Let’s talk about inflation. It affects everyone, but it’s not always well understood. There are also some interesting points to make. What causes inflation? Milton Friedman said, “inflation is always and everywhere a monetary phenomenon.” In other words, inflation occurs when too much money is created relative to the supply of goods and services. This … Continue reading Interesting facts on inflation
Does Fair Trade make sense? I don’t mean fair trade, as in “I’m in favor of free trade as long as it’s fair trade.” If you want my general views on free trade, see this post. I mean Fair Trade, as in the Fair Trade labeled coffee you see in your supermarket. Fair Trade goods … Continue reading Does Fair Trade make sense?
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
Big Government advocates often claim that we have government to thank for our modern 40-hour work week. In the bad old days, businesses forced employees to work super long hours, but then benevolent government stepped in and forced all businesses to limit the work week to 40 hours. How much of that is true? Let’s … Continue reading How did we get the 40-hour work week?
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
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