incentives and constraints. That agency is the EPA, an unelected group of bureaucrats who have more power than the House the Senate Read the rest of this post »

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Walter E. Williams Analysis of “Trickle Down Theory and Tax Cuts for the Rich”.

Posted October 11, 2012 by austrianaddict
Categories: Econ. 101, Government and Politics
Tags: , , , ,

 

 

English: The standard Laffer Curve

 

Walter E. Williams talks about the fake war that has been fought against the “Trickle Down” straw man. This is a tactic used by all politicians in which they misrepresent (lie about) an opponents idea or policy, setting up a straw man, in order to argue against this false premise instead of taking on their opponent head on. In this case the left sets up the “Trickle Down” straw man to try to win the tax cuts argument.

 

Read more in this article by Walter E. Williams here at creators.com.

 

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The Economic’s of Health Care vs. The Right to Health Care.

Posted October 9, 2012 by austrianaddict
Categories: Econ. 101, Government and Politics
Tags: , , ,

This clip, by Illinois state senate candidate Dr. Barbara Bellar, makes you think about the realities which lie ahead, with the implementation of “The Affordable Care Act” aka. “Obama Care”. She states the reality of the situation, then asks, and we all should have asked, “what could possibly go wrong?” Here is another example of a Government solution in search of a problem, a problem which was created by Government in the first place.

Is health care a right? No! Health care is a good or service, provided in the market just like Read the rest of this post »

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Spontaneous Order More Complex Than Top Down Planning.

Posted October 4, 2012 by austrianaddict
Categories: Econ. 201
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F. A. Hayek—” The free market pricing mechanism has a double misfortune. It is not the product of human design, and the people guided by it usually do not know why they are made to do what they do.”

This video shows how spontaneous orders create complexity which can’t be duplicated by planning. Far more knowledge is utilized through this process, which is why voluntarily cooperation through free market capitalism has historically produced Read the rest of this post »

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The Role of Interest Rates in a Market Economy.

Posted October 3, 2012 by austrianaddict
Categories: Econ. 101, Econ. 201, Government and Politics
Tags: , , , ,
saving and spending

saving and spending (Photo credit: 401(K) 2012)

Do interest rates determine the amount of savings or does the amount of savings determine the interest rate?

We place a higher value on possession of a good or service in the present then possession of the same good or service at some point in the future. Unlike a good or service, paper money has no use value, other than use for starting a fire if you are cold or toilet paper if you run out. It’s only value is in exchange. Money is certificates of purchase, and can be exchanged for any good or service at any time, therefore we value money in the present more then we value money in the future. Money represents the ability to acquire a good or service you desire, it is not the good or service.

The premium we place on present goods compared to future goods, or put differently, the discount we place on future goods compared to present goods is Read the rest of this post »

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Ben Swann Fox 19 Reality Check. What is QE3?

Posted October 2, 2012 by austrianaddict
Categories: Econ. 101, Econ. 201, Government and Politics
Tags: , , ,

You will not find any reporter speak the truth like Ben Swann does in his reality check segments on Cincinnati Fox 19 News. We’ve talked about quantitative easing in previous posts, and this video is an outstanding explanation which will add to our understanding about economics and what happens when Government intervenes.

Ben Swann has enough respect for his viewers to tell them the truth.

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