Foundations of Liberty: Free Markets 
Essential
The Use of Knowledge in Society
By Friedrich August von Hayek: "One of Hayek’s most important contributions to economic theory is his demonstration of the part prices play in disseminating widely diffused knowledge about consumer demand and the availability of economic resources in order to make rational economic calculation possible."
The Layman's Guide to Economics
Five easy lessons to master free market economics, without math or graphs.
Economics in One Lesson
By Henry Hazlitt: "This primer on economic principles brilliantly analyzes the seen and unseen consequences of political and economic actions. In the words of F.A. Hayek, there is "no other modern book from which the intelligent layman can learn so much about the basic truths of economics in so short a time."
Economic Freedom and Peace
"Since before the time of Thucydides, states have used wealth to acquire more territory and to dominate the affairs of their neighbors. Understanding the reasons that the powerful countries of today are less prone to dispute than their predecessors is critical to maintaining the peace and to extending its benefits more broadly."
Twenty Myths About Markets
Tom Palmer subjects popular fallacies about the market system to the critical scrutiny of economics and ethics.
The Freedom Philosophy
This anthology includes 14 essays on the political, economic, and moral foundations of a free society. These classic writings by Leonard E. Read, Frank Chodorov, Benjamin Rogge, F. A. Harper, among others, demonstrate the superiority of individual choice and capitalism over any forms of collectivism.
Entrepreneurs Are the Heroes of the World
By Johan Norberg: "The amazing fact is that entrepreneurs and innovators and businesses have turned luxuries that not even kings could afford into low-priced everyday items at your local store. That is the best defense of capitalism."
The Market Economy and the Distribution of Wealth
By Ludwig M. Lachmann: "Everywhere today in the free world we find the opponents of the market economy at a loss for plausible arguments. Of late the “case for central planning” has shed much of its erstwhile luster. We have had too much experience of it. The facts of the last forty years are too eloquent."
Strangulation by Regulation
By Peter Van Doren: "Why are America's markets so heavily regulated? Regulation usually rides in the Trojan horse of "market failure"-the perception that a particular market does not (or will not) operate efficiently without government intervention. Yet regulation persists in spite of evidence that it does not enhance efficiency. Why?"
Recommended
Freedom University Podcast Available
The Foundation for Economic Education recently held Freedom University, their annual weeklong seminar. Now you can enjoy lectures from cutting-edge scholars right in your own home! This podcast series includes 16 recordings from the seminar on topics like “The Freedom Philosophy” and “The Morality of Capitalism.”
The Hayek Interviews
This remarkable collection of interviews with Nobel Prize winning economist F. A. Hayek was only recently released. It is an invaluable resources for anyone interested in delving deeper into the ideas of one of the greatest scholars of the twentieth century. And it's searchable!
Are We Still 'Free to Choose'?
In a throw-back article on Milton Friedman's seminal work, 'Free to Choose,' John Stossel recounts the value of Friedman's 1980 argument and reasserts its relevance today. "If we are free to make our own choices, we prosper. That was a new idea to many back then," says Stossel, adding that 30 years later American and other nations "still have not learned Friedman's lesson." Stossel notes that of particular importance to the freedom to choose is being forced to suffer and live with consequences of one's choices. What, then, would Friedman have thought of America's recent propensity for bailouts?
Conspiracy Theories Undermine Liberty
Conspiracy theories are ubiquitous these days, and they range from beliefs on the far left and the far right. However, believing such stories ultimately undermines the principles we hold as classical liberals, says Steven Horwitz, a St. Lawrence University economics professor. He notes that "Our case for freedom must ultimately rest on reason and logic, and we must be open to evidence that genuinely contradicts our understanding of the world."
But besides the logical challenge of classical liberals (or anyone, for that matter) holding conspiracy theory beliefs, such ideas undermine the effectiveness of free markets. "When we fall into conspiracy thinking we are actually accepting the fundamental premise at the heart of every form of socialism: that it is possible for human beings to consciously control the economy or society more generally," says Horwitz. This is not the slippery slope we want to be on.
Racism and Rand Paul
John Stossel agrees with and defends Rand Paul, who has been in the news all week, first for his primary victory in Kentucky and now for comments he made in several interviews on the Civil Rights Act of 1964. The media and many blogs, some on both sides of the political aisle, have publicly berated Paul for his view that government should not set rules that trump liberty, namely private ownership and freedom of associations. Stossel explains, saying "the clumsy fist of government cannot attack racism without stomping on the rights of individuals. The free market, as usual, will address the problem. It punishes racists."
What's Wrong About Insider Trading?
Cato scholar Doug Bandow raises some questions about the federal laws restricting and punishing insider trading, and calls it “a genuinely stupid thing to do.” Besides the fact that insider trading is the use of the most current information (typically a good thing in market economics), Bandow explains that "The law bizarrely affects only one-half of the trading equation." Only those who act on the information get punished, but those who intentionally do not act receive no oversight.
