Income Inequality Is Increased by Anti-Capitalism

Market forces don’t increase income inequality; government does. Have you heard it said that “income inequality” is a failure of capitalism? Well, maybe we could say that, if what we had in America today was capitalism. But that’s far from the case. Our income inequality is largely the product of a government that has vastly too much power in the marketplace, and ends up determining winners and losers—virtually always favoring the politically-connected. [See also, “Why the Tea Read more […]

Economic Theory in “A Christmas Carol” by Charles Dickens

What was Charles Dickens really doing when he wrote ‘A Christmas Carol’? “Since you ask me what I wish, gentlemen, that is my answer. I don’t make merry myself at Christmas and I can’t afford to make idle people merry. I help to support the establishments I have mentioned: they cost enough: and those who are badly off must go there.” “Many can’t go there; and many would rather die.” “If they would rather die,” said Scrooge, “they had better do it, and decrease the surplus population.” That Read more […]

Without Freedom There Would be No Pencils

In a chapter entitled “Opportunity: The Great Art of Life?” from his book, How Do We Know?, Leonard Read writes the following: Opportunities are indeed rare in countries where one cannot act creatively as he or she pleases. Rare, too, are opportunities for you or me that are beyond the range of our potentialities or talents. Astronomy is no more within my range than is the making of an ordinary wooden lead pencil. And, all too rare are the astronomers—or those who have a part in pencil-making Read more […]

The CFA Drive-Thru Girl and the (Former) CFO

We call them “natural consequences”: that uncomfortable feeling of being full after eating too much, the hangover after a night of drinking too much, the immediate pain after touching something hot, and the losing of one’s job after doing something stupid. Adam Smith, from Tucson, Arizona, knows about the latter, and he is still feeling the guilt from his stupidity. For those of you who don’t know who Adam is, he is the one with the viral video about Chick-fil-A. Adam sat in the drive-thru Read more […]