Are electric vehicles (EV’s) inevitable? Some people think so. The most ambitious forecast I’ve seen predicts that 95% of automobile miles driven in the US will come from EV’s by 2030. That’s a steep climb from today, when EV’s account for roughly 1% of new vehicle sales. Early days EV’s are not new. The early … Continue reading Are electric cars inevitable?
Many people dislike the high prices that typically occur during crises like the recent hurricane in Texas. Some cities and states even make “price gouging” illegal. Unfortunately, discussion of this topic tends to be long on moral indignation and short on economic understanding. Anti-price-gouging laws are generally popular, even with people who normally believe in … Continue reading Why price-gouging is OK
Some people believe that corporations in a capitalist economy wield tremendous power. Hollywood movie plots reinforce this view by depicting corporations as powerful and shadowy entities. Is this accurate? Not really. In the real world, (a) corporations wield far less power than imagined, (b) consumers and employees hold more power than they think, and (c) … Continue reading With capitalism, who holds power?
The more I ponder the topic of capitalism, the more convinced I become of the importance of businesses. I used to think of businesses as generally a good thing because they provide jobs, but I see now that it’s much more. Everyone should want a business-friendly environment. Not because it helps businesses, but because it … Continue reading Why we should be pro-business
People have become tremendously more prosperous over the past two centuries, at least those who live in countries that practiced something like free-market capitalism for a sustained period. In my last post, we looked at how incomes have grown in different parts of the world. In this post, the time machine will take us back … Continue reading Prosperity Time Machine (2 of 2)
Trade deficits have been in the news because President Trump has talked about international trade quite a bit. He and others think that a trade deficit is a very terrible thing. I mostly disagree. The heart of free-market capitalism is economic freedom. Freedom is usually beneficial for society, and that includes freedom to trade. Free … Continue reading How Bad Are Trade Deficits?
Last week President Trump’s team proposed to cut the corporate tax rate from 35% to 15%. Tax reform that cuts the tax rate and also closes loopholes is an excellent idea that would benefit all of us. Popularity of corporate taxes Taxing corporations is popular. Gallup and Pew Research surveys both show that more than … Continue reading Why Corporate Tax Cut Makes Sense
Economic freedom is the heart of free-market capitalism. Freedom and competition are significant reasons why capitalism provides greater prosperity. An April 5th Wall Street Journal article (Gillette, in Change, Shaves Prices by Sharon Terlep) provides an opportunity to discuss competition. The article describes Gillette’s situation as follows: “Gillette, which dominates the global razor business, has … Continue reading Competition is a Close Shave