Inflation and relative prices

Pierre Lemieux has a post explaining the fallacy of assuming that inflation is caused by changes in relative prices. An increase in the price of used cars cannot generate or “drive” inflation for a simple reason: it works the other way around. Inflation, which is […]

The Elementary Basics of Inflation

It is always surprising how even the financial press is confused about inflation. I am not speaking of complex conflicting theories on the causes of inflation but of the very basic distinction between inflation and changes in relative prices. For example, The Economist just wrote: […]

Signaling: The Play

My friend Jason Ford wrote this little play, inspired by The Case Against Education. Enjoy! Three Mercedes By Jason Ford (The Admissions Office at Foxmoor College in the Philadelphia Suburbs. Bart Amblin, the Head of Admissions, is seated at his desk.) BART (on phone) Send […]

David Henderson on the Essential UCLA School of Economics

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Quotation of the Day…

… is from page 83 of George Will’s hot-off-the-press 2021 book, American Happiness and Discontents: The Unruly Torrent, 2008-2020 – a collection of many of his columns over these years; (the column from which the quotation below is drawn was originally published in the Washington […]

Bonus Quotation of the Day…

… is from page 3 of Richard Epstein’s 2020 book, The Dubious Morality of Modern Administrative Law: The key explanation for why such a high level of discretion is applied by courts [to the decisions of administrative agencies] is an uncritical belief that administrative agencies […]

Boudreaux on Government’s Nature

Don Boudreaux writes: One general lesson that I draw from facts such as this one [the fact he’s referring to is that during the pandemic, the FDA actually used the Covid-19 emergency as a pretext to slow the approval of SARS-CoV-2 tests, rather than what […]

Some Covid Links

Robert Fellner reveals a fundamental flaw in the argument for vaccine mandates. Two slices: The odds of a vaccinated person dying from COVID are 1 in 137,000. The fatality rate for the seasonal flu, meanwhile, is at least 100 times greater than that. The chance […]

Quotation of the Day…

… is from pages 16-17 of Ludwig von Mises’s 1932 essay “The Myth of the Failure of Capitalism,” as translated from the original German by Jane E. Sanders and reprinted in Ludwig von Mises, The Clash of Group Interests and Other Essays (1978): In the […]

It’s not what you don’t know; it’s what you know that ain’t so

In a recent post, I listed a bunch of myths that we teach to our students. One of them was specifically applicable to the German population—the myth that hyperinflation put the Nazis in power. In fact, it was deflation (and unemployment) that transformed the Nazis […]