You are browsing the archive for 2013 December 05.

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The Place of Austrian Economics in Contemporary Entrepreneurship Research

December 5, 2013 in Economics

By Peter G. Klein

That’s the title of a new working paper by Per Bylund and me. It’s forthcoming in a special issue of the Review of Austrian Economics devoted to the contributions of Israel Kirzner.

The Place of Austrian Economics in Contemporary Entrepreneurship Research

Peter G. Klein and Per L. Bylund
December 5, 2013

Abstract: We review the place of Austrian economics in contemporary entrepreneurship and management research, focusing on the contributions of Israel Kirzner. We show that Kirzner’s central concept of entrepreneurial discovery has been vastly influential in theoretical and applied work on entrepreneurship, even though Kirzner’s larger research program has not been well understood. We also describe and assess a number of methodological, ontological, and cognitive critiques of the opportunity-discovery approach and review the most important alternatives, including the judgment-based view associated with Knight (1921) and more recent contributors. We conclude that the entrepreneurship and management literatures provide a useful example of how Austrian economics — Kirznerian economics in particular — can play an important role in shaping mainstream discussions, debates, and research programs in the social sciences.

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Source: MISES INSTITUTE

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Assembly Health Committee Holds Hearings in Buffalo on Medical Marijuana in Advance of 2014 Legislative Session

December 5, 2013 in PERSONAL LIBERTY

By drosenfeld

Western NY Patients and Families Join Medical Experts in Calling on Legislature to Take Immediate Action to Pass Legislation

Twenty States and D.C. Have Medical Marijuana Programs To End the Needless Suffering of Patients

Buffalo — Today, dozens of patients and caregivers of those living with cancer, multiple sclerosis, severe seizure disorders, and other serious, debilitating medical conditions gathered in Buffalo for a hearing of the NY State Assembly Health Committee. In a series of compelling personal testimonies, they demanded that the New York State Senate pass the Compassionate Care Act — A.6357-A(Gottfried) / S.4406-A (Savino).

December 5, 2013

Drug Policy Alliance

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Source: DRUG POLICY

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Bitcoin Quandary

December 5, 2013 in Economics

By Mark Thornton

It is important for our system of payments to improve over time and this means that we need experiments like Bitcoin to take place. Ron Paul says that if Bitcoin is successful then the government will crush it. Now there is a problem.

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Source: MISES INSTITUTE

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Lew Rockwell’s New Book ‘Fascism versus Capitalism’ Now in the Mises Store

December 5, 2013 in Economics

By Mises Updates

EBOKB1002

In both ebook and hard copy. 

Fascism vs. Capitalism: The Central Ideological Conflict of Our Times

“Fascism” has become a term of general derision and rebuke. It is tossed casually in the direction of anything a critic happens to dislike.

But fascism is a real political and economic concept, not a stick with which to beat opponents arbitrarily. The abuse of this important word undermines its true value as a term referring to a very real phenomenon, and one whose spirit lives on even now.

Fascism is a specific ideology based on the idea that the state is the ideal organization for realizing a society’s and an individual’s potential economically, socially, and even spiritually.

The state, for the fascist, is the instrument by which the people’s common destiny is realized, and in which the potential for greatness is to be found. Individual rights, and the individual himself, are strictly subordinate to the state’s great and glorious goals for the nation. In foreign affairs, the fascist attitude is reflected in a belligerent chauvinism, a contempt for other peoples, and a society-wide reverence for soldiers and the martial virtues.

Lew Rockwell, in this new volume, examines the starkly contrasting systems of capitalism and fascism, noting pro-fascist trends in recent decades as well as the larger historical trends in the United States and internationally.

In Section One, Rockwell focuses on the nature of fascism and its influence in Western society, with a focus on American political and economic institutions.

In Section Two, Rockwell examines capitalism as the enemy of, and antidote to fascism.