Despite the incalculable number of insider "non-traders," there is no evidence that they impair the market; why would insider trading be any different? This calls into question the whole concept of sanctions against insider trading, suggesting it may be less about market efficiency and more about artificial fairness by restricting action based on the most current information. (Although, Bandow questions the “fairness” of restricting one person simply for being related to a company exec but not restricting another for using 30 years of intuition and experience.)
Florida's Unheralded School Revolution
Choice is a good thing. And so is education. When you put the two together, you get the current school reform sweeping across Florida. Adam Schaeffer, Cato education policy analyst, details the expansion of Florida Tax Credit Scholarship Program, which was signed into law in April. The program allows for businesses to donate to education non-profits in lieu of paying taxes. The non-profits provide scholarships to low-income students to attend private schools. This type of reform has proven to raise academic performance, in the private schools and the public classrooms, which must compete to retain students. The program saves the State money through the efficiencies of the non-profits and raises achievement levels. Schaeffer heralds that as this Florida program continues to develop, "other states will find it hard to resist enacting broad-based school choice."
Is Foreign Aid Un-Just?
Billions of dollars of aid have flowed heavily to African nations for decades; nonetheless, most aid-receiving nations have remained poor and needy, and many celebrities have taken up the cause for “justice” to be done. Cato’s Marian Tupy, scholar of the Center for Global Liberty and Prosperity, comments that the persistence of poverty in Africa is, in fact, due to foreign aid and not in spite of it. Contrary to many Asian and eastern Uropean countries that have liberalized their economies, African nations, propped up by aid, have turned socialist and remained poor. In fact, aid has supported up to 40% of Africa’s militaries, which have held their own countrymen from demanding democratic and economic reforms. “The truth is that only Africans can improve their lot,” notes Tupy, adding that “The "just" thing to do is… not to give Africa more harmful aid.”
The Real Health Care Debate: Who Decides?
Cato's Doug Bandow presents the case for patient control of health insurance in Investor's Business Daily. He says, "'Reform' is a question of direction. Expand government, and especially federal, control. Or increase patient choice and private options." If people decide which cars to buy, how much to spend on art, how big of a house to buy, why should the most important decisions about their health be made by somebody else, especially impersonal government? Bandow advocates for the control of health insurance to be moved out of the hands of employers, not into the hands of government but back to the individual citizens.
Event: Guns and Natural Disasters
On Monday, February 22nd, Cato scholar Tom Palmer will be presenting at Penn State University. At 7pm, Palmer will discuss how free markets and not the government are the best way to prepare for natural disasters. There will also be a lunchtime discussion of the Second Amendment and the DC v. Heller case. For details, please see here.
Economics 101: School Choice Example Shows Why Government Monopolies Are Bad
Competition promotes innovation and results in higher quality and lower costs. Government-run schools are a tragic example, by contrast, of why monopolies generate bad results. This video uses the example of school choice to explain why competition is a better approach. www.freedomandprosperity.org
Charter Schools Key to Rescuing Michigan
It's no surprise that the state of Michigan is facing looming budget deficits and cuts to programs such as education. However, Andrew Coulson, Cato's Director of the Center for Educational Freedom, explains how this situation gives the state an opportunity to turn things around through freeing education. Coulson documents how charter schools are more effective at graduating more students with better education; they also cost 20 percent less while having more teachers per student. Educational reform in Michigan is inevitable, so making it more effective and less costly sounds like a great idea, especially when we're talking about our country’s future.
Politicians Keep your Flights Delayed
'As the holiday travel rush approaches, air travelers grounded by delays should take a moment to think about why they're stuck in airports or on the tarmac. There's a good chance Washington is to blame,' says a recent Reason.tv video. The technology used in current U.S. air traffic control is basically the same system that was used decades ago. Countries like Canada have already adapted to market-based, privately organized systems. This video explains why the U.S. should follow suit.
Food Fight: Whole Foods on Health Care
reason.tv has produced a video documenting the debate on Whole Foods CEO John Mackey's op-ed published in the Wall Street Journal this summer. In it Mackey claimed that the solution to health care reform is less government and more personal choice. This short video contrasts the union members trying to boycott Whole Foods and the employees who love their healthcare plans. In a clear and creative way, Reason offers some food for thought.
Boaz to Speak in Tennessee
Cato executive VP David Boaz will be presenting on a panel discussion with Paul Kuhn and Robert Mikos at Vanderbilt University on the topic “Drug Legalization and Emerging Economic Opportunities.” The discussion will take place in the Law School's Moore Room at 5:00pm, on Tuesday, September 29th. Panelists will be addressing predominantly business and law students, though the public is welcome. Following the discussion, at 7:30pm, Boaz will be speaking to America's Future Foundation and the Tennessee Center for Policy Research. David Boaz is an alumnus of Vanderbilt University, and now speaks and writes extensively on issues of liberty at the Cato Institute.
