Böhm-Bawerk for the Citizen

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Böhm-Bawerk for the Citizen

Economics is often considered the dismal science. To the average person it appears dry and boring but this should not be the case. While economics is not as dismal as it is often portrayed, it is not something the average person must learn. As Murray Rothbard once said,

It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most people consider to be a “dismal science.” But it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance.

In the current world, however, there are fewer excuses for not familiarizing ourselves with economics. This is because, as Peter Boettke often says, while economics is a deadly serious subject, it can explain in simple terms the world around us. Issues such as inflation, the financial crisis, unemployment, unionism, protectionism, taxation, the war on terror, the war on drugs, and more are all tied in with economics and our everyday lives. And as Ludwig von Mises said,

A man who talks about these problems without having acquainted himself with the fundamental ideas of economic theory is simply a babbler who parrot-like repeats what he has picked up incidentally from other fellows who are not better informed than he himself.

In today’s document Mises explains Capital and Interest should be read not only be professional economists, but also by the average person. Capital and Interest is a technical work, but as Mises put it,

Although Böhm-Bawerk’s great opus is “mere theory” and abstains from any practical application, it is the most powerful intellectual weapon in the great struggle of the Western way of life against the destruction of Soviet barbarism.

While our current threats may no longer include Soviet barbarism, technical works in economics are important for any concerned citizen hoping to sound off on our current issues in an informed and intelligent manner. While Capital and Interest may not be the most exciting book on economics it is important and insightful.

Download Mises Review of Böhm-Bawerk’s Capital and Interest here.

Daniel J. SmithSent via mobile phone
Assistant Professor of Economics
Manuel H. Johnson Center for Political Economy
137 Bibb Graves Hall
Troy University
Phone: 334-808-6485
Email: smith.dan.j
Website: http://www.danieljosephsmith.com

Gary Johnson | Marijuana | Newt Gingrich | Hypocrisy | The Daily Caller

http://dailycaller.com/2012/01/23/gary-johnson-hammers-newt-for-hypocrisy-on-executing-marijuana-users/

Daniel J. Smith
Sent via mobile phone
Assistant Professor of Economics
Manuel H. Johnson Center for Political Economy
137 Bibb Graves Hall
Troy University
Phone: 334-808-6485
Email: smith.dan.j@gmail.com
Website: http://www.danieljosephsmith.com

How U.S. Lost Out on iPhone Work

http://www.nytimes.com/2012/01/22/business/apple-america-and-a-squeezed-middle-class.html?pagewanted=1&_r=1

Is the middle class shrinking?

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Is the middle class shrinking?

From the excellent Scott Winship:

Krueger’s claim of a shrinking middle class relies on the same peculiar definition. Specifically, “middle class” is defined as having a household income at least half of median income but no more than 1.5 times the median. I re-ran the numbers using the same definition and data source as Krueger and found that the entire reason the middle class has “shrunk” is that more households today have incomes that put them above middle class. That’s right, the share of households with income that puts them in the middle class or higher was 76 percent in 1970 and 75 percent in 2010—two figures that are statistically indistinguishable. For that matter, I am not discovering fire here; Third Way made the same point in early 2007 (page 7). A shrinking middle class is only a problem if it reflects fewer people reaching the middle class.

The post is excellent throughout and it contains many more points of interest.

Daniel J. SmithSent via mobile phone
Assistant Professor of Economics
Manuel H. Johnson Center for Political Economy
137 Bibb Graves Hall
Troy University
Phone: 334-808-6485
Email: smith.dan.j
Website: http://www.danieljosephsmith.com

Top 500 U.S. Manufacturing Firms Had 2011 Sales of $5 Trillion, Almost As Much as Japan’s GDP

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Top 500 U.S. Manufacturing Firms Had 2011 Sales of $5 Trillion, Almost As Much as Japan’s GDP

IndustryWeek recently released its annual ranking of the 500 largest publicly held U.S. manufacturing companies in 2011 based on sales revenue, and the top ten U.S. manufacturing industries are displayed above. Here are some factoids:

1. The combined sales revenue (including global sales) of the top 500 U.S.-based manufacturing for 2011 was $5.13 trillion, which was a 12.75% increase over 2010 sales of $4.55 trillion. To put it in perspective, that amount of annual revenue ($5.13 trillion) of the 500 largest U.S.-based manufacturing companies was almost as much as the $5.8 trillion of GDP for the entire economy of Japan in 2011 (world’s third largest economy).

2. The sales revenue from the top ten manufacturing industries totaled $4.13 trillion in 2011 (see chart above), which was more than Germany’s entire GDP of $3.6 trillion last year.

Daniel J. SmithSent via mobile phone
Assistant Professor of Economics
Manuel H. Johnson Center for Political Economy
137 Bibb Graves Hall
Troy University
Phone: 334-808-6485
Email: smith.dan.j
Website: http://www.danieljosephsmith.com