Gross Domestic Product measures the total value of final goods produces in an economy in any given year. This is derived by summing the total of consumer expenditures (C), with business investment spending (I), total government spending (G) plus net…
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Out of all the prices in the market place, the most important price unequivocally is the price of money- the interest rate. Contrary to Federal Reserve principles, interest rates are not arbitrary numbers that can be adjusted as necessary to…
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As important as prices are, they will only function properly in a society that has adequate protections for private property. Additionally, theses protections are only as good as the reliability and predictability of the governmental institutions that provide those protections.…
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When goods are scarce, we often want people to consume less of those goods; typically only as much as absolutely necessary in the hopes that there will be enough to go around. The fundamental question is how do we structure…
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Austrian economics is a framework for understanding how markets work. Contrary to widespread assumptions, it is not a synonym for capitalism or free market economics nor does it have anything to do with economics studied in Austria for that matter.…
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