Many have tried to create a division between "political freedom" and "economic freedom." But all freedoms ultimately depend on economic freedom, and our view of economic exchange dictates our view of politics.
Korea's economy has taken off since the 1997 financial crisis, and so has Korea's cultural and economic prominence on the world stage. But is Korea repeating the mistakes of Japan and other centrally-planned boom economies?
Political dependence and economic dependence are two very different things. Political dependence is fostered by coercion and monopoly power, but economic dependence is simply a choice we make when we especially like one thing more than the alternatives.
Austrians today are nearly alone in asserting what the classical economists all knew. You cannot create prosperity by creating more money, but only through increases in technological progress, frugality, trade, and a division of labor.
Central banks and their favorite economists are everywhere worried that central banks may be too weak to keep the current “expansion” going. If central banks are too weak now, what will happen when they get the strength they want?
Free markets have provided an abundance of goods and comforts for even low-income households. But constant government intervention in the work, lives, and incomes of the poor continues to create many barriers to economic success.
When a central bank devalues a currency, it is often said that the devaluation will help exporters, and thus the whole country, as a result. But this simplistic analysis ignores the many downsides of inflating the currency.
Many people think of their investments and their money in the bank as their savings, but savings and money are not the same thing. Nor will creating more money create more savings.
Government loans often feature lower interest rates than what can be found in the private sector. But this is only because these cheap loans are taxpayer subsidized. Meanwhile, the government bans many private loans that risky borrowers need most.