Cato Video: Analyzing Pres. Obama's Schoolkids Address
Cato VP Gene Healy and education scholar Neal McCluskey respond to President Obama's address to America's school children on September 8th. They question any administration that decides to take away kids' first day of school with an event meant to promote the office of the president. McCluskey notes that the speech "has robbed kids of a day that's supposed to be centered on them." They also highlight things Obama says that stretch the bounds of the presidency, and of the federal government. Healy says that it is “important for students to read and absorb presidential speeches, but they should be encouraged to think critically about what they're hearing." They conclude that the fundamental problem is that as long as government is in charge of schools, there will be political and social conflict.
Globalization = Good
Professor Donald J. Boudreaux discusses trade policy through the impirical demonstration of gains from globalization. "Those who doubt the strength of the theoretical case for free trade should also consider that the empirical evidence in its favour is overwhelming. There is simply no credible evidence to support the belief that restricting trade increases the prosperity of ordinary citizens. All of the evidence points towards the benefits of free trade."
Audit the Fed
Republican Congressman and two time presidential candidate Ron Paul wants to audit the Federal Reserve. Arguing that Americans need to know more about the central bank, especially given the drastic increases in the size of the bank's balance sheet.
No, Really, It's Not Government-Run!
By Michael D. Tanner: "If a "co-op" is run by the federal government under rules imposed by the federal government with funding provided by the federal government, it's simply government-run health insurance by another name. Opponents of a government takeover of the health care system should not be fooled."
Have We Got a Deal for You
By George F. Will: "'What we are not doing -- what I have no interest in doing -- is running GM,' says the president who, when not firing GM's CEO, purging its board of directors and picking new members, is designing new products (imposing fuel economy requirements that will control size, weight, passenger capacity and safety). The president, overcoming his professed reluctance to run GM, resembles the journalist Don Marquis when, after a month on the wagon, he ordered a double martini and exclaimed: 'I've conquered my goddam willpower.'"
Sachs Ironies: Why Critics are Better for Foreign Aid than Apologists
By William Easterly: "Official foreign aid agencies delivering aid to Africa are used to operating with nobody holding them accountable for aid dollars actually reaching poor people. Now that establishment is running scared with the emergence of independent African voices critical of aid, such as that of Dambisa Moyo."
Globalisation is Good - Johan Norberg on Globalization
The world is an unequal and unjust place, in which some are born into wealth and some into hunger and misery. To explore why, in this controversial Channel Four documentary the young Swedish writer [and senior fellow at Cato] Johan Norberg takes the viewers on a journey to Taiwan, Vietnam, Kenya and Brussels to see the impact of globalisation, and the consequences of its absence. It makes the case that the problem in the world is not too much capitalism, globalisation and multinationals, but too little.
Hedge Fund Manager Strikes Back at Obama
"Clifford S. Asness is not afraid to defend himself against attacks from the Obama administration. The outspoken managing partner of AQR Capital Management, a $20 billion hedge fund in Greenwich, Conn., has written a scathing letter striking back at President Obama for his harsh words blaming hedge funds for Chrysler’s bankruptcy."
Don't Turn America Into Another France
Veronique de Rugy of the Mercatus Center (and formerly with Cato) narrates a new video warning that it would be a mistake to turn America into a European-style welfare state, which is the fate of her native country.
The Idiot's Bible
Mary Anastasia O'Grady writes in the Wall Street Journal: "Just days after Hugo Chávez gave President Barack Obama a copy of 'Open Veins of Latin America' in Trinidad last week, the English-language version of the book shot to the No. 2 slot on Amazon.com.... It is widely regarded in free-market circles as 'the idiot's bible.'"
Alex Tabarrok: How ideas trump economic crises -- a surprising lesson from 1929
"The 'dismal science' truly shines in this optimistic talk, as economist Alex Tabarrok argues free trade and globalization are shaping our once-divided world into a community of idea-sharing more healthy, happy and prosperous than anyone's predictions."
Happy Earth Day? Thank Capitalism
By Jerry Taylor: "It is businessmen — not bureaucrats or environmental activists — who deserve most of the credit for the environmental gains over the past century and who represent the best hope for a Greener tomorrow"
The More Obama "Challenges," the More Education Will Look the Same
By Neal McCluskey: "The Obama Administration talks a mighty game about 'change' and taking politics out of decision making, but at least when it comes to education it seems to be all about playing politics."
Return of the Living Dead: What the U.S. Can Learn From Japan's Failed Experiment With "Zombie Businesses"
By Anthony Randazzo: "Killing zombies isn't typically the responsibility of America's president or treasury secretary. But if the country is going to get through the current financial crisis, President-elect Barack Obama and his economic team better get out their shotguns and aim for the head."
Free Trade Petition
"In cooperation with the International Policy Network and a worldwide group of think tanks, we are circulating this petition to combat recent moves toward harmful economic nationalism. I urge you to sign it [and to encourage your professors to sign!]. It is not yet a public effort, but please do share it with your colleagues, friends, and professional contacts. The first unveiling of this petition will be April 1st before the G20 meetings in London. It is a part of a much broader campaign that will be mobilized around the world to alert the public to the dangers of attempts to block trade and to revive positive efforts toward increasing freedom of trade. We will have a series of videos on the benefits of trade, booklets, public events, and much more, available in a multitude of languages." - Dr. Tom G. Palmer
The Innovation Squelch: Obamanomics is bad news for American entrepreneurs.
By James Manzi: "Like the college students who stayed up late to hear Obama’s campaign speeches only to find his first significant action to be a stimulus program that will transfer about $1 trillion from them to the Baby Boomers, Silicon Valley Obama supporters may find themselves in an uncomfortable environment. A government-dominated economic era may not be an auspicious one in which to start companies that threaten big, incumbent corporations with lots of political clout."
Three Women Who Launched a Movement: Celebrating Liberty in Women's History Month
This Women's History Month, on the sixty-sixth anniversary of their monumental triple achievement, the Cato Institute pays homage to three women without whom it would not exist.
January YouTube of the Month
Congratulations to Matt Bufton of the University of Windsor for submitting Cato on Campus' January YouTube of the Month. His video, "Health Care in Canada" provides a short discussion of how Canada's health care system actually prohibits competition, something almost no other developed country does.
Ask the Expert: Dan Mitchell on Keynesian Economics
Dan Mitchell explains why the current economic crisis is the result of government policy mistakes and why more government intervention will not end the crisis any sooner than the market.
Exposing the Keynesian Fallacy: The Condensed Version from Cato-at-liberty
By Daniel J. Mitchell: "That mini-documentary discussed the theoretical shortcomings of Keynesianism and also reviewed the dismal results of real-world Keynesian episodes."
Cato Out Loud: The Auto Bailout
In a new edition of Cato Out Loud, Daniel J. Ikenson explains why the federal government should not extend a financial bailout to the auto industry. Since November, Cato analysts have appeared on more than 50 radio and television programs discussing the bailout of "The Big Three."
What Happened? Anatomies of the Financial Crisis
In this special issue of Cato Unbound, we’ve asked four respected economists, with four very different perspectives, to supply what they think are the missing pieces of the puzzle and to tell us how they all fit together.
Say No to the Auto Bailout
By Daniel J. Mitchell: "A taxpayer bailout would be a terrible mistake. It would subsidize the shoddy management practices of the corporate bureaucrats at General Motors, Ford and Chrysler, and it would reward the intransigent union bosses who have made the UAW synonymous with inflexible and anti-competitive work rules."
Understanding the Financial Crisis
This video, created by AfricanLiberty.org, clarifies the basic causes and consequences of the current financial crisis.
When Corporations Hate Markets
In this month's lead essay, philosopher and libertarian theorist Roderick Long draws a sharp contrast between corporatism and libertarianism properly understood. He argues that liberals, conservatives, and even libertarians have all been guilty to some degree of obscuring this difference, and that the quality of our political discourse has suffered accordingly.
A Repudiation, But of What?
By Michael D. Tanner: "To suggest that in electing Barack Obama and a Democratic congressional majority, voters were choosing big government and liberalism over small government and conservatism would imply that either the Bush administration, the current Republican congressional leadership, or, for that matter, John McCain, actually supported smaller government."
Changing Times
By Donald J. Boudreaux: "One lesson I draw from this frightening state of affairs is that even the most obvious falsehood stands a good chance of being widely believed if it is repeated often enough. The claim that the U.S. economy of late has been one of laissez faire has become a mantra. And it's now taken as fact."
The End of Jacob Weisberg
By Brink Lindsey: "We’ve just experienced a global disruption of financial markets on a scale not seen in seven decades. And we’re still in the middle of it: the ultimate extent, severity, and consequences of this crisis remain unknown. Yet Weisberg can already sum up the story in a single sentence: the libertarians did it!"
Regulators Cannot Avert Next Crisis
By Johan Norberg: "As usual after a financial crisis, we hear demands for new controls and regulations to stop it from happening again. But since every crisis has led to thousands of new pages of regulation, why is it that regulation doesn't stop crises from happening again?'
Does Barack Obama Support Socialized Medicine?
Cato scholar Michael F. Cannon argues that "reasonable people can disagree over whether Obama's health plan would be good or bad. But to suggest that it is not a step toward socialized medicine is absurd."
