A Policy Solution to Fix Inequality and Boost GDP

Andrew Biggs of AEI has a piece up today at Forbes addressing the gender pay gap and provides a neat solution: “forbid women from staying at home with their children.” As Biggs points out, such a policy would address perhaps the greatest root cause of gender pay inequality: varied work experience attributable to choices women make. Continue Reading...

Are We Better Off If We Buy Local?

Does spending more money locally keep money in the community, creating jobs and improving the economic situation of our immediate neighbors? Probably not. Economist Don Boudreaux shows that if we bought everything because it was “local” (rather than because it was the best product or service) we would just be voluntarily making ourselves poorer. Continue Reading...

A Simple Tool for Measuring Economic Well-Being

Is the average American better off today economically than they were 4 years ago? What about 40 years ago? How would you go about answering those questions? In this video economist Alex Tabarrok explains the difference between nominal and real GDP and shows us a simple tool that can help us determine if our economic well-being as a nation is increasing or decreasing. Continue Reading...

Why Edmund Burke Supported Free Trade

The Republican Party is fracturing on the topic of trade. Alas, in the same corners where free and open exchange was once embraced as a propeller for economic growth and dynamism, protectionism is starting to stick. Continue Reading...

10 Things You Should Know About the Minimum Wage Debate

Since 1938, when President Franklin Delano Roosevelt introduced the first federal minimum wage in the U.S., a debate has raged about whether wage floors help or hurt workers. But thanks to a radical economic experiment in California, we may be only a few years away from having a definitive answer. Continue Reading...