This great video reminds me of my early podcasting days, when I first tuned in to the Ludwig von Mises Institute while cleaning horse stalls at a local stable in the Mt. Airy section of Philadelphia. The lecture I recall specifically was Tom DiLorenzo‘s Labor Market Superstitions, from 2006. Tom explains how employers across the labor market bid up wages until those wages approach value of the labor:
I was further charmed by the response video to Does Capitalism Exploit Workers, which was posted by a gentleman who refers to himself as ‘Swag Man Wit A Do’, if I’ve understood him correctly. Swag man implores us to “put some knowledge in our brains” by watching the video above:
I’m going to suggest that the next time someone says, “Well, you should just ‘cowboy up’ and commit to a decision,” we can say, “You know what? What I’d rather do is geek out.” And the idea with geeking out is, I’m going to be creative and come up with new narratives. I’m going to be comfortable holding multiple possibilities in mind.”
I think this is good advice for learning economics. Some pairs of theories directly contradict each other. In those cases, you gotta pick one. Other theories don’t directly contradict each other. These could both be held in mind, and neither should be dismissed until better explanations are uncovered. One might weigh them. One might favor one of the other, but the other can not be dismissed until it is directly contradicted.
Last May, Portugal received a $104 billion bailout from the European Union and International Monetary Fund, in exchange for deep spending cuts and structural reforms. … After a decade of easy credit, Portuguese are scrambling to make ends meet.
Government can not keep bailing out and inflating ad infinitum. Recovery is a process. As Peter Schiff said, “Sometimes medicine tastes bad, but you have to swallow it.” Also, what else is government doing to thwart recovery? The article says debt keeps rising despite cuts. Why?
I found this episode of This American Life to be helpful. If that broadcast is to be believed, then the dumbest economic policy of all was letting that vampire state Greece into the Eurozone in the first place.