An Open Letter to my Friends on the Left
By Steven Horwitz: "In the last week or two, I have heard frequently from you that the current financial mess has been caused by the failures of free markets and deregulation. I have heard from you that the lust after profits, any profits, that is central to free markets is at the core of our problems. And I have heard from you that only significant government intervention into financial markets can cure these problems, perhaps once and for all. I ask of you for the next few minutes to, in the words of Oliver Cromwell, consider that you may be mistaken."
Cato Scholars on the Financial Crisis and the Bailout
In this video Cato scholars explain the causes of the financial crises as well as the consequences of further government intervention.
Doing Something?
By John Berlau: "But what if the bailout, as originally proposed and in its latest incarnation, would spend $700 billion of taxpayers' money and actually make the economy worse? Believe it or not, there is good evidence this may happen."
A Little Credit History. Or, Credit where Credit Is Due
By Jason Kuznicki: "The problem wasn't capitalism. It was simply this: Capitalism for thee, but not for me. The word of the day is corporatism, and since the days of the South Sea Company, we've never really been without it. Corporations have always used their power to try to win favors from the government, while leaving all the rest of us still subject to the vicissitudes of the market. That's the essence of corporatism."
The Ultimate Resource
In this lecture, the late (and certainly great)economist Julian Simon describes his concept of "the ultimate resource." An idea that Donald Boudreaux, chairman of the GMU economics department, considers "the most profound -- and least understood -- in all of the social sciences."
Washington Brewed the Poison
By Jonah Goldberg: "Even if the bad mortgages weren't in the system, we'd still have the hangover from the end of the housing boom. But the biggest dose of poison entered the financial bloodstream through Washington."
Organic Market
By Russ Roberts: "Both presidential candidates will promise a risk-free world with high returns. But peddling that fantasy is the cause of the current crisis. We treat our children this way--we do our best to insulate them from harm and still allow them to grow. I'd like politicians to treat me as an adult, paying the price for my recklessness and reaping a reward when I am prudent."
Ticking Time Bomb Explodes, Public is Shocked
By Robert Higgs: "The failure of Fannie Mae and Freddie Mac, setting in motion the biggest government bailout/takeover in U.S. history, brings a grim sense of fulfillment to competent economists. After all, what did people expect, that water would flow uphill forever?"
Three Days After Klein's Response, Another Attack
By Johan Norberg: "In May I wrote a critical Cato paper on Naomi Klein's attack on economic liberalisation, The Shock Doctrine: The Rise of Disaster Capitalism, which I claimed was hopelessly flawed on virtually every level. Now Naomi Klein has responded to some of my claims. This response is in itself an example of the methods Klein regularly uses in her works, what I have called disaster polemics."
Bailout Nation
By David Boaz: "But the bailout of Fannie Mae and Freddie Mac is another giant step toward government control of the economy. NPR reported this morning that the government takeover “could turn out to be a smart one.” Yes, if you think nationalization of the means of production just might work."
How Markets Use Knowledge
By Russ Roberts: "Economists will often say that prices steer knowledge and resources. Prices are traffic cops that signal to buyers and sellers what is scarce and what is valuable. But what does this mean exactly? How do prices achieve this?"
Creating Prosperity
By Donald J. Boudreaux: "No politician creates prosperity. It is created by countless entrepreneurs, businesses and workers competing and cooperating within markets. For government to avoid obstructing these markets is indeed desirable -- but it does not create the resulting prosperity. To insist otherwise would be no different from my insisting that I, as a driver who did not run over Ms. Jones as she walked back from the supermarket, am responsible for the tasty dinner she cooked that evening for her family."
Norberg on Open Trade
"Here's the eloquent, wise, and learned Johan Norberg -- speaking recently at the Cato Institute -- explaining some of the benefits of open markets." - Donald Boudreaux, Chairman of the Department of Economics at George Mason University
Seeing China Whole
By Steve Chapman: "Anyone contemplating the thuggish repression still prevalent under the Beijing government may find that hard to imagine. But if the last 30 years have taught us anything, it is not to underestimate China's capacity for positive change."
Economics Does Not Lie
By Guy Sorman: "If economics is finally a science, what, exactly, does it teach? With the help of Columbia University economist Pierre-André Chiappori, I have synthesized its findings into ten propositions. Almost all top economists—those who are recognized as such by their peers and who publish in the leading scientific journals—would endorse them (the exceptions are those like Joseph Stiglitz and Jeffrey Sachs, whose public pronouncements are more political than scientific)."
Swedish Myths and Realities
"Johan Norberg, author of In Defense of Global Capitalism, sits down with reason.tv's Michael C. Moynihan to sort out the myths of the Sweden's welfare state, health services, tax rates, and its status as the 'most successful society the world has ever known.'"
Greasing the World Economy Without Doha
By Daniel J. Ikenson: "The Doha trade round died a thousand deaths long before this week. But outside the bureaucracies in Geneva, Brussels and Washington, few are grieving because the world economy has moved on."
