Politics in proper perspective

The topic of this blog post is different than usual, and much more personal. I’m writing this to help others avoid my mistakes. I recently lost a close friend. Steve and I met a long time ago, when he was about eight and I was about ten. His backyard was only a stone’s throw away …

The moral case for capitalism

A prominent politician who shall go unnamed has in recent months made several factually incorrect statements. When questioned, she implied it’s OK to get your facts wrong if you are morally right. What she really means is that she believes ‘progressive’ policies and Big Government are morally superior. She is not alone in this belief. …

Explaining the Robber Barons: Carnegie

“Robber baron” is a derogatory term applied to US businessmen operating from the 1860s to the 1920s. Robber barons usually stand accused of being greedy, unscrupulous, ruthless villains who harmed society. However, much of the criticism originates from people who dislike commerce and capitalism in general. They are naturally biased against the titans of industry …

Explaining the Robber Barons: Rockefeller

“Robber baron” is a derogatory term applied to businessmen operating from the 1860s to the 1920s. Robber barons are accused of being greedy, unscrupulous, ruthless villains who would sell their mothers for a nickel. In reality, most robber barons were not so terrible. They weren’t saints, but the net result of their lives improved the …

The economy is like a dog

Different people have different ideas of what the economy is like. Some people view the economy as a mysterious entity that just sort of automatically works. They think the economy will achieve prosperity almost regardless of incentives or burdens. Let’s call this the Inevitable Economy. Others view the economy as a machine that needs managed …

Rebutting “Five Myths About Capitalism”

The Washington Post recently published an article by Steven Pearlstein titled “Five Myths About Capitalism.” This is a rebuttal of the issues raised in that article. Myth 1: Greed makes markets work Pearlstein: According to Pearlstein, capitalists believe capitalism runs on greed. As evidence of this he cites Adam Smith’s ‘invisible hand’ and Gordon Gekko from …

Is Social Security Going Broke?

Some people say Social Security is going broke. Others insist it’s not. Which view is right? Let’s look at some facts. Social Security explained First, let’s be sure we’re on the same page regarding the basic workings of Social Security. The primary cash inflow to Social Security is a 12.4% tax on workers, half paid …

Are stock buybacks bad for the economy?

Some people denounce stock buybacks. They’re a scam! They’re destroying the economy! They only benefit the rich! Are stock buybacks bad for the economy? Let’s take a look. Definition A stock buyback is when a company buys back shares of its own stock. This reduces the total number of shares held by the investing public. …

Conversation with a young socialist

This is a transcript of my conversation with young Sally Socialist. Me: “Thanks for meeting me.” Sally: “No problem.” Me: “Socialism seems to be getting more popular, so I thought it might be interesting to talk with a socialist.” Sally: “I don’t know if I’m really a socialist. I just want everyone to be treated …

Anything voluntary

Mike Munger at the American Institute for Economic Research published a thought-provoking article last week. He says we too often discuss the world as if we have only a binary choice of (a) for-profit free markets or (b) government. I’m as guilty of that as anyone. Munger’s point is that we have other ways to organize …