Daily Economy
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Imagine a Horse Race Between Smith, Schumpeter, and Stupidity
What we are witnessing right now is macroeconomic volatility caused by an exogenous shock due to a public health crisis combined with a policy response that has shut down the economy.
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The Monumental Failure of the CDC
This time, these government failures have resulted in millions of Americans being all stuck in their homes, schools being closed, the economy in a recession, and 18,000 people having died so far.
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The Epistemology of COVID-19
How do we know what we know, when the coronavirus crisis has shown that even “hard” science does not easily discern Truth from Error? Data can be “massaged” by removing “outliers,” putting in “lags,” smoothing in different ways, and on and on. The distortions do not have to be deliberate to be a major problem.
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Why Is This Texas Hospital Furloughing Nurses?
Just as the political class decided what is an essential vs nonessential business, so too have it decided what are essential and nonessential medical treatments. As a result, people who could be undergoing needed treatment are sitting at home under house arrest, while nurses who normally have busy jobs are also at home.
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The Virtues of Fiscal Discipline
Deficits used to be temporary affairs racked up in exceptional periods as the result of shocks, and paid down with surpluses. Despite years of decent economic growth, public debts in most western countries remain at high levels relative to GDP. Consequently, capacity to respond to crisis – such as natural disasters, wars and the one…
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Capitalism Is Still Working, Thank Goodness
Economists rarely get to run field experiments for the whole economy. And thank goodness for that, because field experiments can be very damaging. But the coronavirus that every American has been dealing with for the last month has given us as close to a field experiment as we’re ever likely to get.
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The 100-Day Disaster that Befell America
It took only 100 days to asphyxiate the world economy and the suggestion of possible sickness to render a nation once characterized by rugged individualism, personal liberty, bravery and industry into house-bound milksops.
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Anatomy of the Great Suppression
The Great Suppression, a severe contraction in business activity caused by a government crackdown on capitalist acts between consenting adults, is an awful calamity. Government’s grip will be loosened once the crisis passes, but it will likely be tighter post-crisis versus pre-crisis.
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Consumer Sentiment Collapses Amid Massive Job Loss
The unprecedented economic impact of the COVID-19 outbreak is crushing the labor market and consumer sentiment.
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•
If the Government Doesn’t Do It, Who Will?
Governments have been providing fire protection, police services, roads, and other public services for pretty much our entire lives. Private, volunteer companies were getting the job done — until political entrepreneurs noticed a way to obtain power and resources for themselves by taking over previously-private volunteer fire departments to create patronage jobs for political allies.
-
•
Imagine a Horse Race Between Smith, Schumpeter, and Stupidity
What we are witnessing right now is macroeconomic volatility caused by an exogenous shock due to a public health crisis combined with a policy response that has shut down the economy.
-
•
The Monumental Failure of the CDC
This time, these government failures have resulted in millions of Americans being all stuck in their homes, schools being closed, the economy in a recession, and 18,000 people having died so far.
-
•
The Epistemology of COVID-19
How do we know what we know, when the coronavirus crisis has shown that even “hard” science does not easily discern Truth from Error? Data can be “massaged” by removing “outliers,” putting in “lags,” smoothing in different ways, and on and on. The distortions do not have to be deliberate to be a major problem.
-
•
Why Is This Texas Hospital Furloughing Nurses?
Just as the political class decided what is an essential vs nonessential business, so too have it decided what are essential and nonessential medical treatments. As a result, people who could be undergoing needed treatment are sitting at home under house arrest, while nurses who normally have busy jobs are also at home.
-
•
The Virtues of Fiscal Discipline
Deficits used to be temporary affairs racked up in exceptional periods as the result of shocks, and paid down with surpluses. Despite years of decent economic growth, public debts in most western countries remain at high levels relative to GDP. Consequently, capacity to respond to crisis – such as natural disasters, wars and the one…
-
•
Capitalism Is Still Working, Thank Goodness
Economists rarely get to run field experiments for the whole economy. And thank goodness for that, because field experiments can be very damaging. But the coronavirus that every American has been dealing with for the last month has given us as close to a field experiment as we’re ever likely to get.
-
•
The 100-Day Disaster that Befell America
It took only 100 days to asphyxiate the world economy and the suggestion of possible sickness to render a nation once characterized by rugged individualism, personal liberty, bravery and industry into house-bound milksops.
-
•
Anatomy of the Great Suppression
The Great Suppression, a severe contraction in business activity caused by a government crackdown on capitalist acts between consenting adults, is an awful calamity. Government’s grip will be loosened once the crisis passes, but it will likely be tighter post-crisis versus pre-crisis.
-
•
Consumer Sentiment Collapses Amid Massive Job Loss
The unprecedented economic impact of the COVID-19 outbreak is crushing the labor market and consumer sentiment.
-
•
If the Government Doesn’t Do It, Who Will?
Governments have been providing fire protection, police services, roads, and other public services for pretty much our entire lives. Private, volunteer companies were getting the job done — until political entrepreneurs noticed a way to obtain power and resources for themselves by taking over previously-private volunteer fire departments to create patronage jobs for political allies.