The Grand Exaggerator
By Patrick Michaels: "OK, it's pretty much standard rhetoric in Washington to say that if you don't do as I say, there will be massive consequences. But to say, as Gore recently did: 'The survival of the United States of America as we know it is at risk;' and: 'The future of human civilization is at stake' — that's a bit much, even for the most faded and jaded political junkie."
New on Free Will: Bruce Caldwell on Hayek
"This week, I talk with Bruce Caldwell, author of Hayek’s Challenge, a wonderfully lucid, comprehensive, and penetrating account of the development of Hayek’s economic and methodological ideas. Hayek is one of my enthusiasms, so I had a great time talking to Bruce, who knows as much about Hayek as anyone." - Will Wilkinson
Don't Shed a Tear Over Bid for Beer
By John D. Burger: "An unsolicited bid by the Belgian-Brazilian conglomerate InBev to take over Anheuser Busch has set off a backlash among the American public. Protesters of the proposed deal are relying on patriotic slogans such as "Keep Budweiser American" in an attempt to rally the masses against the originally friendly but increasingly hostile takeover bid. I find this reaction terribly embarrassing."
Munger on the Political Economy of Public Transportation
"Mike Munger and Russ Roberts deliver one of the best podcasts ever. Munger describes the way in which moving from a private bus system to a public system in Santiago Chile made essentially everyone in the city worse off. The puzzle that Roberts keeps pushing Munger to resolve is why the political incentives do not work to abolish the public system and revert to a private system." - Bryan Caplan
A Matter of Life and Death
By Karol Boudreaux: "By some estimates South Africa has taken in over three million illegal immigrants in the past year - not just people in search of better jobs, but also Zimbabweans fleeing Robert Mugabe's reign. The unfortunate byproduct of this influx of immigrants is a longstanding and mostly dormant xenophobia that has reared its head. "
Mexicans and Machines: Why It's Time To Lay Off NAFTA
"Like technology, trade gives us more good stuff than bad—yet Americans are likely to cheer technology and fear trade. No doubt TV talkers and White House wannabes will keep stoking our fears of foreigners until voters and viewers stop buying it—or until robots snag their jobs, too."
In Defense of "Sweatshops"
Benjamin Powell: "Because sweatshops are better than the available alternatives, any reforms aimed at improving the lives of workers in sweatshops must not jeopardize the jobs that they already have."
Kidneys for Sale: Iranian Organ Donation
By Kerry Howley: "'What can Iran teach us about good governance?' is not a question often posed in Washington. But according to Benjamin Hippen, a transplant nephrologist in North Carolina, the Iranians have managed to do something American policy makers have long thought impossible: They’ve found kidneys for every single citizen in need."
The Biofuel Brew Ha-Ha
By Peter Suderman: Reason contributor Peter Suderman writes that the biofuels craze is boosting the price of beer, because farmers are shifting away from barley to biofuel crops made more lucrative by mandates and subsidies.
If I Were a Shill For Industry ...
By Donald J. Boudreaux: "A blogger recently complained that I (along with my fellow bloggers from George Mason University's Department of Economics) "seem to be shills for industry." This lazy accusation is as familiar as it is mistaken, for if I were truly a shill for industry ..."
The Five Dumbest Product Bans
By Eli Lehrer: "Even as the array of consumer products available to the average American expands each day, a bewildering variety of government regulations serve to limit consumer choice. From the aircraft on which Americans fly to the food they buy in the grocery store, government regulation limits product choice at every turn."
Health, Africa’s struggle
By Thompson Ayodele: "Foreign aid in the form of hard currency is flowing in unprecedented quantities into the ministries of health of many African countries.
"But despite this generosity things are not improving: medical staff are demoralised, access to essential medicines remains low and corruption remains a serious problem."
(D) All of the Above
By Daniel Ikenson: "As an advocate of free trade, I feel slightly vindicated by reports that the Obama campaign quietly assured the Canadian government that the Senator’s strident words about NAFTA in last week’s debate were merely political rhetoric. We’ve long been saying that opposition to trade is mostly an artifice of politics. But the story begs the question: Is Obama (a) economically illiterate; (b) dishonest, or; (c) naïve. The answer is (d), all of the above."
Ohio Needs More Foreign Trade
By Daniel T. Griswold: "But tinkering with a 14-year-old trade agreement [NAFTA] will not bring an industrial renaissance to Youngstown and other Rust Belt cites. The relative decline of those regions dates back to the 1960s and 1970s, when the American economy began a transition from heavy industry toward an information-based service economy."
Orders and Organizations
By Don Boudreaux: "More generally, it seems difficult for some people to grasp the fact that society and government are not identical -- or, more precisely, to grasp the fact that civil society can and does often thrive outside of government influence and, indeed, very often (I would say most often) in spite of such influence."
