Are electric cars inevitable?

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?

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Why price-gouging is OK

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

With capitalism, who holds power?

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?

Competition is a Close Shave

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