Since the dismantling of the convertibility regime, the value of the Argentine peso has fallen from one US dollar to a tenth of a penny. Argentines have taken the hint, stockpiling an estimated $265 billion in dollar cash and foreign bank deposits and shunning the peso. A proposal by presidential contender Javier Milei to make the switch from pesos to dollars official would seem to be an obvious next step. But whenever dollarization is suggested in policy circles, a litany of technical-sounding excuses is offered in opposition. These excuses are feeble and irrelevant and should …
Moody’s Puts U.S. Government’s Last AAA Credit Score in Jeopardy
On Friday, November 10, 2023, Moody’s Investors Service sent Washington, D.C.’s politicians and bureaucrats a clear warning. The credit rating service announced it was changing its outlook on its AAA credit rating for the U.S. government from “stable” to “negative.” That statement is a proverbial shot across the bow. It means the U.S. government is now at high risk of losing its top credit rating status. It is already two-thirds of the way there, following Standard & Poor’s downgrade of the U.S. government’s credit rating in 2011 and Fitch Rating’s downgrade this past summer. Both credit grading services stripped the U.S. …
Total Interest on National Debt Approaching $1 Trillion
The total amount of interest the U.S. government pays on its public debt outstanding over the past year may have just crossed the one trillion-dollar mark. That’s the word from BNN Bloomberg‘s Ruth Carson and Mark Cudmore, who have been crunching numbers to arrive at that gross estimate: Estimated annualized interest payments on the US government debt pile climbed past $1 trillion at the end of last month, Bloomberg analysis shows. That projected amount has doubled in the past 19 months from the equivalent figure forecast around the time. The estimated interest expense is calculated using US Treasury data which …
Buttigieg’s Transportation Secretary Salary Slashed to $1
The House of Representatives has approved a measure to slash the $235,600 salary of Transportation Secretary Pete Buttigieg to one dollar. Taxpayers might wonder what could prompt the House to take such action. As we noted last December, Secretary Buttigieg took at least 18 trips on private jets funded by taxpayers, including a trip to Montreal, Canada, to receive an award. The Secretary, who wants more government action to curb carbon emissions, favors the Cessna 560XL Gulfstream IV, which contributes its fair share. During a severe supply-chain crisis, Secretary Buttigieg took a two-month “maternity leave” and claimed that supply, demand, …
Pandemic Boat Market Economics
By now, many, if not most, people are aware of rising home prices nationwide since the COVID-19 Pandemic. These higher prices have pushed homeownership beyond the reach of many households. Many of the same factors that drove home prices up also seem to have affected the market for sail and motor boats as a surge in demand led to widespread purchases of “pandemic boats.” Pandemic Economics In the home market, real estate experts attribute much of the rise in home prices to lower interest rates and rising savings. Lockdowns, forced business closures, and other limits on our …
Biden’s New AI Executive Order Will Harm Consumers
Unsurprisingly, the Biden administration is trying to capitalize on the popularity of artificial intelligence (AI). First, with its AI Bill of Rights and now with an executive order establishing regulations on AI developers. It even comes with a website! How useful and convenient, right? Unfortunately, this recent action is neither useful nor convenient. If they really wanted to foster the development of AI in a way that benefits consumers, they would leave it be, allowing AI companies to make their own business decisions. However, an unregulated market does not sit well with Biden’s constituents. “The state of AI is …
Stop Mandatory Time Changes
Hundreds of millions of Americans suffer the effects of being forced to move the hands of their clocks back or forth by an hour every year. Daylight saving time ends in the wee hours of Sunday, November 6, except for the residents of Arizona, Hawaii, and the outlying U.S. territories, where people avoid the hassle by remaining on standard time year-round. The return to standard time (until early March 2024, a mere four months from now) will reset our body clocks (circadian rhythms) to their proper places. As physiological research teaches, body clocks and sleep …
San Francisco Police Wheel Out Bait Cars, But Do They Reduce Vehicle Thefts?
A 2023 headline in the San Francisco Standard asked, “Why is San Francisco Called Bip City?” Reminiscent of Portland, Oregon’s “Rip City” NBA basketball moniker, “Bip City” stems from the slang term “bipping,” which refers to breaking into cars. So common are auto burglaries and smash-and-grabs in San Francisco that those crimes have become synonymous with the city. Police are optimistic, however, that bait cars will help combat the problem. But only time will tell if San Francisco’s bait cars will be effective. Research results are mixed, at best. In August, the San Francisco Police …
From Controversy to New Opportunities: Jordan Peterson’s Quest for Open Dialogue
“If all mankind minus one were of one opinion, and only one person were of the contrary opinion, mankind would be no more justified in silencing that one person, than he, if he had the power, would be justified in silencing mankind.” John Stuart Mill. An Ontario court, presided over by Justice Paul Schabas, recently ruled on the mandatory re-education ordered by the College of Psychologists for Jordan Peterson. Justice Schabas expressed the view that this re-education did not infringe upon Peterson’s rights, as it primarily aimed to address concerns regarding the use of degrading …
How Do Your Kids Create Wealth by Trading Halloween Candy?
We spent a lovely evening with friends last night, enjoying a lovely dinner of baked potatoes with homemade chili garnished with bits d’bacon and locally-sourced shredded cheddar—the nearest Target isn’t that far, after all—and served with a sour cream reduction. Even the kids, who had gathered in the downstairs playroom to trade Halloween candy, liked it. And trade they did. I listened in occasionally and it sounded like the commodities exchange scene from Trading Places. At one point, I heard a price that almost made me drive to the grocery store to buy candy so I could get …
The Smoke and Mirrors of Government Spending in 2023
When the Treasury Department released its final monthly statement for the U.S. government’s 2023 fiscal year, it reported the government’s budget deficit was $1.695 trillion. That is an increase of $320 billion from the deficit of $1.375 trillion it reported at the end of its 2022 fiscal year. The Treasury also reported the U.S. government’s total spending fell from $6.27 trillion to $6.13 trillion from FY 2022 to FY 2023. A number of nonpartisan budget analysts, however, are crying foul at this part of the Treasury’s accounting. The Committee for a Responsible Federal Budget identifies the smoke-and-mirrors they say obscures the accurate picture …
Do Shortages Signal the Fragility of Free Trade?
The COVID-19 pandemic gave us, among other evils, the bizarre spectacle of bipartisan calls for protectionist measures. In 2020, as the world reacted to the COVID-19 pandemic, shortages of key supplies quickly developed. Medical necessities such as personal protective equipment (PPE), inputs for various drugs, hand sanitizer, wipes, and even common household items like toilet paper disappeared from shelves and left consumers scrambling. The presence of these shortages became a bipartisan rallying cry for protectionism. Republican Senator J.D. Vance blamed a shortage of amoxicillin (a common treatment for ear infections) on free trade and has used it …
