Archive | November, 2014

On “Economies of Scale” and Other Magical Incantations

This is a provocative and compelling piece. It challenges the established dogma of economies of scale and makes a case for the economic competitiveness of the small-scale entrepreneur that is demand-responsive rather than the large-overhead producer that produces without regard to preexisting demand.

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Why Zero Interest Rates Can Never Work

Setting interest rates artificially low causes the demand for credit to surge, while the supply of credit falls, resulting in a shortage of real loans. The only sound remedy to this is to let interest rates rise to their market-determined level or face economic disaster.