Posted in Economic Issues, Free Society, government incompetence, Government Regulations, Leadership, Liberty, News From Washington, Organizational structure, outcomes measurement, Philosophy, Policy Issues, Prevention, U.S. Constitution, Uncategorized

We Will Regret Not Taking the Economic Effects of Mass Quarantine More Seriously – Reason.com

It won’t be popular to call attention to the possibility that such actions might be an overreaction. But it’s a serious point, even if that sentiment has no hopes of carrying the day.

The federal government botched the early response to coronavirus, so why should we expect it to get its act together now? Whenever we are finally clear of this pandemic, we will need to study our response to understand what we did right and what we did wrong. With a virtually complete halt of the American economy about to begin, we should enter this phase with full awareness that it wasn’t the only choice available to us.

https://reason.com/2020/03/23/we-will-regret-not-taking-the-economic-effects-of-mass-quarantine-more-seriously/

Posted in Bailouts, Dependency, Economic Issues, Entrepreneurs, Free Society, Free-Market, government incompetence, Government Regulations, Government Spending, Government Stimulus, Job loss, Keynesian Economics, Liberty, Organizational structure, Philosophy, Policy Issues, Uncategorized, Unemployment

Focus on People During Economic Crises, Not Macro-Statistics – Foundation for Economic Education

By Mark Hornshaw

“Economics studies human choice under scarcity. Humans must act in the present to provide for the future. Informed choice relies on market data in the form of prices—specific prices for specific things, as we assess various different means to satisfy our ends—that is what economics is about.

Macro-statistics such as GDP and CPI, whether they are rising or falling in the aggregate, do not help much with this vital task. These statistics are compilations of vast amounts of data to come up with averages across entire countries and time-periods. It’s a dilution of the data, not an enhancement.

“What a country wants to make it richer, is never consumption, but production. Where there is the latter, we may be sure that there is no want of the former,” said John Stuart Mill, citing Say’s law.

In a tune of rapid change and disruption, we need prices to do their job more than ever so the entrepreneurial process can work. High prices show which industries to move more resources into, and low prices show which ones to move resources out of to free them up for more urgent uses. From the point of view of consumers, high prices show us what we should cut back on, and low prices show where we can pick up bargains.

This process takes time. Interfering with this process just locks in shortages and surpluses.
So-called “stimulus,” just thrown at “the economy” to increase “aggregate demand” in the abstract, cannot work, when there are supply constraints in some industries and prohibitions in others.

Government policy should be on mending holes in the social safety net, compensating those it has forced out of business and jobs, and reducing the tax and regulatory burden it places on businesses, workers and consumers as they try to adjust.

These are all microeconomic responses to relieve suffering and remove impediments.”

https://fee.org/articles/focus-on-people-during-economic-crises-not-macro-statistics/