French Slump is due to Socialist Policies

French Slump is due to Socialist Policies
 Declining inflation is a concern because it carries the risk of outright falling prices, known as deflation, which deters consumers from spending in the belief they can wait and buy more cheaply later. There have been so many episodes prior to the creation of the Fed in 1913 where there was deflation and then things ...

The Pakistan Government is Universally Less Efficient

The Pakistan Government is Universally Less Efficient
The Pakistan government is universally less efficient in running any business. Private ownership is miles ahead in doing the same things better. The problem here is that the government controlled entity when it makes a mistake doesn’t go bankrupt as the funds keep being funneled in by the government, whereas a private firm is put in severe jeopardy ...

Fallacy of Taxation

Fallacy of Taxation
Why should people and businesses be brought under the tax net? Are people and their personal property a slave to the government that it should also have to be taxed, even after owning its rights in the first place? The larger tax bracket means the government gets more involved in the lives of people and as ...

Is Imran Khan The Savior?

Is Imran Khan The Savior?
Is Imran Khan the savior? Consensus is that he’s not corrupt. He genuinely wants to help the country and the poor. He wants the government to step in and give money to the poor so that they can at least survive and live with some dignity. It appears Imran Khan might be the savior this country has been waiting for. ...

What Central Banks Should Do To Deal With Bubbles?

What Central Banks Should Do To Deal With Bubbles?
What central banks should do to deal with bubbles? Should they tighten their monetary policy? Should they loosen it? Should they become extra cautious? Is there some place for the banks to actually not do anything? The main point and the most important to note from the classical economists is not to intervene. All these ...

Indian Steel Subsidies

Indian Steel Subsidies
States impose countervailing duties, or punitively high import tariffs, when they suspect another country of gaining an unfair trade advantage through subsidies. WTO ruling against Indian steel subsidies is telling us something about how the Americans now think. Americans are  not practicing what they have been preaching for years, about free markets and free societies. ...

Profiteering During Ramadan

Profiteering During Ramadan
What a sham! Profiteering during Ramadan. You don’t say! Those who believe an owner of goods shouldn’t have a right to sell the goods he owns, for whatever price he deems fit, are demanding that his goods be given to them cheaper. No body is being forced to buy any goods if they don’t want to. It’s afterall ...

Different Productivity In A Different Country

Different Productivity In A Different Country
A person can  have different productivity in a different country! This is especially the case when one country has a developed economy and the other a developing one. It’s may seem paradoxical but it’s not because of a lack of knowledge, as the person’s has the same knowledge set, but rather because of a lack of capital ...

Does Lower Consumption Mean Lower Growth?

Does Lower Consumption Mean Lower Growth?
  I find it quite remarkable that after all these years Karl Marx is still held in high esteem even though he was refuted, and correctly so by Ludwig von Mises and Fredrick Hayek many a decade ago. There seems to be a general misunderstanding that saving leads to lower consumption, and lower consumption causes economic ...

How to Destroy Cartels

How to Destroy Cartels
How can we destroy cartels in Pakistan? There is an enormous waste of resources by the government in an attempt to eradicate this parasite. So much time, effort, and money has been used to prevent this scrooge from taking hold. And yet, cartels continue to exist in Pakistan. The solution though is not so complicated as might appear from its longevity. ...

Privatization Reduces Poverty

Privatization Reduces Poverty
It may seem paradoxical at first sight but privatization actually reduces poverty! Having fewer resources and services under the control of the government leads to a general uplifting of the standard of living of the masses. Pakistan is fraught with the public control of all the major resources and services. The result of this has been an ...

Let The Rich Get Richer

Let The Rich Get Richer
  What is so terrifying about the idea to let the rich get richer? Is some kind of injustice going to befall the world if the rich keep getting richer? Just because the rich get richer faster does not necessarily mean they are doing so at the expense of the poor, not at least in a ...

Subsidized Housing In Pakistan

Subsidized Housing In Pakistan
The argument used to build the case for government sponsored subsidized housing on the surface sounds humanitarian, but economically and morally is far from it. The data that supports the assertion that access to housing helps people lift themselves out of poverty on the surface appears to be reasonable, but is fraught with peril if looked at critically. Getting ...

Liquidity Crunch Hits Pakistan

Liquidity Crunch Hits Pakistan
As the liquidity crunch hits Pakistan, the banks and other businesses are feeling the pinch.  A liquidity crunch (also known as a credit crunch, credit squeeze or credit crisis) is a reduction in the general availability of loans (or credit) or a sudden tightening of the conditions required to obtain a loan from the banks. This liquidity crunch means that cash resources are in short supply and ...