Economics Archives - Page 69 of 69 Voice For Liberty

Jun

The AirTran subsidy and its unseen effects

Writing from Natchez, Mississippi In a June 16, 2006 column, Wichita Eagle editorial writer Rhonda Holman again congratulates local and state government for its success in renewing the AirTran subsidy, and for getting the entire state of Kansas to help for it. We should take a moment to understand, however, that while the allure of the subsidy is undeniable, it may eventually extract a high price on Wichita. Currently, the legacy airlines provide service to Wichita and other small markets partly because they feel a duty to provide comprehensive, nationwide service. But that may be changing. In an article titled…

Mar

By Bob Weeks

Economics In One Lesson, 50th Anniversary Edition

Economics In One Lesson, 50th Anniversary Edition Henry Hazlitt Laissez Faire Books, 1996 This book, first published in 1946, explains common fallacies (a false or mistaken idea) that are particularly common in the field of economics and public policy. At the very start of the book Mr. Hazlitt explains: Economics is haunted by more fallacies than any other study known to man. This is no accident. The inherent difficulties of the subject would be great enough in any case, but they are multiplied a thousandfold by a factor that is insignificant in, say, physics, mathematics or medicine -- the special…

Feb

By Bob Weeks

The Undercover Economist

The Undercover Economist (Exposing Why the Rich Are Rich, The Poor Are Poor -- And Why You Can Never Buy a Decent Used Car) Tim Harford Oxford University Press: 2006 This is an enjoyable book that explains the basics of how economics works, which is to say, how the world works. Mr. Harford doesn't go into any technical detail at all, so there are no charts and graphs to decipher (although a very few are used for illustration), and there are no mathematical formulas. Mr. Harford seems to believe more than I do that government may need to step in…

Dec

By Bob Weeks

Common Sense Economics: What Everyone Should Know About Wealth and Prosperity

Common Sense Economics: What Everyone Should Know About Wealth and Prosperity James D. Gwartney, Richard L. Stroup, and Dwight R. Lee St. Martin's Press, 2005 This is a wonderful book that can teach anyone what is important to know about economics. It teaches the insights that people can use to understand and evaluate the mechanism of our economy and government themselves. It is not a textbook with charts, graphs, and formulas. It requires no special prerequisite from the reader. The book contains four parts: The ten key elements of economics, seven major sources of economic progress, economic progress and the…

Nov

By Bob Weeks

Hypocrisy over oil profits abounds

Writing from Orlando, Florida The recent swell of criticism over oil company "windfall" profits, some even coming from people who should know better, is truly remarkable in its hypocrisy. It seems that the critics feel that oil companies did nothing extraordinary to earn these profits. Therefore, they don't deserve them. What's wrong with this criticism? First, I don't think we want to let the government get in the position of deciding who deserves to keep the profits they earn. It does enough of this already. Second, most people would be delighted to find themselves in the position of the oil…

Sep

By Bob Weeks

Prices ration scarce goods

As the price for gasoline rises, politicians hear increased calls for regulation of gas prices. We hear news stories of hotels increasing prices for victims of hurricane Katrina, and prices for needed goods in the destructed area could rise, too. In Wichita, when gasoline prices rose rapidly, someone told me that this was price gouging, because the price the gas stations pay for gasoline hasn't increased yet. I'm sure that's true, their cost hasn't increased yet, as they're still selling gasoline they already bought some time ago. This analysis, however, doesn't consider the most important role of prices: to strike…

Aug

By Bob Weeks

What to do about gasoline prices

Almost anything the government does in response to the recent high gasoline prices is bound to fail. The easy political solution is to place price controls on gasoline, as Hawaii has done. Basic economics tells us that when a price is held artificially low through price controls, demand will be higher than what it would otherwise be, and supply will be less than it would otherwise be. What does that spell? A shortage, as was the case the last time there were price controls on gasoline. The misery of dealing with lines at gas stations was much worse than slightly…

Aug

By Bob Weeks

Book Review: Basic Economics: A Citizen’s Guide to the Economy

Basic Economics: A Citizen's Guide to the Economy Revised and Expanded Edition Thomas Sowell Basic Books, 2004 This book is a general introduction to economics written in a non-technical way. It provides excellent coverage of many introductory topics in economics, and you don't have to be a mathematical sophisticate to understand it. It is very readable by anyone who is interested in this topic. One of the best things the author does in this book is to distinguish between what politicians want to happen and say they are doing when they implement economic policies, and what incentives are actually created.…