Atlas Hugged
Brian Doherty: "As executive vice president of the Cato Institute, Boaz is one of the media's primary go-to guys on libertarian thought and policy. And in his new book, "The Politics of Freedom," a collection of his short-form journalism from the past 25 years, Boaz pushes an interesting and counterintuitive belief about American politics. The political spectrum, he argues, contains a lot more libertarians than the two major party's stances would lead you to believe."
Living Large: America's Middle Class
"To hear the Lou Dobbses and Bill O'Reillys of the world--not to mention politicians ranging from Ron Paul to Hillary Clinton--the middle class of America (however you define that term) has never had it so tough. Between credit squeezes, out-of-control immigration, rising costs of education and health care and everything else, it's all darkness out there for those of us who are neither millionaires nor welfare cases, right?
In 'Living Large,' Drew Carey and reason.tv examine the plight of the American middle class. What do they find? "
The Economics of Tolerance
With Will Wilkinson: "When the economy's good, Americans tend to act better toward their fellow citizens. But commentator Will Wilkinson says in a sliding economy, we tend to slam the gates of opportunity."
Super Tuesday Winners and Losers
Michael D. Tanner: "A few thoughts in the wake of last nights elections:"
Flex-Fuel Nonsense
By Jerry Taylor: "Congress can no more guarantee that fuel prices will go down from now until the end of time than it can guarantee a robust sex life for fat, balding, middle-aged men. Fuel prices are subject to supply and demand curves that do not answer to Congress — particularly in global energy markets."
Unintended Consequences
By Stephen J. Dubner and Steven D. Levitt: "But with a government that is regularly begged for relief — these days, from mortgage woes, health-care costs and tax burdens — and with every presidential hopeful making daily promises to address these woes, it might be worth encouraging the winning candidate to think twice (or even 8 or 10 times) before rushing off to do good. Because if there is any law more powerful than the ones constructed in a place like Washington, it is the law of unintended consequences."
The Foolishness of Economic 'Stimulus'
By Donald J. Boudreaux: "The best way for policymakers to foster such growth is to avoid panicking over any current economic downswing. Instead, they should focus on getting the economic fundamentals right. Such emphasis might not make things better – or even make things appear to be better – today, but it will make our tomorrows as bright as possible."
Dismal Science Sees Upbeat Future
By Alexander Tabarrok: "Forget the talk of recession. The world is about to enter a new era in which miracle drugs will conquer cancer and other killer diseases and technological and scientific advances will trigger unprecedented economic growth and global prosperity."
What to Expect When You’re Free Trading
By Steven E. Landsburg: "All economists know that when American jobs are outsourced, Americans as a group are net winners. What we lose through lower wages is more than offset by what we gain through lower prices. In other words, the winners can more than afford to compensate the losers. Does that mean they ought to?"
The Real Key to Development
By Mary Anastasia O'Grady: "The Index [of Economic Freedom] also reports that the freest 20% of the world's economies have twice the per capita income of those in the second quintile and five times that of the least-free 20%. In other words, freedom and prosperity are highly correlated."
An Empirical Analysis of Street-Level Prostitution
By Steven D. Levitt and Sudhir Alladi Venkatesh: "Unlike most other crimes, prostitution is based on markets, and thus potentially of special interest to economists. It is thus surprising that amidst the burgeoning literature on the economics of crime, there is little analysis of prostitution."
The Failure of U.S. Organ Procurement Policy
By T. Randolph Beard, John D. Jackson, and David L. Kaserman: "In this article, we calculate how many lives will be lost if the United States continues in its current policy course. We do this to motivate policymakers to stop implementing one ineffectual policy action after another and attack the organ shortage with more effective weaponry in the form of financial incentives."
The Micromagic of Microcredit
By Karol Boudreaux and Tyler Cowen: "If a poor family is able to keep a child in school, send someone to a clinic, or build up more secure savings, its well-being improves, if only marginally. This is a big part of the reason why poor people are demanding greater access to microcredit loans. And microcredit, unlike many charitable services, is capable of paying for itself—which explains why the private sector is increasingly involved. The future of microcredit lies in the commercial sector, not in unsustainable aid programs."
Paths to Property
By Karol Boudreaux and Paul Aligica: "The study finds that the “easy option” of agencies entering less-developed countries and using blueprints to try to recreate institutions in Africa that work effectively in the West often fails miserably. Indeed, the failures of such approaches can give the whole privatisation and property rights process, vital for sustainable economic growth, a bad name."
Raw Deal
By Sallie James: "Hollywood had better hope that a services liberalization deal reached Dec. 17 between the United States and the European Union holds. Without a successful resolution to the long-running Internet gambling dispute, American movies, music and software could be vulnerable to copyright infringement."
Regulatory Competition: A Primer
By Jennifer Smith-Bozek: "A given government jurisdiction—local, state, or federal—can provide regulatory alternatives to compete with those of another government. Regulatory competition can attract more businesses and jobs, yield regulations that are more efficient and less expensive, and thereby provide more options to consumers."
