Economics in One Lesson (Auburn 2010)

Modern Banking: Creating Booms and Busts

Douglas E. French — Sat, 20 Nov 2010 00:00:00 -0600

Deposit banking rests on the bank honoring property rights. Loan banking rests on making good loans that will pay off. But when loan banking and deposit banking merged, the temptation to loan out much more than was actually in the bank arose. Deposits stopped being treated as a bailment. Fractionalized banking is illegal and dishonest under the command of a central bank - the Federal Reserve -that holds a monopoly cartel in money, banking and credit. The Fed's explosive expansion of credit and the money supply is the cause of all booms which eventually require busts to liquidate the malinvestments made in the booms.

Recorded at the Mises Institute on Friday, 19 November 2010. Sponsored by Anastasia Thiele.

The Division of Labor

Robert P. Murphy — Sat, 20 Nov 2010 00:00:00 -0600

Instead of each person doing all of the work creating what he needs and wants, dividing the labor amongst all of us into specialties is clearly superior by increasing the productivity of labor. Then people trade their surpluses with each other in the market economy. No trade barriers anywhere should be allowed to limit this division of labor.

Recorded at the Mises Institute on Friday, 19 November 2010. Sponsored by Anastasia Thiele.

Why Does Economics Matter?

Mark Thornton — Sat, 20 Nov 2010 00:00:00 -0600

Austrian economists differ from mainstream economists mainly in this way: they do not rely on mathematical models, but on understanding what causes success or failure in the real world. Opportunity costs determine the choices people make.

Recorded at the Mises Institute on Friday, 19 November 2010. Sponsored by Anastasia Thiele.

How to Improve Society

Jeffrey A. Tucker — Sat, 20 Nov 2010 00:00:00 -0600

The Gilded Age ushered in industrial leaders in capitalistic achievement. Success in the world of commerce reflected certain characteristics: stay in touch with the real world, work every job you can, forget about money, focus on the task at hand, surround yourself with smart good people, find the niche that others are missing, improve the world on the margin, don't plan, never delay, compete but don't seek to destroy, serve others, stay as far away from politics as possible. Remain in your own framework of freedom.

Recorded at the Mises Institute on Friday, 19 November 2010. Sponsored by Anastasia Thiele.

Business and Economic Change

Matthew McCaffrey — Sat, 20 Nov 2010 00:00:00 -0600

Profit and loss is the heart of business and economic change. Entrepreneurs drive the market at every level, predicting future wants and taking risks with their property. Earning profits is never guaranteed. Bankruptcy puts resources to better use under new management. Bailing out failing businesses creates moral hazards that rewards bad behaviors and prevents the market from experiencing the beneficial effects of business losses.

Recorded at the Mises Institute on Friday, 19 November 2010. Sponsored by Anastasia Thiele.