My last post discussed how much profit is ‘normal.’ Sticking with the profit theme, this time I’ll try to explain why profit should not be a dirty word. I will make the case that profit is nothing to be ashamed of. Profit serves useful purposes and is needed to achieve broad prosperity. Dislike of profits … Continue reading Why profit is not a dirty word
I’m writing about ‘net neutrality’ this week because someone asked me to, and because it’s a hot topic. However, I admit up-front that I am no tech expert. With that caveat, let’s look at what’s going on. Background The internet started to become a big thing in the mid-1990s. The internet market was quite free … Continue reading Is net neutrality good or bad?
(I'm posting this on Tuesday instead of the usual Thursday because of the Thanksgiving holiday. Happy Thanksgiving to all my American readers!) In recent decades, the Chinese government has allowed its citizens to keep more of their economic freedom. As a result, China posted excellent economic growth and greatly reduced poverty. However, more recent signs … Continue reading Which way will China go?
Over the past week or two, a few random threats to freedom have caught my eye. Nothing as alarming as purges or labor camps, but still threats to freedom. Freedom can be undermined by threats both big and small. Smaller threats are often less clear and obvious, but they’re still threats. The UK’s NHS Our … Continue reading Lose weight or you’re denied surgery?
Historically, the US has been known as a beacon of freedom. Unfortunately, that reputation has become tarnished over the past ten to fifteen years. I’m referring to economic freedom, not political freedom. Economic freedom means that each person is free to work, produce, consume, and invest as they wish. This involves personal choice, voluntary buying … Continue reading US not the beacon of freedom you think
This American retailer has a distinct business model. It aims to sell high volumes of merchandise at low prices. In pursuit of low prices, it bargains hard with its suppliers and grows impressive economies of scale. Its business model draws flocks of customers to its stores. It becomes the largest retailer in the entire world, … Continue reading Creative destruction
US healthcare is generally recognized for its significant innovation and quality medical care. However, it is even more widely recognized for having certain problems. Two main problems are usually cited. Problem #1 is that 10-15% of the population is uninsured at any point in time. Problem #2 is that medical care and health insurance are … Continue reading Origin of healthcare problems
I have mentioned a couple times that economic growth is very important. But it’s easy to hear a message like that and think, “yeah, yeah, growth is important, got it,” without it truly registering. This is a crucial concept for achieving prosperity, so let me try to make it more tangible. Without the solid growth … Continue reading Illustrating the power of growth
OK, stop laughing. I just want to clarify that although I am a know-it-all smarty-pants when I praise free-market capitalism or criticize Big Government, that only applies to overarching principles. I do not claim to know the specific paths that others should follow in their economic lives. I don’t know which jobs and careers people … Continue reading I know nothing
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