Theodore Cangero
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Growth in the Money Supply Will Likely Push Inflation Higher
In the long run, growth in the money supply will likely cause inflation, meaning a decline in the dollar’s purchasing power. Following the Great Recession, the Federal Reserve undertook unprecedented measures to jump-start the economy. The Fed dropped its target for short-term interest rates to historic lows. When low interest rates failed to boost the…
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Fixing Too Big to Fail
Regulators misdiagnosed the causes of the 2007–8 financial crisis when they blamed private sector greed and largely ignored the role of government policy, which in fact laid the groundwork for the financial crisis. But the CBO has introduced an intriguing solution to the failed policies from before and after the crisis. In particular, the Community…
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Transfer Payments Tend to Discourage Labor Force Participation
The labor force participation rate began a gradual decline after peaking in the spring of 2000. If the decline is to be reversed, we may need to reassess federal transfer payments that exacerbate the ongoing trend. As the dot-com crash and 2001 recession took hold, the rate was nearly 67 percent. During the economic expansion…
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Free-Market Principles Would Have Prevented the Use of Force
As airlines often do, last week, United Airlines overbooked a flight. But this time, all was not well. Overbooked flights are nothing new. According to the Federal Transit Authority, U.S. airlines convinced over 400,000 passengers to give up their seat on an overbooked flight in 2016. Thousands more passengers were simply not allowed to board…
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Long-Term Federal Budget Projections Look Grim
The federal government has run a budget deficit since 2001, which has contributed to the national debt and brought the federal debt-to-GDP ratio to over 100 percent, near an all-time high. If the government doesn’t deviate from its dangerous fiscal path, the outlook is grim. The Congressional Budget Office predicts that the federal budget deficit…
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A Value-Added Tax Is Not the Answer
Ongoing federal budget deficits have contributed to a federal debt near an all-time high. The government could reduce the deficit by reducing spending or raising taxes. Growth in the private sector could also help reduce the deficit. Some policymakers have proposed switching to a value-added tax (VAT) to raise tax revenue. A VAT would levy…
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A Border Adjustment Tax Is Protectionism
Free trade lets global markets provide consumers with the best products at the lowest prices. Throughout its history, AIER has consistently argued against restrictions on free trade—protectionism—and likewise we oppose the border adjustment tax proposed by President Trump. The BAT would incentivize relatively inefficient domestic production over efficient production overseas. Many U.S. companies have moved…
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Market Distortions at Home and Abroad
The Ludwig von Mises Institute hosted its annual Austrian Economics Research Conference earlier this month. The conference brings scholars together to discuss important issues facing the U.S. and global economies. Topics ranged from history to philosophy, the economy, and the financial system. Overall the conference focused on market distortions in the economy and the financial…
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President Trump Pivots from Health Care to Tax Reform
Speaker Ryan pulled the American Health Care Act after failing to rally enough support from the House Freedom Caucus. The House Freedom Caucus consists of thirty fiscally conservative Republicans. The American Health Care Act would have rolled back much of the Affordable Care Act, or Obamacare. For the time being, President Trump plans to leave…
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The American Health Care Act Would Eliminate Government Mandates
President Trump demanded that the House vote on the American Health Care Act today. It is not certain if the American Health Care Act will pass. The House Freedom Caucus, an important conservative voting bloc, is not on board. If the American Health Care Act passes it will roll back much of President Obama’s signature…
-
Growth in the Money Supply Will Likely Push Inflation Higher
In the long run, growth in the money supply will likely cause inflation, meaning a decline in the dollar’s purchasing power. Following the Great Recession, the Federal Reserve undertook unprecedented measures to jump-start the economy. The Fed dropped its target for short-term interest rates to historic lows. When low interest rates failed to boost the…
-
Fixing Too Big to Fail
Regulators misdiagnosed the causes of the 2007–8 financial crisis when they blamed private sector greed and largely ignored the role of government policy, which in fact laid the groundwork for the financial crisis. But the CBO has introduced an intriguing solution to the failed policies from before and after the crisis. In particular, the Community…
-
Transfer Payments Tend to Discourage Labor Force Participation
The labor force participation rate began a gradual decline after peaking in the spring of 2000. If the decline is to be reversed, we may need to reassess federal transfer payments that exacerbate the ongoing trend. As the dot-com crash and 2001 recession took hold, the rate was nearly 67 percent. During the economic expansion…
-
Free-Market Principles Would Have Prevented the Use of Force
As airlines often do, last week, United Airlines overbooked a flight. But this time, all was not well. Overbooked flights are nothing new. According to the Federal Transit Authority, U.S. airlines convinced over 400,000 passengers to give up their seat on an overbooked flight in 2016. Thousands more passengers were simply not allowed to board…
-
Long-Term Federal Budget Projections Look Grim
The federal government has run a budget deficit since 2001, which has contributed to the national debt and brought the federal debt-to-GDP ratio to over 100 percent, near an all-time high. If the government doesn’t deviate from its dangerous fiscal path, the outlook is grim. The Congressional Budget Office predicts that the federal budget deficit…
-
A Value-Added Tax Is Not the Answer
Ongoing federal budget deficits have contributed to a federal debt near an all-time high. The government could reduce the deficit by reducing spending or raising taxes. Growth in the private sector could also help reduce the deficit. Some policymakers have proposed switching to a value-added tax (VAT) to raise tax revenue. A VAT would levy…
-
A Border Adjustment Tax Is Protectionism
Free trade lets global markets provide consumers with the best products at the lowest prices. Throughout its history, AIER has consistently argued against restrictions on free trade—protectionism—and likewise we oppose the border adjustment tax proposed by President Trump. The BAT would incentivize relatively inefficient domestic production over efficient production overseas. Many U.S. companies have moved…
-
Market Distortions at Home and Abroad
The Ludwig von Mises Institute hosted its annual Austrian Economics Research Conference earlier this month. The conference brings scholars together to discuss important issues facing the U.S. and global economies. Topics ranged from history to philosophy, the economy, and the financial system. Overall the conference focused on market distortions in the economy and the financial…
-
President Trump Pivots from Health Care to Tax Reform
Speaker Ryan pulled the American Health Care Act after failing to rally enough support from the House Freedom Caucus. The House Freedom Caucus consists of thirty fiscally conservative Republicans. The American Health Care Act would have rolled back much of the Affordable Care Act, or Obamacare. For the time being, President Trump plans to leave…
-
The American Health Care Act Would Eliminate Government Mandates
President Trump demanded that the House vote on the American Health Care Act today. It is not certain if the American Health Care Act will pass. The House Freedom Caucus, an important conservative voting bloc, is not on board. If the American Health Care Act passes it will roll back much of President Obama’s signature…
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