There are fundamental facts about the nature of the world we live in which are unalterable by human desire or action. Conservation laws are an example of this. You cannot get something for nothing, on the aggregate. Certainly, A can… Read More ›
Economics
On Taxes and the Nature of the Government of a Society of Morons — Part 1
Death and Taxes In 1789 Benjamin Franklin wrote that “in this world nothing can be said to be certain, except death and taxes.” I beg to differ. Unlike the certainty of death which is imposed by nature, taxes are entirely man-made… Read More ›
Economic Principles and Immunity from Silly Ideas
A reasonable way to think about any subject — science, engineering, technology, economics, etc etc — is to base the analysis on fundamental principles. It’s like using maths, starting with axioms and logically deriving theorems that can then be said… Read More ›
Understanding Economics is Easy
In the previous post “Economics and Physics” I briefly explored why the basic explanations of physics are hard to understand and why the basic explanations of economics are easy to understand. Physics is called a “hard science”. I believe it… Read More ›
Economics and Physics
Physics is Not Logical Nobel Prize winning New Zealand physicist Ernest Rutherford (1871 – 1937) is reported to have claimed that “all science is either physics or stamp collecting.” He evidently meant that physics is the only real science and everything… Read More ›
The Wealth of Nations — Part 4: What’s Wealth?
Most people would readily identify a heap of gold ingots as wealth. But a moment’s reflection is enough to conclude that what can be considered wealth depends on the context. Imagine Robinson Crusoe alone on his otherwise uninhabited island coming across… Read More ›
The Wealth of Nations — Part 3: How Rich was India
The persistence of the canard that India was once a rich country is understandable. A quick glance at the simple graph illustrates very clearly why it is easy to conclude that India was rich. This piece has loads of graphics… Read More ›
The Wealth of Nations — Part 2: Freedom
If you ask me what are the necessary causes of the wealth of nations, I will answer — having spent decades learning about and pondering that question — in just one word: Freedom! Freedom is the sweetest word I… Read More ›
The Demand and Supply of Fines and Corruption
A comment on the last piece prompts this tiny lesson in microeconomics. “Corruption is one big pain point in the economic growth of a country. I have this funny idea but would like your inputs from an economists perspective. If… Read More ›
The Wealth of Nations — Part 1
In his 2016 annual letter (pdf, 28 pp) to the shareholders of Berkshire Hathaway, Warren Buffett makes this observation about America’s economic dynamism. “One word sums up our country’s achievements: miraculous. From a standing start 240 years ago – a… Read More ›
