This category covers posts with economic content.
Paul “the Internet is not a big deal” Krugman has stated that it’s paranoid to worry about Central Bank Digital Currencies. See the article at this link.
Considering his track record, did he not realize that his statement makes it more likely that concern is justified?
A bunch of topics all together this time. What is the Macro Trick? It’s the combination of things that are fundamentally different under one name. It’s a tool that many tyrants and would-be tyrants use to take control of politics, economics, and culture.
It feeds the demand for administrators, technocrats, and other “experts.” In this video, I have a breakdown of some egregious examples of this trick, as well as what we can do to fight it.
Also available on Bitchute.
The concept of exchange value versus use value has kind of gone away in modern economic analysis, probably for good reason. At first glance, it seems fairly odd to separate goods that give you direct value from those that give you value indirectly.
The concept also doesn’t mesh well with a modern Austrian “value-scale” analysis, as seen in this article by Bob Murphy. Where a good fits on your value scale is determined by what need it serves, regardless of what exactly you intend to do with it.
Yet the concept is still present in Menger’s Principles of Economics, which I’m reading right now.
A video version of part 1 (of 3) of my short essay series on money.
For the text version with links and citations, visit here.
I just heard that the great Yuri Maltsev has passed away this week–a huge loss for the world of liberty. Yuri was among the last to defect from the ailing Soviet Union, and the stories he told about doing research under the Iron Curtain are poignant reminders of the strangling effect that socialism and all forms of totalitarianism have on not just the economy, but free thought itself.
A recent article by David Gordon [1] discussing What We Owe the Future by William MacAskill on utilitarian ethics got me thinking about the absurdity of cardinal utility theory. Even from a layman’s perspective, the strangeness of cardinal utility seems like a good reason to believe there is something seriously wrong with its premises. It leads to ideas such as a dictator made so happy by enslaving others that he outweighs all negatives, as well as other bizarre conclusions, including the “sadistic conclusion [2],” and the “repugnant conclusion [3],” which both involve optimizing utility in groups. However, academics persist at papering over these conclusions and justifying all kinds of horrifying policies. This suggests some kind of perverse desire that I don’t fully understand. I suppose the title “Professor of Ethical Philosophy” is more attractive than “Professor of Genocide Planning,” but aside from that I don’t see the appeal.
It’s just a little article on the history of money, but I managed to get something published on the Mises Wire!
The article is “The Rise and Fall of Good Money: A Tale of the Market and the State.”
It was originally a part of a longer essay I wrote that had to be split up to fit into the Mises Wire length requirements. I’ll put up the other two parts in separate posts:
What Makes Good Money? A Misesian Perspective
This piece goes through the first half of Mises’s Theory of Money and Credit and pulls out the qualities Mises thought were necessary for things to serve well as money.
Why Cryptocurrency Is (Still) Interesting
This one looks at cryptocurrency from the same Misesian standards and evaluates it as a potential money. Then it discusses the upcoming shift that state monetary systems are making towards Central Bank Digital Currencies and evaluates that as well.
Cryptocurrency is a contentious topic even among die-hard anarchists. Fans of gold argue that a return to the gold standard is key. Others argue that crypto has no commodity value and is therefore worthless. Crypto enthusiasts argue about which particular coin or coins are best, and even adherents to a single coin’s philosophy disagree about how its transactions should be handled.
Why did the market choose gold as an international standard for money? In his classic book The Theory of Money and Credit, Ludwig von Mises developed a beautiful and comprehensive philosophy of what money is and how it comes about, starting from barter and working all the way through the international gold standard. One of the valuable insights from the book is Mises’s concept of what characteristics are vital to the money function. He focused on five aspects in particular, and understanding them is still valuable today, even in a world of pure fiat money.
I recently read Per Bylund’s short and sweet little introduction to economics. It’s a small book at 132 pages and a fairly light read. It is available for free online at the Mises Institute and hard copies are inexpensive, or even free at some official Mises events.
The book provides a solid introduction to economic theory with a special focus on distinctly Austrian concepts, such as entrepreneurship. It is generally clear and succinct, and manages to make a variety of excellent points on a variety of topics.
A few highlights include: