n. Mental illness of such a severe nature that a person cannot distinguish fantasy from reality, cannot conduct her/his affairs due to psychosis, or is subject to uncontrollable impulsive behavior. (See here.)
The above is a legal definition as distinguished from the popular quote (misattributed to Albert Einstein), “Insanity is doing the same thing [...]
This is from the Mercatus Center, adapted from an article by Charles Blahous in his e21 piece “How Did Federal Surpluses Become Huge Deficits?. According to Virginia de Rugy of Mercatus:
According to the CBO, three areas have influenced the swing from projected surpluses to actual deficits over the 2002–2011 period: (1) increased [...]
Krugman-in-Wonderland Paul Krugman is in Spain this week, most likely telling the Spaniards what they want to hear: The European Central Bank can end the country’s unemployment miseries painlessly by buying near-unlimited amounts of Spain’s government bonds and then floating massive amounts of new euros around the world. Yes, for the umpteenth time, Krugman insists that if [...]
Today’s U.S. manufacturing report is at the top of a mountain of bad economic news coming out. Whether these data will lead to a “new” recession (as defined by the NBER) remains to be seen, but at the very least the U.S. economy is stagnating, and it is likely to remain that way for some [...]
Perhaps the most constant theme in Paul Krugman’s recent columns has been his unwavering belief that the only way out of this depression is for governments to borrow and spend, and for central banks to inflate. He continues to beat the old drum that (1) there is not enough regulation of business, (2) [...]
This is what happens when politicians allocate your precious resources instead of letting the market decide where capital should be invested. This article from the Wall Street Journal discusses the failure of the government’s investment into batteries for electric vehicles. The outcome was inevitable. As you can read below, when faced with failure, bureaucrats then [...]
[Several] weeks ago, before Jamie Dimon’s thoughtful diversion, Charlie Munger of Berkshire Hathaway instructed viewers of CNBC that “civilized people don’t buy gold, they invest in productive businesses”. Munger was right in that civilized people invest in productive businesses and was right to imply that gold is a non-productive rock, but, in our humble opinion, [...]
When it became clear in 2007 and beyond that the housing bubble was breaking up and the bills for the national spending spree were coming due, the Bush administration shifted into “stimulus” mode. (It was nice getting an extra $2,100 in my checking account, but I defied the government and paid some bills instead [...]
This article is by Cato’s Richard Rahn. Professor Rahn is a senior fellow of the Cato Institute and the Chairman of the Institute for Global Economic Growth. He is also a weekly economic columnist for The Washington Times, and serves on the editorial board of the Cayman Financial Review. He developed the [...]
This comes in under the “Economic Fallacies” department.
This from Reuters today:
House *** will propose legislation on Tuesday calling for $260 billion in spending on transportation infrastructure for up to five years, an election-year proposal touted as a job creator in a tough economy.
Which party is coming out with this proposal? Yes, you guessed [...]
The IMF cut its forecast for EU area economic growth for 2012 saying that their collective economies will decline by 0.5%.
The IMF said the most immediate policy challenge is to restore confidence and put an end to the crisis in the euro area by supporting growth, while sustaining fiscal adjustment, containing deleveraging, and providing [...]