Today’s Links: January 13, 2012

OPINION

PETER BOETTKE: “Austrian Economics”
“Analytically, the biggest difference between the Austrians and their mainstream brethren is a focus on processes of adjustment and changing conditions, as opposed to static or equilibrium states of affairs. In a supply and demand curve, a standard economist would focus on the price and quantity vector that would clear the market. The Austrians want to talk about all the exchanges and activity that take place that results in that vector being discovered and the market being cleared.”

ELIZABETH MACDONALD: “Buffett Picks the Wrong Fight–Again”
“The billionaire is now taking up the GOP’s challenge to pay more out of his own pocket to cut the deficit — but he wants the GOP to match his donations. Is this a hollow offer? And does it miss a bigger point about taxes and deficit spending? The billionaire is now offering to donate $1 towards paying down the national debt for every dollar donated by a Republican in Congress, according to the latest issue of Time magazine. And Buffett says he would donate $3 for every $1 Senate Republican leader Mitch McConnell gives.”

R. PETE VANDERVEEN: “Pharmacists’ Role in Health Reform”
“Spending on prescription medicines in the U.S. annually amounts to $301 billion, about 10 percent of the nation’s total health care tab. But almost as much — $290 billion — is spent each year dealing with the medical effects of Americans not taking their drugs correctly, according to the New England Healthcare Institute. Getting patients to comply with their prescriptions could significantly cut health care costs.”

NEWS

FED – Fed’s Image Tarnished by Newly Released Documents
“On Thursday, the Fed released transcripts of its meetings in 2006, offering a new window into what was on the minds of some of the nation’s top economic and financial thinkers just ahead of the financial crisis and subsequent great recession. The transcripts, which are customarily released after five years, show that Fed leaders, armed with the best economic data available, had little idea of what was looming less than two years off.”

MARKET – Consumer Sentiment Jumps to Highest Level Since May
“U.S. stocks held losses on Friday despite data showing consumer sentiment rose to the highest level in eight months.”

MEDICAL MARIJUANA – Feds Crack Down on Colorado Medical Pot Dispensaries
“Federal prosecutors in Colorado launched a crackdown on Thursday against nearly two dozen medical marijuana dispensaries located within 1,000 feet of schools, giving the proprietors 45 days to cease operations or face civil and criminal penalties.”