The Unquestioned Monopoly
aier.org > article...Does Coca-Cola have a monopoly? Well, yes they do. They are the only firm that produces Coca-Cola. The recipe is a secret.... ...No one else can make Coca-Cola. But can we really say that Coca-Cola is a monopoly? Doesn't the firm face competition from Pepsi? In fact, one might argue that Coca-Cola faces competition from any type of drink. Defining the market is difficult....
"No, Sarah, Our Prosperity Wasn't Extracted from Slaves"
aier.org > article...The opening lecture that I deliver every time I teach a Principles of Microeconomics course, which I do each semester, is on what the economic historian and liberal philosopher Deirdre McCloskey calls "the Great Enrichment."... ...How did, say, cotton picked by slaves in Louisiana in 1860 turn 160 years later in Michigan into middle-class homes equipped with wi-fi, Google Home, and refrigerators stuffed with orange juice from Florida, pineapples from Hawaii, and sauvignon blanc from New Zealand?"....
Frédéric Bastiat: The Jonathan Swift of Economics
aier.org > article...No one defends the cause of free trade against protectionism, individual freedom over central planning, and opportunity contra privilege more aptly than the Jonathan Swift of economics, Frédéric Bastiat. Jonathan Swift--really?... ...His ideas ultimately inspired other well-known thinkers, such as Gustave de Molinari and Henry Hazlitt, many members of the Austrian School, and countless others. Open his Economic Sophisms, and you will find a wit that is at once dazzling and illuminating....
Agencies announce forthcoming resolution plan guidance for large banks and deliver feedback on resolution plan of Truist Financial Corporation
federalreserve.gov > pressreleases...Agencies announce forthcoming resolution plan guidance for large banks and deliver feedback on resolution plan of Truist Financial Corporation. Board of Governors of the Federal Reserve System. Federal Deposit Insurance Corporation. For release at 4:30 p.m.... ...Also on Friday, the agencies announced that they did not find any "shortcomings" or "deficiencies" in the 2021 resolution plan of Truist Financial Corporation but did issue feedback to the firm on its plan....
'Free-Market Environmentalism' Is Working in Montana
aier.org > article...That could be a new car, a set of solar panels, or a piece of land. Even knowing this, though, it never occurred to me that with sufficient investment, a private organization could buy enough land to conserve an entire ecosystem and do so for the benefit of people and wildlife alike.... ...By managing these lands, livestock and wildlife in tandem with neighboring ranchers, the Bureau of Land Management, and the Fish and Wildlife Service, American Prairie is investing in these communities, attracting ecotourism dollars, and bolstering the local economy....
Consumer Sentiment Remained Weak in September
aier.org > article...The final September results from the University of Michigan Surveys of Consumers show overall consumer sentiment was little changed from August and remains at historically low levels (see first chart).... ...Overall, economic risks remain elevated due to the impact of inflation, an aggressive Fed tightening cycle, and continued fallout from the Russian invasion of Ukraine....
Federal and state financial regulatory agencies issue interagency statement on supervisory practices regarding financial institutions affected by Hurricanes Fiona and Ian
federalreserve.gov > pressreleases...Federal Deposit Insurance Corporation. National Credit Union Administration. Office of the Comptroller of the Currency. For release at 1:00 p.m.... ...In cases in which operational challenges persist, the primary federal and/or state regulator will expedite, as appropriate, any request to operate temporary facilities to provide more convenient availability of services to those affected by Hurricanes Fiona and Ian....
Labor Market Remains Tight as Initial Claims Fall Again
aier.org > article...However, continued elevated rates of price increases, an aggressive Fed tightening cycle, and fallout from the Russian invasion of Ukraine represent risks to the economic outlook....
Federal Reserve Board announces that six of the nation's largest banks will participate in a pilot climate scenario analysis exercise designed to enhance the ability of supervisors and firms to measure and manage climate-related financial risks...
federalreserve.gov > pressreleases...Federal Reserve Board announces that six of the nation's largest banks will participate in a pilot climate scenario analysis exercise designed to enhance the ability of supervisors and firms to measure and manage climate-related financial risks. For release at 10:00 a.m.... ...The banks in the pilot exercise are Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo. In coming months, the Board will provide additional details on how the exercise will be conducted and the scenarios that will be used in the pilot....
Made to be Broken?
aier.org > article...Some scholars (Ludwig von Mises, Joseph Schumpeter, Israel Kirzner) highlight the entrepreneur's role as an innovator, a change agent, a market driver, a forecaster of the future, a disruptor of the status quo, or an equilibrator.... ...Why do some rule-breakers transcend institutional constraints while others, like Icarus, come crashing back to earth?. In a recent paper published in the Journal of Business Venturing, David Lucas, Mark Packard, and I decided to relax Baumol's perfection and homogeneity assumptions....