Combining economics, history, and political philosophy, this book doesn’t just provide a diagnosis of what ails American and Western society, but also sheds light on how we might repair the damage that has been done, and with the help of the intellectual work of great minds like Murray Rothbard and Ron Paul, we might as a society shed the fascism of our times and look to freedom instead.

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Source: MISES INSTITUTE

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Judge Napolitano on the Pope’s Economics

December 5, 2013 in Economics

By Mises Updates

Mises Institute Distinguished Scholar Judge Napolitano today examines the current Pope’s economics:

Traditional Catholic social teaching imposes on all of us a moral obligation to become our brothers’ keepers. But this is a personal moral obligation, enforced by conscience and Church teaching and the fires of Hell — not by the coercive powers of the government. Charity comes from the heart. It consists of freely giving away one’s wealth. It is impossible to be charitable with someone else’s money. That’s theft, not charity.

If you give until it hurts, freely and out of love, and seek nothing temporal in return, you have built up treasure in Heaven. But if the government takes from you and redistributes your wealth to those whom the government has decided to benefit — rich and poor alike — what merit is there in that for you? If you give a poor person a fish to eat, in a day, he’ll be hungry. If you show him how to catch fish and teach him how to acquire the tools needed to do so, he can become self-sufficient and perhaps one day rich enough to help others. If the government takes money from you to buy the person a fish, half of the money will be wasted.

The Pope seems to prefer common ownership of the means of production, which is Marxist, or private ownership and government control, which is fascist, or government ownership and government control, which is socialist. All of those failed systems lead to ashes, not wealth. Pope Francis must know this. He must also know that when Europe was in turmoil in 1931, his predecessor Pius XI wrote in one of his encyclicals: “(N)o one can be at the same time a sincere Catholic and a true Socialist.”

Read the whole thing. 

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Source: MISES INSTITUTE

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Sen. Paul Appears on Fox's Hannity- December 4, 2013

December 5, 2013 in Politics & Elections

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Source: RAND PAUL

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The Federal Reserve Should Raise Rates Immediately

December 5, 2013 in Economics

By Mark A. Calabria

Mark A. Calabria

To help the economy, the Federal Reserve should begin raising rates immediately and bring its preferred policy rate, the federal funds, to a more neutral stance. The Fed’s current rate policies have not delivered economic growth or employment and should be abandoned in favor of policies that would.

The theory behind the Fed’s current rate policy is that lower rates increase the demand for borrowing, which should fuel both credit-driven spending and investment. This however, only examines one side of the market: demand. For credit to expand, lenders must be willing to lend at those rates as well, but current rates barely cover a lender’s inflation risk without also covering the risk of not being repaid.

It was a housing boom and bust that contributed primarily to the recession and financial crisis. While housing prices have begun to recover, credit for less-than-prime borrowers is still limited, leaving about a fifth of the market on the sidelines.

Interest rates should be determined by the interaction of savers and investors, not driven by the arbitrary whims of government officials in Washington.”

Looking at mortgage rates offers some explanation. Today, 30-year fixed rates are just over 4.2 percent. With inflation expectations running around 3 percent, that leaves the lender only 1 percent to cover credit losses and any profits. With just over 2 percent of prime mortgages still in foreclosure, and assuming a 50 percent recovery rate, it becomes obvious that anything but sterling credit is expected to be a money loser for banks.

So why don’t banks just charge more? Because so-called consumer protection laws would kick those mortgages into the “high cost” category, which brings considerable legal risk. Letting rates rise would greatly increase the supply of mortgage credit, helping to fuel home sales and eventually home construction.

Low rates are often defended as “putting money in the consumers’ pocket” but that couldn’t be further from the truth. It simply transfers money from one set of consumers to another. The approximately $400 billion annual decline in consumer interest payments since 2008 has been exactly off-set by the approximately $400 billion annual decline in household interest income. Lower rates simply benefit one set of households at the expense of another. The net impact on spending will likely approximate zero.

There is also little evidence that the Fed’s current rate policies have improved the labor market. Advocates of the Fed’s current policies …read more

Source: OP-EDS