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OpenMarket: Morality of Capitalism

  • Virtuous Capitalism, or, Why So Little Rent-Seeking?

    October 20, 2015

    The venerable Fred Smith and I have a new paper out today. Click here to read it. In the paper, we try to solve the Tullock Paradox, named for the late, great economist Gordon Tullock (my remembrance of him is here).

    What is the Tullock Paradox? It involves rent-seeking, or seeking special favors from the government. Bailouts, subsidies, and regulations that prevent competition are all examples of rent-seeking. To provide some context, lobbying is roughly a $3.5 billion industry, and the federal government doles out more than $100 billion in corporate welfare—meaning rent-seeking is potentially a 30-fold investment. Not 30 percent, 30-fold. Meanwhile, the Dow Jones averages an 8 percent return. With such outlandish returns on investment, the Tullock Paradox...

  • Betting on the Future: 25 Years Later

    September 29, 2015

    Today is the 25th anniversary of the famous bet between economist Julian Simon and biologist Paul Ehrlich over the price of five metals: chromium, copper, nickel, tin, and tungsten. The bet has become legendary over the last quarter century because it stands as a proxy for two very different views: one that is optimistic about the future of the world and the ability of human beings to make life better, and one that is profoundly...
  • Free Enterprise: Sometimes We Forget

    September 28, 2015

    When we find ourselves debating specific issues having to do with economics and business, we often forget how overwhelming the evidence is for the superiority free markets in general. Whether it’s our friends at a place liked AEI—“Take a bow, capitalism — nearly 1 billion people have been taken out of extreme poverty in 20 years”—or celebrities like U2 front-man Bono—“Capitalism takes more people out of poverty than aid”—it’s very clear that a free, productive economy brings the prosperity that alternate systems have consistently ...

  • World Bank Increases Number of Poor

    September 25, 2015

    The World Bank is considering changing its definition of what constitutes extreme poverty, raising the level below which someone is treated as extremely poor from $1.25 a day to $1.90 a day. This comes after a long trend of people moving out of the category, leading some to point out that the Bank may have an interest in maintaining high numbers of people defined as poor.

  • A First Look at Markets without Limits

    September 10, 2015

    Georgetown University professors Jason Brennan and Pete Jaworski (left) have a new book out with a fascinating premise: anything that it is morally permissible to do in the absence of...
  • The Government Makes a Terrible Boyfriend

    August 14, 2015

    He’s from the government, and he’s here to help. That’s the comic premise of this summer’s best YouTube video series, “Love Gov,” from the Independent Institute. In this case, though, the protagonist is the government, personified. The story begins when Scott “Gov” Govinsky meets sweet college student Alexis, and quickly takes an interest…in every aspect of her life.

     

     

     

     

     

     

     

    The series has already racked up over 1.5 million views, with positive reviews from fine folks like San Francisco Chronicle columnist Debra Saunders...

  • Mount Vernon Cheers: A Song to Commemorate "I, Whiskey"

    August 13, 2015

    Our Indiegogo campaign for CEI’s new documentary “I Whiskey” is closing soon. So far, we have raised almost $75,000, but it’s not over yet. Please donate now if you haven’t, and if you have, you can always do so again.

    You can get some great souvenir t-shirts from this rewards-based crowdfunding campaign. And CEI is also fighting to legalize equity crowdfunding , so that future entrepreneurs can legally offer profit-sharing from their projects, as well as souvenirs like t-shirts, if they choose to do so. So, this crowdfunding campaign is not just about whiskey, but the future of crowdfunding itself, as well as the future...

  • William Faulkner Said it Best: "Civilization Begins with Distillation"

    August 10, 2015

    A jaunt down Route 151 in Virginia’s Rockfish Valley breathes life into Faulkner’s observation. For decades it was known simply as the valley’s “Main Street”—a stretch of pavement skirting the base of the Blue Ridge winding through small towns named Greenfield or Nellysford. Then things changed. What started with a single vineyard has transformed the Rockfish Valley Highway from a sleepy thoroughfare into what locals now call “Alcohol Alley,” reflecting the presence of wineries, breweries, distilleries, and even a cidery. With fermentation came opportunity, prosperity, and an improved community. Today, visitors from all walks of life flock to the region to enjoy what nature has to offer (including nature’s other offerings of hiking, fishing and skiing).

    Making whiskey is but one piece of the Great Story of Spirits. The Big Picture is the story of incremental progress, of...

  • Why Thieves Hate Free Markets

    August 4, 2015

    Don Boudreaux over at Café Hayek has just given a 2015 boost to a smart 2012 video from Learn Liberty on social cooperation in a free society. It’s worth spending another 3 minutes with, even if you’re one of the 1,394,608 people who have already seen it.

    In this video, Prof. Aeon Skoble of Bridgewater State University highlights one of my favorite themes: a market economy involves not only economic competition, but also an impressive degree of voluntary cooperation, even between entities one would assume to be direct rivals.

    For more great videos, check out...

  • Bastiat Society Rallies Business Leaders Together

    July 27, 2015

    My venerable colleague Fred Smith and I just returned from the Hoosier State, where we were honored to be guests of the Indianapolis chapter of the Bastiat Society. Our event featured a few dozen local business leaders: executives, attorneys, and entrepreneurs, as well as a few elected officials. We all gathered to discuss the role that businesspeople can play in defending the free market and reviving an appreciation for the virtues of capitalism.

    It may be surprising to some, but not every business owner is a Hayek-quoting ideologue who has a photo of Ayn Rand on his desk. The majority are focused overwhelmingly on their customers, employees, and the day-to-day work of running their company. We have found that most business people spend very little time on politics in general,...

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