Mises Search

A common criticism of the market economy is that the wealth it generates brings with it unacceptable levels of income inequality—it is conceded that the market economy generates great deals of material wealth, but it is argued that this material wealth is accrued unevenly. The astute reader will note that income inequality, as measured by the Gini

In my last piece, I argued that we may not be measuring inequality correctly and that, if we examine our ability to substitute the goods available to the poor for the goods available to the rich, we may find that the gap between rich and poor is shrinking. But let’s go ahead and grant that we are measuring inequality correctly and that it is

In previous essays, I have argued that a) we may not be measuring inequality correctly and that a proper conception of the concept may lead us to the conclusion that inequality is actually decreasing , and b) that even if inequality is increasing, it is unclear that it is necessarily detrimental to society . Here, I will show that the data on the

It is always the fashion among many intellectuals to blame society’s ills on the free market. One  publication argued that the market is “The god That Sucked.” The course summaries in my university’s catalog, the themes of the lecture series, and the editorial content of the student newspapers suggest that many students and faculty would agree.

The New York Times recently ran an interesting article on everyone’s favorite global retailing behemoth, Wal-Mart. It offers an interesting look at Wal-Mart’s changing corporate culture (they’re apparently beginning to wonder if they should pay off the barbarians at the gate), two stunning examples of economic illiteracy, one misrepresentation of

The cacophony over Taco Bell’s allegedly scandalous wage practices is getting louder, at least on college campuses. Some of my students have asked about the Taco Bell boycott being pushed by organizations like the Coalition of Immokalee Workers (CIW) and Students Against Sweatshops. Is Taco Bell really impoverishing workers? Will boycotting Taco

Popular and academic discussions of Wal-Mart are small-but-growing parts of the larger debate about social organization, markets, and the role of the state. Wal-Mart and its impact on labor markets have become hot-button political issues, with several states and municipalities attempting to pass laws expressly designed to keep Wal-Mart out. New

Christmas is a make-or-break time for many retailers, and the holiday season’s importance to the American economy is so great that “Black Friday” sales at some retailers, particularly Wal-Mart, are reported as a macroeconomic indicator. The holiday season is indeed festive and inspiring even in spite of clichéd paeans against the “commercialism”

Markets are ruthlessly efficient, meaning in large part that people will not undertake investment projects with risk characteristics that are not aligned with savers’ preferences. All profitable opportunities will be exploited in equilibrium, and no potentially profitable projects will be left undone.   One of the unfortunate consequences of

When a firm’s revenue is greater than its costs, that firm earns a profit. When a firm’s costs are greater than its revenue, that firm suffers a loss. Fair enough. But what do profits and losses mean? Are they the product of blind chance? What useful information can possibly be contained in profits and losses? Contrary to public opinion, profits