What to Be Thankful For
By David Boaz: "Not long ago a journalist asked me what freedoms we take for granted in America. Now, I spend most of my time sounding the alarm about the freedoms we're losing. But this was a good opportunity to step back and consider how America is different from much of world history -- and why immigrants still flock here."
Politically Determined Entertainment Ratings and How to Avoid Them
By Cord Blomquist and Eli Lehrer: In this new report, published by the Competitive Enterprise Institute, the authors "determine that the best rating systems have three attributes: They attempt to describe, rather than prescribe, what entertainment media should contain; they are particularly suited to their particular media forms; and they were created with little or no direct input from government."
Sweet Land of Liberty?
By Donald J. Boudreaux: "In this sweet land of liberty it is surprising how readily we modern Americans let others rule us. I'm not talking about Americans letting some foreign government rule us. That won't happen anytime soon. There's no risk that, say, we will quietly surrender to an invading army sent from the likes of Moscow or Beijing. I'm talking about being ruled by homegrown politicians and petty tyrants who butt their noses into the sizes of our toilets, the amount of salt we consume and countless other provinces of our daily lives."
Munger on Fair Trade and Free Trade
"Mike Munger, frequent guest and longtime Econlib contributor, speaks with EconTalk host Russ Roberts about fair trade coffee and free trade agreements. Does the premium for fair trade coffee end up in the hands of the grower? What economic forces might stop that from happening?"
What if Economic Conservatives Stay Home on Election Day?
By Michael D. Tanner: "There is no doubt that religious conservatives are an important part of the Republican coalition. Yet the media, and more importantly, the candidates, seem curiously unconcerned with another discontented part of that coalition: economic, small-government conservatives."
Economics in Many Lessons: A Better Brew for Rwanda
By Donald J. & Karol C. Boudreaux: "In some parts of the long-suffering continent, good things are happening and too few people, in Africa and elsewhere, know about them."
Adam Smith - A Primer
"Despite his fame, there is still widespread ignorance about the breadth of Adam Smith’s contributions to economics, politics and philosophy. In Adam Smith – A Primer, Eamonn Butler provides an authoritative introduction to the life and work of this ‘founder of economics’. "
Fat on the Farm Bill
By Dr. Sallie James: The Farm Bill is the ultimate example of concentrated benefits and diffused costs. Farm subsidies are hard to justify on their merits, and even harder to justify when they go to massive corporate farms.
Let Them Eat Laptops
By Daniel R. Ballon: "The '$100 laptop,' which actually costs $188, can only be purchased at a minimum quantity of 250,000. OLPC targets countries like Nigeria, where one out of three children suffer from malnutrition. There a $50 million minimum investment could instead be used to feed more than a million children for an entire year."
With Government Money Come Strings
By John Stossel: "f vouchers contain this potential danger, what can be done to help get kids out of dismal government schools? A better alternative is a tax credit for any parent who pays for private schooling or anyone else who helps put child through non-government schools."
What Can the United States Learn from the Nordic Model?
By Daniel J. Mitchell: "Conservative critics correctly condemn the large welfare states, but often overlook the positive results generated by laissez-faire policies in other areas. Liberals, meanwhile, exaggerate the economic performance of Nordic nations in an effort to justify welfare-state policies, while failing to acknowledge the role of freemarket policies in other areas."
Free Trade: America’s Opportunity
By Leland Yeager: "Want to read an economist's economist? Want an example of scholarly writing that is crystal clear? Want to understand better the case for free trade? If so, you can do no better than to read this 1954 monograph." - Dr. Donald Boudreaux, Chairman of the Economics Department of George Mason University
In Defense of Scalpers
By David Harsanyi: "In the end, I’m not sure why it’s fair to allow monopolies to sell tickets and not individuals. Turning a profit on your investment doesn’t sound like a crime to me. It sounds like America."
What FDR Had In Common With the Other Charismatic Collectivists of the 30s
By David Boaz: "When economic crisis hit — in Italy and Germany after World War I, in the United States with the Great Depression — the anti-liberals seized the opportunity, arguing that the market had failed and that the time for bold experimentation had arrived."
The Humanitarian with the Guillotine
By Isabel Paterson: "Most of the harm in the world is done by good people, and not by accident, lapse, or omission. It is the result of their deliberate actions, long persevered in, which they hold to be motivated by high ideals toward virtuous ends."
Economic Freedom Breeds Prosperity
By James Dorn: "The key lesson from Hong Kong's "small government, big market" model of development is that economic freedom is the best path toward sustainable development, understood as increasing the range of choices open to people. "
Two Kinds of Order
John Marks suggests "that the fundamental differences between liberal and socialist societies arise because liberal societies depend primarily on evolutionary rationalism and spontaneous order, whereas the structures of socialist societies take constructive rationalism and designated order as their model."